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Assess the usefulness of scenario planning to a business, such as ASOS. - Edexcel - A-Level Business - Question 2 - 2019 - Paper 2
Question 2
Assess the usefulness of scenario planning to a business, such as ASOS.
Worked Solution & Example Answer:Assess the usefulness of scenario planning to a business, such as ASOS. - Edexcel - A-Level Business - Question 2 - 2019 - Paper 2
Step 1
Arguments for scenario planning
Answer
Scenario planning allows businesses like ASOS to prepare for various potential futures, reducing uncertainty. By analyzing different scenarios, ASOS can develop strategies to mitigate risks. This proactive approach helps in resource allocation, ensuring that ASOS is equipped to deal with unforeseen events, such as the fire incidents mentioned.
Step 2
Arguments against scenario planning
Answer
However, scenario planning can be time-consuming and costly. The process requires extensive research and analysis to create realistic scenarios, which may divert resources from other critical operations. Additionally, there is a risk of over-preparation; focusing too much on hypothetical situations may lead to neglecting current market trends and customer needs.
Step 3
Recommendation
Answer
In conclusion, while scenario planning presents both advantages and disadvantages, its usefulness cannot be overlooked. For ASOS, investing in scenario planning may enhance its ability to respond to market changes effectively. Thus, it is recommended that ASOS implement a balanced approach, incorporating scenario planning into its strategic framework while ensuring it remains adaptable to immediate market demands.