ISM- Environmental Analysis- ETOP and SAP Profiles Forecasting Environmental Factors Collecting relevant information from the

selected areas and to identify the variables in such areas are the basics of analysis. Analyzing the past information to predict the future is the main objective of this step. Use of different methods, techniques, and tools comes under the analysis process. It is, therefore, a comprehensive process that analyzes collected information using different tools and techniques. Designing Profiles After analyzing the environmental factors they are recorded into the profiles. Such profiles record each component or variables into left side and their positive, negative, or neutral indicators including their statement in the right side. Internal areas are recorded in Strategic Advantages Profile (SAP) and external areas are recorded in Environmental Threat and Opportunity Profile (ETOP). Strength, Weakness, Opportunity, and Threat (SWOT) profile can be designed combining both of these two profiles into one. There are varieties of reporting formats or profiles used for external and internal business environment analysis. Environmental Threat and Opportunity Profile (ETOP) is commonly used to report the external environmental situation whereas Strategic Advantages Profile (SAP) to report the internal environmental situation1. Both of these profiles can be merged into StrengthWeakness-Opportunity-Threat (SWOT) profile. David used External Factor Evaluation (EFE) Matrix to present weighted score of external environmental factors. Similarly, he used Internal Factor Evaluation (IFE) Matrix to make the reporting of internal environmental audit. Whellen & Hunger used External Factors Analysis Summary (EFAS) and Internal Factors Analysis Summary (IFAS) . Environmental threats and opportunities profile (ETOP) is a commonly used profile related to external business environment. Strategic advantages profile (SAP) is related to internal business environment. Nowadays, strength & weakness and opportunities & threats (SWOT) profile has become very popular. Present writing pursued the approach of reporting external and internal business environment using the same approach. ... Preparing ETOP Environmental threat and opportunity profile is referred as ETOP profile. It identifies the relevant environmental factors. Such factors might be general environmental factors and task environment factors. Thereafter, it is necessary to identify their nature. Some factors are positive to the organization whereas others are negative. Therefore, it is necessary to find out their impact to the organization. Positive, neutral, and negative sign in ETOP denotes the relevant impact of environmental factors. Preparing SAP Strategic advantage profile is known as SAP. It shows strength and weakness of an organization. Preparation of SAP is very similar process to the ETOP.

There are generally five functional areas in most of the organizations. These areas are Production or Operation, Finance or Accounting, Marketing or Distribution, Human Resource & Corporate Planning, and Research & Development. These functional areas are listed to identify their relative strength and weakness in SAP. Very similar to the ETOP, positive, neutral, and negative signs are denoted and brief description is written in SAP profile. Each functional area is very broad having many components inside. All these above described profiles provide a clear picture to understand the strategic position of an organization. Strategic Position and Report Writing After analysis of business environment a strategist knows the actual situation and can make some future forecasting based on the environmental analysis. After preparing the profiles strategists prepare formal report that describes the business environment. The report might present issues and best strengths of business environment in a systematic process. One can draw future strategies based on the strategic analysis followed. In conclusion, a strategist or a manager first identifies the relevant environmental factors then analyzes using different tools and techniques to find out the actual situation. This overall process is sometimes known as SWOT analysis, environmental scanning, environmental analysis, or monitoring-forecasting. This process is very important for a manager to make his or her organization success by choosing the best available alternative strategy.