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ETOPENVIRONMENT THREAT AND OPPORTUNITY PROFILE

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THERE ARE MANY TECHNIQUES AVAILABLE TO STRUCTURE THE ENVIRONMENTAL APPRAISAL.

One such technique, suggested by Glueck, is that of preparing an environmental threat and opportunity profile (ETOP) for an organization.

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The preparation of an ETOP involves dividing the environment into different sectors and then analysing the impact of each sector on the organization.

A comprehensive ETOP requires subdividing each environmental sector into sub-factors and then the impact of each sub-factor on the organisation is described in the form of statement.

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ETOP FOR A BICYCLE COMPANYEnvironmental Sectors

Nature of impact

Impact of each

sectorEconomic Favourable

ImpactMarket Neutral ImpactInternational

Unfavourable Impact

Political Neutral ImpactRegulatory Neutral ImpactSocial Favourable

ImpactSupplier Neutral ImpactTechnological

Favourable Impact

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ECONOMIC (FAVOURABLE IMPACT)

Growing affluence among urban consumers; rising disposable incomes and living standards.

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MARKET (NEUTRAL IMPACT)

Organised sector :-Buyers critical and better informedOverall industry growth rate not encouragingGrowth rate for niche segments like sports, trekking, racing and fancy city cycle is highLargely unsaturated demand in segmentsTraditional distribution systems

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INTERNATIONAL (UNFAVOURABLE IMPACT)

•Global imports are growing but India’s share shrinking•Threat of cheap Chinese imports

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POLITICAL (NEUTRAL IMPACT)

• Manly mode of transport for low and lower-middle income group•Industry too small for any major political attention

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REGULATORY (NEUTRAL IMPACT)

• Parts and components reserved for small-scale industry• Bicycle industry a thrust area for exports

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SOCIAL (FAVOURABLE IMPACT)

• Environment and health friendly transport option• Wide usage like commuting to work or school and as recreation and physical fitness equipment

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SUPPLIER (NEUTRAL IMPACT)

• Small-scale sector supply parts and components• Rising steel prices• Increasing use of aluminium

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TECHNOLOGICAL (FAVOURABLE IMPACT)

• Technological up gradation of industry in progress• Import of machinery simple• Product innovations ongoing such as battery-operated and lightweight foldable cycles