Scenario analysis provides
A) a way to analyse past transactions.
B) a way to analyse customers' requirements.
C) alternative ways for investing in information to reduce environmental uncertainty.
D) a way to analyse competitors.

Question

Quizplus · Accepted Answer

Scenario analysis is a strategic planning method used to evaluate alternative ways for investing in information to reduce environmental uncertainty. It involves creating hypothetical situations, or scenarios, that are designed to reflect plausible future changes in the business environment. The analysis of past transactions, customers' requirements, and competitors is not the main purpose of scenario analysis. Scenario analysis provides a conceptual framework by which organizations can understand the external environment as it unfolds, accept the uncertainty as given, and use it to provide a description of two or more future scenarios.

Scenario Analysis Provides