The act of preparing for the future implies forecasting, consciously or subconsciously, tomorrow’s condition. In our personal lives, such predictions are usually made on an informal, subjective basis. If they turn out to be wrong, we can usually adjust our personal circumstances. However, we rarely enjoy the same degree of flexibility in our working lives. There, decisions are usually of a more formal nature and greater consequence.
The very nature of managerial decision-making involves forecasting future conditions. Forecasts may be required for an important ‘one-off’ decision – for example, the company may be considering expanding by acquisition, diversifying into a totally new market or modernising ...