If most long-term forecasts are usually incorrect, why bother doing them?

Question

Quizplus · Accepted Answer

The Answer is This question is based on the assumption that most long-term forecasts are usually incorrect. One must keep in mind that some things are easier to forecast than others. For example, a forecasted drop in the demand for tricycles in three years will very likely occur if it is based on a strong drop in the present birth rate. Nevertheless, most people would probably agree that forecasts going out five to ten years have a low probability of becoming reality in today's dynamic world. The text takes the position that even if predictions prove to be wrong, the very act of scanning and forecasting the environment helps managers take a broader perspective. It also forces managers to take an active rather than a passive orientation toward its external environment. It encourages calculated risks over WAHs (wild a** hunches) and is more likely to result in strategic management instead of reactive management.

If Most Long-Term Forecasts Are Usually Incorrect, Why Bother Doing