ETOP(Environmental Threat and Opportunity Profile) is a technique to structure environmental involves: Dividing the environment. Environmental Threat and Opportunity Profile (Etop) – Download as Powerpoint Presentation .ppt /.pptx), PDF File .pdf), Text File .txt) or view presentation. ETOP analysis is a management tool that analyses environmental information and determines the relative impact of threats and opportunities for the systematic .

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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 relevance, importance, manageability, variability and low cost of data are some of the important factors, Which must be kept in focus. Managing image of an organization is most important in the external environment.

The preparation of ETOP involves dividing the environment into different sectors and then analyzing the impact of each sector on the organization. Unlike the external environment of a business, the internal environment can be controlled.

Leadership matters a lot in controlling the internal environment. It can also take advantage of the high exports potential that already exists. Environmental scanning is the monitoring, evaluating, and disseminating of information from the external and internal environment to key people within the corporation or organization.

It is important to recognize potential opportunities and threats outside company operations. When organizations can think far ahead, they can create some opportunities.

ETOP Analysis Environmental scanning is the monitoring, evaluating, and disseminating of information from the external and internal environment to key people within the corporation or organization. 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.

A company that bungles or ignores its image is likely to encounter a progile of problems. 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.


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

India is weak in it. Opoprtunity it plans to set up thermal power plants in states like Andhra Pradesh, Chhattisgarh, West Bengal, Jharkhand and Bihar which produce coal, this is indeed good news. Matrix Structure suits businesses with diverse products and diverse markets.

Import of machinery under OGL list possible. What is a business integration strategy?

Industry growth rate is 10 to 12 percent per year, For motorbike growth rate is 40 percent, largely Unsaturated demand. This environmentsl achieved by brainstorming. It usually relates to events, trends, issues, natural calamities and expectations. Although the technique of dividing various environmental factors into specific sectors and evaluating them as opportunities and threats is suggested by some authors, it must be carefully noted that each sector is not exclusive of the other.

ETOP Analysis

Since the company is an established manufacturer of motorbike, it has a favorable supplier as well as technological environment. The Champa flower November 7, It results in a quantity of information related to forces in the environment.

Focus on issues, which have been selected, should not be missed since there is a likelihood of arriving at incorrect priorities.

The midstream industry processes, stores, markets and transports commodities such as crude oil, natural gas, natural gas liquids liquefied natural gas such as ethane, propane and butane and Sulphur. The field force analysis goes hand in glove with ETOP, as here also the contribution with regard to opportunities and threats posed by the environment is also a necessary part of study. As shown in the table motorbike manufacturing is an attractive proposition due to the many opportunities operating in the environment.

Each of the major factors pertaining to a particular sector of environment may be threeat into sub-sectors and their effects studied. Use Balanced Scorecard for effective strategic implementation August znd, 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. Some opportunities can be foreseen, such as being able to expand a franchise into a new city.

It enironmental considering setting up gas based power generation projects in states like- Madhya Pradesh, Odisha and Uttar Pradesh.

There are number of uncertainties exist in a business situation and so a company can be greatly benefited buy devising proactive and flexible strategies in their plans, ane, strategy etc. This example relates to a hypothetical company but the illustration is realistic based n the current Indian business environment.


Data should be collected from good sources otherwise the entire process of environmental scanning may go waste. Currently, Dehradun based University of Petroleum and Energy Studies is considered as the only private University which offers PHD, post graduate and undergraduate courses in energy and petroleum. You must be logged in to post a comment. A summary ETOP may only show the major factors for the sake of simplicity. Methods, Techniques and other Details. Changes in philosophy and leadership style are under the control of the manager.

Regards Vinay Kumar Sharma. 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 its environment. The external environment consists of customers, government, economy and competition.

ETOP-Environmental Threat and Opportunity Profile

Technological up gradation of industry in progress. Some external elements can be manipulated by company marketing, while others require the organization to make adjustments. Though some elements affect the organization as a whole, others affect only the management.

Global Competitiveness Index for igniting economic growth. Growing affluence among urban consumers; Exports potential high.

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. Impact studies should be conducted focusing on the various opportunities and threats and the critical issues selected.

Oil and gas majors like Cairn, ONGC and Reliance have lined up plans for huge investments in-order to increase oil and gas production in the country, which has fuelled the growth. However, they are facing tough competition in oil exploration and production from private players like Reliance, Essar, Adani, etc.

It aspires to continue to develop technology overlaps between the businesses it has.