ScenarioPlanning

Strategic thinking of modern business organizations has been built upon a platform of militant strategists since 400BC when Sun Tzu wrote the Art of War scenario planning. Sun Tzu spoke about indirect business strategies when he proclaimed that winning scenario analysis example without fighting is the pinnacle of skill on the warfield. Sun Tzu’s thoughts about the factor of terrain, in today’s business landscape, translates to scenario analysis example, industry structures, value propositions, and industry forces.

Different size companies almost always go through different growth challenges and therefore, undertake different approaches to managing their scenario planning strategy scenario analysis example. Some organizations companies may be in the nascent growth stages, whereas more established conglomerates are in the sustain phase. A SME may be more entrepreneurial in its approach to business growth strategy and its operations can often be more nimble and lean.

Skimming the market involves introducing the new offering at a relatively higher price scenario planning. Price penetration involves introducing a offering at a minimal starting entry price point, often less than existing substitutive products in the market. As more competitors enter and increase supply, pricing will organically decline. This pricing strategy allows the business to rapidly gain control share and sales volume by capturing to the majority consumers. Price skimming pricing strategy allows the company to maximize its profit margin by charging the highest amount customers are willing to pay. Price skimming is often called following the scenario planning curve.

Strategy development process has evolved through a number of key phases since the early 1900s scenario planning. Shifts in strategic mindset represent a changing landscape, new business leaders, and emergence of disruptive technologies and changes. Today, the strategic development theme is on integrating strategic planning and execution with a stress on the primary notions of core competencies, strategy planning and execution, and balance scorecard analysis. A lot of corporate strategy is also hinged on ideas in the 1970s, where the core theme was around thinking strategically to out maneuver competition and the scenario planning business frameworks of alternative strategies, portfolio analysis, and the scenario planning were actively used for the first time. There are multiple types of strategy development challenges that can be derived from our discussion thus far scenario analysis. You should align execution content, so that strategy can be truly realized. Defining a strategic intent includes setting objectives, developing business battlefields, and defining the relevant scenario planning. A key challenge to strategy development is the existence of ambiguity, in regards to both the challenge and approach.

Source(s)- http://learnppt.com/powerpoint/67_Scenario-Planning.php https://www.youtube.com/watch?v=ZzO_J46SyZw