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.
Multiple Choice
- Trend analysis
- Contingency planning
- Background planning
- A vision plan
- A managerial pact

Answer 1

Answer: Contingency planning

Explanation: In simple words, it refers to the planning under which an organisation plans to cope with a situation that may or may not happen in the near future. The situation for which planning is done relates to a significant event that highly impacts the organisation.

In the given case, Stars and stripes are planning to face the problem of low sales even though they are performing well in the market for the present time.

Hence from the above we can conclude that the correct option is B.