Scenario Planning

Process of formulating strategy business analysis will be assisted by the following
tools and methods:
 PEST Analysis – this helps tosocial and technological. understand the environmental factors such as

politics, economics,
 Scenario Planning – technique that builds various plots, possibilities and
views of business future.
 Five forces analysis – identifies the forces which influence the level of
competition on an internal and external business environment level.
 Market segmentation – method which seeks to describe similarities and
differences between groups of consumers.
 Competitor analysis – wide range of researches that seek to summarize a
business’ overall competitive position in a determined market.
Strengths
(build,
enhance)
Weaknesses
(resolve,
reduce)
Opportunities
(exploit,
expand)
Threats (avoid,
thwart)10
 Critical Success Factor Analysis – technique to identify these areas in which
a business must outperform the competition to succeed.
 Directional Policy Matrix – method which summarizes the competitive
strength of the company in different markets.7
2. Forecasting of the environmental changes
Planning and decision-making processes, as well as predicted further plans are
inevitably when it comes to strategy management. In order to gain long term
success, the forecasting activity is not an option or some additional step, but is a
must. Forecasts are not developed through some mechanisms. They are created
based on many and various researches and statistics. In practice, the business faces
a wide array of forecasting methods and it is the goal which defines the choice of
particular method. Depending whether it is dedicated for a large investment project,
or short-term investment a specialist should adjust the way of forecasting
preparation.