Answered: What is the strategic importance of…

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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What is the strategic importance of forecasting for a business such as Pinkie Ice Cream ? What are the possible challenges faced by organizations that do not utilize forecasting in the planning of their operations?

Transcribed Image Text:Pinkie Ice-Cream Itd. Pinky Ice-cream Itd. is an ice-cream company that is located in the city of Palma and has branches in several communities. The brand is an emerging brand and is becoming very popular among children and young adults. One of the reasons why this brand of ice-cream is becoming so popular is because the quality is outstanding. The Operations manager work closely with the marketing manager to ensure that the best quality ice-cream is sold to customer. The OM manager uses the best quality ingredients and ensures that the best machines and labour are employed in the transformation process. They also produce a variety of flavours to ensure that the customers have a wide choice. Weekly customer demand for the ice-cream can be seen in the table below. Week Demand |(gallons) 280 2 295 3 315 4 300 5. 340 6. 335 7 350 Seeing that the company is fairly new, management is yet to formulate a mission and a vision statement for the organization. They are planning to develop a strategic plan and would include these statements along with strategies in the plan.

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