Business Forecasting - Essay Example

Comments (0) Cite this document
The paper "Business Forecasting" focuses on MTCA which helps the "Consumer packaged goods" manufacturing organizations to weigh the marketing impact on the demand of retailer consumers. If the firm is implementing the MTCA for the first time, the major problem includes the cost involved…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER97.3% of users find it useful
Business Forecasting
Read TextPreview

Extract of sample "Business Forecasting"

Business Forecasting

MTCA is not a New Concept but New in Practice
According to Chase, many manufacturing firms are aware of the MTCA as a concept that can create positive implementations and changes in the supply chain (13). MTCA helps the ‘Consumer packaged goods’ manufacturing organizations to weigh the marketing impact on the demand of retailer consumers. In the end, they perform the ‘what-if’ analysis that is essential for accurate prediction and maximization of future demand. The MTCA is however still a concept, and fewer organizations are ready to engage in it practically. They are not in a position to implement the casual techniques like multiple linear regressions to the model, which they lack the knowledge and expertise to do perfectly. Also, many organizations have failed to link the short-term volumes associated with the sales promotions.
MTCA has only remained a concept with few societies practicing it. It is because the sales forecasting approaches and applications are forever evolving from simple techniques relying on sales history in the past to more sophisticated casual mechanisms such as the application of microeconomics. Many organizations find such concepts very complicated and expensive in terms of training employees and perfecting the ideas (Chase 97)
Seven-Step Process Proposed and used by the Carbonated Soft Drink
All the seven step processes are very essential, and they link well with the three major concerns of the carbonated soft drink industry, which include the sensing demand, shaping demand and the maximization of ROI. The seven procedures touch on the existing marketing mix, business indicators that promote profitability and increased sales volume and the alternative scenarios used in maximizing ROI. Among the seven procedures, the third step is the most complicated. The third step includes testing the predictability of a model while using the ‘out-of-sample data’, that establishes whether the model can fulfill its duty of predictability. Historical data is essential to predict the future demand. Even though the future data may fit the future data, it is not an assurance that the forecast in the future is accurate. Like in the carbonated soft drink study, the estimate went on for over 153 weeks, with the 13 weeks used as out of sample data. The increased lead times for some specific packaging components is due to the complicated process. Also, the surfacing of more than normal supply and demand issues forces a change in the supply chain after only thirteen weeks of the entire plan (Chase 175).
The scenarios
The scenarios as analyzed in the case study include sensing demand, shaping demand and ways of maximizing Return on Investment. The sensing demand handles the measures the organization undertakes to increase volume in the retail business associated with grocery. The scenario is imperative in demand forecasting because it ensures the production of enough products for existing customers. For the shaping demand, the firm concentrates on major business indicators, to push sales up thus increasing profitability. The third scenario associated with maximization of ROI, the organization researches on other scenarios that can help boost sales and promote productivity. Another fourth scene not mentioned in the case study, but remains important is to understand the consumer in terms of quality and quantity standards. It will ensure that production ultimately meets the needs of the customer (Chase, 178).

If the firm is implementing the MTCA for the first time, the major problem includes the cost involved. The organization should invest more funds for promoting the program to meet all the three scenarios and follow the seven steps to the later. Also, it requires highly skilled employees, and it may include soliciting for services from consultations firms, which involves using huge funds. Training of workers is also essential for the program to succeed.
Work Cited
Chase, Charles. Demand-Driven Forecasting: A Structured Approach to Forecasting. New York: Wiley Publishers, 2014. Print. Read More
Cite this document
  • APA
  • MLA
(“Business Forecasting Essay Example | Topics and Well Written Essays - 500 words”, n.d.)
Business Forecasting Essay Example | Topics and Well Written Essays - 500 words. Retrieved from
(Business Forecasting Essay Example | Topics and Well Written Essays - 500 Words)
Business Forecasting Essay Example | Topics and Well Written Essays - 500 Words.
“Business Forecasting Essay Example | Topics and Well Written Essays - 500 Words”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Business Forecasting

Business Forecasting: Share price evaluation

... mentioned is a useful tool in modeling and forecasting of variability. Often, it is utilized in analysis asset holding risk or an option’s value. Additionally, considering that forecasting confidence intervals may vary with time, increasingly accurate intervals can be obtained error variance modeling. Lastly, it is important to mention that handling heteroskedasticity appropriately can help in generation of more accurate estimators (Silvennoinen & Terasvirta, 2008). The GARCH models for each of the indices are presented in the tables above with t statistics estimating constant of random walk each returning a critical value lesser than 1% level of significance. Basically, results show that the means for the variables studied... ). The linear...
10 Pages(2500 words)Essay

Business Forecasting Using eViews

...Introduction The use of eViews is an essential tool in the forecasting and analysis of econometric data. The presentation of data is in the form of graphs and models. These graphs and models relay a lot of information on the business under analysis. The business under analysis in this report is Roll Royce and the behaviour of its share prices. The figure shown below is the index time graph. The graph uses a large amount of data and this leads to a noisy graph, but the trend of the stocks is still visible. The company had a major crisis in the last quarter of 2002 until mid-2003. Some of their equipment failed in the market and they faced a multi-million pound lawsuit. This led to a huge...
6 Pages(1500 words)Essay

Forecasting and Business Analysis

...Forecasting and Business Analysis Executive Summary Forecasting sales turnover is an important part of business operations. Forecasts can be helpfulin predicting the market behavior and the targets of the business over time (Kotler, Brown, Adam, & Armstrong, 2007). This paper illustrates a means of forecasting analysis using regression of a given dataset. The method of forecasting employed is checked for the statistical significance of the regression model. It is important that the model must be significant in order to create a relevant and effective analysis (Heaton, 2008). The paper is about...
4 Pages(1000 words)Research Paper

Accurate Business Forecasting

...Accurate Business Forecasting Accurate Business Forecasting Contents Page Introduction 2 Market analysis and trendforecast 3 Cost, Sales and profitability forecast 5 Financial analysis & prediction of changes 7&8 Underlying economy Conclusion 9 References 10 Introduction 2 Introduction: The paper aims at defining and illustrating the need of an Accurate Business forecast for a Building construction company. Broadly, it will discuss the categories that require forecasting and the ones that are of utmost importance for...
8 Pages(2000 words)Essay

Business and Economic Forecasting

...Rio Tinto Price Returns: Introduction: This paper uses Rio Tinto price index to estimate an appropriate model that can be used in forecasting futureprices and returns. The maximum likelihood technique is used to estimate an appropriate model that can be used for forecasting future prices and returns. Considered in this paper include the ARCH and the GARSH model developed by Engel 1982 and Bollerslev (1986) that are appropriate in modeling financial data. In choosing which model that is appropriate an analysis of the returns relatively probability distribution, peakness, skewness of probability distribution and kurtosis is undertaken. The appropriate model is estimated and a one to four step forecasting is undertaken to determine... ...
14 Pages(3500 words)Essay

Business Planning and Forecasting

...averages the result came that the seasonal variations in sales are smothered in the overall run. On this base the new sales figures for 2009 were calculated which were as given above. Section C Actual Values Year RPI Rick Mick Dick 2006 198.1 64.2 94.2 112.4 2007 206.6 67.1 95 122.4 2008 214.8 69.5 95.5 132.4 Business mathematics and statistics by Andy Francis When the real values of the sales of the three brothers are seen and compared, taking one year at a time, then its is observed that when we take 2006 as a base year, we find that the sales figures for Dick was higher than his two brothers'. Also Rick's sales were better than Mick's, although the actual figures are lower. Mick's sales real...
4 Pages(1000 words)Research Paper

Business forecasting

...Assessment 2 Business Forecasting Executive Summary Forecasting is a method which supports several sciences and s to predict the future on thebasis of knowledge of past. These techniques are utilized in the several fields of management from marketing and sales to the inventory control to avoid unwanted hassles and manage the overall activity in a predefine manner. This enables control and management of resources better than doing in any other way. The analysis is done to analyze and identify the appropriate model of forecasting for the softwood unfilled orders forecasting. The number of unfilled orders represents the accumulated inventory. If the data is...
10 Pages(2500 words)Essay

Business forecasting

...Business forecasting College: Business forecasting Business forecasting refers to the process used in estimating and predicting future patterns in business using business data, forecasting is essential in business, it helps in informing decisions concerning activities like scheduling of transportation, production, and workforce, and offers a guide to management’s long-term strategic planning (Hoshmand 2009, p. 17). Forecasting is an integral part in decision making process at management level and it plays an essential role in the various...
5 Pages(1250 words)Essay

Business Forecasting and Data Analysis

...Business Forecasting and Data Analysis Chart showing the distribution of the overall mean management score, if all 17 aspects are treated equally.The distribution of overall mean management scores is shown in the form of a bar chart indicating the count (of cases with the same mean score) on the vertical y-axis, and the various levels of overall mean management scores at the horizontal x-axis. Majority of the cases recorded mean management scores at 2.611, which was registered for more than 40 cases. 2. Charts illustrating variations in the overall mean management score according to: a. Whether the firm is a multinational or not Variations of one variable with respect to another may be graphically...
8 Pages(2000 words)Essay

Business Forecasting

...Running head: BUSINESS FORECASTING 16th October Introduction Business forecasting is a technique used by companies to get the data or allocation of budgets within the company in order to attain future objectives. Through business forecasting, a company is able to use different methods to determine how the budget will be allocated within the estimated period. It is the management role to forecast the growth of the company so that future targets will be achieved. When estimating, the growth of the company, demand of goods and services the company offer must be compared with the cost of producing these goods and services. Business forecasting can be done using two methods as covered in this paper. Qualitative models This method... the...
3 Pages(750 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Business Forecasting for FREE!

Contact Us