5.3.3

Scenario Planning

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Scenario Planning

Businesses can minimise some of the risks they face through risk assessments, continuity plans, and succession plans.

Illustrative background for Natural disastersIllustrative background for Natural disasters ?? "content

Natural disasters

  • The impact of natural disasters may be considered for risk assessments, and the business is likely to take steps to minimise this risk should a natural disaster ever occur.
  • Oil companies like Royal Dutch Shell and BP plan different scenarios at different oil prices.
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IT failures

  • The impact of an IT systems failure may be considered for risk assessments, and the business is likely to take steps to minimise this risk should a system failure ever occur.
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Losing staff

  • The impact of losing key staff may be considered for risk assessments, and the business is likely to take steps to minimise this risk if key staff left the business.
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Disadvantages of risk assessments

  • Risk assessment cannot be used to identify all possible risks and risk cannot be eliminated entirely.
  • The process of identifying risks and continually updating risk assessments can be time-consuming, complex and expensive.
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Continuity plans

  • Businesses can create continuity plans to mitigate risk.
  • Continuity plans involve businesses planning how they can ensure that their business can continue to operate during and following a disaster.
Illustrative background for Succession plansIllustrative background for Succession plans ?? "content

Succession plans

  • Businesses can create succession plans to mitigate risk.
  • Succession plans involve businesses planning how they can identify and develop new leaders to replace current leaders who leave the business or die.
  • This ensures that the business can continue to operate following the loss of a leader or director.

Jump to other topics

1Exploring Business

1.1Features of Business Organisations

1.1.1Sole Traders & Partnerships

1.1.2Private & Public Limited Companies

1.1.3Types of Liability & Not-For-Profits

1.1.4Purposes of Businesses

1.1.5Purposes of Businesses 2

1.1.6The Different Economic Sectors

1.1.7Multinational Companies

1.1.8Stakeholders

1.1.9Influence of Stakeholders

1.2Organisation of Businesses

1.2.1Organisational Structure

1.2.2Types of Organisational Structures

1.2.3Business Aims & Objectives

1.2.4Business Aims

1.2.5Business Objectives

1.3Business Environment

1.3.1External Influences

1.3.2Political & Legal Change

1.3.3Economic Environment

1.3.4Social & Technological Environment

1.3.5Lifestyle & Technological Environment

1.3.6Corporate Social Responsibility

1.3.7The Competitive Environment

1.3.8Innovation

1.3.9Risk & Uncertainty

1.3.10Porter's Five Forces

1.3.11SWOT Analysis

2Marketing Campaigns

2.1Marketing

2.1.1Setting Marketing Objectives

2.1.2Customer Needs

2.1.3The Market

2.1.4Competition & The Market

2.1.5Consumer Behaviour

2.1.6Market Research

2.1.7Forms of Market Research

2.1.8Market Segmentation

2.1.9Cultural & Social Factors in Marketing

2.1.10Promotional Decisions 3

2.1.11Pricing Strategies

2.2Marketing Mix

2.2.1Marketing Mix

2.2.2Product Life Cycle

2.2.3Pricing Decisions & Price Skimming

2.2.4Pricing Decisions & Price Penetration

2.2.5Promotional Decisions

2.2.6Promotional Decisions 2

2.2.7Promotional Decisions 3

2.2.8Market Mapping

3Business Finance

3.1Sources of Finance

3.1.1Internal Finance

3.1.2External Finance

3.1.3External Finance 2

3.1.4Sources of Business Finance

3.2Financial Planning

3.2.1Revenue

3.2.2Costs

3.2.3Cash & Cash Flow

3.2.4Cash & Cash Flow 2

3.2.5Break-Even Analysis

3.2.6Profits

3.3Financial Statements

3.3.1Balance Sheets

3.3.2Income Statements

3.3.3Liquidity

4International Business

4.1Globalisation

4.1.1Growing Economies

4.1.2Specialisation & Trade

4.2International Business

4.2.1Internationalisation

4.2.2International Trade

4.2.3MNCS

4.2.4Conditions that Prompt Trade

4.2.5Assessment of a Country

4.3International Economic Environment

4.3.1Globalisation

4.3.2Factors Contributing to Globalisation

4.3.3Protectionism

4.3.4The EU & the WTO

4.3.5Trading Blocs

4.4Factors Affecting International Business

4.4.1Global Competitiveness

4.4.2Ethics of Global Business

4.4.3Controlling MNCs

4.4.4Cultural & Social Factors in Marketing

5Principles of Management

5.1Management & Leadership

5.1.1Managers

5.1.2Management Theories

5.1.3Managing Organisational Culture

5.1.4Management Style

5.2Theories of Motivation

5.2.1Motivating & Engaging Employees

5.2.2Taylor's Theory

5.2.3Mayo's Theory

5.2.4Maslow's Theory

5.2.5Herzberg's Theory

5.3Managing Change

5.3.1Change

5.3.2Key Factors in Change

5.3.3Scenario Planning

5.3.4Managing Change

5.3.5Managing Strategic Implementation

6Business Decision Making

6.1Business Principles & Practices

6.1.1Influences in External Environments

6.1.2Product Decisions

6.1.3Competitive Environment

6.1.4Corporate Strategy

6.1.5Quantitative Sales Forecasting

6.1.6Legislation

6.2Quality Management

6.2.1Importance of Quality

6.2.2Measuring Quality

6.2.3Total Quality Management

6.2.4Evaluating TQM

6.3Human Resources

6.3.1Contracts

6.3.2Recruitment

6.3.3Training a Workforce

6.4Documents & Business Decisions

6.4.1Sales Forecasts

6.4.2Managing Strategic Implementation

6.4.3Problems with Strategy

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Key Factors in Change

Managing Change