sales forecasting Flashcards
1
Q
what is the purpose of a sales forecast
A
managers know what is likely to happen to their industry
can hire more staff if output increase
profiT/cashflow forecasts will depend on sales
2
Q
factors affecting sales forecasts
A
consumer trends - change in taste and habits, demographics, affluence
economic variables - same products have a high YED, fall in the pound makes imports more expensive, rise in tax and inflation
actions of competitors
3
Q
what are the difficulties with sales forecasting
A
if the business is new
past on past trends so is only correct if future is like the past
4
Q
how do you calculate a % change in sales forecasting
A
new value / original - 1 X 100
