Environmental Threat Opportunity Profile

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Environmental Threat Opportunity Profile

  1. 1. *
  2. 2. * *Helps organization to identify Opportunities and Threats *To consolidate and strengthen organization’s position *Provides the strategists of which sectors have a favourable impact on the organization *Organization knows where its stands with respect to its environment *Helps in formulating appropriate strategy 27-11-20102
  3. 3. * *“Surroundings, external objects, influences or circumstances under which someone or something exits” 27-11-20103
  4. 4. * *Socio-cultural factors *Demographic characteristics *Social attitudes *Educational level, awareness and consciousness of rights 27-11-20104
  5. 5. * *Environmental Factors *Weather change *Climatic change *Demand related factors *Supplier related factors 27-11-20105
  6. 6. * *Political factors *Political system *Political structure, its stability *Government policy and its intervention 27-11-20106
  7. 7. * *Legal Factors *Policies related to licensing , monopolies *Policies related to export and import *Policies related to distribution and pricing 27-11-20107
  8. 8. * 27-11-20108
  9. 9. * *Dividing the environment into different sectors. *Analysing the impact of each sector on the organization. *Subdividing each environmental sector into sub factor. *Impact of each sub sector on organization in form of a statement. 27-11-20109
  10. 10. * +Help to determine the key threats and opportunities. +Good tool to qualify the factors related to company’s strategy. +Can consider many factors for each special case. 27-11-201010
  11. 11. * -It doesn’t show the interaction between the factors. -It can’t reflect the dynamic environment. -It’s a subjective analysis tool. 27-11-201011
  12. 12. Micro Environment Marketing Intermediaries Suppliers Market Types Market Demand Competition Financial Institutions Regulatory Provisions Industrial relation climate Availability of skilled workers 27-11-201012
  13. 13. * 27-11-201013
  14. 14. * 27-11-201014
  15. 15. * Trends Probability of Occurrences Impact on strategies S1 S2 S3 T1 T2 . . +2 Extremely favorable impact +1 Moderately favorable impact 0 No impact -1 Moderately unfavorable impact -2 Extremely unfavorable impact Degree of quality of impact on each trend on different strategies 27-11-201015
  16. 16. * Firm Internal Environment Relevant Environment Micro Environment Macro Environment 27-11-201016
  17. 17. * 27-11-201017
  18. 18. * •Sales of Passenger Cars in India is likely to grow at an average of 14.9% each year to touch the 2.1 million mark by 2011 (Source: Frost n Sullivan) 27-11-201018
  19. 19. * 27-11-201019
  20. 20. S. No. Environmental Factors Opportunity /Threat Reasons/Remarks 1. Macro-Economic Factors -Per capita Income -Loans Availability - Interest Rates ↑ ↓ ↑ Rising PCI means more affordability. (Sixth Pay Commission) Banks are not sceptical in giving loans. People can’t pay easy instalments 2. Social/ Demographics Factors -Urbanization ( 28% to 40% by 2020 ) Middle Class Increasing -Penetration Levels -Labor (JV’s) -Growing Working Class (Ex. BPO) -Improving Public Transport ↑ ↑ ↑ ↑ ↓ Demand for Passenger cars Sales are increasing at a YOY of over 60 % in the long run. LOW (10 per 1000) India has one of the cheapest labour available hence many foreign companies are eyeing to merge with Indian players. Resulted in more no of cabs. With an advent of projects like Delhi Metro . 27-11-201020
  21. 21. 27-11-201021 S. No . Environmental Factors Opportunity /Threat Reasons/Remarks 3. Policy -Import Duty -Excise Duties -FDI -Regulatory Issues like Acts, Safety Standards etc. ↑ ↑ ↑ ↓ Currently import duty is 100%. Excise duty has been reduced from 16 %to 14%. 100 % FDI is allowed . MVA 1988 and MVR 1989 which promotes use capital intensive technology 4. Technology -Emission Standards -Hybrid Cars -Fuels -IT (CAD/CAM, Design and Automation) ↓ ↑ ↑ ↑ Bharat III resulting in dependence on other countries for technology Excise duty has been reduced from 24 % to 12 %. With upcoming Bio- fuels ,LPG & CNG. India has one of the cheapest IT Resources.
  22. 22. 27-11-201022 S. No. Environmental Factors Opportunity /Threat Reasons/Remarks 5. Industrial Factors -Raw material price ↓ Steel Prices have touched Rs 5000 since May 2010 6. Business Environment -ROCE -Expansion Plans of Incumbent players ↓ ↓ With players like Hyundai and TATA having ROCE of 9% and 32%. In future has huge capacity plans which will give the incumbent companies a cost advantage.
  23. 23. * *Presented By, >Deval Naik >Ashley T >Tushar Sharma >Rohit Kulkarni 27-11-201023

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