ETOP

The Environmental factors are quite complex and it may be difficult for strategy
managers to classify them into neat categories to interpret them as opportunities
and threats. A matrix of comparison is drawn where one item or factor is
compared with other items after which the scores arrived at are added and
ranked for each factor and total weight age score calculated for prioritizing each
of the factors.

This is achieved by brainstorming. And finally the strategy manger uses his
judgment to place various environmental issues in clear perspective to create the
environmental threat and opportunity profile.

Although the technique of dividing various environmental factors into specific

sectors and evaluating them as opportunities and threats is suggested by some
authors, it must be carefully noted that each sector is not exclusive of the other.

Each of the major factors pertaining to a particular sector of environment may

be divided into sub-sectors and their effects studied. The field force analysis
goes hand in glove with ETOP, as here also the contribution with regard to
opportunities and threats posed by the environment is also a necessary part of
study.

ETOP Preparation:
The preparation of ETOP involves dividing the environment into different
sectors and then analyzing the impact of each sector on the organization. A
comprehensive ETOP requires subdividing each environmental sector into sub
factors and then the impact of each sub factor and the organization is described
in the form of a statement.
Environmental factors Nature of Impact Impact of each sector
Economic factors  Current slowdown is
becoming a threat for
the company.
 Merger of Idea with
Vodafone is a benefit.
Political Factors  Facing network issues
post merger with
Vodafone.
 Service quality issues

Social Factors  Activities carried out

in rural areas under the
name ‘The Aditya
Birla Centre for
community Initiatives
and Rural
development.
 Also focus on
education sector by
running Aditya Birla
Vidya Mandirs is also
a favourable thing.
Legal Factors  Regulatory body TRAI
is getting stringent
regarding the quality.

Competitor  To hold its position it

needs to keep a check
on the competitor and
develop new ideas for
capturing market.