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Unit I Topic 3 Forecasting, Long Range Planning: Dr. Pooja Associate Professor Rdias

Long-range business planning involves developing mission and vision statements to guide business goals and strategies over multiple years. The mission statement articulates an organization's purpose, while the vision statement expresses its aspirations. Senior managers establish long-term objectives aligned with the mission and vision. Long-range planning covers 5+ years, sets the company's direction, and informs annual budgets and targets. Forecasting estimates future demand by anticipating customer wants under various situations. Methods include top-down analysis of overall market conditions or bottom-up input from salespeople interacting with customers.

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520 views10 pages

Unit I Topic 3 Forecasting, Long Range Planning: Dr. Pooja Associate Professor Rdias

Long-range business planning involves developing mission and vision statements to guide business goals and strategies over multiple years. The mission statement articulates an organization's purpose, while the vision statement expresses its aspirations. Senior managers establish long-term objectives aligned with the mission and vision. Long-range planning covers 5+ years, sets the company's direction, and informs annual budgets and targets. Forecasting estimates future demand by anticipating customer wants under various situations. Methods include top-down analysis of overall market conditions or bottom-up input from salespeople interacting with customers.

Uploaded by

Mansi Goel
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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UNIT I

TOPIC 3
Forecasting, Long Range Planning

Dr. Pooja
Associate Professor
RDIAS
Introduction
Business planning involves setting short-term, mid-
term and long-term objectives and scheduling the
series of actions necessary to achieve them. Long-
range business planning includes developing a
mission statement, vision statement and ongoing
business goals and strategies necessary to move the
company's vision and mission forward. By focusing
on key issues such as productivity, customer service
and quality, business goals and objectives provide a
sense of direction, purpose and urgency. It also
motivates organizational teams to deliver the
performance necessary to achieve targeted results.
Long-range business planning includes developing a mission
statement, vision statement and ongoing business goals and
strategies necessary to move the company's vision and mission
forward.
Long-range business goals make business teams and individuals
accountable for moving forward a company's mission and vision.
The mission statement articulates the purpose for the
organization's existence. For example, a mission statement for a
bicycle manufacturer might be to offer high-quality bicycles at
value prices.
A vision statement is more specific and expresses the change a
company aspires to make. As an example, the bicycle
manufacturer's vision statement might be to "become the largest-
selling bicycle manufacturer by 2020." Based on the mission and
vision statements, top-down business objectives are developed by
senior managers in the form of long-term business goals.
Meaning

Long-range planning (LRP) is a process and discipline


that companies use to determine the best strategy for
succeeding in the markets they serve and to ensure
they have the capabilities needed to support their
strategic objectives.
• It covers a period of about five (5) years or more.
• It sets the company direction for a longer period
which shall be updated by the annual plan.
• Budgets and targets are set within the five (5) year
level.
Meaning
Forecasting is the art of estimating future demands
by anticipating what the buyers want to buy under a
given set of situation.
METHODS OF FORECASTING DEMAND

1. TOP-DOWN APPROACH

It is the major activity of top management in


forecasting market demand based on the
analysis of the total market condition and
analysis.
2. BOTTOMS-UP APPROACH

It is the forecasting method wherein the management


gets information directly from sales people who are in
touch with the customers or the dealers and
distributors of the product.

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