Hi please write a response to the below discussion post for MBA 550 ASAP. The us

Question

Hi please write a response to the below discussion post for MBA 550 ASAP.

The use of forecasted data in management is a necessity that cannot be understated. In management, it is essential that we maximize the use of our resources in order to influence our decision making and impact effective results. Using a variety of approaches, such as short-range, medium-range, and long-range forecasts can allow an organization to be prepared for decisions in the near future as well as down the road. While it is important to understand trends, cycles, and patterns, it is also very important for management to understand that forecasts may not always be accurate. Management must remain focused on the possibility for forecast error and make efforts to minimize error. As discussed by Taylor (2016), “although some amount of forecast error is inevitable, the objective of forecasting is for the error to be as slight as possible.” Therefore, the material in this chapter is only beneficial if error is understood and minimized when possible.

Explanation / Answer

When the companies want to build their vision, mission and objectives, they have zeal to achieve the same also. By looking at past records and current market trend they will do the forecasting using appropriate method to be as correct as possible to achieve their target down the road.

Forecasting gives management a direction in which they need to approach their business but sometimes management gets lost in achievement so much that they loose the change in the industry. The best example may be Nokia, It was the best doing company across the globe. They did not recognize the shift in the cellphone industry and lost big and had to sell off. At this juncture their all the forecasts were failures due to their ignorance to other factors.

Thus for forecasting to be effecting companies should be looking at other factors as well which may impact their demand rather than just focusing on data of same old years. Thus forecast helps management achieve its goals but management should also consider other factors to be in the business and apply those into the business.

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