Comprehension check. Forecasts in subject areas

FORECASTS IN SUBJECT AREAS

SUPPLEMENTARY READING

SPEECH PRACTICE

Put about put by put forth put forward put down put in put on

1. The idea was … for further discussion at our next in-staff meeting. 2. Much time and energy was … this project. 3. He was … as the only candidate for this position. 4. She managed to … a handsome sum of money to purchase a new car. 5. This news was … in all yesterday newspapers. 6. It is cold outside. Don’t forget to … your warm scarf. 7. We were asked to … this information into our notebooks.

1. Explain in what way demand forecasts are used in making financial plans, personnel plans, facilities plans, research and development projects, marketing strategies.

2. Get ready to speak about methods of forecasting.

3. Use the information given in the supplement to speak about forecast subject areas.

4. Use the information given in the supplement to speak about monitoring and controlling forecasts.

Managers need to make inferences about the future in several subject areas. Three relevant subject areas are technological developments, business conditions, and the expected level of demand.

Technological Forecasts. A technological forecast is an estimate of rates of technological progress. Technological changes will provide many companies with new products and materials to offer for sale, while other businesses will be faced with competitions with theses companies. Even if the product remains unchanged, a new process for producing it can be developed. Technical forecasting is best performed by specialists in the particular technology.

Economic Forecasts. Government agencies and other organizations publish an economic forecast, or statement of expected future business conditions. Expectations of the general business climate are of interest to government agencies in tax revenues, levels of employment, needs of the economy for money, and other matters. Business can obtain ideas about long- and intermediate-range business growth from this type of forecast.

Demand Forecasts. The demand forecast gives the expected level of demand for the company’s goods or services throughout some future period and is usually an instrument in the company’s planning and control decisions. Since the operations function is responsible for providing the company’s goods and services, operations decisions are greatly influenced by demand forecasts.

1. In what three subject areas are forecasts especially important?

2. In what way is technological progress connected with the competitiveness of the products?

3. How do businesses use economic forecasts?

4. In what way are demand forecast and operations function interconnected?

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