Scenario planning is a forward-looking tool that helps organisations prepare for several plausible futures rather than relying on a single forecast that may quickly become outdated. Consultants build a small number of contrasting scenarios — for example, high-growth, regulatory tightening, technology disruption, geopolitical shock — and quantify the impact on revenue, cost, capex and liquidity. Management can then test strategic options such as delaying investments, accelerating diversification, hedging or building more resilience into the supply chain. This approach is particularly valuable in uncertain environments where external factors are hard to predict. The real benefit is not predicting the future perfectly, but ensuring the organisation has thought through its options and can act faster than competitors.
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Scenario Planning: What it actually means?
