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A CAT Corp Forecasting

Solution Id Length Case Author Case Publisher
2856 1420 Words (7 Pages) Jitendra R. Sharma Ivey Publishing : W13377
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A-CAT electrical appliance company was one of the leading companies in India with a joint venture collaboration with General Electronics. They were product voltage stabilizers along with other electric appliances. However, the company was going through a few issues of stock and cash flow. The president asked for a detailed report and solutions, which needs to be as simple and brief for all employees in departments to clearly understand and follow. These issues came to Arun's notice when he asked for a detailed data report of the previous trends in sales and revenues. He then handed over the responsibility to forecast the coming year's sales and production to his operations manager, Shirish Ratnaprabha, as these issues needed immediate attention. Many spare parts were used in other appliances as well, which can impact the company's cash flow and demand. To maintain stability, the V.Pt sought Mitra, the operations head, to present a detailed analysis and report on the way forward.

Following questions are answered in this case study solution:

  1. Using the various methods and models available for forecasting that we have covered thus far, suggest a way forward for A-CAT.

  2. Which method is best suited and gives the best possible results? Why?

  3. What qualitative factors can be considered to improve the forecast experience?

Case Study Questions Answers

1. Using the various methods and models available for forecasting that we have covered thus far, suggest a way forward for A-CAT.

For A-CAT to move forward with forecasting techniques that should minimize their problems like over-stocking, understocking, dissatisfied customers, and managing inventory levels, it is important for the company to take immediate action. Improvements in the forecasting of voltage stabilizers for A-CAT, various factors can be considered into account, which can help the company to provide sufficient insights and feedback. Such factors are mentioned below:

Market research: it will provide enough insights about ongoing trends in the market that would help A-CAT to mold its voltage stabilizer according to customers' requirements. It can also help the company to identify other external factors like population growth, and economic condition impacts on customers. These insights would help A-CAT to move ahead in their forecasting techniques with a much better approach.

Collaboration within the departments is another way to move forward in the future. A-CAT should involve and encourage feedback and suggestions from all the departments in brain-storming activities. Sales, Operations and production departments may have many valuable insights to share, which they may have observed over the period of time by surviving in the industry.

A-CAT also has previous trends and data on hand, which it can consider making sound decisions. The Operations head, Shirish Ratnaparkhi, should take the data provided by the Vice President into account and gather more analysis and present feedback based on the data he would observe. Hence, considering data and trends into account is as important when deciding a way forward as any other factor.

Another way to move forward is to take into account competitors’ actions and trends into account. As A-CAT has observed a decrease in its voltage stabilizer sales, it needs to dig deep into the factors that led to the decline before making any further calls, as this decline may only be because of the company's out-of-industry alignment and practices. 

All these factors must be taken into account as they will provide the platform for the company to move forwards while making any strategic moves and decisions. 

2. Which method is best suited and gives the best possible results? Why?

The best method to forecast for any company depends on many variables rather than one. For A-CAT to obtain the best possible results, a few mentioned approaches below may help the company. A few of these approaches may give optimal results, whether used collectively or independently, are as follows:

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