Forecasting

The second technique managers can use to assess the environment
is forecasting. Forecasting is an important part of
planning and managers need forecasts that will allow them
to predict future events effectively and in a timely manner.
Environmental scanning establishes the basis for forecasts,
which are predictions of outcomes. Virtually any component
in an organization’s environment can be forecasted. Let’s
look at how managers forecast and the effectiveness of those
forecasts.