Which of the following statements about scenario planning is true?
A) It can include firms' competitive environment as summarized by the Five Forces Model and other anticipatory elements that are difficult to formalize.
B) Scenarios always include expectedly important situations and problems that exist in some form in the present day.
C) At the end of the scenario planning exercise, analysts recommend selecting an even number of scenarios that vary from low to high on a single key variable.
D) It tends to vary one quantifiable variable while holding others constant to see the likely effect.

Question

Quizplus · Accepted Answer

Scenario planning involves considering a range of possible future situations, including those that are difficult to formalize, such as changes in the competitive environment. Option B is incorrect because scenarios may involve new or unforeseen situations. Option C is incorrect because analysts may recommend selecting any number of scenarios with varying variables. Option D is incorrect because scenario planning involves varying multiple variables to explore a range of possible outcomes.

Which of the Following Statements About Scenario Planning Is True