Week 2: Best Practices 1

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 the explanation of what happened helpes the increase of sales,if the sales go down then they say they need to raise interest rates. Due to the fact that millions of dollars have been spent on advertisments, with little impact. If many companies are doing bad wait it out, before reacting.
• Business decisions are about the future and must rely on a view of the future.
  • Every question you have has to be based around future views. If you cannot see a few years into the future, you have to start thinking now for it to happen. You need a future to continue producing products and sales.
• Economics can help you form a more accurate vision of the future, compared to other common methods of forecasting.
  • The first assumption is that a company has to make a variety of products for customers and sales to increase together. The second assumption is that a company has to sell one products with limited options for the customer to enjoy the purchase experience. In his experience if they have a few base models with less product options it is more customer friendly.
• As a business manager, you should focus more on the broad magnitudes of changes rather than specific numbers.
  • in the begin the managers experience in the business world helps by being in the system longer, when knowing more knowledge helps with business inqueries. but then we combined 5 banks all over into one, all the members had different seasonal patterns, across the state because of when state taxes where made. the place for eceonmic approach too forcasting, is that no forecast is meant to be perfect by the forecast used in business is more likely to be used in words and numbers, which helps the views in economics, each person has a difgferent view of the future that can be expressed in different way.