The world develops everyday. There are events that happened which we do not expect. This challenge came across marketers and industrialists since they want their company to grow and stabilize. They don’t want unpredicted events to ruin their company.
Scenario Planning is the solution to their problem. They studied trends that could help them ensure the stability of their company. It should include expected important events that could happen in the future. The plan shows a solution to a possible problem or situation in the future. It aims to formulate a solution to potential problems in the future even if it occurs or not. Forecasting plays a very big part in scenario planning because it consists of predicting part of it.
Forecasting is a tool used by marketers and other industries to predict fluctuation on prices, sales turn outs etc. It is important in predicting events with detailed information on specific issues. Moreover, forecasting in scenario planning can reveal specific options for the company or industry when the situation happens. It can perform a test that shows results when the company performs a certain option. It identifies the problems that would critically affect the company or industry.
SWOOT and STEEP Analyses
The SWOT analysis is an instrumental tool or framework to identify Strengths, Weaknesses, Opportunities, and Threats of a certain company.
Strengths and weaknesses are internal values that create or destroy factors that a company has relative to its competitors. Examples of these factors are assets, skills, and resources. Opportunities and threats, on the other hand, are external values on factors that a company does not have control over.
The STEEP analysis deals with the Sociological, Technological, Economic, Environmental, and Political factors in company’s external environment. Sociological is the change in the norms of the society regarding the product of the company. Technological factor deals with the technological developments that could help or affect the company. Economical factor is the well being of the market you targeted. It tells if the economy is stable or not. Environmental factor could deal with the use of natural resources. Political factor looks at the regulations that govern over the company. Examples are tax regulations, ads law, trade law and other legal factors.
The SWOT and STEEP analyses were similar in some aspects, but it differs in approach. Both analyses looks into factors which would better enhance the management or productivity of a company. The STEEP looks into the company’s external environment, but SWOT looks both into the internal and external factors.
Choosing which tool to be used is relative to the company’s nature or market that you’re in. The planning could be critical since it is not accurate enough to actually predict the future because it relies on only present and historical data.
As a correctional officer, the best tool to use is the SWOT analysis since it concentrates in not just external but also internal factors. The correctional is not a common industry but identifying the strengths and weaknesses could be a big help in managing it. Also the opportunities and threats could be very helpful in identifying future problems and coming up with practical solutions for them.