The importance of forecasting is really significant in improving the business. From our recent classes, I have learned how forecasting functions in business. It plays a critical role in meeting the needs in the consumers. Forecasting helps focus on what the consumer needs in the product or service, which is important for making product decisions and future planning. It also predicts the quantity needed to prepare beforehand to satisfy the consumers’ demands.
I read an article called “Holiday sales forecast to rise 4.1 percent this year”. This article is about the forecasting and statistics for the holiday months, November through December of 2012. The forecasting shows that people are less likely to splurge this year due the recovery of economic recession. Shoppers are worried about the rise of prices of goods and being unable to afford it, thus the decrease of splurging. By forecasting, retailers understand the needs of their consumers. Retailers made a lot of discounts during these months to encourage their consumers to shop. Forecasting also provides information how many consumers there will be. This information is provided with the prediction of the growth trend. It shows that it is significantly lower compared to the previous years. This information provides the retailers how much products they need in order to meet the demand.
How important do you think forecasting is in business?
Do you think it is necessary?
Article: Holiday sales forecast to rise 4.1 percent this year