Question

Chrysler Corporation is designing a new sports car but is unsure of future demand for the product. Since it will take at least four years to bring the car to market, Chrysler requires ____ sales estimates at introduction and ____ sales estimates to determine future marketing requirements.

Answer 1

Answer:

1. Medium range sales estimates

2. Long range sales estimates

Explanation:

At introduction, Chrysler requires medium range sales estimates and Long range sales estimates To determine future marketing requirements.

These estimates are economic forecasts they are indicators that are used to help organizations in preparing medium to long range forecasts.

The medium range estimates span from 3 months to 1 year.

The long range estimates is for 3 years or more.

Answer 2

Answer: medium range; Long range

Explanation: Estimation and forecasting are pivotal in making strategic business planning and decisions. It affords organization the ability to projects into perspective before it is being embarked upon therefore allowing effectiveness and better decision making. Since the new production will take at least four years before hitting the market, Chrysler corporation will require medium range sales estimate at introduction which should be able to cater for projections usually between three months to three years in relation to production operational and sales plan. And the long range sales estimate which will cover for longer time period with emphasis on new trends, technological demands and marketing requirement at the time.