Highline Financial Services, Ltd.
Highline Financial Services provides three categories of service toits clients. Managing partner Freddie Mack is getting ready to preparefinancial and personnel hiring (or layoff) plans for the comingyear. He is a bit perplexed by the following printout he obtained, which seems to show oscillating demand for the three categories of services over the past eight quarters:
Service:
-------------------------------------------------------
Year Quarter A B C
-----------------------------------------------------------------
1 60 95 93
2 45 85 90
3 100 92 110
4 75 65 90
SERVICE:
-------------------------------------------------------------------
Year Quarter A B C
-------------------------------------------------------------------
2 1 72 85 102
2 51 75 75
3 112 85 110
4 85 50 100
Examine the demand that this company has experienced for thethree categories of service it offers over the preceding two years. Assuming nothing changes in terms of advertising or promotion,and competition doesn’t change, predict demand for the servicesthe company offers for the next four quarters. Note that there arenot enough data to develop seasonal relatives. Nonetheless, youshould be able to make reasonably good, approximate intuitiveestimates of demand. What general observations can you makeregarding demand? Should Freddie have any concerns? Explain.