Tuesday
Apr052011

Scenarios

Scenarios

Although it is impossible to predict the future, this tool helps you to make sure that you have defined a strategy that works in different scenarios and points out which market developments should trigger an immediate strategy review.
Philosophy

Considering different scenarios is an important aspect of long-term strategic planning. Scenarios should be driven by aspects that have a high impact on your business and are outside your area of influence.

Explanation

A selection of factors is used to create 4 different future scenarios:

  • Trends.
  • Likelihood of occurrence.
  • Risk factors.
  • Effect and impact on your business.

Result

Your team defines a strategy that enables your company to achieve its financial targets, while being as robust as possible: it works in multiple scenarios. In addition, you know what market developments to look out for and how this will effect your strategy.