SWOT & Etop analysisCollege desh baghat mgt (mandi gobindgarh) A VIEW SWOT & Etop analysis MBA Strategic Management Unit II(2). Environment Threat and Opportunity Profile (ETOP.) Meaning of Environmental Scanning: Environmental scanning can be defined as the process by which. Etop in strategic management pdf. Need for greater strategic thinking felt. Trends Probability of Occurrences Impact on strategies S1 S2 S3 T1 T2. Etop analysis.

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Industry growth rate is 10 to 12 percent per year, For motorbike growth rate is 40 percent, largely Unsaturated demand. Mostly ancillaries and associated companies supply parts and components, REP licenses for imported raw materials available. A matrix of comparison is drawn where one item or factor is compared with other items after which the scores arrived at are added and ranked for each factor and total weight age score calculated for prioritizing each of the factors.

The Environmental factors are quite complex and it may be strategi for strategy managers to classify them into neat categories to interpret them as opportunities and threats.

ETOP Analysis

Some of the impotent issues may be those related to market share, competitive pricing, customer preferences, technological changes, economic policies, competitive trends, etc. Import of machinery under OGL list possible. When organizations are alert and have enough resource they can turn a threat into an opportunity, such as a new technology that may displace one of the key products but also provides an opportunity for new product development.

This example relates to a hypothetical company but the illustration is realistic based n the current Indian business environment. But contrast the implications of this Analyais for a new manufacturer who is planning to enter this industry.

Regards Vinay Kumar Sharma.

Business Management Lesson: Environmental Threat & Opportunities Profile (ETOP)

The strafegic, importance, manageability, variability and low cost of data are some of the important factors, Which must be kept in focus.


Understanding of management strategy or organization policy and effectiveness is not as easy; it requires looking at how company is griped with challenges, looking at the threats and opportunities and finding solutions for facing it.

It aspires to continue to develop technology overlaps between the businesses it has. Customer preference for motorbike, which are fashionable, stratfgic to ride and durable. Ironically, stronger organizations can be exposed to a greater level of threats than weaker organizations, because success raises envy and competition which a successful organization needs to fight to get ahead.

Business environment analysis is a regular business feature. As shown in the table motorbike manufacturing is an attractive proposition due to the many strateggic operating in the environment.

When organizations can think far ahead, they can create some opportunities. Wishing you good luck and best wishes to your sincere endeavours. The company-can capitalize on the burgeoning demand by taking advantage of the various government policies and concessions. What is a business integration strategy? And finally the strategy manger uses his judgment to place various environmental issues in clear perspective to create the environmental threat and opportunity profile.

The effort and the self belief is certainly going to get to a logical conclusion to your desire to improve academia and Industry in India. Environmental scanning is the monitoring, evaluating, and disseminating of information from the external and internal environment to key people within the corporation or organization. This would enable managers to violate strategies when it is necessary.

It requires proper evaluation on the position of an organization, whether the adopted strategy is working well and if not why and how should it progress ahead. Some external elements can be manipulated by company marketing, while others require analysi organization to make adjustments. Managing image of an organization is most important in the external environment.


Traditional managers give explicit instructions to employees, while progressive managers empower employees to make many of their own decisions. The preparation of an ETOP provides a clear picture for organization to formulate strategies to take advantage of the opportunities and counter the threats in strateggic environment.

It is important to recognize potential opportunities and threats outside company operations. Some opportunities can be foreseen, such as being able anaysis expand a franchise into a new city. You must be logged in to post a comment.

Narendra Modi government is planning to set up several power plants. Once an organization gets into reputation problems, it goes on growing like weeds in a garden.

Environmental Threat and Opportunity Profile (ЕТОР)

Examples of external threats etpp new and existing regulations, new and existing competitors, new technologies that may make products or services obsolete, unstable political and legal systems in foreign markets and economic downturns.

The preparation of ETOP involves dividing the environment into different sectors and then analyzing the impact of each sector on the organization.

Each of the major factors pertaining to a particular sector of environment may be divided into sub-sectors and their effects studied. Importance of Maps November 25, GE is cash manaement company. Impact studies should be conducted focusing on the various opportunities and threats and the critical issues selected. Changes in philosophy and leadership style are under the control of the manager.

A comprehensive ETOP requires subdividing each environmental sector into sub factors and then the impact of each sub factor on the organization is described in the form of a statement.