What is Business Forecasting

 Today is 21st century. It is globalize economy age so business becomes universal.Business is future oriented and future is uncertain so every Manager uses many techniques to remove uncertainty. Forecasting is one of them.

The process in which we estimate future is called forecasting.In other words we can say that the process in which we predict control future event and its impact on business is called forecasting.

In other words we can say that forecasting is a systematic process to predict future events and their impact in business and make planning to minimise negative impact.

Nature/Feature of Forecasting-

1.It is future oriented.

2.It is positive or negative.

3.It possess many factors like Political, Economical, Technical etc.

4.It may be short term or long term.

5.It may be regional or universal.

Importance of Business Forecasting-The importance of Business forecasting is very wide.Some important importance is as below-

1.It helps organization to make policy rules regulation, procedure to perform their function by effective,efficient, economical way.

2.It develops organization because due to forecasting we crush competition very well.

3.It helps organization to make short term and long term planning.

4.It minimise all types of risks that organization may face in coming months, years or era.

5.It helps to complete every project at right time.

6.It promote new business to grow.

7.It helps to estimate financial requirement of every function and project.

8.It helps to perform the function of business like Production, Demand, Supply smoothly.

9.It helps to take an appropriate decision.

10.It helps better coordination among departments.

11.It helps effective controlling inside organization.

12.It helps to maximize production.

13.It helps proper inventory control.