Forecasting Methods And Techniques For Planning For Upcoming Business Events

946 Words Dec 15th, 2015 4 Pages
Organizations incorporate forecasting methods and techniques to plan for upcoming business events and predict what is most likely going to happen in the future. They study, analyze, and interpret data and recent trends to help support their future predictions. Organizations have the decision to either participate in qualitative forecasting or quantitative forecasting. Some firms are unable to access past data and can solely rely on opinions and judgment, so they pursue qualitative forecasting methods. Survey techniques, opinion polls, and the Delphi method are three common qualitative forecasting methods. These types of forecasting methods are subjective in nature, as organizations fully understand consumer preferences will not remain consistent. On the other hand, quantitative forecasting involves the presence of historical data and the assumption of consistent data trends in the future. The two popular quantitative forecasting methods include the explanatory methods and time-series methods. These two methods strictly focus on past data and interpret past observations to better understand why data trends are moving in their respective directions. Lastly, it is imperative organizations study the moves of other companies in their respective industries and conclude if the forecasting investment was worth the time and money. Forecasting ultimately benefits businesses in decision-making, planning, and budgeting. Forecasting is heavily dependent on the company’s ability to make…

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