Takeda Electronics Corporation, based in Japan, manufactures smart home devices. After experiencing unexpected stock shortages in 2023, TEC's management decided to implement more rigorous sales forecasting techniques, such as extrapolation.
Define the term 'extrapolation'.
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Singh Analytics Corporation specialises in data analytics software. In January 2024, SAC began examining its quarterly sales figures from the past five years using time series analysis to research customer purchasing behaviour.
Define the term 'time series analysis'.
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Mondial Retail Group SA, a French supermarket chain, adjusts its sales forecasts based on changes in inflation. The company particularly monitors the impact on consumer spending patterns.
State two ways inflation can affect sales forecasts.
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Eco Fashion Direct Ltd, a sustainable clothing retailer, experienced unexpected sales surges whenever certain social media influencers wore their products in 2024, fuelling fashion trends. The company now factors celebrity endorsements into their forecasting.
Define the term 'fashion trends' as a factor in sales forecasting.
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Alpine Sports Equipment PLC, a winter sports gear manufacturer, needs to accurately predict demand for its products throughout the year. The company's sales illustrate clear seasonal variation between summer and winter months.
State two examples of seasonal variations that can affect sales forecasts.
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Nova Electronics Corporation, a global consumer electronics manufacturer, tracks various consumer trends to adjust its sales forecasts. The company monitors a range of sources to identify changing preferences.
State two sources of consumer trend information used in sales forecasting.
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Baltic Cruise Lines Ltd, based in Estonia, experienced increased bookings from international tourists as a result of exchange rate fluctuations in 2024. Their local currency weakened against major global currencies.
State two effects of exchange rate changes on sales forecasts.
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EcoRide, a bicycle manufacturer, adjusted its sales forecast in 2024 after competitors launched electric models at lower prices.
Describe one challenge a business may face when relying on sales forecasts.
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Seascape Cruises is a luxury cruise operator specialising in voyages to remote destinations. To better manage its resources, the company relies heavily on sales forecasting. Recent forecasts suggest a 20% increase in demand during peak summer months, primarily due to rising consumer interest in adventure travel.
However, changes in economic conditions, including rising inflation and fluctuating exchange rates, have raised concerns about the reliability of the forecast. Competitor promotions also present a challenge, as rival cruise lines are offering steep discounts for similar routes.
Analyse two advantages and one disadvantage of Seascape Cruises using sales forecasts for resource planning.
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Seascape Cruises is a luxury cruise operator specialising in voyages to remote destinations. To better manage its resources, the company relies heavily on sales forecasting. Recent forecasts suggest a 20% increase in demand during peak summer months, primarily due to rising consumer interest in adventure travel.
However, changes in economic conditions, including rising inflation and fluctuating exchange rates, have raised concerns about the reliability of the forecast. Competitor promotions also present a challenge, as rival cruise lines are offering steep discounts for similar routes.
Describe two external factors that could cause Seascape Cruises to adjust its sales forecasts.
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Bright Bake is a small bakery specialising in premium artisan bread. The bakery uses sales forecasts to manage its inventory and staffing, especially during seasonal peaks like holidays. Recent forecasts predict a 30% increase in sales during the winter season due to promotional campaigns and consumer demand for festive baked goods.
However, changing economic conditions, such as rising ingredient costs and inflation, may affect the accuracy of these forecasts. Bright Bake must carefully adjust its operations to balance increased demand with the rising cost of production.
Explain one advantage and one disadvantage of Bright Bake using sales forecasts for seasonal planning.
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Bright Bake is a small bakery specialising in premium artisan bread. The bakery uses sales forecasts to manage its inventory and staffing, especially during seasonal peaks like holidays. Recent forecasts predict a 30% increase in sales during the winter season due to promotional campaigns and consumer demand for festive baked goods.
However, changing economic conditions, such as rising ingredient costs and inflation, may affect the accuracy of these forecasts. Bright Bake must carefully adjust its operations to balance increased demand with the rising cost of production.
Describe two external factors that could influence Bright Bake’s sales forecasts.
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Jet Wheels is a bike rental company operating in a coastal city known for tourism. The company uses sales forecasting to plan for fluctuations in demand throughout the year. For instance, forecasts predict a surge in rentals during the summer due to increased tourist activity.
Jet Wheels also faces challenges such as unexpected weather changes and competition from ride-sharing apps, which may influence the accuracy of its forecasts. Despite these challenges, sales forecasts remain essential for managing inventory, staffing, and promotional efforts.
Explain one advantage and one disadvantage of Jet Wheels using sales forecasts to manage staffing levels.
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Jet Wheels is a bike rental company operating in a coastal city known for tourism. The company uses sales forecasting to plan for fluctuations in demand throughout the year. For instance, forecasts predict a surge in rentals during the summer due to increased tourist activity.
Jet Wheels also faces challenges such as unexpected weather changes and competition from ride-sharing apps, which may influence the accuracy of its forecasts. Despite these challenges, sales forecasts remain essential for managing inventory, staffing, and promotional efforts.
Analyse two advantages and one disadvantage of Jet Wheels using sales forecasts to manage promotional activity.
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