The paper "Forecasting Methods for Greater Union Cinema" is a wonderful example of a case study on management. Much of any organization’ s success depends highly on its ability to predict the future. The closer the prediction is to what is going to happen, the more favorable the results are for the organization. This is because by knowing what will occur in the future, organizations can prepare its resources, allocate manpower, and strategize its position in the market in anticipation of the projected future, thus gaining a head start against the competition and paving way for success for the organization.
However, the future is not that easy to predict. Various factors obscure the possibility of correctly predicting the future as seemingly innocent events taking place in any part of the world can influence various aspects of the human societies in unimaginable ways. Even so, organizations still have to come up with the most likely future situation in order for them to efficiently strategize their way towards success, or to avoid future scenarios that may threaten the stability of the organization (Butler, 2004, p. 219). The need to be able to predict the future becomes more apparent as the global economy began to experience massive instability.
As the world witnessed how strong and stable companies went bankrupt, the greater the pressures to protect the future of businesses become. Greater Union Cinema is of no exception. As a company offering products and services not necessarily constituting the basic needs of the society, Greater Union Cinema is posed to bigger economic threats since the market can easily collect their resources, using these resources for more meaningful endeavors other than the overwhelming movie experience promised by the company.
In other words, Greater Union Cinema must be able to curb the negative effects of the major global economic slowdown and position itself in a situation where it is guaranteed stability in the future (Hills and Jones, 1997, p. 107). This paper will evaluate the position of Greater Union Cinema in the market through its published financial reports and will forecast future scenarios for the company, particularly the trend of the company’ s earnings in the four major portfolios using established forecasting tools and methodologies in order to recommend strategic steps for the company to consider in the long run.
In order to do this, this paper will analyze the financial disclosures of Amalgamated Holdings Inc (AHL), the mother company of Greater Union Cinema, particularly on the four major types of investment portfolios that the company has, namely: Cinemas, Film Technology, Distribution, and other entertainment-related investments. Unlike companies offering financial services that require extensive and exhaustive forecasting methodologies in order to predict future movements of the investments, Greater Union Cinema will only need one or two forecasting analysis in order to understand the extent of the movement of the company and the possible effects of the changes in its immediate environment.
The company needs to be able to determine, understand, and interpret the possible scenarios that these various forms of risks can do to harm the company in the long run so that the company can create strategic steps to counter these negative effects.
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