Question

A danger of forecasting discussed in the text is that _____________. a) in most cases, the expense of collecting the necessary data exceeds the benefit b) the retrospective nature of forecasting provides little information about the future c) managers may view uncertainty as black and white while ignoring important gray areas d) it can create legal problems for the firm if regulators discover the company is making forecasts.

Answer 1

Answer:

The correct answer is c.

Explanation:

In the book Strategic Management: Creating Competitive Advantages, the authors discuss some of the most relevant topics related to strategic management, such as innovation, management, strategies, sustainability, and so on.

In their section about forecasting (which refers to predicting the future according to the information available) the authors warn about the dangers of it. One of them is that managers may view uncertainty as black and white while ignoring important gray areas. They argue that while forecast can be very valuable, management should always stay alert to any blind spots and gray areas.