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.
- I believe that this is true because economics can help you
understand cost increases (Page 2). Without economics companies and
decision-makers would struggle to find any consistency between their
sales numbers.
- Business decisions are about the future and must rely on a view of
the future.
- I would have to agree with this point, business decisions are
about the future. In order to have business decisions you must have a
vision first. Some sort of possible outcome from the potential decision,
with the goal you had hoped for it to accomplish in mind (Page
4).
- Economics can help you form a more accurate vision of the future,
compared to other common methods of forecasting.
- Economics can certainly help form a more accurate vision of the
future. But you might want to be a little careful and make sure it isn’t
too numerical, having verbal forecasts are always helpful (Page
8).
- As a business manager, you should focus more on the broad magnitudes
of changes rather than specific numbers.
- I would once again have to agree with this statement. I think
that business managers should focus more on things that they can
control, like their work environment, employees, and etc. Have the other
teams focus more specifically on the numbers (Page 8).