Forecasting within a business
Student 2 Lasandra
Forecasting within a business is the specifics of a business such as sales growth, or predictions about the economy as a whole, are informed guesses. American Residential Services is a company that prides itself with giving customers the best customer service experience possible from the minute they walk through there doors. It is a corporately owned company with branches in the south. Although the company strives to promote positive customer service sometimes they do fall short, pleasing every customer is impossible. The company struggles with a high turnover rate because the industry is ever changing and other companies can offer workers more money or a better benefit package. The company spends more time satisfying its external customer much more then the internal customer the workers, some workers feel unappreciated and unwanted. The company need to spend time in improving there retention rate which will in turn improve customer relations.
Steps for forecasting
This is the process of predicting the future based on past and present data commonly using analytical trends. Risk and uncertainty is common with forecasting . Forecasting data must be kept up-to-date in order for the forecast to be accurate as possible. There are 7 ways forecasting:
- The company must determine the use of the forecast
- Select the items to be forecast
- Determine the time frame for the forecasting
- Select the forecasting
- Gather the data needed to make the forecast
- Make the forecast
- Validate and implement the results
American Residential Services a short term forecast would be good for this company because the company need to make changes to there practices quickly because they are losing top talent to the competition. They need to work on there retention rate and ways in which they can improve on workers feeling appreciated. When employees feel appreciated it is shown in their work which will improve customers relations. They need to improve upon training employees to attract new customers and maintain relationship with the customers who have been with the company for a long time. Once all the data is collected the company should in turn implement the findings and explain each finding so that employees know what is expected of them and what the company is willing to do to give employees the appreciation they deserve such as a monthly luncheon and trust building exercises which promotes a positive work environment.
Qualitative or Quantitative
Qualitative approaches forecasts based on judgment an opinion while quantitative approaches forecast are based on historical data (Shim & Siegel). I would use a little of both method. With a the Qualitative methods is important because the employees can give their suggestions on practices that can be implemented to make the work environment more positive and to lessen the high turnover rate of the company. It is also important to use the quantitative method managers can study the trends of the company and see what programs were implemented the last time the company had a spike in the high turnover rates and the employees not feeling comfortable in their work environment. This will help the company to make better decision based on data collected form both methods and combine them to make sure the new programs they are going to implemented will be valuable both to their employees and customers.
Shim, J.K., Siegel, J.G. (2012). Budgeting Basics and Beyond (4th ed). Hoboken. NJ:John Wiley & Sons.