Scenario Planning

Question 1

What is scenario planning

Answer 1

Process of anticipating possible changes in a business situation and devising ways of dealing with them

Question 2

What is a risk assessment (anticipate barriers)

Answer 2

Business identifies evaluates and priorities risks and precautions that may be taken to protect against them

Question 3

What are the possible risks included in a risk assessment

Answer 3

Natural disaster - high damage to physical resources (assets) and ability of consumers to spend
It system failure - can be infected and lose data for marketing brand image issues and may be unable to operate with crucial tasks ( e payment systems going down )
Loss of key staff - may lose crucial ideas ( innovation ) productivity and leadership

Question 4

What does scenario planning do

Answer 4

Sets out how a business will act if a risk does affect a business
It helps respond quickly to risks minimise losses and enable the business to still run

Question 5

What is the drawback to scenario planning

Answer 5

There is a opportunity cost as it is very time consuming and is also difficult as you cannot predict easily all risks and may still suffer a loss

Question 6

What is succession planning

Answer 6

Identifying and developing key employees to move into key roles in the future

Question 7

What is the benefit of succession planning

Answer 7

Motivates employees
Saves recruitment costs

Question 8

What is the drawbacks of succession planning

Answer 8

May be a lack of excellent staff
Lack of new ideas