3.6.3 Scenario Planning

• What is Scenario Planning used to prepare for?

  Potential future scenarios
• Scenario planning enhances decision making by providing a clearer understanding of potential outcomes
• Scenario planning addresses high uncertainty, while traditional forecasting assumes stable conditions.
• Match the feature with the correct planning method:

  Multiple scenarios ↔️ Scenario planning

  Single expected outcome ↔️ Traditional forecasting
• Steps in the Scenario Planning process:

  1️⃣ Identify key factors

  2️⃣ Identify uncertainties

  3️⃣ Develop plausible scenarios

  4️⃣ Analyze the scenarios

  5️⃣ Develop strategies
• What is one benefit of Scenario Planning?

  Enhanced decision making
• Subjectivity in scenario development can lead to biased perspectives
• Scenario planning may lack precision in predictions due to inherent uncertainties.
• Which two industries are used in the examples of Scenario Planning?

  Technology and retail
• Match the industry with its key factor:

  Technology industry ↔️ Technological breakthroughs

  Retail sector ↔️ Consumer preferences
• Scenario planning helps organizations prepare for a wide range of potential futures