QUANTITATIVE TECHNIQUES FOR MANAGEMENT

APPLICATIONS

ASSIGNMENT
ON

Akron Zoological Park

Revenue Generation and Cost Management

SUBMITTED BY: KUNAL KAUSHAL

SAP ID: 500125272
Introduction:
1. Provide a brief overview of the Akron Zoological Park and the challenges it
faced in the late 1980s.
Akron Zoological Park is the organization that manages the Akron Children’s Zoo
for the children. This is home to over thousands animals representing over
hundred different species The zoo is the most visited attraction.
During the1980s, Akron's tire industry experienced losses, because of Lagging
attendance and a low level of memberships. Faced with uncertain prospects of
continuing, the Akron opted out of the zoo business. And result in the Akron
almost permanently closed. After that the Akron Zoological Park was organized as
a corporation to contract with the city to operate the zoo.

2. Highlight the importance of revenue generation and cost management for

the zoo's continued existence.
Revenue and costs are the most important factors in determining the success of
an organization. The revenue of the organization may be high, but if the costs are
high, it will not show any profit. Therefore, it is very important to calculate
revenue generation and cost management to continue supporting the zoo.

Factors Influencing Attendance:

3. Analyze the factors that affect the zoo's attendance, such as changes in
consumer preferences, inflation, and governmental priorities.
Below factors may affect the zoo’s attendance:
a. Behavior of the zoo’s staff.
b. Lack of facilities may affect the attendance.
c. Lack of species.
d. Timing
e. Price
 4. Discuss the significance of maintaining a quality image through clean and
well-cared-for animals, new exhibits, and activities.
Maintaining a quality image is very important:
a. Quality creates ecofriendly environment - healthy environment. Ex-
Cleaning, proper sheltering, healthy and tested food for animals, proper
area like playground for animals.
b. Cleaning and caring of animals help to increase their life.
c. Exhibitions attracts more audience and helps them to know more about the
different-different species.
d. It increases the volume of visitors.

5. Examine the impact of weather variations on attendance and the zoo's

seasonal operating schedule
Visits are redistributed over time according to the season. Tourists discouraged by
rainy weather one day come later when the weather improves. Otherwise, visitor
behavior is mainly influenced by the annual rhythm of the year and the pattern of
public and school holidays.

Revenue Generation:
6. Explain the sources of revenue for the Akron Zoological Park.
Akron zoological park is a nonprofit organization and hence its sources of income
equal or exceed its operating and physical plant costs. The Akron Zoological
Park generates revenue from the following sources.
a. Donation
b. Entry Fee
c. Membership Fee
d. Events
e. Merchandising sales via gifts shops and food shops.
 7. Discuss the importance of community support and the zoo's reputation as
an innovative community resource in attracting visitors.
Community support zoo in many ways like donations. Community support helps in
maintaining reputation and value. Helps to bring more visitors. Support through
its membership. Community creates an ownership sense.
Innovation maintains reputation and value of the zoo’s. Innovative culture attracts
more visitors who seek unique and educational experiences

8. Evaluate the effectiveness of the zoo's marketing and promotional

strategies, considering its reliance on public service announcements,
television series, and local press coverage.
Public service announcements: are very effective way to raise awareness about
zoo.
Television series: is an effective marketing tool. These series help to show the
routine life of animals playing in the zoo. So, this attract more audience to visit in
zoo.
Local press coverage: helps to spread positive news, stories, and motivate
audience to visit the zoo.

Cost Management:
9. Outline the cost management practices implemented by the zoo.
The Akron Zoological Park practices cost management practices in the following
ways:
Prepare annual budget to maintain and control expenses.
Implementing energy efficient technologies to reduce utility costs, water
conservation sources.
Maintenance regular of infrastructure, animal habitats to prevent repair cost.
Conservation incorporating practices to reduce disposal waste cost.
 10. Discuss the importance of aligning income sources with operating and
physical plant costs.
Aligning income source with all operating and plant cost is very important to
know about the financial sustainability of the zoo’s.
This will help to know about the annual income and the total expenses throughout
the year. This will also help zoo in planning and managing finance structure.
So, from this the zoo should to cover its operational costs, including salaries and
all other expenses like the maintenance cost from the income.

11. Analyze the challenges faced by the zoo in reducing expenses while
ensuring its continued existence as a non-profit organization.
There may be many challenges as follows:
a. Zoo’s life (animal welfare and educational initiatives) should not be affected
when reduce cost.
b. Reducing expenses should not affect to maintain operations and financial
goals.
c. Challenges to maintain surplus funds in account.
d. Dependency on donor will increase.

Financial Performance

Annual Attendence at the Akron Zoological Park

Admission Fee($)
Total
Year Adult Child Group
Persons
1998 117874 4.00 2.50 1.50
1997 125363 3.00 2.00 1.00
1996 126853 3.00 2.00 1.50
1995 108363 2.50 1.50 1.00
1994 133762 2.50 1.50 1.00
1993 95504 2.00 1.00 0.50
 1992 63034 1.50 0.75 0.50
1991 63853 1.50 0.75 0.50
1990 61417 1.50 0.75 0.50
1989 53353 1.50 0.75 0.50
12. Analyze the growth in attendance and revenue over the years, as indicated
in the provided table

Total Persons
160000
140000
120000
100000
80000
60000
40000
20000
0
1988 1990 1992 1994 1996 1998 2000

13. Evaluate the zoo's ability to achieve its target goal of attracting 40% of its
community annually.
Annual Attendence at the Akron Zoological Park
Admission Fee($)
Total
Grwot Adu Chil Grou
Year Perso
h% lt d p
ns
11787 2.5
-5.97 1998 4.00 1.50
4 0
12536 2.0
-1.17 1997 3.00 1.00
3 0
12685 2.0
17.06 1996 3.00 1.50
3 0
10836 1.5
-18.99 1995 2.50 1.00
3 0
13376 1.5
40.06 1994 2.50 1.00
2 0
1.0
51.51 1993 95504 2.00 0.50
0
0.7
-1.28 1992 63034 1.50 0.50
5
3.97 1991 63853 1.50 0.7 0.50
 5
0.7
15.11 1990 61417 1.50 0.50
5
0.7
1989 53353 1.50 0.50
5

Maximum 40.06 % growth rate achieved in year 1994 with highest down % 18.99
in year 1995.
Growth % of each year from the previous year is shown in fig. above.

14.Discuss the significance of maintaining a balanced financial performance

for the sustainability of the Akron Zoological Park.
Maintaining a balanced financial performance for the sustainability of the Akron
Zoological Park is very much important for the below following reasons:
A balanced budget ensure that the zoo can cover its all expenses like staff salaries,
animal care, without failure.
A balanced financial performance allows the zoo to utilize fund to maintenance,
educational programs, to conserve species.
It helps in maintaining strong economic.
Also helps in maintaining long term viability performance.
15. Summarize the key points discussed in the assignment, including the
factors influencing attendance, revenue generation strategies, and cost
management practices.
In this assignment, we have studied below following topics:
a. Factors influencing the zoological parks attendance i.e. quality, animal care,
exhibitions, weather impact on attendance.
b. Revenue generation strategies i.e. admission fee, membership, donations,
merchandise sales, services, marketing, advertising via television, local
press.
c. Cost management practices i.e. budgeting – income and the expenses,
challenges in reducing expenses.
 16. Emphasize the importance of effective revenue generation and cost
management for the long-term success and sustainability of the zoo.
Financial Stability, stable financial operations.
Wildlife conservation programs and education providing resources.
Balance financial performance
Resilience against economic fluctuations without failure.
Regards-
Kunal Kaushal