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Base on the picture, why is scenario planning important in the business or workplace?

Base on the picture, why is scenario planning important in the business or workplace?

Understanding Business
Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
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Base on the picture, why is scenario planning important in the business or workplace?

With the current Covid restrictions 1 putting many businesses at risk, planning for and analysis of different ALAE scenarios has never been so crucial for all businesses to ensure their future success - performing 'what if scenarios can help business owners to better understand each financial decision or investment. Failing to plan for different scenarios can leave the door wide open to greater risk and missed opportunities. In today's uncertain climate, creating 'what if' scenarios could be vital to your business's survival. 'What if' scenarios can improve the overall performance of your business by allowing you to plan for challenges and possibilities and meet your company's growth objectives.
Transcribed Image Text:With the current Covid restrictions 1 putting many businesses at risk, planning for and analysis of different ALAE scenarios has never been so crucial for all businesses to ensure their future success - performing 'what if scenarios can help business owners to better understand each financial decision or investment. Failing to plan for different scenarios can leave the door wide open to greater risk and missed opportunities. In today's uncertain climate, creating 'what if' scenarios could be vital to your business's survival. 'What if' scenarios can improve the overall performance of your business by allowing you to plan for challenges and possibilities and meet your company's growth objectives.
They can help to remove some of the uncertainty from your finances while 1 providing the flexibility to take advantage of opportunities - if you are looking for a finance provider, they are more likely to fund your project if you can demonstrate that you have considered various key scenarios and their potential impacts. By using 'what if planning you can run scenarios utilising both real time and historical data. By using appropriate software you can identify potential future risks in minutes rather than waiting months, such as budget shortfalls and inefficient processes, and make quicker decisions without the need for endless meetings and discussions.
Transcribed Image Text:They can help to remove some of the uncertainty from your finances while 1 providing the flexibility to take advantage of opportunities - if you are looking for a finance provider, they are more likely to fund your project if you can demonstrate that you have considered various key scenarios and their potential impacts. By using 'what if planning you can run scenarios utilising both real time and historical data. By using appropriate software you can identify potential future risks in minutes rather than waiting months, such as budget shortfalls and inefficient processes, and make quicker decisions without the need for endless meetings and discussions.
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