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Describe the uses of business forecasting

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Prepare a paper that describes the uses of business forecasting. Must use APA style formatting and list references.

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The expert describes the uses of business forecasting.

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USES OF BUSINESS FORECASTING

Business forecasting is predicting or determining in advance, the company's future performance. Its important uses are indicated below:
1. A yardstick of business performance
Business forecast can serve as a basis in judging the effectiveness of the company's operations. When a company's level of performance exceeds the forecasted level, it can be inferred that the business is doing well. On the other hand, if the performance level is below the forecasted level, it can be inferred that the business is not doing well. This can signal possible strengths and weaknesses and in what aspects of the business they are found.
2. A basis in coming up with business decisions along the following:
a) Production
When the business is forecasted to be in an upward trend as indicated by the forecasted level of demand of the company's products and services, it will be a go signal on the part of the production department to make some adjustments in its production levels. This will be coupled with adjustments in the different factors of productions such as raw materials, machineries and equipment, and others.

A forecasted change in the ...

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Elisa Valdez, PhD
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  • Bachelor of Science in Business Administration, University of the Philippines
  • Master in Business Administration, Saint Mary's University
  • Doctor of Philosophy in Education, University of the Philippines
  • Doctor in Business Adminstration (IP), Polytechnic University of the Philippines
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