Often considered more realistic because it’s rooted in actual capabilities
This method relies heavily on internal data, employee insights, and past performance trends. It is more detailed and often considered more realistic because it’s rooted in actual capabilities and resources. For example, a company might forecast revenue based on the average number of sales per salesperson per month and scale it across its workforce. However, this method can be time-consuming and may miss external market dynamics if not combined with some broader industry insight.