Environmental Appraisal

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Environment- Surroundings, external objects, influences or circumstances under which someone or something exits

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Environmental Sectors

Economic International Political Regulatory Socio-cultural Technological

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Environmental Scanning

Process by which organizations monitor

their relevant environment to identify the opportunities & threats affecting business, for purpose of strategic decision Events important & specific occurrences Trends course of action along which

Factors considered

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SWOT Analysis

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Strengths

A firm's strengths are its resources and capabilities that can be used as a basis for developing a competitive advantage What advantages does your organization have? What do you do better than anyone else? What unique or lowest-cost resources can you draw upon that others can't?
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Weaknesses

The absence of certain strengths may be viewed as a weakness What could you improve? What should you avoid? What are people in your market likely to see as weaknesses? What factors lose you sales?
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Opportunities

The external environmental analysis may reveal certain new ways to profit and growth Changes in technology and markets on both a broad and narrow scale. Changes in government policy related to your field. Changes in social patterns, population profiles, lifestyle changes, 3/4/12 and so on.

When looking at opportunities is to look at your strengths and ask yourself whether these open up any opportunities. Alternatively, look at your weaknesses and ask yourself whether you could open up opportunities by eliminating them.
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Threats

What obstacles do you face? What are your competitors doing? Are quality standards or specifications for your job, products or services changing? Is changing technology threatening your position? Do you have bad debt or cash-flow problems? 3/4/12

PEST
Political: Economic: Socio-Cultural: Technological Environment: Government type and stability. Stage of business cycle. Population growth rate Impact of emerging and age profile. technologies. Population health, education and social mobility, and attitudes to these. Impact of Internet, reduction in communications costs and increased remote working. Research & Development activity.

Freedom of press, rule of Current and projected Population employment law and levels of economic growth, inflation patterns, job market bureaucracy and and interest rates. freedom and attitudes to corruption. work. Regulation and deregulation trends. Social and employment legislation. Unemployment and labor Press attitudes, public supply. opinion, social attitudes Labor costs. and social taboos. Lifestyle choices and attitudes to these. Socio-cultural changes.

Tax policy, and trade and Levels of disposable tariff controls. income and income distribution. Environmental and consumer-protection legislation. Impact of globalization. Likely impact of technological or other change on the economy. Likely changes in the economic environment.

Likely changes in the political environment . 3/4/12

ETOP

Helps organization to identify Opportunities and Threats Provides the strategists of which sectors have a favorable impact on the organization Organization knows where its stands with respect to its environment Helps in formulating appropriate strategy

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ETOP Analysis

Environmental Factors

Weather change Climatic change Demand related factors Supplier related factors Political system Political structure, its stability Government policy and its intervention

Political factors

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ETOP Analysis

Environmental Factors Economic Factors Legal Factors

Policies related to licensing , monopolies Policies related to export and import Policies related to distribution and pricing

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ETOP Automobile Industry(Passenger Cars)

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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

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S. NoEnvironmental Factors

Opportunities/ Reasons/Remarks threats Rising PCI means more affordability. (Sixth Pay Commission) Banks are skeptical in giving loans. Demand for Passenger cars Sales are increasing at a YOY of over 60 % in the long run. Resulted in more no of cabs. With an advent of projects like Delhi Metro Currently import duty is 100%. Excise duty has been reduced from 16 %to 14%. 100 % FDI is allowed .

Macro-Economic Factors -Per capita Income -Loans Availability Social/ Demographics Factors -Urbanization ( 28% to 40% by 2020 ) -Middle Class Increasing *Penetration Levels -Growing Working Class (Ex. BPO) -Improving Public Transport Policy -Import Duty -Excise Duties -FDI -Regulatory Issues like Acts, Safety Standards etc.

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 Steel Prices increasing

Industrial Factors -Raw material price Business Environment

In future has huge capacity plans which will give the incumbent companies a cost advantage.

3/4/12 -Expansion Plans of Incumbent players