FORECASTING(Manegment)

3 Pages 784 Words

Relate the situation with the world cup jerseys to the importance of forecasting. What specific factors make accurate forecasting especially critical in this application?

WHAT IS FORECASTING:

To foresee and make decisions accordingly is Forecasting. This is a word, which we can relate to a term Fortune telling. Forecasts are vital to every business organization and for every significant management decision. Forecasting is the basis of corporate long run planning. But it has to be remembered that a perfect forecast is usually impossible. Too many factors in the business environment cannot be predicted with certainty. Therefore, rather than search for the perfect forecast, it is far more important to establish the practice of to learn to live with inaccurate forecast.

Relationship of Forecasting with W/C Jerseys:

During the time of world cup, the jerseys of the participating team were a product, which would sell like hot cake. And for the athletic apparel companies that pay thousands of dollars to sponsor the top teams in the world cup, it is the time for them to recoup some of their investments. And to do this they have to predict before hand which team is going to win the world cup. Usually, the top teams like Brazil, Italy, and Argentina are always top favorite to win the world cup. But besides these countries other country jerseys are also hot favorite. Like during the first world cup of the new millennium held in Korea, the jerseys of Korea were sold weeks before their surprising run into the semifinals. On the other hand, retailer kitbag.com had tens of thousands of jerseys of France who being the defending champion was shot out of the first round even without scoring a single goal in the tournament. So a good forecasting is essential to make sure that the product will be in demand and the whole stock can be sold during the time. But as mentioned earlier, an exact forecasting is not possible. But had the manufacturer of ...