ScenarioPlanning

De Mystpedia.

The strategic thinking of modern business organizations has been shaped by militant strategists since 400BC when Sun Tzu wrote the Art of War scenario planning. Sun Tzu wrote the Art of War, which has been adopted into a business strategy book. In Sun Tzu’s Art of War, he spoke about five core factors in military strategy and each of these factors relates to a popular concept of business strategy. Sun Tzu’s thoughts about the factor of terrain, in today’s business landscape, translates to scenario analysis example, industry structures, value propositions, and Porter’s Five Forces.

Various size companies almost always go through different growth challenges and thus, take on different approaches to managing their business strategy scenario analysis example. Some organizations companies may be in the nascent growth stages, whereas more established conglomerates are in the sustain phase. A SMB may be more entrepreneurial in its approach to business growth strategy and its operations is usually more agile and lean.

Price skimming launches the new service at a relatively higher price point scenario planning. Next, with time, as competition increase, the price is forced down. As more the landscape becomes more competitive and increase product supply, pricing will organically decline. This strategy allows the organization to quickly maintain share of the market and sales via capturing to the majority consumers. Price skimming strategy allows the company to optimize its profitability by charging the maximum price customers are willing to pay. Price skimming is often referred to as following the scenario planning curve.

Strategy development has evolved through several defining stages since the early 1900s scenario planning. Shifts in strategic mindset represent a changing landscape, 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 primary notions of core competencies, strategy planning and execution, and balance scorecard analysis. A lot of growth scenario planning is also hinged on ideas in the 1970s, where the core theme 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 various types of scenario planning challenges that can be ascertained from our discussion thus far scenario analysis. There is the strategic challenge of aligning execution context, so that strategy can materialize. Setting strategic intent includes setting objectives, defining business battlefields, and defining the required core competencies. One noteworthy challenge to strategy development is the existence of ambiguity, in regards to both the challenge and strategy development approach.

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