One more WSJ piece from yesterday relates to our in-class discussions about Sensitivity (”what if”) Analysis.  The article refers to it as “Scenario Planning” and shows how useful it can be in allowing a company to quickly react to different market conditions if they concentrate on different possibilities when budgeting.  At the very least it prevents them from being blindsided by things that they didn’t consider.

Theory & Practice: Pendulum Is Swinging Back on ‘Scenario Planning’ — JDS Uniphase Prepares Responses for a Range of Business Situations, Helping Company React Quickly to Change. Cari Tuna. Wall Street Journal. (Eastern edition). New York, N.Y.: Jul 6, 2009. pg. B.6