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.
- Understanding econimics helps you to diagnose the causes of
increases or decreases in sales volumes and costs in a few ways, like
knowing how large the nessessary contribution to an overrun material
order is when the pricing rises.
- Business decisions are about the future and must rely on a view of
the future.
- Business decisions take place in the future because things are
constantly shifting, and that all decisions have consequences, like
material pricing, or knowing your products sale rate for the next
quarter for a project down the line.
- Economics can help you form a more accurate vision of the future,
compared to other common methods of forecasting.
- Economics in business allows you to create a stronger plan for the
near and far future, businesses that use economics instead of
forecasting mamke better predictions for important decisions.
- As a business manager, you should focus more on the broad magnitudes
of changes rather than specific numbers.
- You should focus more on the broad magnitude of change because an
experienced manager knows of the related seasonal patterns and how
focusing on specific numbers could be discureging or unimpressive, so
using words to emphazize change is more effective.