Page 63 - BA1 Integrated Workbook STUDENT 2018

Position and gap analysis

5.2 Advantages of scenario planning

Advantages include:

 focuses management attention on the future and possibilities

 encourages creative thinking

 can be used to justify decisions

 encourages communication within the organisation

 can identify sources of uncertainty.

5.3 Drawbacks of scenario planning

Drawbacks include:

 costly and (often) inaccurate

 tendency for scenarios to be distorted by organisational culture or
bias

 risks becoming a self-fulfilling prophecy

 many scenarios will never occur.

Illustrations and further practice

Now review TYU 5, 6 and 8 in Chapter 6 of the text.

55