Asked by Shalini Ballur on Apr 25, 2024
Verified
Which of the following questions would most likely be answered by a scenario analysis?
A) What will the world be like in the future?
B) Who will our competitors be in the future?
C) What should we do now to prepare for the future?
D) What should we do to accurately assess the future?
Future
The time or a period of time following the present moment, yet to occur or come into existence.
Scenario Analysis
A planning tool used to make flexible long-term plans that test strategies against diverse future scenarios.
Competitors
Other businesses or entities that offer similar products or services and vie for the same customer base within a market.
- Comprehend the principle and importance of scenario analysis within the context of strategic planning.
- Understand the importance of scenario analysis as a tool for long-term strategy development compared to other planning methods.
Verified Answer
AB
April BarrowApr 29, 2024
Final Answer :
C
Explanation :
Scenario analysis is a tool for planning and decision making that explores potential future events and outcomes. Therefore, the most likely question that can be answered through a scenario analysis is "What should we do now to prepare for the future?" This analysis helps in identifying potential risks, opportunities, and challenges, allowing organizations to develop effective strategies to cope with them. Option A is too generic and cannot be specifically answered through scenario analysis, option B is predicting and guessing, and option D is about accuracy which is not a direct output of the tool.
Learning Objectives
- Comprehend the principle and importance of scenario analysis within the context of strategic planning.
- Understand the importance of scenario analysis as a tool for long-term strategy development compared to other planning methods.