Ensuring Better Business Forecasting

Meirav, Udi
December 2001
Financial Executive;Dec2001, Vol. 17 Issue 9, p52
Academic Journal
The article discusses how companies can improve their business forecasting by taking better account of risk. Firms should replace efforts at achieving precision in forecasts with a broader approach that attempts to quantify the risks associated with key business decisions. The author describes how Texas Instruments Inc. used such an approach to successfully withdraw from the profitable memory-chip business before oversupply drove prices down. A second example involving the market for high definition television is also presented.


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