Market Forecasting Methods: Short & Long Term Techniques
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Forecasting Market Methods: Long and Short Term
A company’s production schedules, planned manning levels, and financial budgeting are all related to the sales forecast. A too optimistic forecast can lead to excess stocks being accumulated, over-production and high manning levels, and over-borrowing or inefficient deployment of financial resources. A pessimistic forecast can lead to large opportunity costs and frustration among potential buyers because of late or no delivery. Firms adopt various approaches to sales forecasting, but the basic approach is to (according to T. Proctor):
Stage 1.
Make an environmental forecast regarding inflation, employment, interest rates, consumer spending and saving, and business investment.
Stage 2.
Make a forecast... Continue reading "Market Forecasting Methods: Short & Long Term Techniques" »