Applying time series methodologies simulation Essay

Applying time series methodologies simulation - Essay Example Its worth investing because the results are tangible and positive. A decrease in advertising budget has resulted to reduced sales. With investing 164 million USD in advertising, the company generated 2,454.41 million USD. Putting 140 million dollars for advertising resulted to 2,264.85. This is a significant decrease in revenue or sales generation. Average investments in advertising would bring an average accumulation of sales. Blue Inc in the last three advertisement budget has ranged between 148 million USD to 164 million USD. This means that the level of sales would remain at the same level if there would be no or little increase in advertising budgets. A decrease in advertising budget from 164 million USD to 140 million USD resulted to a decrease in revenue generation from 2,454.41 million US dollars to 2,264.85 million dollars. Therefore (164-140) = (2454.41-2264.85) The above is significant for it means that if the competitors were to put massive investments in advertising, they would surpass the sales of Blue Inc. The current trend in advertisement investment is a threat, and the company should consider adding the amount set aside for advertisement. At current rate of allocation of advertising resources, the company would significantly lose in retail coverage. Decreased levels of advertising would mean that few people would be reached by the message. The competitors would be capitalizing on this, and therefore, if the company is to avoid losing its competitive niche, it has to consider increasing levels of