Profile (ETOP) An environmental threat and opportunity profile is a description of the structure of external factors. Multiple Reasons for an ETOP 1. It helps the organization to identify opportunities and threats 2. Consolidates and strengthens an organization’s position 3. Provides strategists information on which sectors have a favorable impact on the organization 4. The organization gains knowledge of its standing with respect to its environment 5. Helps formulate strategies. Steps in an ETOP 1. Identifymajor Environmental factors such as: economic, political, social, technological, competitive, geographical, etc.
2. Environmental factors are then sub-divided into
subsectors of each factor.
3. These factors are then analyzed to determine major
weaknesses and strengths in each of the subsectors.
4. The impact of each factor is then accessed as being
either favorable, unfavorable, or neutral. Economic Factors Economic factors affect the purchasing power of potential customers and the firm’s cost of capital. These factors include: business cycle, inflationary trends, consumption, employment, investment, monetary, legal and fiscal policies. Political Factors Political factors are how and to what degree government intervenes in the economy. Political factors include: political power, ideologies, interest groups, social stability, legislation, and regulation. Social Factors Social factors impact an organization due to the social, cultural, demographic, and environmental profiles in the industry. Social factors include: age distribution, geographic distribution, income distribution, mobility, education, family values, and business attitudes. Technological Factors Technological factors impact how an organization or company operates in relation to equipment used in the company’s environment. Technological Factors include: rate of technological change, future raw material availability, raw material cost, technological developments, and product life cycle. Geographical Factors Geographical Factors are important to the overall analysis of a company. Geographical factors include: plant/warehouse location, relocation of facilities, headquarters, and foreign markets. Managerial Factors The Scientific Method
Katja Kruckeberg, Wolfgang Amann, Mike Green-Leadership and Personal Development - A Toolbox For The 21st Century Professional-Information Age Publishing (2011)