Although many things which are studied on an MBA (q.v.) are of dubious worth in the actual world of business, the methodology of the setting of a valid and considered sales target is usually a worthwhile area. The new sales target for the new FY (q.v.) is carefully calculated by a mixture of top down plans such as what would we like to achieve?, what capabilities do we have? etc. added to bottom up such as what is the market doing?, what potential threats are there? etc. Into which mix can be added a bit of what if? scenario planning. Done well, done rigorously it helps an organisation create a sound target for growth for the coming year.
Sadly, though, many organisations are resistant to such an approach generally because it rarely adds up to dramatic figures which are fun to flourish at an annual conference. And so consequently the figures are created by adding a simple-large-percentage. The consequences of this ad-hoc approach will reverberate in meetings of howling pain for the rest of the following year and probably necessitate many a re-org.