Deliverable 6 - Presenting a Forecasting System (Repair 1st attempt)
jeffro401
ForecastingPP_JRover_031618.ppt
Forecasting System
Operations Management
Rasmussen College
- Jeff Rover
03/16/18
- Strategic forecasting is a significant tool that is used by organizations to grow and succeed.
- Strategic forecasting combines two functions: the adjustment of forecasts to support strategic goals and engaging operating strategies to make sure the forecasts are accurate (Conteh et al, 2014)
- Strategic forecasting enables companies to understand the market and the elements that are likely to cause shifts in the consumer’s needs and preferences.
By creating a detailed strategic forecasting system, managers are able to plan effectively for the future of the organization.
Strategic forecasting entails linking the strategic approach and forecasting an then treating it as one function. The strategic approach entails identifying a company’s long-term goals and coming up with effective initiatives to reach them. On the other hand, forecasting helps the company to identify variables in the business environment the company operates in.
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- A strategic forecast must define the goals and objectives of an organization.
- Strategic forecasting enables an organization to take advantage of the future trends and opportunities in the environment.
- Strategic forecasting should cover the specific options the company has for adjusting to the changes in the future.
- The strategic forecasting process should involve strategic decisions on how the company is going to take advantage of the future changes.
Defining the goals in strategic forecasting ensures that the organization gains a specific focus and hence enabling it to determine the best plan to approach the future.
part of the strategic forecast should take into consideration the options that will enable the organization to undertake its operations effectively in the future so as to fulfill its goals and objectives.
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- Forecasting is done based on human judgments and certain assumptions which may lead to wrong results.
- Lack of accuracy- it does not account for weekly or seasonal changes accurately.
- No specification of the concrete relationship between the future and past labor markets
If forecasting on labor models is applied for a long or extended period, then it may it may result in a reduction in customer services and increased overtime as a result of inaccuracy of information.
Forecasting on labor models fails to specify a detailed relationship between the present or past markets and the expected future markets. This is as a result of lack certainty on the performance of the future labor market.
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- Not applicable to a long period.
- It may be difficult to gather adequate reliable information on the future labor market such as psychological factors that may influence the market.
- Unforeseeable events may reduce the reliability of the information.
It is not applicable to a long period because it is difficult to have a steady growth rate in the labor market over an extended period of time.
There are certain unforeseeable events in the business environment that are likely to affect the labor market and likewise it becomes difficult to consider such events.
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- It is futuristic.
- Job planning contributes to the overall objectives of an organization.
- It is pervasive.
- It is a continuous process due to the changes in the internal and external environments.
- It is a vital function of an organization's management.
Job planning is futuristic meaning that managers tend to make predictions on how duties will be carried out.
Job planning is pervasive meaning that managers from all levels should be included and also the employees should be consulted.
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- Enables a company to identify opportunities.
- Reduction in operational costs.
- Enhances proper decision making in an organization.
- Enhances development of new products or services.
- Improves the quality of management.
By forecasting, an organization is able to look ahead and know how the market will change thus identifying business opportunities.
Forecasting allows an organization to predict how their products or services will perform and hence cutting down on irrelevant costs.
By forecasting, an organization is able to make decisions in accordance with the future business environment. For instance, a company is able to know what to do when there is a drop in sales.
Forecasting provides valuable information to an organization which is used to make strategic decisions.
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- Conteh, C., Greitens, T., Jesuit, D. & Roberge, I. (2014). Governance and Public Management : Strategic Foundations for Volatile Times. Hoboken: Taylor and Francis.
- Coveney, M. & Cokins, G. (2014). Budgeting, planning, and forecasting in uncertain times. New York, NY: American Institute of Certified Public Accountants (AICPA.
