Question

Scenario planning is one methodology strategic managers can use to avoid pitfalls in their planning process. In scenario planning, managers:

A) Focus only on the most likely outcome.
B) Consider multiple future scenarios.
C) Stick to a rigid plan.
D) Ignore external factors.

Answer 1

Scenario planning involves considering multiple future scenarios to avoid pitfalls in the planning process.

Step-by-step explanation:

In scenario planning, strategic managers consider multiple future scenarios to avoid pitfalls in their planning process.

Scenario planning involves using current knowledge to forecast the likely consequences if ongoing landscape change occurs and developing scenarios as a means to consider alternative future options.

By considering various scenarios, managers can anticipate situations that may arise in the future and make informed decisions to mitigate risks and capitalize on opportunities.