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Progress Report - Essay Example

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Scenario planning is an approach of forecasting or evaluating the future concerns or problems and go about solving them before hand. Scenario planning nowadays is widely used by manager as a part of contingency planning or to devise backup plans if business plan or plan of actions does not go according to predetermined plans…
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Progress Report
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Download file "Progress Report" to see previous pages... For example, in this case, a business might introduce various promotions and selling activities to make sure its market share remains high. (Kevinlane Keller and Kotler, 2000)
Scenario planning is also used by various exporting business as a part of their strategic management policies to counter problems caused by uncertainty.
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For example, in our case we are analyzing a business which exports organic clothing to India. This involves certain processes which are not under control such as crops that are used to manufacture clothes and textile mills which are going manufacture these crops into raw cloth.
Exporting process is a tough job and time management is extremely necessary, otherwise the importing companies which are based in Europe and the US do not accept the cloth. The rules are so strict that even if the exporting companies are one day late, these companies cancel the order and exporting companies suffer huge losses. Now let's look at the situation of our clothing company in light of PEST analysis of India.
As we all know that India is biggest democracy in the world and perhaps the biggest economy of all emerging market economies of the world. In the recent year, we know that India has faced problems like terrorism and strikes. During these strikes all the business activity is ceased in India. This causes a lot of problem for exporting business and they have to plan head and keep themselves ahead of the deadline. So, considering the political environment of India and acts of terrorism, our organic clothing company will have to be very cautious of political situation of India and will have to be ahead of time, so that it does not find its buyers canceling orders. This can be done by telling textile firms and farmers that they need the particular quantity of material on the specified dates and keep check and balance by visiting the sites such as farms and textile factories to see that both the farms and factories will be able to provide the necessary amount of material at the specified dates. If these farms and factories do not provide the firms with the specified material, the firm should use its contingency plan, to make sure it does not lag behind the shipment data. These contingencies plans can be buying cloth that is already available in the market and then process it and export it to the USA and Europe. This way, our clothing firm can beat the political challenges that are there in the Indian economy. (CNN IBN Video Report on Terrorism in India, 2008)

If we look at economic analysis we will find out that Indian economy relies on old and unreliable infrastructure. This infrastructure often gets badly damage and does not function properly in case of rains and other natural catastrophes. In order to remove this problem, firm can contract an international firm like Fed-Ex or any other big name in the market to make sure that its material always reaches the buyers on time (Data

Monitor, 2008). Similarly, another problem in the Indian economy is less mechanization and more dependence on unskilled labor. This labor often spoils the whole lot, which is a big profit-reducer for our firm. Our firm therefore, should try to invest on R& D to make sure that we transfer the best technology to India which will not only increase our reputation in the international market, but this will also help us into becoming more efficient and ...Download file "Progress Report" to see next pagesRead More
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