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The Effectiveness of Scenario Planning (PDF)

   

Added on  2021-02-19

9 Pages2404 Words16 Views
Leadership Management
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Critique the effectiveness ofscenario planning as a toolfor understanding andmanaging uncertainty
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Table of ContentsINTRODUCTION...........................................................................................................................1MAIN BODY..................................................................................................................................1CONCLUSION................................................................................................................................5REFERENCES................................................................................................................................7
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INTRODUCTIONIt is very necessary to evaluate a situation so that strategic plans are developed. The scenarioplanning is a tool which enables company to make long term plans in flexible way. Also,companies are highly dependent on this tool it benefits them to forecast future (Cairns, Goodwinand Wright, 2016). With help of scenario planning factors or variables are identified that canimpact on their future plans. Furthermore, it is identified that what variables affect both demandand competition of organisation. This report will evaluate theoretical and practical understandingof scenario planning. Also, it will discuss what constitutes uncertainty. Moreover, the challengesrelated to managing uncertainty are explained in assignment as well. MAIN BODYIn modern world and complex business environment it is important for business to remaincompetitive in the market for long term. For this they require effective plans and strategies. Abusiness growth is dependent on what goals and objectives are set and how they operate infuture. For this they require to develop effective strategies by forecasting future. The plans areformulated accordingly. In recent times there are different methods and technique availablewhich supports business to develop plans (Ramírez and Selsky, 2016). Every business usescenario planning which allows them to analyze future. Scenario planning is a method thatenables organisation to develop flexible long term plans. Also, it is important for business to doscenario planning as it helps in identifying variables or factors that can affect negatively on theirfuture growth. With help of this technique companies are able to compete in market. Theyexecute different strategies according to the market situation. There are three elements includedin it which are mentioned below :- Environmental analysis- it includes environmental analysis in which external factors areconsidered. This is useful in finding out what drivers can impact on business. Beside this, howchange in that one will create uncertainty. Here, overall business environment is analyzed. Forecasting- In this forecasting is done to evaluate what will be change in those factors in futurethat are defined in environmental analysis. This enables to predict which factor can change andhow it will affect. Also, what market situation is, trends, etc. Organisational strategy – this is also included in scenario planning in which there entirebusiness strategy is evaluated. The purpose is to define future goals and objectives and howorganisation will grow. 1
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