TNT Scenario Essay Example | Topics and Well Written Essays - 1000 words

TNT Scenario - Essay Example Scenario planning is an important strategic tool for improving the effectiveness of strategy (Glesecke, 1998, p.43). It is not about scenario writing but is more related to strategic planning (Lindgre, and Bandhold, 2003 p.21). For example, TNT wants to obtain and maintain its strategic objectives in the European market. For this purpose, it decides that till the end of 2015, it will have to increase 5 per cent market share in the European market. To implement this change, more effective strategy is required in which the PEST (political, economic, social and technological) factors will be considered. Currently, the political environment looks stable and more business friendly than ever before. Subsequently, the cost inflation and cost of living are showing more stability because the entire European economy has recently recovered its debt crisis and the businesses and consumers are experiencing a rising confidence in the business activities. Moreover, the technological changes are tak ing place which can directly or indirectly put positive effect on the business activity. After this environmental scanning, TNT must increase its marketing and promotion cost along with providing and offering a range of incentives and discounts for attracting customers from untapped markets. In this regard, it is important to highlight that marketing cost should be increased by 30 per cent as this will increase more chances of attracting new customers. In this strategy, social media, print and electronic media should used. Technological advancement is the biggest threat for the company. TNT mainly relies on providing postal services across the world. However, recent changes in the technology in which paper-free sharing of information and more digital communication are being preferred. In this regard, TNT faces serious threat from the technological changes because new methods are being created which make the previous Technology can also be termed as an opportunity for the company. In this regard, it is important to highlight that the requirements and needs for business to business and business to customer have not changed much and still correspondence and communication is vital part of their business strategy. However, they have changed their communication method from postal to the digital aspect. If TNT decides to revamp its business strategy by investing in research and development especially in the field of information technology, then, there are chances that the company will be in a position to avail this opportunity.