The role of forecasting in corporate strategy: The xerox experience

This paper presents the system of analysis used by the Xerox Corporation to relate the external environment to company decisions. The system is sophisticated and elaborate, comes to grips with such issues as product forecasting, market monitoring, activity monitoring, materials and labour cost analysis, and product price analysis. In addition, the system examines the longer-term issues associated with corporate strategy, with the more recent initiatives directed toward the strategic focus The Xerox case illustrates very well how externally provided forecasts of economic environments, both at home and abroad, can be used as inputs to a variety of econometric products to serve the individual corporation. The challenge in this work is to build the bridges from the external forces to the critical company decisions. That is a task which requires sophisticated tools and skilled professionals to accomplish. This case study shows what can be done.