Business Forecasting

799 views

Published on

Business Forecasting

Published in: Business
0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
799
On SlideShare
0
From Embeds
0
Number of Embeds
7
Actions
Shares
0
Downloads
29
Comments
0
Likes
1
Embeds 0
No embeds

No notes for slide

Business Forecasting

  1. 1. Business Forecasting
  2. 2. Business Forecasting
  3. 3. Business Forecasting
  4. 4. Business Forecasting <ul><li>Used to try to predict the future </li></ul><ul><li>Uses two main methods: </li></ul><ul><li>Qualitative – seeking opinions on which to base decision making </li></ul><ul><ul><li>Consumer panels, focus groups, etc </li></ul></ul><ul><li>Quantitative – using statistical data to help inform decision making </li></ul><ul><ul><li>Identifying trends </li></ul></ul><ul><ul><li>Moving averages – seasonal, cyclical, random </li></ul></ul><ul><ul><li>Extrapolation - simple </li></ul></ul>
  5. 5. Business Forecasting <ul><li>Some businesses use alternative methods: </li></ul><ul><li>Astrologers! </li></ul><ul><li>Is such a strategy any better or worse than using quantitative or qualitative methods? </li></ul>
  6. 6. Business Forecasting
  7. 7. Business Forecasting <ul><li>Costs and Benefits of Forecasting: </li></ul><ul><li>Benefits: </li></ul><ul><ul><li>Aids decision making </li></ul></ul><ul><ul><li>Informs planning and resource allocation decisions </li></ul></ul><ul><ul><li>If data is of high quality, can be accurate </li></ul></ul>
  8. 8. Business Forecasting <ul><li>Costs: </li></ul><ul><ul><li>Data not always reliable or accurate </li></ul></ul><ul><ul><li>Data may be out of date </li></ul></ul><ul><ul><li>The past is not always a guide to the future </li></ul></ul><ul><ul><li>Qualitative data may be influenced by peer pressure </li></ul></ul><ul><ul><li>Difficulty of coping with changes to external factors out of the business’s control – e.g. economic policy, political developments (9/11?), natural disasters – hurricanes, earthquakes, etc. </li></ul></ul>

×