Identify the different types of forecasts that can be developed for use by a company. Cite examples of how a company might use a particular forecast method and explain why that type of forecast was best suited for that situation.
Forecasting helps the management of the company to take reliable decision regarding future events and activities, which affects the profitability of the business. Different types of forecasting techniques are explained by dividing them into quantitative and qualitative techniques.
Forecasting is a systematic process to envisage any activity or events, which affects operations of the business. The management of the company uses several types of forecasting in the field of technology, economics, and demand related to product and services. The management takes a reliable decision with the help of various forecasting techniques, and these techniques are divided into qualitative and quantitative tools. These tools help the company to develop and formulate strategies, which are beneficial for running a business and supports sustainable competitive advantage in a competitive environment (Hirschey, 2008).
Expert opinion: The expert opinion is a group of top managers who indulge themselves on the discussion of issues, which relates to management affairs. These persons possess the knowledge and have experience in running the operations of the business. The decision taken by the panel of experts is disseminated to the lower level for following the decision. For example, if ...
The following posting helps identify the different types of forecasts that can be developed for use by a company. Examples are given.