Royal Dutch/Shell Uses Scenario Planning to Explore What the Company

question 72

Multiple Choice

Royal Dutch/Shell uses scenario planning to explore what the company would do if and when its oil supplies run out. For Royal Dutch/Shell, the benefits of scenario planning include which of the following?

• A) It helps the organisation operate more flexibly in a dynamic environment.
• B) It conditions the company's executives to think.
• C) It enables the company to be better prepared than competitors for future shocks.
• D) None of the options listed
• E) All of the options listed

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Definitions:

Discount Rate

A rate utilized in the process of discounted cash flow analysis for determining the present value of future cash flows.

Capital Budgeting

The process of evaluating and selecting long-term investments that are in alignment with the goal of maximizing investor wealth.

Net Present Value

A financial metric that calculates the difference between the present value of cash inflows and outflows over a period of time.

Intangible Benefits

Non-quantifiable advantages or value derived from a project, service, or product, such as brand recognition or customer loyalty.