Case 6 ; Highline Financial Services.

Highline Financial Services provides three categories of financial services to its clients. Freddie Mack, the
managing partner is getting ready to prepare financial and personnel hiring or laying off plans for the
coming year. The partner is a bit perplexed by reading the printout he obtained which shows the
oscillating demand for the three categories of financial services his company offers.

The printout showed the oscillating demand of the three financial services over the past eight quarters.

Year Quarter Service A Service B Service C

1 1 60 95 93
2 45 85 90
3 100 92 110
4 75 65 90
2 1 72 85 102
2 51 85 102
3 112 85 110
4 85 50 100

What general observations can you make regarding the demand ?

Demand is affected by many factors, some of the factors are like;

 The income of consumer

 Quality of good or service
 Substitutes
 Complements
 Expectations
 Advertising.

The printout that Freddie got had demand variations between the three financial services provided by
Highline Financial Services. It shows the changes in demands for the last 8 quarters. After slight analysis
of the information provided above, we can see that;

The demand for Service Category A shifts down or up almost consistently in the last eight quarters. If
looked at closely it seems like a pattern change in demand, which can be forecasted using the right
tools. The demand for Service Category B also shifts demand every quarter, but the shifts aren’t as big as
compared to Service A. The category B is relatively better in demand than service category A. The
demand for Service Category C is relatively higher than those of categories A and B. The shifts in demand
for category C aren’t as big as compared to those of category A and B, the demand is also higher and
constant also.

Comparing these three services, category A has volatile demand shifting every quarter. Category B has a
relatively stable and higher demand when compared to category A. Category C has the relatively highest
demand, and the demand trends are also relatively constant/stable.

Should Freddie have any concerns ?

The shifts in demand are not something of concern, Freddie can use the right tools and get properly
estimated forecasts for the upcoming months. This way his company can be prepared, and can also
work in way to change or fix whatever is causing the shifts in demand.

Overall, despite the shifts in demand the companies services has demand. The services provided are
successful. Only something to manage the demand fluctuations for category service A is something to
look into.