unit 3 fspd (ppt)
TRANSCRIPT
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
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 environment
Social environment
Economic environment
Technological environment
Natural environment
Environmental Threat & Opportunity Profile (ETOP)
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
S A P
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 organization’s environment which enables it to strengthen its position.
Threat (Major Non-attraction in the Industry): A threat is an unfavourable condition in the organization’s environment which causes a risk or damage to, the organization’s position.
SWOT Analysis
SWOT Analysis
Maxi (Strengths) - Maxi (Opportunities)
Maxi (Strengths) - Mini (Threats)
Mini (Weaknesses) - Maxi (Opportunities)
Mini (Weaknesses) - Mini (Threats)
Mc Kinsey’s 7’s 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
Strategy Structure Systems Style Skills StaffSuper
Ordinate goals
Mc Kinsey’s 7’s Framework