Question

Which of the following methods of developing a strategy best illustrates scenario planning?

		The managers at Lyon Clothing Inc. formulated a strategy that is able to handle small to medium to large increases in the prices of cotton in the future.
		A sales person at MP Foods Inc. suggested that the company should introduce an organic version of its gelato to cater to the needs of the increasingly health-conscious population.
		The CEO of BCT Inc., a large conglomerate, has decided to enter the South American market based on the competitor's success in the same market.
		Based on the previous year's profits, the CEO of Solva Inc. decided to adopt an expansion strategy in its home market.

Answer 1

The answer is given below:

The managers at Lyon Clothing Inc. formulated a strategy that is able to handle small to medium to large increases in the prices of cotton in the future.

Scenario planning always focus towards the future, where the managers would discuss on certain factors to develop business with different scenario. In the above strategy Lyon Clothing Inc. formulated a strategy to focus on the future price and decisions are made for the business based on the price scenario.