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Essay / The Effectiveness of Scenario Planning in Hospitality...
Scenario planning is the 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 develop flexible, sustainable, and ongoing strategies (Schoemaker, 1995). Pierre (1985) revealed that scenario planning involves determining what could possibly happen in the future. Mercer (1995) identifies that the basic concepts Scenario planning is relatively very simple compared to other subjects of study in management. Schoemaker (2002) defines that businesses should opt for scenario planning in order to adapt to changing circumstances and have a good strategy in time. Scenario planning helps test business consistency. It is essential to ensure that companies have good, viable content and make the necessary changes to ensure feasibility (Schoemaker, 2002). Capon (2008) believes that “strategy is about providing organizations with guidance” to have a clear vision. It is absolutely necessary to have an idea of the paths that a business chooses to achieve its goal, and therefore the success which is considered the ultimate goal of any business. Strategy provides direction and insight to managers and other workers in an organization, includes management of internal and external stakeholders, creates competitive advantages, and allows organizations to anticipate challenges in the future in terms of competitiveness and sustainability (Capon, 2008). Strategy is originally a term used in the military field, which was adopted by managers to define the boundaries of their business (Nickols, 2010). Nickols (2010) states: “Strategy is about means and achieving the ends...... middle of article...... December 2004 Tourism and Hospitality Research Volume 5 Number 312. Kotler, 200313. Kippenberger, 1999). Kippenberger, T 1999, 'The pitfalls of scenario planning', The Antidote, vol. 4, no. 4, p. 32-33.14. Khan (2008) Exploring the External Environment: Macro and Industry Dynamics –thesis- Indian uni15. ME 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), 29-4017. JISC, 2008 http://www.jiscinfonet.ac.uk/tools/scenario-planning/scenario-planning.pdf18. Chipotle, 2011 http://www.chipotle.com/en-US/restaurants/sustainable_design/sustainable_design.aspx19. Yahoo! Finance, 2011 http://finance.yahoo.com/q/co?s=CMG+Competitors20. The Beat, 2011, http://beatmag.com/latest-news/japanese-tourists-decrease-singaporean-increase.html