Analysis Of External And Internal Data example essay topic

In 1992, the Walt Disney Company opened its fourth theme park in Paris, France. The grand opening did not go without problems, and park operations were disorganized. In this paper, I will attempt to explain the assumptions that the Walt Disney Company made and the results of those assumptions. How Disney could have made a more favorable opening and acceptance in France. Was this choice of location...

Business is very exciting, it is the core of all subjects. Liberals, democrats, moderates, in dependants, etc all rely on business skills. Financial planning is related to a firm's operations because it provides road maps for guiding, coordinating, and controlling company's activities in order to achieve its objectives. Forecasting is critical to every company, without it companies will not be able to survive. Setting predictions and exceeding those goals are challenges all companies face, especially those who are public. For example, General Dynamic's Income Statement reflects a steady income growth ranging on an average of 7% per quarter.

These financial statements are posted for everyone and it is the job of the analysis to give recommendations for buying or selling the stock. There are two types of financial planning, short-term or operating plans that covers 1 to 2 years and long-term or strategic planning that can range from 2 to 10 years. The key input to short-term financial planning is cash or the sales forecast and may be based on the analysis of external and internal data. Today, companies such as General Dynamics focus on both short-term and long-term planning. Two types of influences, external and internal, affect forecasting.

External forecasts is based on the relationship observed between the firm's sales and certain key external economic indicators such as the Gross Domestic Product (GDP), new housing starts and disposable personal income. Forecasts containing these indicators are readily available (Financial Analysis P. 171). Internal forecasts are based on the company's own sales channel or sales team. Sales representatives for the company are responsible for forecasting how much product they will be able to sell to their customers.

This data is then collected by their managers and will adjust the numbers according to marketing data available for their market segment. The combination of the external and internal data will make up the final sales forecast for the company. Let's take a look at one major external force affecting all businesses today. Like much of the economy, the aerospace and defense industry was already struggling to maintain profitability prior to September 11. The terrorist attacks have had a significant affect on the aerospace and defense industry and have either accelerated some market segments while reversing others, in particular the commercial airlines. Today, the aerospace and defense industry is expected to grow by 15% due to President Bush's new proposal to increase the U.S. Department of Defense's budget.