Question

3. Describe how the following Star bucks managers might use forecast- ing, budgeting, and scheduling (be specific): (a) a retail store manager; (b) a regional marketing manager; (c) the manager for global develop- 3 ment; and (d) the CEO
Need answer in 200 words

Answer 1

3a) A retail store manager can use the forecasting technique to analyze the future demands for the Starbucks outlet for the coming financial year. Time series forecasting can be done on the past data so as to analyze the popularity of various products based on seasonality and accordingly project the same for future years. Based on the forecasts, budgeting will be divided among the various products of the outlet and a project schedule will be prepared. Accordingly the products will be placed at the outlet.

b) Regional Marketing manager can use the past data of the region to analyze the customer disposition and overall preference for the various products offered by Starbucks. Regional marketing manager can also analyze the performance of Starbucks in that region, compared to the performance of its competitors. This will give a perspective to the company about how the various product offerings are faring in that region. Accordingly the regional manager can initiate offers and deals for the overall outlets in the region.

c) The manager for global development can use the forecasting techniques to evaluate the prospective markets for the company. The effectiveness of a new market can be studied based on the past demand pattern as well as the influence of external factors on the potential market. Based on the analysis, the manager of global development may consider plans of expansion and entering a new market.

d) The CEO would study the performance of the various products in the past, analyze the market trends and accordingly take decisions to shelve off an unpopular product. Based on the seasonality trends and demand forecasts, the CEO may consider options of launching a new product or modifying an existing product.