Question
In order to prepare for the future of your company,
you need to be able to properly forecast what your
sales are going to be.
In a few months A ‘level results will be published,
explain how Ndejje university can properly forecast
sales
Discuss the benefits of forecasting sales.
Introduction
• Established in 1992, Ndejje University (NDU) is
the oldest private university and the fastest
growing in Uganda. In 2002, the ownership
base was expanded to include all six Church of
Uganda Dioceses in Buganda Region in what
became known as “Ndejje University
Foundation Consortium.”
• In 2009 the University was chartered by the National
Council for Higher Education (NCHE) of Uganda
meaning that all certificates awarded at the University
where nationally and internationally recognized.
• Ndejje university through its multiple programs (Day,
Evening, Weekend and Distance Learning) offers and
awards certificates in both undergraduate and
postgraduate courses to a student population of about
8,000 both Ugandan and foreign. The University has a
steady growth rate each academic year, with two
intakes each year, that is, January and August intakes
respectively.
• According to Andrea L. Dixon and John (Jeff)
F. Tanner, Jr, the proposed definition of sales
is the phenomenon of human-driven
interaction between and within
individuals/organizations in order to bring
about economic exchange within a valuecreation context.
• Horngren.E. A (2008) defines sales
forecasting as the prediction of future sales
under a given set of conditions.
• Cundiff and Still: “Sales forecast is an estimate
of sales during a specified future period which
estimate to a proposed marketing plan and
which assumes a particular set of
uncontrollable and competitive forces”.
Factors to consider before forecasting
your sales
• The stage of the product’s life cycle for which
you’re making the forecast
• Sales process
• Availability of data
Sales forecasting types and
Techniques
• Quantitative forecasting
This comprises of collecting and analyzing of
numerical data about a given variable. It
looks at the trends and dynamics of
changes in the variable and the
relationship between these variables.
• Regression analysis method
This is where we examine the relationship between
two different variables (independent and
dependent) in order to determine how one factor
may affect another.
• Trend or time series analysis
In this method, we base on extensive historical data
as it assumes past trends will continue and repeat
in the future. It’s is recommended for short-term
projections, as the only information utilized is
previous sales data
• Qualitative forecasting
Under this method, forecast information is
based on expert and personal opinions.
Individuals give their views, thoughts, take
and opinions about the aspect under study
• Delphi technique,
• market analysis,
• survey of buyer’s intention
Techniques to properly forecast sales
for Ndejje University
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Ndejje University as the market
Sales process
Sales Revenue Channels
Time series analysis method
Casual analysis
Using Multivariable analysis
Multivariable analysis
• This concept incorporates factors from
opportunity stage forecasting (where you
predict the probability of an opportunity to
close based on where your prospect is
currently on your sales process.
sales cycle length (where you use data about the
time t takes a prospect to turn a customer.
For example, after inquiring about Ndejje
services, how long does it take for the
prospect to fill the admission and pay the
admission fees?), and
• historical forecasting (involves taking the
previous sales data for a certain period and
assuming that your sales will be better.
• For instance, if for the last 3 years the faculty
of Business Administration has been giving the
highest yields in revenue, holding other
factors constant, I will assume that even this
coming academic year I will project to have
more revenue from that department)
Benefits of sale forecasting
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Resource allocation
Cost reduction
Improved customer satisfaction
Attracts investors
Inventory management
Paints a bigger picture
Point of reference