Business Forecasting

Business Forecasting .

Business Forecasting .

focus groups. cyclical.Business Forecasting • Used to try to predict the future • Uses two main methods: • Qualitative – seeking opinions on which to base decision making – Consumer panels. random – Extrapolation . etc • Quantitative – using statistical data to help inform decision making – Identifying trends – Moving averages – seasonal.simple .

Business Forecasting • Some businesses use alternative methods: • Astrologers! • Is such a strategy any better or worse than using quantitative or qualitative methods? .

Business Forecasting .

Business Forecasting • Costs and Benefits of Forecasting: • Benefits: – Aids decision making – Informs planning and resource allocation decisions – If data is of high quality. can be accurate .

economic policy. earthquakes. .Business Forecasting • Costs: – – – – Data not always reliable or accurate Data may be out of date The past is not always a guide to the future Qualitative data may be influenced by peer pressure – Difficulty of coping with changes to external factors out of the business’s control – e.g. political developments (9/11?). etc. natural disasters – hurricanes.

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