Business Planning Beyond Hope
Conclusion: Short-term targets have affected planning but many companies will want to ensure that a qualified planning procedure will remove any shocks. This process can be isolated into various scenarios depending on market conditions. Scenarios minimise risk while maintaining the firm’s potential for reward relative to competitors.
The status of a market is affected by the number of competitors. This a major variable which could change rapidly, so it is significant to create a scenario for such a possibility and plot the effects and outcomes on the firm.