Q125
Which of the following statements best describes scenario planning?
A.
Exploring future possibilities by looking at potential outcomes from particular causes and seeking to explain why things might occur
AnswerB.
Considering three likely scenarios for future developments, and devising a strategy according to the likeliest outcome
C.
Helping managers come to terms with the threats and opportunities within the company by devising a possible scenario to eliminate the threats and capitalize on the opportunities
D.
Planning the best way to secure the scenario outcome that would benefit the company most
Answer: Option A
Solution
Answer: Option A
Solution:
Exploring future possibilities by looking at potential outcomes from particular causes and seeking to explain why things might occur best describes scenario planning. Scenario planning is making assumptions on what the future is going to be and how your business environment will change overtime inlight of that future. More precisely, Scenario planning is identifying a specific set of uncertainties, different “realities” of what might happen in the future of your business.