A Sales Forecasting Model Based on Internal Organizational Variables

In this paper we develop a sales forecasting model for a small sized business unit focused on exports. Through a choice of internal explanatory variables in the organization we develop an econometric sales forecasting method, and compare its outputs with simpler univariate forecasting techniques in use at the organization. We show that the econometric technique produces a better fit to observable data, allowing for sensible statistical inference, and adds explanatory features not accessible to the simpler extrapolation techniques, by integrating quantitative variables accounting for relevant management decisions