Continuation of question..Based on the picture below, explain each briefly like you are teaching this to your students or give a summary explanation about how scenario planning works. Also, give an example for each.Early Warning SignalsStrengthsLimitationsRole of Management Accountant on rankings. Focusing on two could miss othercritical potential forces. There will be differingopinions about the implications of uncertainties,sometimes motivated by individuals' incentivesand personal biases. Further, there is usually morecorrections as needed earlier than if they had noearly warning signals.Strengths: Instead of assuming there is one bestanswer to a strategic question, scenario planningconsiders different possibilities for different futures. than just one key focal issue. The analysis canIt considers multiple uncertainties simultaneously.Unlike simulation modeling, it requires subjectivethinking as well as quantitative analysis. It isespecially helpful when: uncertainty is high, therehave been costly surprises in the past, currentstrategic thinking is weak, and there seem to befew opportunities to pursue. Further, identifyingearly warning signals is a good practice no matterwhich strategic planning tool is used.Limitations: Scenario planning is based on justalso be difficult to do well. It generally requires anumber of participants from different areas of thecompany and can take a long time to completethe exercise.Role of the management accountant: As withother strategic planning tools, managementaccountants can lead or facilitate the process.More specifically, they help identify key focalissues, driving forces, and early warning indicators.They can also represent different stakeholders'views and assess the logic of the narratives. .two critical uncertainties that are chosen based A SCENARIO FRAMEWORK is a 2x2 matrixmade up of the two critical uncertainties withhigh vs. low spectrums. The two axes create fourdifferent scenarios to be addressed, such as highregulatory environment/low brand image and lowregulatory environment/low brand image.53SCENARIOS are based on the four quadrantsand represent plausible visions of thepotential future. There are no "right" or "wrong"scenarios. Instead, they are viable outcomes meantto force participants to think about factors thatcould change the future of the company.6 NARRATIVES are written descriptions or storiesabout each scenario. They should be logical,consistent with the scenario, and be persuasive tostretch people's thinking. Each narrative should alsolink the scenario back to the present time and howthe world got there. The narrative basically tells thestory as if it had already happened.IMPLICATIONS are ways to deal with each ofthe scenarios. Participants go back to the keyfocal issue to identify the company's strengths,weaknesses, and options to address gaps incapabilities for the different scenarios.EARLY WARNING SIGNALS are leadingO indicators suggesting which scenario(s) is (are)most likely. Good early warning indicators helpcompanies assess their readiness and make course

Question

Continuation of question..Based on the picture below, explain each briefly like you are teaching this to your students or give a summary explanation about how scenario planning works. Also, give an example for each.Early Warning SignalsStrengthsLimitationsRole of Management Accountant on rankings. Focusing on two could miss othercritical potential forces. There will be differingopinions about the implications of uncertainties,sometimes motivated by individuals' incentivesand personal biases. Further, there is usually morecorrections as needed earlier than if they had noearly warning signals.Strengths: Instead of assuming there is one bestanswer to a strategic question, scenario planningconsiders different possibilities for different futures. than just one key focal issue. The analysis canIt considers multiple uncertainties simultaneously.Unlike simulation modeling, it requires subjectivethinking as well as quantitative analysis. It isespecially helpful when: uncertainty is high, therehave been costly surprises in the past, currentstrategic thinking is weak, and there seem to befew opportunities to pursue. Further, identifyingearly warning signals is a good practice no matterwhich strategic planning tool is used.Limitations: Scenario planning is based on justalso be difficult to do well. It generally requires anumber of participants from different areas of thecompany and can take a long time to completethe exercise.Role of the management accountant: As withother strategic planning tools, managementaccountants can lead or facilitate the process.More specifically, they help identify key focalissues, driving forces, and early warning indicators.They can also represent different stakeholders'views and assess the logic of the narratives. .two critical uncertainties that are chosen based A SCENARIO FRAMEWORK is a 2x2 matrixmade up of the two critical uncertainties withhigh vs. low spectrums. The two axes create fourdifferent scenarios to be addressed, such as highregulatory environment/low brand image and lowregulatory environment/low brand image.53SCENARIOS are based on the four quadrantsand represent plausible visions of thepotential future. There are no &#34;right&#34; or &#34;wrong&#34;scenarios. Instead, they are viable outcomes meantto force participants to think about factors thatcould change the future of the company.6 NARRATIVES are written descriptions or storiesabout each scenario. They should be logical,consistent with the scenario, and be persuasive tostretch people's thinking. Each narrative should alsolink the scenario back to the present time and howthe world got there. The narrative basically tells thestory as if it had already happened.IMPLICATIONS are ways to deal with each ofthe scenarios. Participants go back to the keyfocal issue to identify the company's strengths,weaknesses, and options to address gaps incapabilities for the different scenarios.EARLY WARNING SIGNALS are leadingO indicators suggesting which scenario(s) is (are)most likely. Good early warning indicators helpcompanies assess their readiness and make course

Accepted Answer

SCENARIO PLANNING: Scenario planning is the process of creating plans with the help of several…

Continuation of question.. Based on the picture below, explain each briefly like you are teaching this to your students or give a summary explanation about how scenario planning works. Also, give an example for each. Early Warning Signals Strengths Limitations Role of Management Accountant