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

2619 Words11 Pages
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

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

      Open Document