Chapter 1 It’s Not Just about Forecasting
The following are the key points in the chapter. Elaborate on each
point in at least 30 words.
- Understanding economics can help you to diagnose the causes of
increases or decreases in sales volumes and costs.
- Understanding trends in economics and understanding how growth and
change is important to understanding economics.Economics is backing up
goals and ideas with facts, and most of the time the facts are based on
growth in numbers and percentages. Looking at cost and ways to
efficiently inovate to change these to make them cheaper looking at the
numbers makes it so a business will succeed.
- Business decisions are about the future and must rely on a view of
the future.
- Business decisions have to do with the future, but you must look at
past decisions to inform not only your self but coworkers to ensure the
best possibilities come from a future investment to make sure you aren’t
going to end up throwing money away from what could be a downfall.
- Economics can help you form a more accurate vision of the future,
compared to other common methods of forecasting.
- Economics help form mostly accurate vision of the future when
looking at the growth of GDP, because of the insight that trends and
size of market has. The trends show a positive or a negative impact from
the past which can lead economists to make decisions if it is smasrt to
invest in it or stay out of that territory.
- As a business manager, you should focus more on the broad magnitudes
of changes rather than specific numbers.
- Change management is super important because managers must realize
when problems occur and when it is time to pull out or add into the
business. Committing to change and embracing the ideas of success is how
a business can adopt smart and reliable moves based on trends.