To get a clear picture of the threat and opportunity facing an organisation a lot of expertise and judgement is needed to important techniques to structure by environment appraisal are ETOP and SWOT
Environmental threat and opportunity profile (ETOP):- one of the techniques suggested by the Glueck is that of preparing environmental threat and opportunity profile The preparation of ETOP involves the following steps
- The first involve dividing the environment into different sectors
- analysing the impact of each sector on the organisation
- subdividing each environmental factor into Sab factor for comprehensive ETOP
- analysing the impact of each sub-factor on the organisation in the form of a statement
- preparing a summary to show the major factors for the sake of simplicity
- the preparation of ETOP of provide a clear picture to the sector and the different factor in those sector which have a favourable impact on the organisation
- with the help of ETOP of the organisation knows where it is stand with respect to its environment
- it can be a great help to the organisation in formulating appropriate strategy to take advantage of the opportunity and threat in its BUSINESS.
SWOT (strength weakness opportunities and threat) analysis :- before the formulation of strategies can be undertaken strategist have to assess whether the organisation has the required strength or whether it has the weakness which can affect its capability of taking advantage of opportunities assessment is done through an analysis of the strength weakness opportunity and threat of the organisation.
SWOT analysis is undertaken by the business firm to understand the internal and external environment. Through such analysis the strength and weakness existing in the organisation can be matched with opportunities and set operating in the environment show that an effective strategy can be formulated.
