MODC Assignment Example | Topics and Well Written Essays - 1500 words

MODC - Assignment Example This assessment provides people as well as organizations to increase their capacities and abilities of making robust decisions. Scenario planning is based on a qualitative approach, which is in contrast with quantitative forecasting tools, which typically consider the predicted futures. Scenario planning is traditionally considered as useful for the identification of threats and opportunities in the future and even though organizations may not have an ability to discern the accurate nature of a specific threat, they will have a better position in the navigation of eventual outcomes if they consider an uncertainty from more than one view. This is better than taking the word from one pundit, or the extrapolation of a specific trend line as being the most probable future in the process of discounting other perspectives. Scenario planning does not entail forecasting the future; instead, it tries to make a description of what may be possible. The outcome of a scenario analysis is a set of distinct futures, which are all plausible. The main challenge that arises involved dealing with each of the possible scenarios but there are benefits of scenario planning. These benefits include manager being obligated to leave their standard view of the world thereby exposing blind spots, which might then be unnoticed in the more generally permissible forecasts. Additionally, decision makers have an enhanced ability to acknowledge a scenario in its early stages in case it actually unfolds. Another benefit is that managers will get a better understanding of the source of disagreements that typically take place as they envision various scenarios without their realization. Strategic drift takes place when an organization regardless of its level of success reacts too slowly to changes occurring in the external environment and maintains the strategies that initially worked well. This is