Scenario Planning
Developing alternative future scenarios and responses.
Real World
Shell has used scenario planning since the 1970s; ahead of the 1973 oil crisis, its planners had already modelled an oil embargo scenario, allowing Shell to respond faster than rivals.
Exam Focus
When asked to 'assess' scenario planning, always include a limitation — scenarios can't predict exact events, only help firms prepare responses.
How well did you know this?