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Research Paper | Business and Finance | United States of America | Volume 13 Issue 1, January 2024 | Popularity: 5.6 / 10
Revolutionizing Scenario Planning: The ORSP Framework as a Strategic Solution for Financial Modeling and Business Planning Challenges
Shobhit Mittal, Shantanu Neema, Vikas Mendhe
Abstract: In today's dynamic business environment, where traditional scenario planning methods often fall short, the Optimistic, Realistic, Saturated, and Pessimistic (ORSP) Scenario Planning Framework emerges as a revolutionary approach. This paper introduces the ORSP framework as an innovative solution, revitalizing the conventional practices of financial modeling and business planning. By categorizing potential outcomes into four distinct scenarios - Optimistic, Realistic, Saturated, and Pessimistic - the framework equips businesses to effectively prepare for a spectrum of future possibilities. At its core, the ORSP framework leverages historical data, providing a solid foundation for more accurate forecasting and strategic decision - making. This approach transcends simple speculation, offering a structured and measurable way to evaluate potential impacts on business operations. The paper further illustrates the framework's practicality and adaptability through three diverse case studies, encompassing a tech startup, a pharmaceutical company, and a renewable energy firm. These examples demonstrate the framework's applicability across various sectors, highlighting its role in guiding businesses through different market scenarios. While acknowledging the limitations of the ORSP framework, particularly its dependence on historical data's accuracy, the paper suggests future enhancements like integrating advanced data analytics and machine learning for more refined scenario projections. The discussion on industry - specific adaptations underscores the framework's potential for ongoing evolution, ensuring its relevance and effectiveness in real - world business contexts.
Keywords: Business Planning, Financial Modelling, ORSP Framework, Scenario Planning, Strategic Decision - Making, Agility, Operational Efficiency, Risk
Edition: Volume 13 Issue 1, January 2024
Pages: 1470 - 1475
DOI: https://www.doi.org/10.21275/SR24122061143
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