Question

Required Words: 1000

An organization faces several internal and external risks in economic decision, such as high competition, failure of technology, labor unrest, inflation, recession, and change in government laws.Therefore, most of the business decisions of an organization are made under the conditions of risk and uncertainty.An organization can lessen the adverse effects of risks by determining the demand or sales prospects for its products and services in future. Demand forecasting is a systematic process that involves anticipating the demand for the product and services of an organization in future under a set of uncontrollable and competitive forces.

Question 01: In your opinion, explain with examples how Economic Decision analysis is important in Demand Forecasting and cost (Required Words 1000)

.

Note: Please no copy paste from internet plagiarism is strictly prohibited

Answer 1

The organization faces failure of the economic decisions in terms of technology, labor unrest, inflation, recession, and change in government laws. in this aspect, the internal or the company related failure is technology and labor unrest, where as the government policies and economic conditions like high inflation plays a significant role.

TO handle such kind of situation the organization has to change its internal as well as business policies to minimize the risk and the increment in demand for the product. to develop such an economic decision, here we can adopt the PDSA cycle model developed by Shewhart to change the internal strategy. this is one of the well-approved quality management/quality development strategy.

the main problem associated with any kind of product which failed to capture/fulfill the market demand due to its low/underrated quality of the product. so if we can change the product quality along with human resource development we can solve the majority of the problem.

The problem-solving method by using the PDSA cycle:

the PDSA defined as Plan-Do-Study-Act, the most simple strategy, yet very effective. under this strategy there are 7 steps:

1. Identify the opportunity: here the organization needs to find out more alternatives to expand and explore for business development. all the old products could not perform well so its time to find out new options

2. Analyze the Current Process: this stage explain how you are performing and what are the boundaries, output, input process, flow, customer satisfaction, etc. that will give us the area to develop.

3. Develop Optimal Solutions: once we can find out the loopholes then the next step is to find the solution(s) to overcome the production and market barriers.

4. Implement changes: till now we have planed the strategy, now its time to implement it. because without the application of strategy in the real field we could not understand its performance.

5. Study the Result: here, in this part, we can analyze the performance of the strategy, monitoring and evaluating the result.

6. standardized the Solution: once the product is satisfactory, it should be institutionalized by positive control of the process, process certification, and operation certification.

7. Plan for the future: this stage we are ready with our brand new strategy to beat the lower demand for the product.

This whole process gives us a systematic and well-approved product penetration in an existing market,

The best example for this process is the Hyundai i 10 and Hyundai Grand i10

to fight with the external negative force we have less control over it. as a part of the industry, we have to follow the government policies and inflation, but following industry with advanced technology and customer valuation and customer satisfaction may decrease the level ofcompetitiveness and uncertainty.