Question

Assume you live in a mid-size city in United states, in the State of Texas. You are starting a healthy energy drink company. Targeting the fitness community. You are outsourcing your beverage and with time you will beginning to manufacture your beverage in the United States. Your focus for this question will be on forecasting: Decide what to forecast. Evaluate and analyze appropriate data (industry, regional, and national including demand data from a similar company). Select the forecasting method (quantitative, not qualitative) and justify your selection. Generate a forecasts diagram either as attachments or on the answer. How will you check accuracy of your forecasts? Will you forecast for seasonality and if so, how? Explain. Please answer all the questions and thank you in advance.

Answer 1

Forecasting-

forecasting is method of finding what future beholds. In terms of what consumers will prefer to have, how much will be demand of a good, how will various enviornmental factors will influence owrking of organization etc.

In order to have own manufacturing units for selling beverages in the mid sized city of Texas, organization will need to know about various enviornmental factors. This analysis could be termed as forecasting or screening the enviornment.

The following environmental factors will be screened/forecasted -

1) Analysis of target group : The concentration of people who are most concerned with health and consume energy drinks is mainly in southern part of Texas. A high numbers of youth live there.

2) Economic analysis: The berevrage industry of Texas plays important roles in economic growth. It generates 41.23 billion in wages on average and provides 1850 jobs. The industry see significinatly high sales growth.

3) Resource market : Texas offersabundance of natural gas and lecetrivity at competitive rates which would be utilized in manufacturing at low cost. It has inexpensive labor supply too especially in suburban cities of Texas such as Corsicana where lcost of living is comparatibly low than other cities of texas. It provides inexpensive land in rural county as well. hence it would be efficeint to place manufacturing units in suburdan or outskirt of Texas.

4) Legal enviornment_ It has favourable taxes and regulatory environment for food and beverage industry. Texas bevergae association also provides upper hands to manufactureres, distributors of Texas.The association fights obesity through various policies hence it will promote the healthy energy drink business.

5) Strong manufacturing workforce is avaialbe at areas of Corsicana and Navarro county which will further reduce the cost ofmanufacturing energy drink at any of these regions in Texas.

The above forecast has been done quantitively (as it has many figures used from publications) and mainly through qualitiative sources (also extracted from secondary resources like Texas beverage association etc.)