Scenario Planning in Strategic Planning
According to Mackay and McKiernan (2018), scenario planning is also called scenario thinking or strategic planning that is considered by the companies to create flexible long term plans. It is a managed way for the managers to focus on the future of the company. It evaluates the particular set of doubts that can take place in the coming years. In the present era, it has been analyzed that managers consider scenario planning so that it can be simple to identify the solution of the issues that can take place.
It has been stated by Ramírez and Selsky (2016), scenario planning is a method related to strategic planning. With the help of this planning it can be easy to forecast the future strategies. Scenario planning has been an important part of management. This is beneficial for the company and also for the society. Through this the aim of the company is to maintain its goodwill in the market.
This not only emphasizes on predicting the future but also maintain possibilities of the future which are authentic. The managers can focus on achieving advantages from the scenario planning in context to the safety of the environment. It has been examined that managers can consider scenario planning for strategic thinking. It can be said that an individual who is having interest in playing mind games always focus on the possible situations in the future (Mäntysalo & Grišakov, 2016).
According to Schwarze and Taylor (2017), the scenario planning also offers a preventive mechanism which can help managers. This helps to secure the environment for long term and also assist the organization by sustaining in their business. It assists the managers to reduce the possible scenario based on the logic and accurate information and also with the perception. It emphasizes on the evolution of things and can maintain trend in the structure. It is necessary for the managers to focus on systematic thinking considered from scenario planning by focusing on various factors which can impact the entire decision of the company. It also helps to assist in the narrow personal bias. By focusing on the scenario planning it can be investigated that proper utilization of the resources can take place which will affect the working pattern of company.
According to Cook, Inayatullah, Burgman, Sutherland and Wintle (2014), to consider the resources in a proper manner it has been seen that it is necessary for the managers to focus on the internal resources. It is important to have proper link with internal resources by focusing on the external environment so that proper allocation can take place. This also emphasizes on the resource planning and assists the organization in proper utilization of the resources. It enhances the manager’s knowledge in context to the external environment and the position of the company in the market.
Importance of Scenario Planning
Scenario planning helps to forecast the future by understanding the present scenario. It also assists in stabilizing the organization in the recent and future situations. The weak signals can be evaluated which can focus on the uncertainties in the future. Scenario planning helps to reduce the uncertainties so that company cannot face the issue of failure in the market. The manager’s focus on managing the situations has to maintain the prosperity of the business. Scenario planning requires evaluation of the objective related to understanding the various variables which give challenge to the business (Cairns, Goodwin & Wright, 2016).
According to Ramírez and Selin (2014), it has been examined that scenario planning helps the managers in evaluating the overall complexity of the environment. It also influences the objectives and approaches related to the process of decision making. Scenario planning also focuses on the hazards which can be analyzed in the working environment along with the employees. It also maintains safety of the environment so that it cannot give negative impact on anyone.
Also it has been investigated that scenario planning emphasizes on prevention of the effort in context to the environment where employees manage their operations. The physical and safety related hazards are considered which helps to maintain the safety of the employees. Scenario planning also plays an essential role in managing the changing environment. The internal and external resources should be analyzed so that it can be easy to serve the particular community of the society. The reason behind this can be related to the want of the community in an environment which keeps on changing (Soste, Wang, Robertson, Chaffe, Handley & Wei, 2015).
According to Wolf and Floyd (2017), there are various challenges in the global business which are enhancing and the managers have to face it. Scenario planning requires focusing on various variables that are giving impact on the society just because of the business. These are considered as long term plans that should be flexible. The flexibility will help to ensure the managers to have different perception and also it adapt the environment in an effective manner. The system approach will assist the organization in considering various aspects that can maintain surprising situations.
This method also gives inclusion of various aspects that are difficult to formalize. System thinking also focuses on proper utilization of the resources and also with the help of scenario planning it can help to accomplish objectives in future. Also by focusing on the factors the formal relations can be maintained. It has been seen that these both are considered in context to scenario development which can be related to the dynamic situations (Mitchell, Lockwood, Moore, Clement, Gilfedder & Anderson, 2016).
Challenges Faced by the Managers
According to Raford (2015), past strategic plans it has been stated that company has to have proper strategic plan so that operations can be maintained. This can be done by emphasizing on the latest trends of the present era that can lead to future growth. In this type of scenario planning, the role was taken into consideration by the department of accounts and also with the aspects the can be considered in context to the process related to qualitative variations in social conditions and also in demographics conditions.
According to Sadatsafavi, Kim, Anderson and Bishop (2017), in the present time, the managers do not emphasize on the guesses which can impact the overall responsibility of the company. In scenario planning there are many variables that impact the environment which affect the society. This can be seen that organization focuses on the supply chain management and the businesses in the recent time generate huge amount of waste in context to the supply chain management. It also considers carbon emission rom the transports. The focus of the managers is to consider the supply chain management system in context to scenario planning so that it can be easy to resolve the issues.
According to Pedro-Monzonís, Solera, Ferrer, Estrela and Paredes-Arquiola (2015), one of the biggest issues is related with water scarcity which is faced by the companies in the recent era. To maintain the problem and find the solution it is important for the managers to take proper decisions so that it can be beneficial for the company. There are many researchers who stated that it has been analyzed that water scarcity is the serious issue. So, in this situation it is important to consider proper scenario planning so that activities can be managed in an effective manner.
According to Scholten, Schuwirth, Reichert and Lienert (2015), it is important for the company to need proper plans so that water resources can be utilized in a proper manner. The activities of the company are also affected just because of the water scarcity. With the help of scenario planning it can be simple to evaluate the current needs. This can be managed by considering various stages where water utilization should be done in a proper manner so that it can be beneficial for the society to achieve growth in the market. This can positively impact on the society.
It has been stated by Marcus (2016), carbon emission has considered as a major problem in the recent era and the role of the top management it to focus on limited thinking. This is also affecting the health of the society. According to many researchers it has been examined that scenario planning assist the organizations to consider the factors that is enhancing the huge carbon and also the companies are focusing on managing the problems in a proper manner. The civil societies also asked to the manufacturing companies to minimize the carbon emission. The issues are also concerned with the global warming which is giving impact on the society. It has been analyzed that in the coming future the situation will be more complicated and companies should be ready to accept the situations.
Strategic Plans
According to Wu, Zhao, Zhu and Jiang (2015), the challenge is also related with pollution. This issue is faced by the company in the manufacturing sector. It is important for the company to focus on minimizing the issue by considering various effective techniques so that growth can be achieved. The strategic plans should be made so that issues can be reduced. There are various instances which are related to the cities like Delhi and Beijing.
It has been stated by the Beijing that there are many government issues which put bans on the companies so that problems related to pollution can be resolved. For instance: the Delhi government also considered the plan in which the commercial vehicles which are old than 10 years are banned so that it can be easy to maintain pollution. In this case it has been seen that it is important to follow strategic planning so that situation can be maintained. The collective efforts can assist the company to manage the entire activities. The managers of the company have to focus on the situation and consider strategic planning so that issues can be resolved. This will directly assist them in ensuring the overall safety of the society.
According to Vacik et al., (2014), companies should focus on the resources so that it can be effectively used. In the changing environment it has been seen that scenario planning is important to maintain the economic conditions. Scenario planning is important in this situation and it is important to make proper investment. CSR activities are not the only source to solve the issues off the society. But the managers should emphasize on protection of the environment so that the living standard of the individual can be maintained. It is important for the minimizing sector to focus on developing the society.
Also, it has been analyzed that scenario planning can assist the managers to focus on safety of the environment so that living standard of the people can be safeguard. It is important for the company to maintain the living standard of the people so that it can be simple to attain growth in market. If it is considered by the managers then only it has been analyzed that positive results can be attained. So, the managers should create strategic scenario to forecast the needs which can take place in future. Through this society can also maintain their standards which can help to attain positive outcomes (Proctor, 2014).
Issues Related to Water Scarcity
Conclusion
Therefore, by analyzing the paper, it has been concluded that scenario planning helps the managers to ensure safety of the environment for the society. It is important for the managers to focus on managing the activities so that growth can be achieved. It is necessary for the company to maintain environmental protection so that people living the rural areas can also be maintained. Also the companies should focus on maintaining the resources so that resources can be utilized in a proper manner.
Scenario planning can now define as a method that helps focus on tomorrow and also helps to understand the recent scenario. The uncertainties are reduced so that future can be maintained and also it has been analyzed that managers have the responsibility to manage the entire operations of the company. Scenario planning also helps in evaluating the overall variables which are impacting the business. The strategic planning can also improve the overall condition of the market.
References
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