ScenarioAnalysis

The strategic thinking of contemporary businesses has been built upon a platform of militant strategists since the beginning of organized warfare scenario planning. Sun Tzu hinted at indirect business strategies when he proclaimed that winning scenario analysis example without fighting is the highest of skill on the battleground. Sun Tzu’s thoughts about the factor of terrain, in today’s business landscape, translates to markets, industry structures, value propositions, and industry forces.

Different size businesses naturally go through different challenges and therefore, undertake different strategies to managing their growth strategy scenario analysis example. A global organization may adopt a more structured strategic management model, due to its larger size and scope of business. A SMB may be more entrepreneurial in its approach to business growth strategy and its operations can often be more agile and lean.

Skimming the market launches the new product or service at a relatively higher price point scenario planning. Price penetration is to introduce a offering at a low starting entry price, typically lower than existing competitive products in the market. As more the market becomes more competitive and drive up supply, pricing will organically erode. This scenario planning allows the organization to quickly maintain share of the market and top line growth via appealing to the majority of the market. Price skimming pricing strategy allows the organization to optimize its margin by getting the maximum price consumers are willing to pay for the product. Price skimming is many times named riding down the scenario planning curve.

Strategy development has gone through a number of key phases over the years scenario planning. Business strategy development started with a focus on financial planning in the 1940s, moving to long-term corporate planning in the 1960s, to strategic planning in the 1970s and ultimately to a focus on strategic management in the present day. 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. Much of corporate scenario planning 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 scenario planning were actively used for the first time. There are various types of strategic challenges that can be ascertained from the teachings of Mintzberg and Bower scenario analysis. When we conduct strategy development, framing the type of strategic challenge is one of the most critical tasks. Setting a strategic intent includes setting objectives, developing business battlefields, and defining the relevant core competencies. A noteworthy strategic challenge is ambiguity, as it relates to both the challenge and strategy development approach.

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