ETOP

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 , analyse 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 analyse 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.

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