Marketing Forecasting : Business Forecasting

2191 Words9 Pages
Running head: BUSINESS FORECASTING 1 BUSINESS FORECASTING 9 Business Forecasting Name Institutional affiliation Date Business Forecasting Background of the situation A lot of people view the world as consisting of a large number of alternatives. Researching for their future evolved as a way of looking at the alternative futures and identifying the most suitable future. Business forecasting, is a process designed to assist in decision making as well as planning. The situation at EBBD being a logistics and distribution entity is that there are…show more content…
First, there is no way that we can state what the future will be with complete certainty. Regardless of the methods that we use for forecasting there will always be an element of uncertainty until the forecast comes to pass (Ord & Fildes, 2013) . Second, there will always be blind spots in forecasts. For example, we cannot forecast completely new technologies for which there is no existing pattern or model. Third, providing forecasts to policy makers will help them formulate social policy. The new social policy in turn will affect the future, thus changing the accuracy of the forecast. Forecasting on trend analysis identifies and maps past and present experiences along the path of change that is travelled, and when extrapolated, forecasts a likely heading for the future. (Ord & Fildes, 2013). Trend forecasts are also based upon the assumption that the future will unfold at about the same rate of change as it did in the past. Emerging issues forecasting assumptions identifies possible futures, threats. or opportunities of concern to anticipate in order to take appropriate strategic actions. Forecasting methods The management can use both qualitative and quantitative methods to carry out their forecasting. Qualitative methods, sometimes used based on judgment, opinion, past experiences or best guesses to make the forecast. Quantitative methods are also useful in helping the management make planning decisions. Forecasting plays a significant role
Open Document