Explain Scenario analysis for the brewing company AB InBev.

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Environmental uncertainty and scenario analysis

Scenario analysis provides a conceptual framework by which organisations can understand the external environment as it unfolds, accept the uncertainty as given, and use it to provide a description of two or more future scenarios.

The starting point for most scenarios is normally to identify the key drivers that will affect the issues at hand and thereby generate a list of trends or factors. The next stage is normally to rank or combine all the identified drivers into a smaller, more meaningful sets that can be used for structure. The PESTLE analysis can be used to identify the kinds of issues facing an organisation over a defined period, e.g. three years. These issues can be scored on two scales, certainty and importance, from 1 (low) to 5 (high). See Figure 3.3 (West, Ford & Ibrahim, 2015, p.74).

5T Certain 4 Importance 2 3 4 UT Importance 2 Uncertain 1