Gayas, Rose Lyn C. Lopega, Ruth C. Olaje, Jeric Q. Pama, Marvin C. Teves, Hillary Jude A.

Forecasting Policies Section 1. Forecasting Objectives:

1.1 Marketing/Operations: a) Forecast the target markets demand for the product in a monthly basis. b) Determine the estimated advertising costs that will be used every month. c) Assess the profitability of marketing intermediaries (e.g. retailers) and if establishing these can contribute to the companys profitability and by how much. d) Estimate the reasonable prices of the products. 1.2 Finance: 1.) Forecast the financial turnover that a certain decision may give and how will it affect the long-term financial stability of the organization. 2.) Estimate the budget consumption of every department in a weekly basis. 1.3 Human Resources: 1.) Determine the number of employees needed to augment the target markets demand for the products. 2.) Establish hiring protocols that will enable the business to hire the skilled and competent workers. 3.) Establish organized compensation programs that will foster employee motivation and satisfaction.

Section 2. Forecasting Procedures

2.1 Human Resources Forecasting policies that will be used in the human resources context of the business have to be qualitative in nature. Objective and quantifiable data are not that really necessary in determining the number of employees and in making human resources protocols. Forecasting can be done through executive opinions. In here, the executives will be the ones to decide for the forecasts using their technical expertise of the subject matter. Employees salaries will be determined also by the business executives.

2.2 Forecasting Demand At the first few months of operation of the business, since historical data do not exist yet, forecasts will be based on subjective estimates. It will be hard to use quantitative approaches to forecasting at this period in time. At the succeeding months, forecasts will be based on the following time-series forecasting techniques: a.) Moving Average b.) Weighted Moving Average c.) Exponential Smoothing These techniques are primarily chosen because they provide simplicity. Also, they are short-range forecasting approaches. These are highly suitable for the business because target markets demands are expected to be estimated in a monthly basis. However, these are subject to change if these methods loss their relevance already. The business may resort to use other highly sophisticated forecasting methods. However, qualitative approaches will also be used. These are the sales opinions and customer surveys. These will be utilized for long-range forecasting plans. Consumer surveys will be exceptionally useful because it will suffice the details as to what the target market really needs. Price forecasts will be done with appropriate quantitative approaches, with the help of existing pricing methodologies. 2.3 Financial So as not to complicate things, financial forecasts about the needed weekly budget of the different departments will be based on the nave method. This method will be highly applicable because of the very short time horizon. Executive opinions may also help.