Question

Sales this year at Stars and Stripes Consignment have been high, and based on several factors, Stars and Stripes projects next year's sales to also be good. However, even with a forecast of continued strong sales, Starts and Stripes Consignment needs to develop a plan in case sales drop unexpectedly. ________ is the type of planning for alternative future conditions.
a.Trend analysis
b.Contingency planning
c.Background planning
d.A vision plan
e.A managerial pact

Answer 1

Answer:

B) Contingency planning

Explanation:

When a person or an organization develops a contingency plan, it means that they developed their plan B (or even C). This means that you are planning ahead in case something doesn't go as it should or something really bad happens. This is exactly what FEMA does with NIMS, they make contingency plans in case of emergencies.

In this specific case, it is unlikely that a natural disaster destroys the store, but an economic catastrophe might hit it. Management is developing a contingency plan in case that sales plummet. This plan might include aggressive marketing promotions, reducing personnel, lowering costs, obtaining a loan, etc.