| Why is the typical approach to business planning and forecasting flawed? | |
| Strategic planning generally aims to get to an estimate of future sales and profits, so how these items are estimated is critical. Typically, you would start with a forecast for demand, and by assessing how competition could affect prices, get a value-forecast for the market. Setting targets for increased market share would then give a forecast for sales volume and revenue. There are however problems associated with this typical approach to business planning and forecasting… Continue reading » |
|
Jan 112010
Though over-hyping of strategy issues is unhelpful, some radical changes do need dealing with. In Taking Advantage of Tumultuous Times: Claiming the Future, Eamonn Kelly, a Monitor partner, highlights a few big shifts. Most of the discussion is general and it’s not clear exactly what management should do, but one issue - the vast numbers of emerging consumers - can be evaluated and built into strategic plans. There is a simple reason this trend can trigger ‘siesmic shifts’ in demand - Continue reading »
