Three competing paradigms in strategic management - The rationalist paradigm - Types of forecasts
3 important questions on Three competing paradigms in strategic management - The rationalist paradigm - Types of forecasts
What is the underlying assumption of forecasting?
The assumption is that some people can be more expert than others in predicting what will happen, and the best we can do is ask them for their considered opinion on what might be in store, either as individuals or as a group (e.g. using the Delphi Technique).
What is the problem with forecasts?
They are based on underlying structures and patterns from the past. When radical change occurs the forecast fail by the simulation model.
Next to forecasts we can consider sensitivities to make our forecasts complete. Why isn't this the way to go?
- Sensitivities give us limited information because they do not deal with all interlinkages of variables in this situation.
- They are not internally consistent futures, and therefore misleading decision-making tools.
The question on the page originate from the summary of the following study material:
- A unique study and practice tool
- Never study anything twice again
- Get the grades you hope for
- 100% sure, 100% understanding
Remember faster, study better. Scientifically proven.
