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Competition
The problem with building a defensive wall is that one loses the benefits of competition improved performance.
Scection 1.1
Competitive behaviour sees organisations taking an adversarial role in all exchange situations, not only with competitors in the market but also in dealings with stakeholders such as suppliers. The primary objective is to drive the hardest bargain in all situations. This is what is referred to as a zero sum game an interaction in which one participant's gains result only from another's equivalent losses.
Scenario Building
One way to understand different futures within the planning process is to develop scenarios, and then design the strategy so that it has enough flexibility to accommodate whatever future occurs. In other words, by developing multiple scenarios of the shape of things to come, an organisation can make a better strategic response to the future environment. The prime aim of scenarios and scenario building is to enable decision-makers to detect and explore all or as many as possible, alternative futures so as to clarify present actions and subsequent consequences. They should, thus, be prevented from making strategic decisions before they have done some strategic thinking!
Contingency Strategies
Many organisations will develop several variations of strategy, each of which is intended to fit a different environmental scenario. An environmental scenario consists of a set of environmental characteristics that describe a organisation's external circumstances. By structuring external variables into sets of related variables, different scenarios result. Evaluative criteria then are formulated for each scenario. These are variables to be monitored in order to estimate which of the scenarios is going to apply in the future. Actually this is a matter of deciding whether the present scenario will continue to be the best description of the organisation's environment or one of the others seems to be emerging as most correct. arise.