Question

The executives at Red Couture Inc. are developing strategic plans to address plausible future situations like rise in the prices of cotton and synthetic fabrics by 20 percent, appreciation in the value of the dollar, increase in the cost of labor by 30 percent, and increase in demand for the company's products. By doing so, the company will be well prepared with its planned responses if any of these situations occurs in the future. Thus, Red Couture is employing ________ as the approach to the development of strategy.

Answer 1

Answer:

scenario planning

Explanation:

According to my research on different types of business strategies, I can say that based on the information provided within the question Red Couture is employing scenario planning as the approach to the development of strategy. This approach (like described in the question) focuses on organizations considering their future in an effective and structured manner in order to anticipate certain events and have a plan ready for if they happen.

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