George consistently understates the sales forecast because, as he puts it, "I am reprimanded if actual sales are less than I've projected, and I look like a hero if actual sales exceed my projections."
a. What would you do if you were the marketing manager at the Crunchy Cookie Company? Would you also understate sales projections? Defend your answer.
b. What measures might be taken by the company to discourage the manipulation of sales forecasts?
a. If I were George, I would discuss the purposeful understatement of sales by explaining that the forecasts being prepared on based the best information available at the time. I would prepare and present a sales analysis document with my sales forecast. That narrative statement would provide the basis and the actual calculation to arrive at the forecast. It is true that some of the factors leading to the forecast might have a range of values, and there is nothing ...
The solution about George and his sales projections is explained as well as the 'fix' is presented. It is an easy solution for the company to alter behavior. The problem is presented including the why and where it started. This solution is 300 words.