Growing affluence among urban consumers; Exports potential high. Import of machinery under OGL list possible. As shown in the table motorbike manufacturing is an attractive proposition due to the many opportunities operating in the environment. The company-can capitalize on the burgeoning demand by taking advantage of the various government policies and concessions. It can also take advantage of the high exports potential that already exists. Since the company is an established manufacturer of motorbike, it has a favorable supplier as well as technological environment.
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You are on page 1of 11 Search inside document Environment Threat and Opportunity Profile ETOP Meaning of Environmental Scanning: Environmental scanning can be defined as the process by which organizations monitor their relevant environment to identify opportunities and threats affecting their business for the purpose of taking strategic decisions.
Appraising the Environment: In order to draw a clear picture of what opportunities and threats are faced by the organization at a given time. It is necessary to appraise the environment. This is done by being aware of the factors that affect environmental appraisal identifying the environmental factors and structuring the results of this environmental appraisal. Structuring Environmental Appraisal: The identification of environmental issues is helpful in structuring the environmental appraisal so that the strategists have a good idea of where the environmental opportunities and threats lie.
There are many techniques to structure the environmental appraisal. The preparation of an ETOP involves dividing the environment into different sectors and then analyzing the impact of each sector on the organization Environment threat and opportunity profile ETOP S.
No Environmental bicycle company sector Economic Nature of Impact Impact of each sector Up Arrow Growing affluence among urban consumers rising disposable incomes and living standards Market Horizontal Arrow Organized sector a virtual oligopoly with four major manufacturers, buyers critical and better informed overall industry growth rate not encouraging unsaturated demand systems. Up Arrow indicates Favorable Impact Down Arrow indicates unfavorable Impact Horizontal Arrow indicates Neutral Impact The preparation of an ETOP provides a clear picture to the strategists about which sectors and the different factors in each sector have a favorable impact on the organization.
The organization knows where it stands with respect to its environment. Obviously, such an understanding can be of a great help to an organization in formulating appropriate strategies to take advantage of the opportunities and counter the threats in its environment.
Meaning of organizational Appraisal: The purpose of organizational appraisal is to determine the organizational capability in terms of strengths and weaknesses that lie in different functional areas.
This is necessary since the strengths and weaknesses have to be matched with the environmental opportunities and threats for strategy formulation to take place. An SAP provides a picture of the more critical areas which can have a relationship with the strategic picture of the firm in the future.
Meaning: The organizational capability profile is drawn in the form of a chart. Almost all organizations face competition either directly or indirectly. Thus the industry and competition are vital considerations in making a strategic choice.
It is quite obvious that any strategic choice made by an organization cannot be made unless the industry and competition have been analyzed. The environmental as well organizational appraisal dealt with the opportunities, threats, strengths and weaknesses relevant for an organization. SWOT analysis criticized: 1. SWOT analysis consist of a long list of factors.
SWOT analysis does not consider priorities among factors. Thank you.
ETOP IN STRATEGIC MANAGEMENT PDF
Zululkree The midstream industry processes, stores, markets and transports commodities such as crude oil, natural gas, natural gas liquids liquefied natural gas such as ethane, on and butane and Sulphur. Wtrategic is important to recognize potential opportunities and threats outside company operations. Traditional managers give explicit instructions to employees, while progressive managers empower employees to make many of their own decisions. Leadership matters a lot in controlling the internal environment. Environmental Science, Engineering and Management.
Environmental Threat and Opportunity Profile (ЕТОР)