As one of the rising stars in a large manufacturing organization with locations throughout the United States
Question:
As one of the rising stars in a large manufacturing organization with locations throughout the United States and overseas, you have been tasked with building the initial components of a business forecasting plan. The initial steps of the business forecasting plan will be used build a larger strategic plan so your effort will be the keystone of the overall effort. Yet before the plan can be built, they you must understand what some of the challenges facing the organization so as to be able to create a process in which the business forecast model can be built. Among some of the challenges that you will need to assess is the fact that the organization's sales are flat, revenue is diminishing through taxes and inflation due mainly to flat sales and increased operating costs. Further, employee turnover has become an issue as this the fact that the senior management team is concerned with the lack of insightful thinking to get the organization moving forward. Further, the cost of producing is the company’s product has increased as has shipping costs at a time when revenues are stagnant, thus creating more pressure on the organization to figure out a way to become more efficient and grow its revenue. In building the initial phases of the business forecasting model, you will be required to address a number of key aspects that are listed below.
QUESTIONS
Explain and illustrate, with examples,
1. The basic forecasting steps that can aid this organization in their quest to become more profitable, lower the cost of goods and transportation while increasing sales.
2. Explain, identify and describe various relationships as well as analytical trends within the business forecasting effort.
3. Explain how the process can be decomposed and thus built in a manner that can aid the organization.
4. Explain and illustrate the formulas that will be pertinent to the business forecasting plan.
5.Identify various trends and outliers that will affect your initial and business forecasting plan.
6. Explain how this econometric modeling will affect the business forecasting as you effort, whether it be in a positive or negative manner. Each aspect of being is a scenario must be accompanied with an the appropriate analysis, subsets and for mules that can support the aspect. Further, theoretical analysis as it relates to the key aspects being analyzed must be robust and detailed along with examples, wherever possible.
Intermediate Accounting
ISBN: 978-0132162302
1st edition
Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella