Executives at Hip Clothing Corp. develop strategic plans to address plausible future situations, like a rise in the price of cotton by $25\%,$ an appreciation in the value of the dollor, a significant increase in the cost of labor, and a nationwide weather event that negatively impacts transportation costs. The company does this so they are well$-$prepared with planned responses should any of these situations occur in the future. They are applying a approach to strategy development.

Scenario planning

Emergent

Top$-$down

Environmental analysis