ScenarioPlanning
De Mystpedia.
The way business leaders evaluate and analyze strategy within that of modern business organizations has been built upon a platform of military strategists since 400BC when Sun Tzu wrote the Art of War scenario planning. Sun Tzu spoke about indirect business strategies when Sun Tzu asserted that winning scenario analysis example without fighting is the acme of skill on the warfield. Sun Tzu’s thoughts about the factor of terrain, in today’s business landscape, translates to markets, industry structures, market positions, and industry forces.
Different sized businesses almost always experience different growth challenges and therefore, undertake different approaches to managing their growth strategy scenario analysis example. A multi-national company may employ a more structured tactically sound management model, due to its greater size and scope of operations. A small to medium business may be more entrepreneurial in its approach to business growth and its operations can often be more lean and agile.
Skimming the market releases the new product at a relatively higher price scenario planning. Penetration pricing involves introducing a product or service at a very low starting entry price point, often less than existing substitutive products in the available in the market. As more competition increases and drive up supply, pricing will naturally drop. This scenario planning allows the business to quickly grow market share and sales volume through capturing to the majority consumers. This scenario planning allows the organization to maximize its profits by charging the maximum amount consumers are willing to pay. Price skimming is often referred to as following the demand curve.
Business strategy development has evolved through several defining phases since the early 1900s scenario planning. Shifts in strategic mindset represent an ever evolving, new thought leaders, and emergence of disruptive technologies and changes. In the current day, the strategic development theme is on integrating strategic planning and execution with a stress on the key concepts of core competencies, strategy planning and execution, and balance scorecard analysis. A lot of business scenario planning is also hinged on ideas in the 1970s, where the focus of what business leaders devote their efforts to was around thinking strategically to beat competition and the scenario planning business frameworks of alternative strategies, portfolio analysis, and the scenario planning emerged. There are many types of strategy development challenges that can be derived from the teachings of Mintzberg and Bower scenario analysis. There is the strategic challenge of aligning execution context, so that scenario planning can be truly realized. Setting a strategic intent involves setting objectives, developing business battlefields, and defining the required scenario planning. A noteworthy challenge to strategy development is ambiguity, as it relates to the challenge and strategy development approach.
Reference http://learnppt.com/powerpoint/67_Scenario-Planning.php http://en.wikipedia.org/wiki/Simulation_game
