Question

The manager at a local recreational vehicle store, Off-Road Rage, believes the next two years will be difficult because of an economic recession. Using this forecast, he determines the effect on the industry's market potential and then estimates how his company's potential sales will look based on this outlook. This manager is using a _________ approach to estimating sales potential.

a) breakdown
b) recessionary
c) buildup
d) pyramid
e) dimensional

Answer 1

The manager is employing a buildup approach to estimate sales potential by analyzing the impact of an economic recession on the industry's market potential and the company's subsequent potential sales.

Step-by-step explanation:

The manager at Off-Road Rage is using a buildup approach to estimating sales potential. This approach involves analyzing the effect on the industry's market potential due to an economic recession and then estimating the company's potential sales based on this analysis.

The manager considers variables such as the economy running below potential GDP during a recession, business tendencies during economic fluctuations, and the measures taken by economic policymakers in response to recessions.

This means that the manager is taking into account the predicted economic recession and its impact on the industry's market potential. By considering the effects of the recession, the manager can make more accurate estimations of the company's potential sales.

Therefore, the correct answar is c) buildup