Scenario analysis helps managers to build
A) a financial information system.
B) a production-based technology system.
C) a strategic monitoring system that enables the organization to formulate robust defensive strategies in times of uncertainty.
D) a human resources monitoring system.

Question

Quizplus · Accepted Answer

Scenario analysis is a strategic planning tool that helps the organization to anticipate and prepare for different possible futures. It involves identifying key uncertainties, developing plausible scenarios for each, and assessing the potential implications of each scenario. By doing so, managers can better understand the potential risks and opportunities facing the organization and formulate robust defensive strategies in times of uncertainty. While financial, production-based technology, and human resources monitoring systems may be useful for different purposes, they are not directly related to scenario analysis. Scenario analysis helps managers to build a strategic monitoring system that enables the organization to formulate robust defensive strategies in times of uncertainty.

Scenario Analysis Helps Managers to Build