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A SEMINAR TOPIC ON

TECHNIQUES OF ENVIRONMENTAL
ANALYSIS

PRESENTED BY
THOTA RAVINDER
21564C3035
I M.COM I SEMESTER(FA)
UCCBM,KAKATIYA UNIVERSITY
SWOT ANALYSIS
• S= STRENGTH
INTERNAL FACTORS
• W= WEAKNESS
• O=OPPORTUNITIES
EXTERNAL FACTORS
• T= THREATS
INTERNAL FACTORS:
THESE ARE INTERNAL TO YOUR COMPANY
THINGS THAT YOU HAVE SOME CONTROL OVER
AND CAN CHANGE. EXAMPLE IT INCLUDE WHO IS
ON YOUR TEAM, YOUR PATENTS AND
INTELLECTUAL PROPERTY AND YOUR LOCATION
I) STRENGTH
• A FIRMS STRENGTH ARE ITS RESOURCES AND
ABILITY THAT CAN BE USED AS A FOUNDATION
FOR EXPANDING COMPETITIVE ADVANTAGE. IT
INCLUDES FACTORS OF LIKE BETTER BRANDS,
REPUTATION, AND GOODWILL COST REDUCTION.
II) WEAKNESS :-
• WEAKNESS INCLUDE THOSE ZONES
WHERE THE FIRM IS NOT STRONG. FOR
INSTANCE HIGH COST STRUCTURE AND
INEFFICIENT PRODUCTION PROCESS MAY
KEEP A FIRM WEAK.
EXTERNAL FACTORS :-
1.OPPURTUNITIES
2. THREATS
• OPPORTUNITIES AND THREATS ARE EXTERNAL THINGS THAT
ARE GOING ON OUTSIDE YOUR COMPANY IN THE LARGER
MARKET. YOU CAN TAKE ADVANTAGES OF OPPORTUNITIES AND
PROTEST AGAINST THREATS BUT YOU CAN'T CHANGE THEM.
EXAMPLE COMPETITORS, PRICE OF RAW MATERIALS AND
CUSTOMER SHOPPING TRENDS.
1 OPPORTUNITIES:-
• THESE ARE THE FACTORS WHICH OPEN DOORS TO PROFITABILITY
AND EXPANSION OF A FIRM, AND ARE PRESENT IN THE EXTERNAL
ENVIRONMENT OF A BUSINESS.
2.THREATS
• THREATS INCLUDE NEW POLICY OF REGULATION BY THE
GOVERNMENT STRICTLY INCREASING COST OF MATERIAL ETC. THE
SWOT ANALYSIS, ONE HAS TO IDENTIFY ALL THE FOUR FACTORS,
STRENGTHS SHOULD BE ENHANCED AND WEAKNESS SHOULD BE
ELIMINATED FOR EFFICIENCY REPEATING BENEFITS OF
OPPORTUNITIES AND AVOIDING CHALLENGES OF TREATS.
• IN SWOT ANALYSIS, ONE HAS TO IDENTIFY ALL THE
FOUR FACTORS STRENGTHS SHOULD BE ENHANCED
WEAKNESS SHOULD BE ELIMINATED FOR EFFICIENCY
REPEALING BENEFITS OF OPPORTUNITIES AND
AVOIDING CHALLENGES OF THREATS.
ETOP ANALYSIS

E = ENVIRONMENTAL
T= THREAT
O=OPPORTUNITY
P= PROFILE
• THE ENVIRONMENTAL FACTORS ARE QUITE COMPLEX AND IT MAY BE
DIFFICULT FOR STRATEGY MANAGERS TO CLASSIFY THEM INTO NEW
CATEGORIES TO INTERPRET THEM AS OPPORTUNITIES AND THREATS A
MATRIX OF COMPARISON IS DRAWN WHEN ONE ITEM OR FACTOR IS
COMPARED WITH OTHER ITEMS AFTER WHICH ARE SCORES ARRIVED AT
ARE ADDED AND RANKED FOR EACH SCORE CALCULATED FOR
PRIORITIZING OF THE FACTOR.
• THE PREPARATION OF ETOP INVOLVES DIVIDING THE ENVIRONMENT INTO
DIFFERENT SECTORS AND THEM ANALYSING THE IMPACT OF EACH SECTOR
ON THE ORGANISATION. A COMPREHENSIVE ETOP REQUIRES SUB DIVIDING
EACH ENVIRONMENT SECTOR IN SUB FACTOR AND THEM THE IMPACT OF
EACH SUB FACTOR ON ORGANISATION IS DESCRIBED IN THE FORM OF
STATEMENT
THANK YOU

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