Scenario analysis in strategic planning primarily helps to:

Scenario analysis in strategic planning is an essential tool that enables organizations to explore various possible futures. This approach involves creating detailed narratives about potential future environments based on different assumptions about how current trends might evolve. By considering multiple scenarios, organizations can prepare for uncertain conditions and strategic challenges they might face.

This process encourages broad thinking and creativity, allowing decision-makers to visualize how various factors—such as changes in the economy, technology, regulations, or competitor actions—could impact the business. It fosters proactive rather than reactive planning, as organizations can develop strategies to navigate different situations, thereby increasing their adaptability and resilience.

In contrast, identifying a company's weaknesses focuses more on internal assessments rather than external scenarios. Concentrating solely on the present ignores the dynamic nature of business environments and can limit an organization’s ability to prepare for future challenges. Lastly, limiting strategic flexibility would contradict the purpose of scenario analysis, which aims to broaden options and enhance an organization's capacity to respond to change. Thus, the primary function of scenario analysis is indeed to explore various possible futures.