Case study

To what extent might the use of these technique increase the company's chance of success?
Cash flow forecast is a detail estimate of a firm's future cash inflows and outflows per month.Budget forward financial plan usually involving a cash-flow forecast, forecast sales and forecast costs. In this case study we know there is more risky of their niche market. Cash flow forecast can help them to reduce risks, for example, when the demand of their products decrease, the profit goes down, they do not have enough money to produce, they need to enough money to keep their production, so if they did cash flow forecast, they do not need worry because they have enough money to deal with these problems, the money may from investment. So risks decrease, they will save money to deal with some questions like this, hence, they will use he money to increase the productivity, or increase the quality of their product, then the reputation will get better because of it, so more and more people become their consumer, of course the profit will increase a lot. So it helps the company development,which means easier to gain success. But it is depends on the demand elasticity. For example if the demand is inelastic, if they increase the price , the demand will not change a lot, but if the demand elastic, the demand will be opposite of the above.
The budget's function is better than cash flow forecast, because it is contain cash flow forecast.therefore budget can deal with the cash flow problem of short run and the production of long run. At the short run when the company face to cash flow problem, they can deal with by their cash flow forecast, like I said last paragraph. And at the long run, when this business face to recession or inflation and so on, some of the UK economy problem will effect their production, but because their have a good budget before, they can keep or increase their production to satisfy consumers, to achieve income increase or stable. This is also increase the company;s chance of success.
Also in this case study, they said Hoggard Organics use these two techniques before they expansion into UK, so it will be easy to start and more efficiency, because they save money and they have enough methods to deal with the problem that they will face, this is a good start. Therefore,In this way, it helps increase the chance of success of this company as well.

I try my best , butI still think my answer is not good enough. hope you can help me.Thanks