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Forecasting involves accurately predicting future events. Describe the difficulties managers may encounter when forecasting.

      

Forecasting involves accurately predicting future events.
Describe the difficulties managers may encounter when forecasting.

  

Answers


Kavungya
i. Lack of trained in-house staff to carry out forecasting. This forces the manager to outsource and this may be costly.

ii. The business environment is fluid/dynamic hence the forecasts may be useful for a much limited period than intended as a result of significant changes in the operating environment

iii. Inadequate budget allocations for forecasting rendering the process ineffective-narrow resource base to support forecasting

iv. The use of certain qualitative techniques, which make use of human judgement, may be prone to bias hence less objective.

. Lack of cooperation on the part of personnel on forecasting projects
Kavungya answered the question on April 28, 2021 at 09:11


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