Corporate Scenario Analysis

Corporate Scenarios

The corporate scenarios refer to the procedures for establishing/creating a description of the future conditions and situations that a business may face based on the evaluation of the present and past tendencies in the sector. As affirmed by Wheelen et al. (2017), they are the future estimates of comprehensive income statements and balance sheet that firms use to predict the benefits and the effects of using each alternative policy and the returns that may be received from undertaking a given investment program. Apparently, corporate scenario estimates the possible circumstances on what might happen when one decides to apply a particular strategy to the other one. Corporate Scenarios can have significant effects on the

Among the six forms that synergy can take place, there are two of the types that lead to effective strategies. One, synergy can happen in the kind of shared know-how where individuals syndicate their intuitions, skills, and proficiency to assist each other in coming up with successful policies. The other procedure is the coordinated strategies. If an organization align two or more corporate units or functions, it acquires a competitive advantage typically by disregarding inter-unit rivalry and bringing about a harmonized plan towards accomplishing a given objective (Johnson, 2016). Therefore, when an enterprise creates an environment of synergism, there is the possibility to make adequate use of available resources and factors of production, making it is easy to establish effective

The first step is start-up phase, where the company is being established and requires minimal management and control. The second stage is growth or survival, where an organization starts to expand, and it may apply different strategies to maintain growth. The third phase is maturity stage, where a continuous growth experienced in the second level enables a firm to achieve a stable presence in the industry Stark (2015). The final step is a decline, where the company has matured enough, and the only options are to keep pushing forward or exit the market. Currently, The Walt Disney Company is at maturity phase. Apparently, the entertainment industry is at growth stage because of many consumer changes, but since Disney Company has strong roots in the industry, it has won a more significant market share than other companies, where it is making consistent profits. However, due to the high competition in the entertainment industry, the company should not relax as it may end up in the declining