The First Step in the Forecasting Game Plan Is to Project

question 22

Essay

The first step in the forecasting game plan is to project sales and other other operating activities. Sales numbers are determined by both a volume component and price component. Projecting prices depends on factors specific to the firm and its industry that might affect demand and price elasticity. For the following types of firms discuss whether it would be likely that the firm would be able to raise future prices:
a. A firm in a capital-intensive industry that is expected to operate near capacity for the near future.
b. A firm in an inchustry that is expected to experience numerous technological improvements.
c. A firm with products which are transitioning from the growth to maturity phase of the prochict life cycle.
d. A firm that has established a well known brand name and image.

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Definitions:

Allison WT

refers to a series of automatic transmissions designed and produced by Allison Transmission for vehicles, especially trucks and buses, known for their reliability and efficiency.

Drop-box

A gearbox that alters the direction of drive, typically used in heavy-duty vehicles to transmit power from the engine to the axles.

Extra-low Range

A gear setting in vehicles offering significantly reduced speed and increased torque for challenging terrain or heavy loads.

Solenoid Coil

An electromagnetic coil used to convert electrical energy into linear motion, often used in valves or as actuating mechanisms.