is the process of anticipating possible changes in a firm’s situation and then devising ways of dealing with them. For example, a chocolate producer could ask itself:
‘What if next summer brings a three-month heatwave? How will we cope with the collapse in demand for our products?’
Having conceived the scenario, the management could consider options such as providing special display cartons suitable for retailers’ chilled cabinets, or even supplying their own chocolate chillers.