The select one industry from the list below is restaurant 2. What specific variables would be needed by that organization in order to forecast? Be sure you explain "why" you selected each variable and why it is important to forecasting..
Sales forecasts are common and essential tools used for business planning, marketing, and general management decision making. A sales forecast is a projection of the expected customer demand for products or services at a specific company, for a specific time horizon, and with certain underlying assumptions.
A separate but related projection is the market forecast, which is an attempt to gauge the size of the entire market for a certain class of goods or …show more content…
While this example illustrates the basic process of forecasting, serious market forecasts would of course consider many more factors than GDP and unemployment. For instance, more sophisticated models might look at the changing demographics of the customer base (size, average income, and other attributes), the rate of inflation, changes in interest rates, and changes in related markets that could affect the market under consideration. Consequently, the formulas for obtaining market forecasts are considerably more complex. But, as in this example, many market forecasts do rely on economic or demographic data from government or other sources; the forecaster often doesn't need to come up with from scratch his or her own projections for, say, GDP and population growth. Many market forecasts also rely on published indexes, ratios, and averages for various economic and social factors that have been compiled in databases or in reference books.
3. What specific variables would be needed by that organization in order to forecast? Be sure you explain "why" you selected each variable and why it is important to forecasting.
Sales forecasting is an attempt to predict what share of the market potential identified in a market forecast a particular company expects to have. For very small companies that serve only a fraction of the total market, the company forecast may not even explicitly