Assessing The Environment (cont. Forecasting (cont.) -Efectiveness -managers have had mixed success forecasts are most accurate in relatively stable environments forecasts are relatively ineffective in predicting nonseasonal events,unusual occurrences,and the actions of competitors to improve forecasts use simple forecasting methods -compare every forecast with "no change" -use several forecasting methods -shorten the length of forecasts -practice forecasting ©Prentice Hall,2002 9-8 Assessing The Environment (cont.) Forecasting (cont.) – Effectiveness - managers have had mixed success • forecasts are most accurate in relatively stable environments • forecasts are relatively ineffective in predicting nonseasonal events, unusual occurrences, and the actions of competitors • to improve forecasts - use simple forecasting methods – compare every forecast with “no change” – use several forecasting methods – shorten the length of forecasts – practice forecasting © Prentice Hall, 2002 9-8