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.

strategy as planned emergence

bottom$-$up strategic planning

scenario planning

top$-$down strategic planning