The executives at Red Couture Incorporated are developing strategic plans to address plausible future situations such as increases in synthetic fabrics by $20\%$ versus $60\%,$ low versus high appreciation in the value of the dollar or increases in the cost of labor by $20\%$ versus $40\%.$ By so doing, the company will be well prepared with its planned responses if any of these situations occurs in the future. Thus, Red Couture is using $\_\_\_\_\_$ as its main approach strategy formulation.