5 important Areas of Forecasting in an organisation
1. Economic development:
The economic conditions of the country as well as those of the whole world have significant effect on the operations of an organisation. This will include predictions relating to GNP, currency strength, industrial expansion, job market, balance of payments etc.
2. Technological forecasts:
These forecasts predict the new technological developments that may change the operations of an organisation. An organisation keeps upto date with new technological developments and readily adopts new methods to improve performance.
3. Competition forecasts:
It is necessary to predict as to what strategies our competitors would be employing. The competitor may be working to employ a different marketing strategy for the same product or bringing out a substitute for the product which could be cheaper and easily acceptable.
4. Social forecasts:
These forecasts involve predicting changes in the consumer tastes, demands and attitudes.
5. Other forecasts:
Other necessary forecasts are predictions about new laws, political events, labour supplies etc. These are all critical areas with impacts on the planning process.