Scenario Analysis

Describe the major area William neglected and discuss what this area would have identified.
What four (4) external environmental variables should William have used?
William also might have used an issues priority matrix. Define what this is and using an issues priority matrix, discuss three additional (3) factors that might have influenced William’s lack of serviceable results.

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Scenario Analysis

The director of operations, William, was mandated with seeking the best ways of business expansion where an inexpensive mode of transport would be targeted. There was a need for William to use external environmental variables to identify the best solutions for the company.  The first valuable ought to have been the suppliers of the raw materials. Efficient suppliers are vital for any business in that they ensure a constant supply of materials and, ultimately, efficient production. The second variable, which William needed to use in his research was the products’ consumer base. The customers are some of the most critical stakeholders in the business since they determine the sales, and ultimately the revenue and the profit margin, which eventually helps in the company’s growth.

A third external critical factor includes the economic factors of a business. This consists of the exchange interest rates and supply and demand. This would help in understanding the market better and help with the expansion plans.  The social, cultural factors would also be significant in helping the company determine the taste and preferences of the target consumers and hence help with the restructuring of the company’s business model. There was also a need for William to use an issue priority matrix. This is a critical tool designed to help determine the most vital tools, hence enabling him to focus on the company’s most urgent needs.

Other additional factors that resulted in a lack of beneficial results for William included failing to comprehensively analyze the models and structures of companies dealing with such types of products, hence failing to deduce nay new ideas that could help in the company.  He also concentrated on finding a perfect solution, rather than identifying the nice in the market, which would help his firm get more innovative and meeting the gaps in the market. Finally, William failed to prioritize identifying the new trends in the market, which could have been integrated by most of the companies he visited.