Analysis of trends and extrapolation 0.0 / 5 ? Business StudiesFinancial PlanningA2/A-levelAQA Created by: Georgew298Created on: 10-04-16 15:13 What is sales forecasting? Assumes past trends and predicts future trends 1 of 8 Examples of sales forecasting Moving averages, trend analysis, extrapolation and correlation 2 of 8 Cyclical fluctuations Looks at tracking economic factors e.g. boom and recession 3 of 8 Seasonal fluctuations Changes in season affect markets 4 of 8 Random fluctuations Trends occur for no reason e.g. toys, fashion and social 5 of 8 Limitations of analysis of trends and extrapolation Past does not accurately represent the future, correlation changes over time & external influences change trends 6 of 8 Methods of forecasting Business oracle, brainstorming & hunches of individuals 7 of 8 Consequences of incorrect forecasting Inaccurate production (too much/too little), lose customers & wasted products (high waste cost) 8 of 8
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