ScenarioAnalysisExample

The strategic thinking of modern business organizations has been shaped by militant strategists since the beginning of organized warfare scenario planning. Sun Tzu spoke about indirect corporate strategies when Sun Tzu said winning scenario analysis example without fighting is the pinnacle of skill on the warfield. 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 experience different challenges and thus, undertake different approaches to managing their scenario planning strategy scenario analysis example. Some organizations companies may be in the nascent growth stages, whereas more established Fortune 500 companies are in the sustain phase. A SMB may be more entrepreneurial in its approach to business scenario planning and its operations are often much more lean and agile.

Price skimming releases the new product at a relatively high price scenario planning. Price penetration involves introducing a offering at a minimal initial entry price point, often less than existing competitive products in the market. As more the market becomes more competitive and increase supply, pricing will organically lower. This scenario planning allows the company to quickly gain control share and revenues via appealing to the majority of the market. Price skimming strategy allows the organization to optimize its profitability by getting the highest amount customers are willing to pay for. Price skimming is many times named following the demand curve.

Business strategy development has gone through a number of key phases since the early 1900s scenario planning. Business strategy development started with a focus on financial planning in the 1930s, moving to sustainable planning in the 1960s, to scenario planning in the 1970s and eventually to a focus on scenario planning in the present day. 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. Much of business strategy is also hinged on ideas in the 1970s, where the focus was around thinking strategically to out maneuver competition and the scenario planning business frameworks of alternative strategies, portfolio analysis, and the BCG Growth Share Matrix were developed. There are multiple types of strategy development challenges that can be ascertained from the teachings of Mintzberg and Bower scenario analysis. There is the strategic challenge of aligning execution context, so that strategy can materialize and eventually realized. Defining strategic intent involves defining objectives, defining relevant battlefields, and defining the required scenario planning. An important scenario planning challenge is designing a tops down approach to intervention fueled by revised strategic intent.

Reference(s) http://learnppt.com/powerpoint/67_Scenario-Planning.php