Since Strident Marks works in serving the customers with seven different kinds of products, there is a need for the company to go through a forecasting process where the company can analyze and predict the usage or the buying behavior of its target market along with the changes in the demand that may take place and affect the revenue of Strident Marks.
There is a chance that in the next few years, the people would make a trend out of being healthy and then in such cases, the company can forecast its health equipment sales to the maximum. However, all these assumptions and predictions must be calculated appropriately and then the company should make a forecast.
Forecasting is defined as: “Estimating or predicting future events or conditions. Forecasts may be long-term or short-term. The techniques used may be quantitative (often making sue of computers) or qualitative.” (India Info Line) Forecasting can be done in a number of ways such as with statistics or by considering a number of factors that may affect the future demand of the products.
“Quantitative forecasting models may be classified into (a) causal models in which independent variables are used to forecast dependent variables, and (b) time series models, which produce forecasts by extrapolating the historical values of the variables of interest by, eg, moving averages.” (India Info Line)
The company should look for doing forecasting so that the company will know the products that must be concentrated upon along with the products that must not be produced because of the decreasing amount of demand. However, the forecasting technique also leads to budgeting which takes place when after forecasting so that the resource of money can be allocated appropriately to all the divisions of Strident Marks.
Bibliography
India Info Line. Forecasting. Retrieved on March 13, 2007 from: http://www.indiainfoline.com/bisc/accf.html
