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.
- Sometimes deposit growth has slowed, in which case you should
sit tight and wait the situation out. Cost increases can also effect
price estimates for projects which economists should predict so the
estimate can be priced higher. Sometimes it even shows that we’re not
doing our jobs well, if the market is growing but sales are loosing,
your marketing people somehow aren’t getting the job done.
- Business decisions are about the future and must rely on a view of
the future.
- Total volume of busninss will justify the infastructure costs of
the product. Secondly the variety of projucts desired by consumers will
be large and unpredictable.It is a forecast about the demand of the
product and also the companies ability to anticipate demand.
- Economics can help you form a more accurate vision of the future,
compared to other common methods of forecasting.
- Often times eengineers look for fixed relationships based on the
electric or oil companies which don’t always show the immediate price
effects. And unlike economists the marketing department only looked at
sales techniques and their poition within the market.
- As a business manager, you should focus more on the broad magnitudes
of changes rather than specific numbers.
- After combining five different banks numbers from different
regions instead of just one bank, they saw different seasonal patterns
because of when tax payments were made. If a manager is in-experienced
they will not know how to properly manage their numbers.