Contents

Introduction ..................................................................................................................................... 2
Literature Review............................................................................................................................ 3
a. Scenario Planning - Meaning .................................................................................................. 3
b. Scenario Planning and environment analysis ......................................................................... 4
c. Environment and safety management policy .......................................................................... 5
d. The implication of scenario planning ..................................................................................... 6
Conclusions ................................................................................................................................. 8
References ....................................................................................................................................... 9
Introduction

In the world of competition, organizations should have a creative mind to respond quickly to

rapid changes for such business environment (Grant, 2013). The organizational leaders most

common hindrance or obstacle in their processing and planning which is uncertainty and this

needs to be transformed for the “right” future. As organizations progressing further to well-

informed planning, they must have the sense to identify and manage the quick changes for the

successful business and bankruptcy (Alexander, 2016). To maintain the growth of the current

path, there is a necessity of the ability to observe the force of changes for the future of global

business environment (Haughton, 2012).

The significance of scenario planning gives permission to the organizational leaders to focus on

countering creative and critical questions (Grant, 2013). In this innovative world, there is a need

to set targets which can focus on maximizing enterprise values for new business opportunities. It

can be considered to see the impact on earnings and financial support by delayed scenarios

which can adjustable to set the targets accordingly (Haughton, 2012).

As Simpson (2012) said scenario planning is helpful for the managers to develop the healthy

strategic plans for the uncertain prospect. It assists to manage the large capital investments and

regional development for organizations. It has been used to emphasize the risks, trade-offs, and

opportunity. It helps to get the tricks of development for the future competitive environment

(Alexander, 2016). It is even an important role for managers in corporate. It makes the managers
aware about a range of opportunities and threats that the future may hold. It stretches thinking or

creativity for developing future scenarios (Haughton, 2012).

Literature Review

The essential pace of a manager is to adopt the change in circumstantial environment for the

purpose of endurance and subsistence of the organization (Samson, Donnet & Daft, 2018).

Managers are required to discern the existing appropriateness of the methodologies encouraged

for scrutinizing the contextual environment and its subsequent implications in the organizations

(Alexander, 2016). This discussion involves the enlightened facts regarding the scenario

planning and its implication on the manager in context with the environmental safety, it includes

the following (Oliveira & Pinho, 2010):

a) Meaning of scenario planning

b) Scenario planning and the environment analysis

c) Environment and safety management policy

d) Consequence of scenario planning

a. Scenario Planning - Meaning

Scenario planning is a strategic planning method which is used for flexible enduring plans by

some associations; this is also called as scenario thinking or scenario analysis (Grant, 2013).

Future is not predictable, that is why scenario set the purposes to deal and create a potential

series for the betterment of future occurrence (Bradfield, Wright, Burt, Cairns & Van Der

Heijden, 2015). Organizations do not even bother about the constant outlook. Insecurity is a

common thing for business leaders and scenario planning gives the confidence to make sense of
the unpredicted event that could happen (Alexander, 2016). It has been recognized as

organizational leaders to accomplish the strategic planning for the business. Alexander (2016)

said that organizational leaders should think beyond the prototype of current thinking, they

should not establish only the political, economically or societal changes. They must be looking

forward and manages the changes instead of maintaining only the skill to predict the future.

Basically, it sets the purpose to capture the series of potential including good or bad, expected or

unexpected events.

b. Scenario Planning and environment analysis

Even though the scenario planning has achieved much devotion in the industry, its subjective and

experimental nature dispenses many academics uncomfortable. The basic process of the concept

is relatively modest and involves the scenario and environmental analysis as a whole (Bradfield,

Wright, Burt, Cairns & Van Der Heijden, 2015). The environment analysis is basically the study

of the environment by the means of logical chemistry. Its main purpose is to monitor the

constituents of the atmosphere and the parts that could affect the environment with

organizational actions so far (Alexander, 2016). In the environmental analysis, the most

important element will decide the future environment in which the organization works. Those

elements are known as variables since they vary for a long time in the discussion and

investigation often called as drivers. These drivers are worked in a framework with the process

that operates the day to day activities (Oliveira & Pinho, 2010).

The scenario planning of the environmental conditions helps in the analysis of the drivers.

Scenario planning aids the organization to predict the future and provide the alternative view to

resolve the same (Bradfield, Wright, Burt, Cairns & Van Der Heijden, 2015). An operative

environmental analysis helps to recognize coercion and prospects that can have a major influence
on your confined and hence the scenario planning helps in this case (Oliveira & Pinho, 2010). If

the scenario planning is done without the environment analysis then it lacks the attachment to the

real world (Alexander, 2016). Environment analysis is the essential component of scenario

planning. It helps in understanding the business model with the connection to the real world. It

helps in keeping in touch with the environment with the continual processing of environmental

processing. To look into the future is a hindrance to the present dealings but the scenario

planning helps in predicting the future aspects and threats with investigated plans and options

(Schouwenaars, How & Feron, 2014).

c. Environment and safety management policy

All the decision and planning of the organization is done keeping in mind the benefit of society

as a whole. Even though the single product of the organization is introduced keeping the

environmental safety and managing the same for the sustainable development (Alexander, 2016):

1. There is need to commence the product development in concern of safety and the environment

while developing the new product, the company needs to evaluate the environmental and safety

impact due to the development procedure on the organization and society as well. Form the

research to the development all the considerations are there to evaluate at every stage (Bradfield,

Wright, Burt, Cairns & Van Der Heijden, 2015).

2. It is essential to clear the safety and environment-related information about the product

through providing cards or documents to the consumers, transporters, and government for further

processing and ensuring the product is safe in the hands of all (Oliveira & Pinho, 2010).

3. Also, it is required to reduce the emission of industrial or chemical waste and keeping the

environment clean and fresh (Amer, Daim & Jetter, 2013). The company takes into consideration
that the environment doesn’t get impacted by the business activities harming the society and

environment.

d. The implication of scenario planning

Every business environment is vigorous. The competitors arrive and depart, their demand

increases or diminish, external economic factors continually affect the operation of the firm.

Environmental analysis is done to forecast the future threats and opportunities of the business,

which helps in the framework of the strategic planning (Alexander, 2016).

If any business fails to follow the environment analysis with suitable scenario planning then the

business couldn’t be able to succeed in the market (Amer, Daim & Jetter, 2013). All effective

analysis is helpful in predicting the future aspects and makes the business works more effectively

(Ringland & Schwartz, 2018). The form of business determines the familiarity with the

environmental analysis and planning. The planning needs to be flexible enough to adapt to the

change that is compatible with the environment and its changes (Amer, Daim & Jetter, 2013). It

is very clear for the business to respond to the innovation and technology which make the

consumer adjustable too. Scenario planning is made to make the balance between the customers

and stakeholders (Ringland & Schwartz, 2018). The scenario planning acknowledges the

interrelationship between the societies, groups, organizations and the stakeholders. For the

business the environment is uncertain and it has consequences that impact the operations and

decision making (Bradfield, Wright, Burt, Cairns & Van Der Heijden, 2015).

It is being said that the environment should be beheld from various level and the depth of

conceptualization. There is a need to study the complexity and stability of the economy. When

the environmental analysis is done, the complete advancements are required to be considered.
The company should be capable of surviving with the competitors in the market (Bradfield,

Wright, Burt, Cairns & Van Der Heijden, 2015). The business requires to specific scenario

planning coming up with the strength and weakness of the company to deal with the competitors

and adaptability to the environment change. To compete with the competitive environment the

scenario planning helps in the analysis.

Schouwenaars, How & Feron (2014) explicates that the aim of scenario planning is to focus on

generating a variety of the scenarios for the future purpose. To challenge the establishment of

suggestion and motivation for creativity are used for different techniques. For which, Ringland &

Schwartz (2018) shapes that profit potential and distinctive competencies are named as the

constructive principles for business ideas and they both make a distinction. Profit potential refers

to creating an additional for stakeholders and creating the expectation that the addition will

remain for the growth of the future (Amer, Daim & Jetter, 2013). Whereas, Distinctive

competencies which are unique competencies not as a strength but based on unspoken

knowledge which cannot be copied. Trends, continuities, discontinuities, uncertainties, and rules

are the basic dynamics to see the different future serves as the main purpose of scenario planning

(Arends & Castle, 2011). The critical uncertainties, major driving forces, and their interaction are

illustrating the range of scenarios (Bradfield, Wright, Burt, Cairns & Van Der Heijden, 2015).

The distinctive competencies, positive reaction loop, the nature of the competitive advantage and

the customer value created are specified for the business idea. The communications of the

business idea open the limitation of creating the surplus which brings out the current position of

the organization (Arends & Castle, 2011).

Conclusions

Clarity of evaluating the approaching global or regional issues is the advantage of scenario

planning. Scenario planning is the clear solutions for understanding the matter of risk in

organizations. Similarly, policymakers recognize the appropriate issues, provide an effective

solution and help rationally are the analysis of scenario planning (Bradfield, Wright, Burt, Cairns

& Van Der Heijden, 2015). Though it known as that future is uncertain, the future events can be

deal on the sources of analysis by policymakers to move forward toward specific future

outcomes (Ringland & Schwartz, 2018). Increase in business effectiveness, organizational

learning, decision-making capabilities or replicate results can be done in the analysis of scenario

planning (Arends & Castle, 2011). The process of scenario planning has verified itself, clear

theoretical foundations that the process cannot be developed more.

Larson & Pranke (2010) explains in the theory that the scenario planning is an understanding by

a manager whose planning could diminish the control of decision making on the management

and its effectiveness. Scenario planning helps in predicting the future circumstances and helps

the manager to find out the best possible alternative for the same (Bishop, Hines & Collins,

2017). Scenario planning also helps the manager to think upon the future aspects that will affect

the business operation by multiple possibilities. In this managers acquire the familiarity to

generate various options to compete with the future scenarios keeping in mind to save the

environmental aspects (Bradfield, Wright, Burt, Cairns & Van Der Heijden, 2015). Scenario

planning indicates the manager that their actions could benefit the company or business but

somewhere harms the environment. So this planning opens up the way to solve this issue and

overcome through it (Bishop, Hines & Collins, 2017).

Without heading into the depth of environmental aspects and planning the events or actions

accordingly the business couldn’t succeed (Bradfield, Wright, Burt, Cairns & Van Der Heijden,

2015). Uncertainties are unpredictable but could be handled by complete planning and analysis.

The efficient managers are capable of assuming and planning the best possible options to solve

the foreseen problem (Ringland & Schwartz, 2018).

References

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how did it get here. Evaluation in planning: Evolution and prospects, 3-16.

2. Amer, M., Daim, T. U., & Jetter, A. (2013). A review of scenario planning. Futures, 46,

23-40.

3. Arends, R., & Castle, S. (2011). Learning to teach (Vol. 2). New York: McGraw-Hill.

4. Bishop, P., Hines, A., & Collins, T. (2017). The current state of scenario development: an

overview of techniques. foresight, 9(1), 5-25.

5. Bradfield, R., Wright, G., Burt, G., Cairns, G., & Van Der Heijden, K. (2015). The

origins and evolution of scenario techniques in long range business planning. Futures,

37(8), 795-812.

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9. Oliveira, V., & Pinho, P. (2010). Evaluation in urban planning: Advances and prospects.

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Wiley & Sons.

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Melbourne, Australia: Cengage Learning Australia

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companies. Planning Review, 20(3), 10-48.

13. Schouwenaars, T., How, J., & Feron, E. (2014, June). Receding horizon path planning

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