Question

Predicting various future outcomes and making plans is described as:

• A. Contingency Planning
• B. Scenario planning
• C. Forecasting
• D. Benchmarking

Answer 1

Answer:

B. Scenario planning

• Scenario planning is a strategic management tool used to explore and prepare for multiple possible future outcomes.

• Instead of trying to predict one single future (which is the goal of forecasting), it involves creating several plausible narratives or "scenarios" about how the future might unfold.

• By considering a range of potential events—from best-case to worst-case—organizations can develop strategies that are flexible and resilient, allowing them to adapt to unexpected changes.