Scenario Planning Example

Scenario Planning is a strategy used by management teams to anticipate various outcomes of their decisions in the future. It involves developing multiple complementary, hypothetical views of how the future might unfold. By carefully examining each potential path, managers can plan for each potential outcome and anticipate future risks or opportunities. Through this process, organizations can improve their decision-making processes and help inform their strategic direction. A great example of this is Shell, who used Scenario Planning to anticipate the 1973 oil crisis and ultimately mitigate their risks.

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