Gordon Bowen1, Deidre Bowen2

(1. Regent’s University London, London, UK; 2. University of Reading, Reading, UK)

 

 

Abstract: Business trends in markets that are in steady state environments are easier to predict. In the past, the business environments were a steady state market. However, market environments have changed to be dynamic, complex, and uncertain. Strategy formulation in dynamic, complex, and uncertain markets presents many challenges for companies. This paper examines the effect of uncertain environments on strategy and strategic planning and methods to reduce uncertainty. The paper found that scenario planning is a common approach but needs adapting depending on the level of uncertainty in the environment. Another approach is to use pseudoplanning, but this does not provide a solution to uncertainty in environments and thus does not lead to tangible competitive advantage.

 

Key words: pseudoplanning; scenario planning; strategy; strategy formulation and uncertainty

 

JEL code: L1