Forecasting


Introduction

In researching forecasting within a business some of the information has proven to be very helpful in determining what the future holds for the business or company. Some of the concepts this paper will cover has to deal with indexes and the different types of indexes that are involved with any type of business. With any business forecasting the future trends are important because these charts show the trends over a period of years based on the averages. All company’s have forecasting to meet the goals and objectives within the business. Rating systems can also be viewed as an index but require certain factor’s in particular rating systems. There is a variety of index’s throughout the business world some of them consist of the Dow Jones Industrial Average, the Consumer Price Index, and the Consumer Confidence Index.
Forecasting is a process in which, business’s make statements about the events where the actual outcome has typically not been observed. Business’s tend to make forecasting apart of the business because it sets out goals and objectives for them to achieve. Without forecasting the business would not have any type of goals or objectives to reach therefore, the business would not know what to predict for the upcoming years or months. Forecasting is done in a variety of ways and tells different types of information based on the business. The chosen forecasting for this project was the Winter and Summer Highs for a period of four years. Based on the information that was given the forecasting of these two items fluctuated throughout the years. Estimation of the future goals of the business would allow them to achieve success. For example, the current company that I work for right now uses forecasting to determine the amount of sales that they will do during each of the two shifts. Even though forecasting is just an estimation of the sales that they will possibly do it is a goal that they work towards. The Dow Jones Industrial Average (DJIA) is a well-publicized index that reflects the value of stock prices (Sevilla, 2007).
In reading the text about rating index’s this type of index can be considered as a type of indexing scheme. These types of rating index’s are set up for company’s to compare movies, colleges, cities, or other institutions. When consumer’s buy movies the company will rate how popular the movies are depending on the demand of the product. Movies are rated on the content of those movies and placed in the following categories: PG, PG-13, R, NC-17, or G. Rating index’s can also be used to organize places, or things based on the amount of traffic a certain place has had over the past year or compared to earlier years. This could be used to base the future’s popularity of certain places around the world. In order for a business to use the rating system indexes appropriately, the business needs to consider the information that is included in the rating as well as the reliability of the information. We encounter rating systems when various organizations rate, for example, the best cities for walking or the best “family-friendly” companies (Sevilla, 2007)..
The charts show how the time series data of indices fluctuates by decreasing and increasing steadily of the months, and years. Throughout these years the information that has been provided shows that the fluctuation over these years will more than likely continue. During the fifth and ninth months is when the summer highs were at their peak. Then in the tenth month it dropped considerably with a slight peak in month eleven and then back down at the twelve month. During the winter highs the fluctuation begins at the beginning of the year and has the highest peak during the eleventh and twelfth month. The winter highs started off with a high peak and tapered off throughout the upcoming months. Looking at the information it looks like the last two months of the year were the best time for the winter highs.
In conclusion, by looking at the market prices, trends, and forecasting business’s can set out goals, and objectives. Predictions and outcomes are different and sometimes those goals and objectives are not met. But with any business these figures are not set in stone and can be changed to meet the future trends, and market prices. Forecasting is a way to forecast or predict what the company or business will do during the year, or months. There is no guarantee that that the number’s that have been projected will be matched. Forecasting with indexes is a excellent way to make sure that demands are being met throughout the business.

References:

Sevilla, A., & Somers, K. (2007). Quantitative reasoning: Tools for today’s informed citizen (1st ed.). Emeryville, CA: Key College Publishing.

Competitive Advantage


Within this paper, I will elaborate on the strengths of the aquaponic greenhouse business to make the business a success, by addressing the actions the business will take to recover from the weaknesses that the business will encounter. By describing the ways that the business can take with the current opportunities and create more opportunities for the business to grow, and identify threats and the plan for monitoring these threats within the business. Furthermore, I will discuss the way flexibility plays a role in business.

The outlining strategies that will be essential to gain and sustain a competitive advantage in the aquaponic greenhouse would include value where I would evaluate the resources and capabilities of the business. The value of Ponder Hill Aquaponic Greenhouse business will provide value to the changing trends concerning customers. In describing rarity within the aquaponic greenhouse is to have a different variety of products which are not the same as the leading competitor’s within the area. However, in discussing imitability that consists of imitating another business that has the same products or strategies in place to see if they will be compatible with the strategic plans that the business has put in place for the business.

In discussing the strengths of the aquaponic systems by building  in a location that would be beneficial to the business so that customers would be able to access the products of the business. Picking the right location for the business is something that will determine the strength of the business. If a customer does  not have access to your business they are not going to spend  money within your establishment. Being accessible and easy to find is one strength that this business will have because the business will not be that hard to find. If you are not in the right location the customers are not going to find the business.

Some of the actions that will be taken  to address the weaknesses of the aquaponic greenhouse business is to understand how the system works within the community by learning what I can about the business before diving right into it. For example, a friend who I know has already started working on his  investment of building an aquaponic greenhouse, and  it is not going so well at this point in the project. Learning about the different types of strategies and competitive advantages that the business would have can provide some interesting facts about the business and whether or not it will be a success. Another weakness that will have to overcome would be the financial end of the business. Acquiring the finances to put into the business takes time to collect and starting out without the help of investor’s, or loans. Working  by overcoming the obstacles and having a plan in place will allow the business to be a success.

In describing ways to take advantage of the current opportunities is to provide consumer’s the choice of buying organic produce, and is environmentally safe for consumption. Opportunities may arise when the products and services can be offered in different locations or at different times. Some of the opportunities may arise unexpectedly, and some may be anticipated. In finding opportunities that will provide the business with a chance to improve the performance  and the competitive advantage

Furthermore, Some of the threats that would be harmful to the business is an electrical failure, or pipe blockage that could result in a complete loss of all fish within the business. This would also result in spending more money on replenishing the fish that was lost. The aquaponic greenhouse can have multiple single points of failure that would result in the business being unsuccessful so addressing these risks or threats upon surfacing would be beneficial to the business and their success. One way to avoid this is to have a backup generator just in case there was an electrical failure, and to ensure that the pipes are flowing smoothly throughout the greenhouse.

In conclusion, by evaluating the strengths, weaknesses, opportunities, and threats will help understand how the aquaponic greenhouse can sustain a competitive advantage over the competitor’s in the surrounding area. By offering fresh organic produce to the consumer’s, with easy access to the products and services that Ponder Hill Enterprises offers to the customer. Furthermore, this paper elaborated on the strengths, weaknesses, opportunities, threats, and flexibility of the business. Identified a potential risk and the role that it plays within the strategy that is in place.

Reference

Pearce, J. & Robinson, R. (2004). Strategic management: Formulation, implementation, and control. (9 ed.). McGraw Hill.

Pricing products in any Market


1) What aspects of the product, company, and market determine the appropriate price of a new product? How would you determine what is most influential in determining the price of your new product or service? Provide an example that illustrates your answer.
Some of the aspects that determine the price of a new product within the business, company, product, or market would include: selecting the pricing objective within the company. The business research team would need to estimate and determine how the demand curve is at to determine the price of the product. To estimate the costs and variances at the different level outputs within the business. Therefore, the research team would analyze the competitor’s along with the prices, offers, and costs associated with the product. Furthermore, the company would have to select the right pricing method and decide on the final price of the product. Moreover, company’s rarely set a single price for the products that they sell. The company’s structure a pricing plan in place to show the variations in the geographical demands or costs associated with the product.
In order to determine the price of the new product or service through our assignment I would have to implement a focus group or demo of the product to certain prospective consumer’s to see how much they would purchase the product or service for. There can be several ways to get the information that is needed to make a solid and logical judgement on whether or not the product or service would be beneficial to the company. By administering a variety of tests during different times or in different stages would benefit the business. PSM is a test that is widely used throughout the world in different businesses to determine which price range is appropriate for the product or service being offered. Another option is to measure the demand curves to find out the primary influences within that community or certain prospective consumer’s. Which would include a variety of surveys, and experiments.

Foreign Markets


When a company is looking at the foreign markets and selling their products within those markets the seller needs to be aware of the different cultures and customs or beliefs of that market. Many times people forget that all markets are not the same. What may be okay here in the United States may not be the same in another country. Researching is the main key into the success of a product aside from the price of the product which is just as important. I have seen many shops close down because they were in a conservative spot. A lingerie shop in a small town is not anything people want to see and as a matter of fact there used to be one in this small town but it moved to another county because of the commotion that it stirred. People around here are very conservative in their thinking and thought that it should not be allowed to be a business here. Most of the products that we purchase in the United States comes from another country which means that we will pay a higher cost for that product or service because it can be sold here for a higher price.

Correlation Analysis


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What is the purpose of using correlation analysis? How might correlation analysis be used in business decisions or in strategy formulation and implementation?

Correlation analysis is an important tool In any type of business. The purpose of using the correlation analysis is for the business to determine the relationship between two variables. When a relationship has been found the correlation analysis would be used to predict the trends and changes that are associated with the variables in question. there needs to be some type of correlation analysis in order to determine the variables with the correlation analysis the business or company is able to see the end results and make healthy decisions based on the information that they have found. By using mathematical equations throughout the business world using the right mathematical equations can allow the business to look at the budgets for the quarter, or year. Correlation analysis can be used in a variety of ways to inform the business of what needs to be done to keep things moving within the business. As long as the correlation analysis is found then there is no stopping the business from succeeding in everything that they do. If the right correlation analysis is not found for the business it could mean a disastrous effect on the business. This could mean more costs than the business is willing to dish out. More research would need to be done to find the right correlation analysis for the business and to make the right decisions for the business.