Uncertainty level |
Features |
Eventual type of strategy |
Techniques in operation |
1 level |
Insignificant uncertainty (a predictable situation) |
Alternative options of possible strategies + basic forecast |
Market research, value chains, Porter strategies, and cash flow analysis (NPV) |
2 level |
Moderate uncertainty that allows to develop an alternative scenario |
Development of several behaviour lines with a clear distinction of change points between them |
Scenario analysis, highlighting key success factors, stochastic modeling, financial modeling, and building a decision tree or "flywheel" of decisions |
3 level |
High uncertainty that concerns not only variant actions but also development directions |
Working out the "strategies field" with the analysis of boundary scenarios, favorable and desirable scenarios, as well as actions that increase their probability |
Scenario and simulation modeling, corporations re-engineering in order to increase flexibility and mobility, competitive analysis based on fuzzy logic, and use of options theory methods. |
4 level |
Totally uncertain situation |
The strategy is aimed at forming an adaptive corporation (using the concept of shell companies) |
Organization design of flexible mobile structures, project management methods, and risk management |