Business Forecasting Essay Example | Topics and Well Written Essays - 750 words

Business Forecasting - Essay Example Business forecasting can be done using two methods as covered in this paper. This method of forecasting depends on the market experts and thus short-term predictions are best situated for this method of forecasting. For the method to work and attain the desired goals of the company, then experts must be involved in financial statements so as to predict and rely on measures that can be followed. If the measures outlined by the experts are followed, then short term goals and success will be accomplished (McKinley and Lee, 2005). The only disadvantage of the qualitative method of forecasting is that the management of the companies relies on the opinions of individuals or the experts who estimate the budget and provide the measurable data that is going to be used in the company. For this method to be successful in any organization then it will involve the following aspects. This simply means that the company will have to conduct a market research relating to the kind of products and services the company offers (Adams, 2000). Well carried market research will involve the number of participants in the exercise and thus it will be showing the potential customers who will use the products or services when it is launched. This method involves experts who carry general opinions and then the experts will compile that data so as to forecast on the trend. For example, the company may look at the competitive advantage over other companies, as well as corporate governance among other aspects. Quantitative model do away with human analysis but solely depends on the data. This method of forecasting also involves other variables which are predicted sales, the gross domestic products among others which are predicted for long term goals (Lawrence, 2010). Quantitative model involves the following tools. The approach depends on some indicators like unemployment rate, and the gross domestic product among others in the company. To get the indicator then a comparison and the