The Effectiveness of Scenario Planning in Hospitality Industry for Determining Future Strategies

2619 Words6 Pages
bulb-icon

Recommended: Importance of planning in disaster management

Scenario planning is a practice of predicting many, reasonable and uncertain futures

(Hiejden et al., 2002).Scenario planning, which is often otherwise called scenario thinking or scenario analysis, is a strategic planning method that organizations use to make supple, durable and continuing strategies (Schoemaker, 1995) Pierre (1985) revealed that scenario planning is about determining what could possibly happen in the future.

Mercer (1995) identifies that the basic concepts of Scenario planning are relatively very simple when compared to other management topics of study. Schoemaker (2002) defines that companies need to opt scenario planning to pick the gear on changing circumstances, and to have a right strategy in time. Scenario planning helps to test the consistency in business. It is very much needed to make sure that the companies have right contents that are viable and make necessary changes to ensure the feasibility (Schoemaker, 2002).

Capon (2008) reckons that “strategy is to provide organizations with directions” to have a clear idea of the paths that a company choose to achieve its aim is very much necessary, and thereby success which is considered as the ultimate goal of any company. Strategy provides focus and overview for managers and other workers in an organization, includes management of internal as well as external stakeholders, creates competitive advantages and allows organizations to foresee the challenges to be dealt with in future regarding competitiveness and sustainability (Capon, 2008).

Strategy is originally a term used in military, which has been adopted by managers to define boundaries for their business (Nickols, 2010). Nickols (2010) states “Strategy is about means and the attainment of ends...

... middle of paper ...

...ecember, 2004 Tourism and Hospitality Research Volume 5 Number 3

12. Kotler, 2003

13. Kippenberger, 1999). Kippenberger, T 1999, 'Pitfalls in scenario planning', The Antidote, vol. 4, no. 4, pp. 32-33.

14. Khan (2008) Exploring the External Environment: Macro and Industry Dynamics –thesis- Indian uni

15. M.E. Porter, Competition in Global industries (Boston: Harvard Business School Press, 1986)

16. G. Yip, “Global Strategy in a World of Nations, “ Sloan Management review 31:1 (1989), 29-40

17. JISC, 2008 http://www.jiscinfonet.ac.uk/tools/scenario-planning/scenario-planning.pdf

18. Chipotle, 2011 http://www.chipotle.com/en-US/restaurants/sustainable_design/sustainable_design.aspx

19. Yahoo! Finance, 2011 http://finance.yahoo.com/q/co?s=CMG+Competitors

20. The Beat, 2011, http://beatmag.com/latest-news/japanese-tourists-decrease-singaporean-increase.html

Show More
Related

  • Dealing with Wicked Problems

    2218 Words  | 5 Pages

    Planning is a way to respond to the changes occurring in the environment around a person systematically. Planning is an approach towards the problem solving rationally. It can be taken as a remedial tool for creating change in the current situation in systematic and efficient way.

    Read More

  • Under Armour Case Study

    1299 Words  | 3 Pages

    Wit, BD & Meyer, R 2010, Strategy: process, content, context : an international perspective, Cengage Learning EMEA, London.

    Read More

  • Coca Cola Strategy Essay

    1970 Words  | 4 Pages

    Numerous definitions of strategy exist, in most circumstances strategy can loosely be explained as an overall plan of deployment of resources to ascertain a favourable position within a market (Zablah, Bellenger and Johnston 2004; Grant 1994, p 14). Further, imbedded in many successful organisations are strategies, the importance of which is to remain relevant in the market, and successful in the various attributes of business; profiteering, employee motivation, maintaining sustainable core competencies, effectiveness in operation, or efficiency in the conduction of operations. Therefore challenges involved in the formulation and implementation of a strategy can revolve around the overall external market, as well as internal

    Read More

  • The Role of Situation Analysis in Marketing Plan

    1566 Words  | 4 Pages

    In order to gain a successfully marketing plan, it is important to marketing decision makers to understand the current situation comprehensively and trends affecting the future of the organization. There are two major reasons to explain why situation analysis plays a vital role in developing marketing plan.

    Read More

  • Strategic Management at Virgin

    2066 Words  | 5 Pages

    Rees, J. (2012). Prescriptive strategic planning in the current economic climate and possible alternative approaches. 1-6.

    Read More

  • Scenario Planning

    1072 Words  | 3 Pages

    In conclusion, scenarios are related to future, according to some of the authors scenarios have a static vision, but for the others scenarios include dynamic aspects. Scenario planning is process of positioning plausible scenarios. Some of the author in this field using different name for scenario planning such as scenario thinking, scenario based planning. It includes two sides, first scenario development and then strategy development. O’brien (2003) stated that scenario planning is a soft problem structuring method and qualitative approach. Schoemaker (1997) stated that scenario planning allows more subjective element and macro environment variable than computer simulation programs. Also these methods include system dynamics and risk analysis. It is easy to conclude that scenario planning is a managerial tool of strategic thinking (Bood and Postma 1998).

    Read More

  • Organisations That Fail to Plan are Planning to Fail

    1624 Words  | 4 Pages

    Planning aims to reduce uncertainty. It does this by forcing managers to look ahead, anticipate change, consider the impact of change and develop appropriate responses. (Robbins 2012) Through attempted monitoring of conditions in a changing environment, one is able to respond quicker to new information and new circumstances, thereby becoming more flexible. In addition, having the environment under constant observation enables managers to analyse how the organisation will differentiate itself from its competitors, therefore facilitating more chan...

    Read More

  • Case Study Of Organizational Change

    1005 Words  | 3 Pages

    The consultant should develop scenarios showing what could happen to the company if the change is not implemented, and examine opportunities that could be exploited.

    Read More

  • An Overview of Business Strategies

    2251 Words  | 5 Pages

    A successful business strategy will identify changes in the external trends in the market place. Plan out what the company’s future direction is. Set out the goals for the management team. It will identify a vision of where the company wants to be in the future. Keep all employees informed of the direction of the company.

    Read More

  • Importance Of Operational Planning

    825 Words  | 2 Pages

    Within an organization, different types of planning are necessary to help establish the visions and goals a company has. Strategic and operational planning is essential for the success of a business. For example, Sports Authority has recently filed for bankruptcy, which is likely due to a lack of planning skills. With the addition of strategic and operational planning, the risk of going bankrupt could be significantly reduced. The many planning steps and strategies involved in these types of planning are what eventually produce the most success.

    Read More

  • Strategy For Non-For-Profit Organizations

    392 Words  | 1 Pages

    Organizations short and long-term goals for the future are predicted through strategy. Strategy refers to the plans by management that develop and sustain the advantage, so the organization can fulfill the organization’s mission. When you use strategy four key distinctions are marked. One is that when top managers systematically study both resources and external factors of the organization that can affect performance. Second, is that long-term and future-oriented strategy is built on the past and present knowledge that is of several decades and years.

    Read More

  • Essay On Action Plan

    1057 Words  | 3 Pages

    The researcher has to put the plan in action mode. For example, if someone interested in pursuing his/her doctoral thesis work, he/she has to develop an action plan and implement the action plan. Though it is a miniscule approach, it will throw some light on the research topic and offer insights. This approach is not only restricted in science but also in commerce and management streams.

    Read More

  • A Walmart Journal

    924 Words  | 2 Pages

    This type of planning usually focuses on day to day activities of the company in order to make sure everything runs

    Read More

  • Strategic Planning, Facilitation And Sony Corp.

    1872 Words  | 4 Pages

    Strategic planning is the continuous and systematic process of guiding members of an organization to make decisions about its future, develop the necessary procedures and operations to achieve that future, and determine how success will be achieved.

    Read More

  • Strategic Planning: The Four Steps In Strategic Management

    734 Words  | 2 Pages

    Strategic planning is an organizational process in which it looks towards developing and sustaining success or balance in its ever changing environment.

    Read More

More about The Effectiveness of Scenario Planning in Hospitality Industry for Determining Future Strategies

Open Document