UNIT-3

ANALYSIS AND FRAMEWORK

Environmental Threat & Opportunity Profile (ETOP)

A technique undertaken by organizations to appraise the environment ETOP involves dividing the environment into different sectors The impact of each sector on the organization is studied It essentially involves the proper placing of various information gathered through the environmental survey and integrating them into meaningful pattern

Environmental Threat & Opportunity Profile (ETOP)

To understand the impact of environmental trends in terms of opportunities and threats of the firm Each component of the environment will provide insights into the Opportunity-Threat status Opportunity-Threat profile is prepared in a comprehensive manner It is a summary of all the diagnoses carried out as a part of the environment survey

Environmental Threat & Opportunity Profile (ETOP)

Each component of the environment must be interpreted as Positive, Negative or Neutral developments from the standpoint of the firm

Macro-Environmental Factors

Micro-Environmental Factors

Environmental Threat & Opportunity Profile (ETOP)

Micro Environment
The Consumers/Demand The Competition Legal Environment Technological Aspects The Industry

Environmental Threat & Opportunity Profile (ETOP)

Macro Environment
Political Social Economic Technological Natural environment environment environment environment environment

Strategic Advantage Profile

Every firm has strategic advantages and disadvantages Large firms have financial strength but they tend to move slowly, compared to smaller firms, and often cannot react to changes quickly No firm is equally strong in all its functions Strategists must be aware of the strategic advantages or strengths of the firm to be able to choose the best opportunity for the firm

Strategic Advantage Profile

To determine the internal strengths and weaknesses with which it must face the opportunities and threats from the environment Factors may be covered under the various broad headings

Strategic Advantage Profile

Marketing and Distribution

R & D and Engineering Production and Operations Management Corporate Resources and Personnel Finance and Accounting

DIFFERENT APPROACHES TO DEVELOP COMPETITIVE ADVANTAGE

The first approach is to compete based on existing strengths. The second approach is still based on existing strengths but avoids head-on competition. The third approach is used for example to compete directly with a competitor in a well-established, stagnant industry. Finally, a competitive advantage may be obtained by means of innovations which open new markets or result in new products

SAP

SWOT Analysis
SWOT analysis is an extremely useful tool for understanding and decision-making for all sorts of situations in business and organizations

SWOT is an acronym for Strengths, Weaknesses, Opportunities, and Threats

SWOT analysis headings provide a good framework for reviewing strategy, position and direction of a company or business proposition SWOT analysis template is normally presented as a grid, comprising four sections, one for each of the SWOT headings: Strengths, Weaknesses, Opportunities, and Threats

SWOT Analysis
Strengths (Core Capabilities/ Non-Core Capabilities): Strength is an inherent over its competitors.

Weakness (Core or Non-Core): A weakness is an inherent limitation or constraint of the organization which creates strategic disadvantage to it. Opportunity (Major Attraction in the Industry): An opportunity is a favourable condition in the organizations environment which enables it to strengthen its position. Threat (Major Non-attraction in the Industry): A threat is an unfavourable condition in the organizations environment which causes a risk or damage to, the organizations position.

SWOT Analysis

SWOT Analysis

Maxi (Strengths) Maxi (Strengths) Mini (Weaknesses) Mini (Weaknesses)

Maxi (Opportunities) Mini (Threats) Maxi (Opportunities) Mini (Threats)

Mc Kinseys 7s Framework
Many companies place stress on strategic planning but do not implement according to plans Poor implementation that many companies inspite of having good strategies, have failed

Mc Kinseys 7s Framework

Strategy

Structure

Systems

Style

Skills

Staff

Super Ordinate goals