Page 85 - DCOM102_DMGT101_PRINCIPLES_AND_PRACTICES_OF_MANAGEMENT

Unit 4: Forecasting and Premising

3. What are possible benefits and problems when using the Delphi method to forecast new Notes
products?
4. “A sales forecast is often regarded both as a plan and as a premise.” Comment.

5. Summarised income and expenditure forecasts for the months of March to August 2007 are
given below:

Month Sales Purchase Wages Overheads
March 60,000 36,000 9,000 10,000
April 62,000 38,000 8,000 9,500
May 64,000 33,000 10,000 11,500
June 58,000 35,000 8,500 9,000
July 56,000 39,000 9,500 9,500
August 60,000 34,000 8,000 8,500

You are required to prepare a starting on 1st May, 2007 taking into account the following
additional information
(a) Cash balance on 1st May, 2007, is 8,000.

(b) Sales and purchase are on credit basis.
(c) Plant costing 16,000 is due for delivery in July. 10% is payable on delivery and the
balance after 3 months.

(d) Advance tax installments of 8,000 each are payable in March and June.
(e) The period of credit allowed by suppliers is 2 months and that allowed to customers
is 1 month.

(f) Lag in payment of all expenses one month.
6. How will you handle an employee who is extremely productive inside the organisation
but who's activities outside, can jeopardize your company's tangible premises?

7. What would be the meaning of the GNP forecast showing a high level of activity and
growth for the coming year?
8. Do you agree with the statement that we fail to forecast technological futures due to our
failure of nerve? Why/Why not?
9. What will you do to reveal the relationships between events and developments that are
not possible to be taken care of by univariate forecasting techniques?
10. Have you ever used a simulation method to forecast something? Suggest an illustrative
simulation for a game situation of your choice.
11. Do you think that genius forecasting is helpful for modern mangers? Why/Why not?
12. What do you think as the reason behind all the extrapolation techniques to have failed to
forecast the incidence of swine flu in India? Was it really a forecasting failure?
13. Give examples to discuss how industry premises help managers to improve further industry
growth.

14. Examine the significance of internal premises of a firm for itself as well as its immediate
environment.

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