The select one industry from the list below is restaurant 2. What specific variables would be needed by that organization in order to forecast? Be sure you explain "why" you selected each variable and why it is important to forecasting..
Sales forecasts are common and essential tools used for business planning, marketing, and general management decision making. A sales forecast is a projection of the expected customer demand for products or services at a specific company, for a specific time horizon, and with certain underlying assumptions.
A separate but related projection is the market forecast, which is an attempt to gauge the size of the entire market for a certain class of goods or services from all companies serving that market. Sales and market forecasts are often prepared using different methods and for different purposes, but sales forecasts in particular are often dependent at least somewhat on market forecasts. Although the focus of this discussion will be on sales forecasting, a brief summary of market forecasting will help provide context.
A special term in studying sales and market forecasts is the word "potential." This refers to the highest possible level of purchasing, whether at the company level or at the industry or market level. In practice, full potential is almost never reached, so actual sales are typically somewhat less than potential. Hence, forecasts of potential must be distinguished from forecasts that attempt to predict sales realized.
Assessing market potential involves observing and quantifying relationships among different social and economic factors that affect purchasing behaviors. Analysts at the industry level look for causal factors that, when linked together, explain changes (upward or downward) in demand for a given set of products or services. This may be done on the local level, the national level, or even the international level. The economic and social variables that