Question

2. Identify the tools and techniques available to managers in the area of forecasting and planning. Discuss how you will use these tools to forecast sales and prepare a financial plan for your company?

Answer 1

The tools and techniques available to managers in the area of forecasting and planning.

Forecasting is a process of prediction about future based on past and present data and information. forecasting is an important part of business strategy. generally the tools and techniques might depend on what industry is .the general forecasting methods are Qualitative and Quantitative .

1.   Quantitative Method of sales forecasting - based on past and present quantitative data and information business can predict future sales for increase revenue. On the bases of historical growth rate using the data from a set period of time depending the types of sales forecast predict next period growth rate.
2. Qualitative Method of sales forecasting - based on feedback, emotions, opinions of peoples about our goods and service business can predict future demand for product .these methods include market research, market analysis , expert focus groups. these methods is use when business entering in new market and only few data is available.