Scenario Planning Definition

What is a scenario?

A scenario describes a future business environment, but is not a prediction.

Scenario planning considers combinations of uncertainties in each scenario. SP can benefit from computer simulations but is less formalized.

Scenarios are used to stimulate new ideas. They form the basis of a strategic debate which is radically different to the traditional business planning.

Scenario planning creates a flexible plan for the business which is composed of a variety of options. Scenario planning enables the business to adopt the plan to the evolving environments.