US CMA Part 1 · Chapter 2 · Question 4 of 30
Which statement best describes scenario planning as a strategic planning tool?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) It develops several plausible pictures of the future environment and considers how the organization would respond under each
Explanation
Scenario planning builds a small number of internally consistent alternative futures and tests strategies against each, helping managers prepare contingency plans. Changing one variable at a time is sensitivity analysis, and adjusting prior results is incremental budgeting.
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