ETOP is a technique of strategic analysis and choice which is helpful for the organizations to sustain in competitive environment. Gluck has developed ETOP technique which involves to divide the environment into different sectors and then analyze the impact of each sector on the organization. Therefore, the strategist can draw a clear picture of different factors providing favorable impact on the organization. ETOP helps the strategist to prepares profile of the environment by scanning the environment with its threats and opportunities and then formulate the strategy. ETOP helps organization to identify O-T It consolidates and strengthens organization’s position It provides the information to the strategist regarding which sectors have favourable impact on the organization. It helps organizations to know where it stand with respect to its environment. It helps in formulating appropriate strategy. It helps in formulating SWOT analysis To prepare ETOP it is important to divide the entire organization into different sectors. Analysing the impact of each sector on the organization. Subdividing each environmental sector into sub factor. Impact of each sub factor on organization in the form of a statement. ETOP is a technique of environmental analysis which helps the organizations to make a profile of their external environment. ETOP analysis provides information about environment threats & opportunities & their impact on strategic opportunities for the company. The profile contains mainly 3 issues, they are-Forecasting, Verbal - Written information & Management Information System (MIS) Forecasting:- Forecasting means predicting the future events & analysing their impact on present plans of business organizations and it helps to analyse the environment. Verbal Written information:- Verbal information is oral information but written information is collected by reading articles, journals, newspaper, newsletters etc.., common sources of information are radio, television, workforce, outsiders. It informs changes in the environment & prepares business organizations to incorporate their business plans & strategies. Management Information System [MIS]:- It is a formal method of availability of accurate & timely information which is necessary to facilitate the decision making process. It enables the organization to plan & control & operational functions to be carried out effectively with MIS. It helps in making decisions based on future environment analysis. ) Political & Legal Environment: political system & structure, international trade, taxation policy, employment policy, health & safety policy etc. 2)Economic Environment: interest rates, exchange rates, national income, inflation, unemployment, Stock Market etc. 3) Socio-cultural Environment: ageing population, attitudes to work, income distribution, traditions, norms, education, awareness etc. 4)Technological Environment: innovation, new product development, rate of tech.

1. ENVIRONMENTAL THREAT
OPPORTUNITY PROFILE (ETOP)
BY: Dr. Debajani Palai
Faculty: IMIT

2. MEANING OF ETOP
• ETOP is a technique of strategic analysis and choice which is helpful for the
organizations to sustain in competitive environment.
• Gluck has developed ETOP technique which involves to divide the environment
into different sectors and then analyze the impact of each sector on the
organization. Therefore, the strategist can draw a clear picture of different factors
providing favorable impact on the organization.
• ETOP helps the strategist to prepares profile of the environment by scanning the
environment with its threats and opportunities and then formulate the strategy.

3. NEED OF ETOP
• ETOP helps organization to identify O-T
• It consolidates and strengthens organization’s position
• It provides the information to the strategist regarding which sectors have
favourable impact on the organization.
• It helps organizations to know where it stand with respect to its environment.
• It helps in formulating appropriate strategy.
• It helps in formulating SWOT analysis

4. PREPARING ETOP
• To prepare ETOP it is important to divide the entire organization into
different sectors.
• Analysing the impact of each sector on the organization.
• Subdividing each environmental sector into sub factor.
• Impact of each sub factor on organization in the form of a statement.

5. ETOP, PROFILE INVOLVES:-
• ETOP is a technique of environmental analysis which helps the
organizations to make a profile of their external environment.
• ETOP analysis provides information about environment threats &
opportunities & their impact on strategic opportunities for the company.
• The profile contains mainly 3 issues, they are-Forecasting, Verbal - Written
information & Management Information System (MIS)

6. CONT…
• Forecasting:- Forecasting means predicting the future events & analysing their impact on
present plans of business organizations and it helps to analyse the environment.
• Verbal Written information:- Verbal information is oral information but written
information is collected by reading articles, journals, newspaper, newsletters etc.., common
sources of information are radio, television, workforce, outsiders. It informs changes in the
environment & prepares business organizations to incorporate their business plans &
strategies.
• Management Information System [MIS]:- It is a formal method of availability of accurate
& timely information which is necessary to facilitate the decision making process. It enables
the organization to plan & control & operational functions to be carried out effectively with
MIS. It helps in making decisions based on future environment analysis.

7. The Profile Involves,- Environment, Threats &
Opportunities
1) Political & Legal Environment: political system & structure, international trade, taxation
policy, employment policy, health & safety policy etc.
2)Economic Environment: interest rates, exchange rates, national income, inflation,
unemployment, Stock Market etc.
3) Socio-cultural Environment: ageing population, attitudes to work, income distribution,
traditions, norms, education, awareness etc.
4)Technological Environment: innovation, new product development, rate of technological
obsolescence
5)Environmental Factor: Weather change, Demand related factors. Suppliers related factors,
global warming and other environmental issues

8. PROS/ ADVANTAGES OF ETOP
• Help to determine the key factor of threats and opportunities.
• ✓ Good tool to qualify the factors related to company’s strategy.
• ✓ Can consider many factors for each special case.
• ✓ It provides a clear frame of which sector & subsectors have favourable impact on the organization.
• ✓ It helps to interpret the result of environmental analysis.
• ✓ The organization can assess its competitive position.
• ✓ Appropriate strategies can be formulated to take advantage of opportunities & counter the threat.

9. DISADVANTAGES OF ETOP
✓ It doesn’t show the interaction between the factors.
✓ It can’t reflect the dynamic environment.
✓ It’s a subjective analysis tool

10. EXAMPLE OF MILLIPORE
• Millipore is a multinational company, high technology, Bioscience Company that
provides technologies, tools and services for the development and production of
new therapeutic drugs. The company, headquartered in Bedford, England. It serves
the worldwide life science research, biotechnology and pharmaceutical industries. In
India its subsidiary company is located in Bangalore.
• MILLIPORE PRODUCT LINE
• Life science, Drug discovery, Sample preparations, Lab water, Process development,
Bio production, & Process monitoring.

11. EXAMPLE : MILLIPORE COMPANY
LTD, INDIA ETOP OF THE COMPANY
1) Economic environment brings Fluctuation in exchange rate, Increasing rate of
inflation & Worsening economic conditions
2 ) Technological Market Leaders, Strong R&D program, Better solution providers
New “ Intergral”-2008
3) Political environment has no significant change.
4) Legal impact brings FCPA (Foreign corrupt practices act).
5) Socio cultural environment hasNo significance change.