Scenario Planning Framework Helped an American Healthy Packaged Goods Manufacturer and Retailer become Future-Ready, Optimize Resource Allocation, and Reduce Business Risk

Jul 7, 2020

Engagement Summary

The scenario planning framework is basically making assumptions on what the future is going to be and how an organization’s environment will change over time by identifying a specific set of uncertainties and different realities of what might happen in the upcoming days. The client is a healthy packaged goods retailer who wanted to understand how to allocate their internal resources so as to accommodate for future uncertainties and looking forward to being sure of the possible future scenarios so that they can allocate their internal resources accordingly.

About the Client

The client is an American healthy packaged food manufacturer headquartered in Miami. It is one of the largest healthy packaged foods manufacturing and retailer companies in the world. The products include baby food, breakfast cereals, hot beverages such as coffee and tea, healthy and vegan snacks, etc.

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Business Challenge

The client was facing predicaments with forming a scenario planning framework for their organization. The two main factors creating a hindrance were – identifying the driving forces of their business model and the upcoming uncertainties.

Problem Statement 1

Allocation of resources – Since the client lacked a scenario planning model, the decision-makers were not completely aware of the external environment and future scenarios. Thus, every resource allocation plan was going in vain.

Problem Statement 2

Reducing risk – The client was looking forward to understanding the upcoming business landscape in order to be aware of future uncertainties. A scenario planning model in such cases helps to be prepared to handle new situations to keep the business running flourishing.

Problem Statement 3

Develop plausible scenarios – The healthy packaged food manufacturer wanted to identify plausible scenarios to build different plans of action and be future-ready.

Solution Offered

To help the client deal with their existing problems, Quantzig’s scenario planning experts devised a scenario planning framework aimed at defining the client’s critical uncertainties and developed plausible scenarios to discuss the impacts and the defense mechanism for each of these plausible scenarios. Thus, the client was able to identify the upcoming incidents and devise a new plan of action. Quantzig’s scenario planning model helped the client identify the emerging trends and potential disruptions that are most likely to affect their business.

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Business Outcome

Our scenario planning framework helped the client to overcome their existing problems while being future-ready. The key business outcomes were during FY 2019-20 –

  1. Devised a resource planning framework
  2. Developed four plausible scenarios for the upcoming financial period
  3. Reduced 89% of business risks

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