The Use of Scenarios in Company’s Planning

Abstract

The current business environment is full of constant and rapid changes, to which companies must respond adequately and promptly if they want to maintain their market position. Most changes in the environment cannot be directly influenced by companies, they can only adapt to the new situation. The current changes are so rapid and surprising that it is not enough to stick to best practices and proven strategies in business management. Many strategic planning tools are too static and deal with the past and present of companies, but not with their future. Therefore, it is necessary to look for tools that will be compatible with the strategy and direction of the company, help it prepare for the future - better and worse, and give the company the opportunity to survive the difficult periods that regularly occur in the global economic environment. One of the methods that can be used for this purpose is scenario planning. This paper will address the importance of scenario planning in strategic business planning. The created General model of scenario planning environment explains how to incorporate scenarios into the strategy management system. Empirical research was conducted that assesses the readiness rate of companies to use scenarios for long-term planning in Slovakia.