Can someone please provide a feedback to this discussion post on a managerial ec
ID: 435233 • Letter: C
Question
Can someone please provide a feedback to this discussion post on a managerial economic class. Thanks
1. "Forecasting is both an art and a science." Discuss with particular reference to Panel Consensus and Econometric Method.
A panel consensus is basically a technique that a firm, group, or committee uses to forecasts sales estimates. The econometric methods are causal or explanatory models of forecasting. Two types of ways are regression analysis, technique that economists use to forecast consumer demand with available data and multiple equation systems which deals with endogenous and exogenous variables. Both can be seen as “forecasting is both an art and a science” because you not only need hard data to make a logical decision that would make the firm successful but also creative thinking to use that data to predict the future. Using data can only take you so far, but with the creativity of art, a firm can make innovative options that will fit in well with the firm.
2. Name at least two legislations to prevent monopolization of businesses. Do you believe these legislations have been helpful? Discuss.
Sherman Act and Clayton Anti Trust Act have prevented companies from monopolizing the market. If the Sherman Act wouldn’t be in effect, cartels would exist within the US, thus effecting pricing on certain products. The Clayton Act was intended to strengthen and widen the application of antitrust enforcement to prohibit price discrimination. Both acts have helped prevent ridiculous prices surges. Companies like Apple, Amazon, Google, etc could have monopolized the whole market. But with competition such as Samsung, Walmart, Bing, etc they were able to keep prices at a decent levels which benefits the consumers.
Explanation / Answer
ans 1=
'Forecasting’ is the science & the art of predicting what will occur in the time ahead. Occasionally this is ascertained by a mathematical methodology; occasionally it is based on the operation manager’s intuition . Majority of the forecasts & the final decisions happen to be a combination of both. There are 2 chief approaches to forecasting - qualitative (eg-panel consensus)& quantitative (eg-econometric method) . The former utilizes factors like instinct, experience, emotion whereas the latter relies chiefly on mathematics, historical info & casual variables
Operations managers have 2 instruments at their disposal using which they take decisions- real info & forecasts. The significance of forecasting can’t be underestimated. Consider a product forecast & the operations of HR, capacity & SCM.
The labour force is based on the demand. This comprises recruitment, training & lay off of employees. If a huge demand is thrust upon the firm suddenly, training will decline & the quality of the articles could suffer.
If the capacity can’t match the demand, the outcome is unreliable delivery, loss of consumers, & loss of market share. Even then , excess capacity can shoot up the expenses.
Final moment shipping implies greater expenses. Asking for parts at the final moment can increase the expenses. Most of the profit margins are narrow, which implies either of those circumstances can wipe out a profit margin & render a firm functioning at cost/ at a loss.