NAME: SYEDA HUDAIBIYA

PROGRAM: BBA (M)

SUBJECT: STRATEGIC MANAGEMENT

TOPIC: ETOP
SUBMITTED TO: SIR MOHSIN

DATE: 19-06-2019
 ENVIRONMENTAL THREAT & OPPORTUNITY
PROFILE:
INTRODUCTION:
It is a technique of environment analysis where organizations make a
profile of their external environment. ETOP refers to environmental
threat and opportunity profile. It analyses information about
environmental threats and opportunities and their impact on strategic
planning process to identify strategic opportunities for the company.
Environmental opportunities indicate new lines of business and threats
restrain them from entering into new business lines. A business firm that
wants to manufacture shoes, for example, will prepare and ETOP ,
analyses demand for shoes in the market, purchasing power of
consumers, gender composition of market (male-female ratio) etc. and if
there id demand for shoes, it will venture into this business.

(a) Forecasting:

Forecasting means predicting the future events and analyzing their

impact on present plans. Business organizations analyze the environment
but applying various techniques to forecast Government’s policies, sales,
technological development etc. The information is used to formulate
business plans and strategies.
(b) Verbal and written information:

 Verbal information is collected but hearing and written information is

collected by reading articles, journals, newspapers, newsletters etc.
Common sources of verbal information are radio, television, work force,
outsiders (consumers, suppliers, bankers) etc. It informs changes in the
environment and prepares business organizations to incorporate them in
their business plans and strategies.

(c) Management information system( MIS):

MIS is “ a formal method of making available to management the

accurate and timely information necessary to facilitate the decision-
making process and enable the organization’s planning, control and
operational functions to be carried out effectively. “ MIS provides
timely, accurate, concise, complete and relevant information bases on
computer technology about present and future environmental changes. It
facilitates organization’s decision-making process and helps in making
decisions based on future environment.