The Application of Scenario Planning, Essay Example

Some issues to discuss about the case include why is scenario planning necessary for that particular case?

Scenario planning is a strategic method utilized by corporations to foresee certain operational climates and plan ahead for the future. In locating a case study to demonstrate the application of scenario planning, I found one by British Airways. As noted in their report, “British Airways recently undertook its first Scenario Planning exercise in order to develop further its strategic thinking in light of an uncertain future (Moyer, 1996).” The plan was to use the system as an experiment to see if scenario planning would be suitable for the company. The authors note that, “British Airways’ Chief Economist, DeAnne Julius, proposed the use of scenarios to the Chairman’s Committee in February 1994 (Moyer, 1996).” These scenarios involved, exercises to counter such things as rising gas prices, flying under severe weather conditions, and excessive layovers.

How does scenario planning differ from strategic planning?

Scenario planning is also known as scenario thinking and sometimes scenario analysis. The main difference between this method and strategic planning is that strategic planning methods focuses on tangible issues and concerns while scenario planning focuses on the intangible as the authors note in the British Airways case study, “Because the expected benefits were somewhat intangible, the decision was made to treat the exercise as an ‘experiment’ to see if the process was suitable for use within the company (Moyer, 1996).” By accounting for intangible factors, it places scenario planning in a more experimental platform where strategies may or may not be implemented.

Why do sequential-oriented Westerners sometimes have difficulty practicing scenario planning?
Japanese successes in business has made many second guess the confidence of the western business elite. Eastern business, specifically in Japanese markets centers on the concepts of scenario planning, while Western business has been more sequence oriented.

Work Cited

Moyer, K. (1996). Long range plannin: Scenario planning at british airways a case study. (2 ed., Vol. 29, pp. 172-181). Great Britain: Elsevier Science Ltd. (Moyer, 1996)