Question 2 Chad and James are two veteran sales executives who have been working for a well-established car distributor selling new cars. About six years ago, believing that there were good prospects in starting a business in selling used cars, both gentlemen left their employment to venture out. Since the beginning of their company, sales had been quite positive, but the owners now wanted to know more about future sales using an appropriate forecasting method. For a start, they wanted to focus on the quarterly sales of a popular brand of used cars. The sales figures over the last five years were used for the forecast. They are presented in the table below. (c) Explain why forecasting, despite its usefulness or sophistication, should only be considered a useful tool for decision making in any business. What are other factors that need to be considered? (d) The business of selling cars in Singapore, like many businesses, is subject to uncertainties. Discuss three (3) external factors, including government controls on the car population which could affect vehicle sales and hence their forecasts.
Question 2
Chad and James are two veteran sales executives who have been working for a well-established car distributor selling new cars. About six years ago, believing that there were good prospects in starting a business in selling used cars, both gentlemen left their employment to venture out.
Since the beginning of their company, sales had been quite positive, but the owners now wanted to know more about future sales using an appropriate forecasting method. For a start, they wanted to focus on the quarterly sales of a popular brand of used cars.
The sales figures over the last five years were used for the forecast. They are presented in the table below.
(c) Explain why forecasting, despite its usefulness or sophistication, should only be considered a useful tool for decision making in any business. What are other factors that need to be considered?
(d) The business of selling cars in Singapore, like many businesses, is subject to uncertainties.
Discuss three (3) external factors, including government controls on the car population which could affect vehicle sales and hence their forecasts.
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