The earnings call is intended to inform the involved key stakeholders on the performance, evaluation of the financial performance and future plans such as financial budget, training, safety and growth. It focuses not only on the business but as well as the community events and thus the corporate social responsibility of the business is addressed.
The proposed shift in the business has financial implications due to the establishment of a processing plant which calls for readiness, training, and marketing. To implement this decision the business will incur more expenses as compared to the previous quarter as the business anticipates high returns in the long run. The high returns would be achieved by cutting the cost of wedges to be remitted. The thing I will do differently is that I would not implement the growth of the training team for the support of employees to be bilingual. The strategy could be implemented once the processing plant has taken root to help lift the financial load off the business (Anthorny's Orchard, 2018)
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A forecast is important for a business as it prepares the stakeholders on what to expect with respect to lows and highs of the business. Based on the forecast, the company is able to budget, plan, and eliminate business risks. Without a forecast, the understanding of the business trends and the business decision making process might be on the basis of impulse or guesswork and thus incurring high damages that might be hard to recover (Schmidgall & Defranco, 2012) .
According to Schmidgall and Defranco (2012), budgeting and forecasting are two pragmatic methods used in business as standards against the real operating results. A forecast differs from a budget because a forecast is done to help the company make decisions that are more favorable to the progression of the company while a budget is done based on the decision arrived at in the forecast. A budget depends on the prediction of the anticipated cash flow or general performance of the company.
References
Anthorny's Orchard. (2018). Webcasts and Presentations . Retrieved from Anthony's Orchard: http://mym.cdn.laureate-media.com/2dett4d/Walden/ACCT/6130/mm/anthony_orchard_website/webcasts_presentations.htm
Schmidgall, R. S., & Defranco, A. L. (2012). Budgeting and Forecasting. Cornell Hotel and Restaurant Administration Quarterly , 45-51.
