This document outlines how to conduct an environmental threat and opportunity profile (ETOP) analysis for an organization. The ETOP identifies external factors in different sectors like economic, political, technological that could impact the organization. It involves subdividing sectors, identifying key issues, and assessing each issue's potential favorable, unfavorable, or neutral impact. The document provides an example ETOP analysis for a bicycle company, identifying issues in sectors like the economy, market, international trade that could threaten or benefit the company. Conducting an ETOP helps understand external opportunities and threats to inform strategic planning.
2. Environmental threat and opportunity profile
It is description of the structure of external
factors. These factors may be neutral, in
favourable, unfavourable impact on
operations of an organization in the
environment .
3. Steps in preparing ETOP
1. Identify major environmental sector- social,
economical, political, technological,
ecological, natural, legal etc.
2. Sub - divide the sectors in to subsectors
3. Identify major issues in the subsectors
4. Assess the possible impact – favourable,
unfavourable or neutral
4. ETOP profile for a bicycle company.
Environmental Nature of Impact of each sector
sector impact
Economic Growing influence among urban consumers,
rising disposable incomes and living standards
Market Organized sector a virutal ologopoly with four
major manufacturers, buyers critical and better
informed, overall industry growth rate not
encouraging
International Global imports growing but India's share
shrinking, India second globally as
manufacturer, consumer and exporter after
china , major importers are the US and EU but
india exports only to africa ; threat of chinese
cheap imports
Political Industry tool small for any political attention
Regulatory Parts and components reserved for small scale
industry, heavy restrictions
5. Social Environment and health friendly transport option , wide
uses
Supplier Mostly small scale sector
Technolog Technological up-gradation of industry in progress, import
ical of machinery simple