Date Added: Oct 2009
External stakeholders ask not for a budget, but for projections, forecasts and market guidance. If you miss external trends that have an impact on your business the repercussions can be serious. Stakeholders lose confidence in the capabilities of the management team, the share price may be affected, and agencies may lower your ratings, leading to an increase in the cost of capital. As new products roll out, new competitors enter the market, consumer behavior changes and the pace of business accelerates, most organizations collect sufficient external data to predict future trends.