Sample Essay On Forecasting Solutions

A certain company is planning to release a new line of sweet bread fillings this year. The product will be launched in response to the number of people who do not prefer the saltiness and sourness of cheese bread fillings the company is well-known for. Will the company be successful in producing such products? What are the factors that could make it successful (or unsuccessful)?
One can estimate the result of such moves by businesses by forecasting. Forecasting is a very common method used in businesses to predict outcomes based on past events and current information. Forecasting can reduce risks and costs. It allows the company to make sound decisions. Previous company trends on sales and growth and current data on market demands are the key requirements in making a proper forecast for a business. In a real business setting, forecasting is done in groups, with inputs from the various departments of the business; however, small businesses may give the task to someone with comprehensive knowledge. Forecasting requires both technical data and subjective information. However, it assumes some factors and may not necessarily come true later on.
In this problem, forecasting can be used to predict the success of the product. The company trend is that their cheese bread filling is well-known; however, the current market demand, determined through technical evaluation such as consumer acceptability, is a product for people who do not like the saltiness and sourness of their current product. It can be assumed that the product will see good market sales, as a certain fraction of the population, those who do not like their cheese filling, would opt to buy the sweet one, while those who still like their cheese-filling would still continue buying it. However, a lot of variables have been missed out on this assumption, such as the target market (i.e., the age group, gender, socio-economic status) and the competition. If these are taken into consideration, a very sound prediction can be made, and this would help to any future plans the company would make.