Forum 1 Discussion

1 What is Scenario Planning in Strategic Management?

1.1 Strategic Management

Based on a layman’s terminology, strategic management simply is managing resources to reach goals
and objectives.

1.2 Scenario Planning in Strategic Management

However, if the management is unaware of how their internal structure and strategies will react to
various scenarios, hence they would put themselves at a disadvantage when it comes to strategic
decision making. Hence, this is ultimately where scenario planning integrates with strategic
management. “Scenario planning” is an umbrella term for several approaches that differ both in
their goals and in their design process 1. Scenario planning in strategic management is all about
preparing an organisation to ensure the smooth transition of services through any kind of future
business impacting scenarios. An efficient and well-planned business mode for scenario planning in
strategic management would ensure that the business:

a. Gain clarity on the most important trends.

b. Assume nothing about the future
c. Resist the tendency to make decisions based on present knowledge.
d. Combat overconfidence, biases, and optimism

1
Bradfield et al., 2005; Huss & Honton, 1987

2023/01 GSDP8134 Strategic Planning and Performance Evaluation