Chapter 1 Itβs 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.
- You can use economic principals and view leading and lagging
indicators of a market to diagnose the causes in sale volumes and cost.
With a high economic knowledge your business ability also
raises.
- Business decisions are about the future and must rely on a view of
the future.
- While this is true, most of what we know about the future is
from analyzing past economic trends. We can look at past market trends
and make smarter choices based on those. You must look at where society
will be in the future as it is important to understand the growing
market.
- Economics can help you form a more accurate vision of the future,
compared to other common methods of forecasting.
- Economics is a discipline that has been around forever. There
are thousands of computers running millions of scenarios every day. This
helps businesses form pretty accurate versions of the future..
- As a business manager, you should focus more on the broad magnitudes
of changes rather than specific numbers.
- As a business manager you should focus on all of the macro and
microeconomics that may affect your business. Not all numbers are
important and thats why you need to know where to look.