Bu288 lesson20
ETOP Preparation:
The preparation of ETOP involves dividing the environment into different
sectors and then analyzing the impact of each sector on the organization. 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.
A summary ETOP may only show the major factors for the sake of simplicity.
The table 1 provides an example of an ETOP prepared for an established
company, which is in the Two Wheeler industry.
The main business of the company is in Motor Bike manufacturing for the
domestic and exports markets. This example relates to a hypothetical
company but the illustration is realistic based on the current Indian business
environment.
Table 1: Environmental Threat and Opportunity Profile (ETOP) for a
Motor Bike company:
Environmental Impact of each sector Sectors
Social (↑) Customer preference for motorbike, which are fashionable, easy to
ride and durable.
Political (→) No significant factor.
Economic (↑) Growing affluence among urban consumers; Exports potential
high.
Regulatory (↑) Two Wheeler industry a thrust area for exports.
Market (↑) Industry growth rate is 10 to 12 percent per year, For motorbike
growth rate is 40 percent, largely Unsaturated demand.
Supplier (↑) Mostly ancillaries and associated companies supply parts and
components
Technological Technological up gradation of industry in progress. (↑)
ETOP Preparation:
The preparation of ETOP involves dividing the environment into different
sectors and then analyzing the impact of each sector on the organization. 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.
A summary ETOP may only show the major factors for the sake of simplicity.
The table 1 provides an example of an ETOP prepared for an established
company, which is in the Two Wheeler industry.
The main business of the company is in Motor Bike manufacturing for the
domestic and exports markets. This example relates to a hypothetical
company but the illustration is realistic based on the current Indian business
environment.
Table 1: Environmental Threat and Opportunity Profile (ETOP) for a
Motor Bike company:
Environmental Impact of each sector Sectors
Social (↑) Customer preference for motorbike, which are fashionable, easy to
ride and durable.
Political (→) No significant factor.
Economic (↑) Growing affluence among urban consumers; Exports potential
high.
Regulatory (↑) Two Wheeler industry a thrust area for exports.
Market (↑) Industry growth rate is 10 to 12 percent per year, For motorbike
growth rate is 40 percent, largely Unsaturated demand.
Supplier (↑) Mostly ancillaries and associated companies supply parts and
components
Technological Technological up gradation of industry in progress. (↑)
