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.
- Economics can help us diagnose the causes of sales increases or
decreases because say the market overall is slowing down, your
competitors numbers are slowing down on the same basis then it’s
probably the economy slowing down, meanwhile if sales of your
competitors are growing and your product is similiar in cost and overall
function then maybe you’re marketing department is not doing their job
well.
- Business decisions are about the future and must rely on a view of
the future.
- Yes this is very true, you’re not making decisions based on
where you want your business to be yesterday, you’re making decisions
based on where you want your business to be tomorrow .
- Economics can help you form a more accurate vision of the future,
compared to other common methods of forecasting.
- Yes they can as economics look into the economy and trends of
the economy versus just raw numbers, if the economy isn’t doing great
people are not doing to be opening up their wallets as
frequently.
- As a business manager, you should focus more on the broad magnitudes
of changes rather than specific numbers.
- If you focus more on broad magnitudes of changes rather than
specific numbers it allows you to have more key points to look after and
gives you a broader more wide view of the situation, versus specific
numbers may lead you to be more narrow sighted and adjust to
quickly.