Question

explain the role of forecasting on improving business operations

Answer 1

Forecasting:

Forecasting is an important component of business which helps management to move in the right path.

The role of forecasting on improving business operations are explained below:

1. Financial Forecasting: One of the important roles of forecasting is to estimate the financial role of the organization. Using capital efficiently is a delegate issue and any business has to have adequate planned financial resource to run an organization.

2. Promoting New Business: Forecasting is a great tool to analyze and accordingly set up new businesses. It perfectly comes out with the uncertainty and risks to be handled. Through this forecast the entrepreneur can find out if he can succeed in the new business.

3. Operations: Due to this forecasting the day to day work break down in done accordingly and hence it provides smooth and continuous working.

4. Decision Making: The accurateness of the decision to a great extent depends on forecasting. When decisions are accurate there would be less managerial errors.