First step by India to become a major semi-conductor manufacturing hub, Vedanta-Foxconn project .

Semiconductors are materials that have electrical conductivity between conductors generally metals and non-conductors or insulators. Due to their role in the fabrication of electronic devices, semiconductors are an important part of our lives. Anything that’s computerized or uses radio waves depends on semiconductors. Semiconductors are an essential component of electronic devices, enabling advances in communications, computing, healthcare, military systems, transportation, clean energy, and countless other applications.

The country responsible for the most semiconductors in the world is China, Taiwan, South Korea, and Japan. The Indian semiconductor market was valued at USD 27.2 billion in 2021 and is expected to grow at a healthy CAGR of nearly 19 percent to reach $64 billion in 2026. But none of these chips is manufactured in India so far.

A joint venture of the Indian conglomerate Vedanta and Taiwanese electronics manufacturing giant Foxconn signed a Memorandum of Understanding on September 14 2022 with the Gujarat government to set up a semiconductor and display manufacturing unit in the state. The project is worth around 20 billion USD. This upcoming facility will mark the beginning of chip manufacturing in India. This is also strategically important for India because it will reduce our dependence on other countries.

Out of the total investment of Rs 1,54,000 crore, Rs 94,000 crore will go into setting up the display manufacturing unit while Rs 60,000 crore will be invested for the semiconductor manufacturing facility, the official said in event of MoU. The FAB (fabrication facility) manufacturing unit in the state facility in Gujarat would create one lakh job opportunities.

As per the MoUs signed by both parties, the Gujarat government will facilitate the investor in obtaining necessary permissions and clearances from the state departments concerned. Among the subsidies and assistance under the state policy, Gujarat will provide additional capital assistance at 40 percent of the capital expenditure assistance extended by the Centre for the projects approved under the India Semiconductor Mission. One-time reimbursement of 100 percent stamp duty and registration fees paid to the government, fixed water tariff at Rs 12 per cubic meter for five years, and a capital subsidy of 50 percent for a desalination plant are the financial benefits under the new policy.

A massive shortage in the semiconductor supply chain last year affected many industries, including electronics and automotive. To cut dependence on imports from nations like Taiwan and China, the government brought a financial incentive scheme for manufacturing semiconductors in the country. Vedanata-Foxconn is one of the successful applicants for the Production Linked Incentive (PLI) scheme for semiconductors and is also a step towards achieving self-reliance in the semiconductor field for the country.

Google planning to shift phone manufacturing unit from China to India.

Google is eyeing moving some production of its Pixel smartphone lineup to India, according to a report, the latest in a series of phonemakers with growing ambitions to locally assemble their handsets in the world’s second largest market.

Like Apple, Google has also been moving some of its manufacturing efforts outside of China. Nikkei Asia reported that Google was also planning to move some Pixel manufacturing to Vietnam.

Google is considering moving some production of Pixel phones to India. This move comes following disruptions in China from COVID-19 lockdown and the country’s rising tensions with the United States. Parent company Alphabet Inc has reportedly invited bids from manufacturers to make between 500,000 and 1 million Pixel smartphones.

According to a report by The Information, Google is aiming to produce 10-20 per cent of the estimated annual production for Pixel. Chief Executive Officer Sundar Pichai reportedly considered a plan for manufacturing in India earlier this year but the final decision is yet to be made, the report said. However, if the approval follows through, India will need to import components from China. Alphabet is also considering Vietnam as an alternative.

The move away from China comes as the Biden administration plans to broaden the curbs on US shipments of semiconductors to China. US companies like KLA Corp, Lam Research Corp and Applied Materials Inc have been forbidden from exporting chipmaking equipment to Chinese factories.

What is Business Process Outsourcing (BPO)?

Business Process Outsourcing (BPO) is the delegation of the Ownership, Administration, and Operation of a process to a third party. Many people see it as an evolution from Information Technology Outsourcing (ITO). Business Process Outsourcing (BPO) is the delegation of one or more IT-intensive business processes to an external provider that in turn owns, administers and manages the selected process based on defined and measurable performance criteria. Business Process Outsourcing (BPO) is one of the fastest growing segments of the Information Technology Enabled Services (ITES) industry.

Several MNCs are increasingly unbundling or vertical disintegrating their activities i.e. they have begun outsourcing activities which formerly performed in house and concentrating their energies on a few functions. Outsourcing involves withdrawing from certain stages/activities and relying on outside vendors to supply the needed products, support services or functional activities. These outside vendors are called BPOs. The outsourcing industry is growing from strength.

Why do everything yourself, when someone else can do it at low cost? In the current scenario, the theory says exactly the same. The global market today is highly competitive and continuously changing. A company must, thus, focus on improving productivity and at the same time, cut down costs. This is the basic premise of outsourcing. Outsourcing works because what is non-core for one organisation, is core for another.

In brief, business process outsourcing can be seen as a process in which a company delegates some of its in-house operations or processes to a third party. Thus, it is a transaction through which one company acquires services from another, while maintaining ownership and ultimate responsibility for the processes.

The company then informs its provider what it wants, and how it wants the work to be performed. The main motive for business process outsourcing is to allow the company to invest more time, money and human resources into core activities and building strategies, which fuel company growth.

What is “SETU” initiative by GoI.

In a bid to connect Indian startups with the US-based investors, SETU programme (Supporting Entrepreneurs in Transformation and Upskilling) has been launched by Union Minister Piyush Goyal. SETU will act as a bridge between American and Indian companies. The start-up will help entrepreneurs in upskilling, transforming and leveraging the success stories of the Indian diaspora in the US.

SETU will be a Techno-Financial, Incubation and Facilitation Programme to support all aspects of start up businesses, and other self-employment activities, particularly in technology-driven areas. It aims to create around 100,000 jobs through start-ups.

The initiative would connect startups in India to US-based investors and startup ecosystem leaders with mentorship and assistance in various areas including funding, market access and commercialisation.

SETU is designed to break geographical barriers between mentors based in the US who are willing to invest in entrepreneurship and sunrise startups in India. The interaction will be supported through the mentorship portal under the Startup India initiative MAARG, or the Mentorship, Advisory, Assistance, Resilience, and Growth programme, which is a single-stop solution finder for startups in India.

The portal has been developed with the idea to be made accessible from every corner of the country to connect with a mentor. A mentor will offer human intelligence in guiding the startups.

Cheetahs to make a comeback in India.

Cheetahs that went extinct in India back in 1952 are now set to make a come back to the country. The Centre has launched an action plan under which 50 cheetahs will be introduced in India in the next five years.

As a part of an ambitious project to reintroduce the extinct spotted cat species in the country, the first batch of 12 cheetahs from South Africa is expected to reach India in October this year, said officials as quoted by news agency PTI.

The wildlife experts team from South Africa visited India to inspect the holding facility where the cheetahs will be released

For the first time, the animals are being sent to India where its population has become extinct in the early 1950s, Fraser said, adding that the last confirmed was seen in 1953.

During the flight to India, the cheetahs will be fully awake in their transport crates and would be tranquilized to keep them calm.

After reaching India, the cheetahs would be released from their transport crates into a holding facility for the Indian team to monitor their health and to ensure that they are hunting again before releasing them into the reserve which will be their final destination.

Role of Small Scale Industries(SSI) in India.

In a developing country like India, the role and importance of small-scale industries is very significant towards poverty eradication, employment generation, rural development and creating regional balance in promotion and growth of various development activities.

It is estimated that this sector has been contributing about 40% of the gross value of output produced in the manufacturing sector and the generation of employment by the small-scale sector is more than five times to that of the large-scale sector.

This clearly shows the importance of small-scale industries in the economic development of the country. The small-scale industry have been playing an important role in the growth process of Indian economy since independence in spite of stiff competition from the large sector and not very encouraging support from the government.

The following are some of the important role played by small- scale industries in India.

Employment generation:

The basic problem that is confronting the Indian economy is increasing pressure of population on the land and the need to create massive employment opportunities. This problem is solved to larger extent by small-scale industries because small- scale industries are labour intensive in character. They generate huge number of employment opportunities. Employment generation by this sector has shown a phenomenal growth. It is a powerful tool of job creation.

Mobilisation of resources and entrepreneurial skill:

Small-scale industries can mobilize a good amount of savings and entrepreneurial skill from rural and semi-urban areas remain untouched from the clutches of large industries and put them into productive use by investing in small-scale units. Small entrepreneurs also improve social welfare of a country by harnessing dormant, previously overlooked talent.

Equitable distribution of income:

Small entrepreneurs stimulate a redistribution of wealth, income and political power within societies in ways that are economically positive and without being politically disruptive.

Thus small-scale industries ensures equitable distribution of income and wealth in the Indian society which is largely characterised by more concentration of income and wealth in the organised section keeping unorganised sector undeveloped. This is mainly due to the fact that small industries are widespread as compared to large industries and are having large employment potential.

Regional dispersal of industries:

There has been massive concentration of industries m a few large cities of different states of Indian union. People migrate from rural and semi urban areas to these highly developed centres in search of employment and sometimes to earn a better living which ultimately leads to many evil consequences of over-crowding, pollution, creation of slums, etc. This problem of Indian economy is better solved by small- scale industries which utilise local resources and brings about dispersion of industries in the various parts of the country thus promotes balanced regional development.

Promotes exports:

Small-scale industries have registered a phenomenal growth in export over the years. The value of exports of products of small-scale industries has increased to Rs. 393 crores in 1973-74 to Rs. 71, 244 crores in 2002-03. This contributes about 35% India’s total export. Thus they help in increasing the country’s foreign exchange reserves thereby reduces the pressure on country’s balance of payment.

Supports the growth of large industries:

The small-scale industries play an important role in assisting bigger industries and projects so that the planned activity of development work is timely attended. They support the growth of large industries by providing, components, accessories and semi finished goods required by them. In fact, small industries can breath vitality into the life of large industries.

Seat belt to be mandatory for all passengers in car.

Passengers sitting in the rear seat of a car and not wearing seatbelts might also be fined soon, said Union Transport Minister Nitin Gadkari. In an exclusive interview, Gadkari said that although it was mandatory for rear-seat passengers to wear a seatbelt, people have not been following the same. Henceforth, they would be fined because at “any cost, lives have to be saved”. However, he emphasised that fining people was not the goal, but cutting down of road accidents by 50 per cent by 2024 was the aim.

Although a fine of Rs 1,000 is already in place under Article 138 (3) of the Central Motor Vehicle Rules (CMVR), the problem seems to be more about user behaviour and enforcing the regulations. Most people in India overlook belting up in the rear seats of a car, often assuming they are in a much safer place since there is no dashboard or steering wheel right in front of them.

The road transport and highways minister further said he was trying to work with the states to find ways to reduce accidents on National Highways as law and order comes under the state governments.

The government has asked online retail giant Amazon to stop selling devices designed to disable car seatbelt alarms, transport minister Nitin Gadkari told Reuters, citing potential safety risks. Apart from this, the Ministry of Road Transport and Highways has also written to the consumer affairs ministry to ask e-commerce companies to stop selling devices designed to disable car seat belt alarms, news agency PTI has reported citing a senior government official.

Social Responsibility and why it is important for modern businesses.

The concept of social responsibility in relation to business means that the firm functions to accomplish its financial objectives and serves the society as well. No business exists in isolation. Every organ of the society contributes towards the success of a business. Thus it becomes imperative that business too does something for the society in return. This responsibility of business towards the society is called social responsibility.

A socially responsible firm should not work solely for profit maximization but should also seek the welfare of different sections of the society. Social responsibility of business refers to its obligations to take those decisions and perform those actions which are acceptable in terms of the objectives and values of the society.

Why business need to do social responsibility?

Business is a Part of Society:

Since business organisations are a part of society they must have a positive attitude towards the needs of society. Business is only a sub-system of society and this sub-system must contribute to the welfare of the main system. Therefore, the decisions taken by the manager should take into consideration the welfare of not only his organisation but also the welfare of other sub-systems (different parts of society like customers, shareholders, employees, etc.)

Long-Term Interest:

It is in the long-term interest of the business to discharge its social obligations by serving different interest groups such as employees, consumers, government and citizens. Wise business persons know that unless they serve the society by fulfilling its needs, they will not be able to climb the success ladder.

Indebted to Society:

A business uses the resources of the society for its functioning. Hence, it becomes obligatory for it to pay back its dues by serving the society. Businessmen should tend to the needs of the society and use its resources for community welfare. This practice ultimately helps the organization in establishing itself on the strong foundation of a pleased society and a cooperative labour force.

Public Image:

The activities of business towards the welfare of the society earn goodwill and reputation for the business. The earnings of business also depend upon the public image of its activities. People prefer to buy products of a company that engages itself in various social welfare programmes. Again, good public image also attracts honest and competent employees to work with such employers.

Social Awareness:

These days, employees and customers are more informed about their rights. While consumers expect the seller to abide by the fair trade practices, workers want fair wages and other employee benefits. If the expectations of these interest groups are not met, they may resort to either anti-social activities or seek help from trade unions and consumer courts. This will lead to industrial turmoil and unrest within the society which is harmful for proper functioning of the business.

India surpasses United Kingdom to become fifth largest economy.

India has overtaken the UK to become the fifth-largest economy in the world. Economists and business executives anticipated that India’s position would continue to improve in the years to come due to greater economic growth.

According to figures from the International Monetary Fund (IMF), India passed the United Kingdom (UK) to become the fifth-largest economy in the world in the last quarter of 2021. India’s economy currently ranks just four nations ahead of it in terms of size in dollars. The United States, China, Japan, and Germany are the only nations with economies larger than India’s. The UK is currently in sixth place, just behind India.

IMF’s own forecasts show India overtaking the UK in dollar terms on an annual basis this year, putting the Asian powerhouse behind the US, China, Japan and Germany. A decade ago, India ranked 11th among the largest economies, while the UK was fifth. The government is expecting the economy to grow at 7-7.5 per cent in 2022-23, in line with its projections made at the beginning of this financial year. India registered a growth of 8.7 per cent in 2021-22.

While India has overtaken the United Kingdom in terms of the size of the economy, the per capita income in India remains very low. When it comes to per capita income, which is a measure of how much money is made per person in a country, India is ranked 122 out of 190 countries.

India is set to become the third largest economy in the world by 2029. A State Bank of India report said India will surpass Germany in 2027 and most likely Japan by 2029 at the current rate of growth. The report said that the country has undergone a large structural shift since 2014 and is now the 5th largest economy overtaking the United Kingdom.

Teacher’s Day !

The word teacher in India is much more than a word of professional identity. The feeling goes very deep with a teacher. If we look into ancient India, we can find a vast role of gurus (teachers) in shaping the beliefs of our disciples. This tradition still exists today, even though it has waned a bit after being hit by the fierce waves of time.

In India, Teachers’ Day is celebrated on 5th September on the birth anniversary of Dr. Sarvepalli Radhakrishnan. In the year 1965, some of the prominent students of Late Dr S. Radhakrishnan organised a gathering to pay obeisance to that Great Teacher of repute. In that gathering, in his speech Dr Radhakrishnan expressed his deep reservation regarding his birth anniversary celebration and emphasised that his birth anniversary should be celebrated as ‘Teachers’ Day’, by paying homage to other Great Teachers of India and Bangladesh. Since the year 1967, 5th September is celebrated as Teachers’ Day till date.

There is a celebratory tradition that students across the country follow in the vibe of the prestigious day. Students dress up like their teachers and do roleplaying activities with junior classes, showing a glimpse of admiration for their modern age gurus. Teachers are showered with gifts, flowers and handmade greeting cards and many more tokens of appreciation from their students as a symbol of respect and gratitude for providing versatile guidance to them. Students also organize cultural events, up memorable speeches, shows, group activities and much more.

The word Guru is derived from two Sanskrit words GU meaning Darkness and RU meaning Destroyer so guru means “one who destroys darkness”. The above Sanskrit quote means that the guru or teacher is a combination of three deities (Brahma, Vishnu, and Mahesh) from Indian mythology who bestow great wisdom and remove darkness from the lives of their students.

Though becoming a teacher is not an easy task, they have to be patient and solve their students’ problems for a better future. They teach their students about the importance of time and how to manage and achieve something in their life. They teach us how to respect our elders and parents and how to treat other people around us. The future and present of children totally depend on the education they get from their teachers and it is only they who sometimes become our best friends and help us to remove the mess created by us somewhere in our life.

All about INS Vikrant.

India got its first Indigenous Aircraft Carrier with Prime Minister Narendra Modi commissioning INS Vikrant in Kochi, marking a significant step towards strengthening the ‘Aatmanirbhar Bharat’ goal in the strategic sector of defence.

The Vikrant has 76 per cent indigenous content, which includes combat management system, electronic warfare suite, data network, and integrated platform management system, among others. As far as the origin of the word goes, the ‘Vi’ prefix in the Sanskrit word Vikrant denotes something that is distinctive or extraordinary, and the ‘krant’ suffix means to move or advance in a direction.

Named after her illustrious predecessor, which had played a vital role in the 1971 war, INS Vikrant is designed by the Indian Navy’s in-house Warship Design Bureau (WDB) and built by the Cochin Shipyard, a public sector shipyard. With the commissioning of Vikrant, India will have two operational aircraft carriers, which will bolster the maritime security of the nation.

Stretching to 262m, Vikrant in its length exceeds that of two football fields and is 62m wide. Its height of 59m packs in 14 decks in all and the vessel features over 2,300 compartments and provides room for a crew of 1,600 personnel and includes specialised cabins for women officers. Construction of the vessel began in 2009 at the Cochin Shipyard Ltd (CSL) and the total cost involved is around Rs 23,000 crore.

An aircraft carrier is one of the most potent marine assets for any nation, which enhances a Navy’s capability to travel far from its home shores to carry out air domination operations. Many experts consider having an aircraft carrier as essential to be considered a “blue water” navy — that is, a navy that has the capacity to project a nation’s strength and power across the high seas. An aircraft carrier generally leads as the capital ship of a carrier strike/ battle group. As the aircraft carrier is a prized and sometimes vulnerable target, it is usually escorted in the group by destroyers, missile cruisers, frigates, submarines, and supply ships.

Business Ethics and its scope.

Business ethics comprises various traits, such as trustworthiness and transparency in customer services. Ethical business practices strengthen customer relationship that is of prime importance for long-term organizational success. It deals with retaining and creating a long-lasting impression in the minds of customers. Such impressions help the enterprise to win the trust of customers and get more business.

Business ethics plays a very crucial role in various management functions, which are given as follows:

i. Ethics in Finance:

It deals with various ethical dilemmas and violations in day-to-day financial transactions. An example of ethical violations is data fudging in which enterprises present a fabricated statement of accounts and other records, which are open to investigation. Ethics in financial transactions gained importance when due to their insufficiency nations suffered massive economic meltdowns.

The following are the ethics in finance:

a. Following truthfulness and authenticity in business transactions

b. Seeking the fulfilment of mutual interests

c. Getting the economies and financial units freed from greed-based methodologies.

ii. Ethics in Human Resource Management:

It deals with the enforcement of the rights of employees in an enterprise.

Such rights are as follows:

a. Having a right to work and be compensated for the same

b. Possessing a right for free association and participation

c. Enjoying a right for fair treatment in an enterprise

d. Holding a right to work in a hazard-free environment

e. Blowing whistle (an activity where an employee can raise voice against any wrong practice of anyone in an enterprise)

iii. Ethics in Marketing:

Deals with a number of issues, which are as follows:

a. Misinforming the customers about the products or services

b. Deciding high prices for the products and services

c. Creating false impression on the customers/consumers about the features of products

d. Promoting sexual attitudes through advertising; thus, affecting the young generation and children.

iv. Ethics in Production:

It deals with the responsibility of an organization to make sure that products and processes of production is not causing harm to the environment.

It throws light on the following issues:

a. Avoiding rendering services or producing products that are hazardous to health. For example, tobacco and alcohol

b. Maintaining ethical relations with the environment and avoiding environmental pollution.

BCG Matrix.

Boston Consulting Group (BCG) Matrix is a four celled matrix (a 2 * 2 matrix) developed by BCG, USA. It is the most renowned corporate portfolio analysis tool. It provides a graphic representation for an organization to examine different businesses in it’s portfolio on the basis of their related market share and industry growth rates. It is a two dimensional analysis on management of SBU’s (Strategic Business Units). In other words, it is a comparative analysis of business potential and the evaluation of environment.

According to this matrix, business could be classified as high or low according to their industry growth rate and relative market share.

Relative Market Share = SBU Sales this year leading competitors sales this year.

Market Growth Rate = Industry sales this year – Industry Sales last year.

The analysis requires that both measures be calculated for each SBU. The dimension of business strength, relative market share, will measure comparative advantage indicated by market dominance. The key theory underlying this is existence of an experience curve and that market share is achieved due to overall cost leadership.

BCG matrix has four cells, with the horizontal axis representing relative market share and the vertical axis denoting market growth rate. The mid-point of relative market share is set at 1.0. if all the SBU’s are in same industry, the average growth rate of the industry is used. While, if all the SBU’s are located in different industries, then the mid-point is set at the growth rate for the economy.

Resources are allocated to the business units according to their situation on the grid. The four cells of this matrix have been called as stars, cash cows, question marks and dogs. Each of these cells represents a particular type of business.

Stars- Stars represent business units having large market share in a fast growing industry. They may generate cash but because of fast growing market, stars require huge investments to maintain their lead. Net cash flow is usually modest. SBU’s located in this cell are attractive as they are located in a robust industry and these business units are highly competitive in the industry. If successful, a star will become a cash cow when the industry matures.

Cash Cows- Cash Cows represents business units having a large market share in a mature, slow growing industry. Cash cows require little investment and generate cash that can be utilized for investment in other business units. These SBU’s are the corporation’s key source of cash, and are specifically the core business. They are the base of an organization. These businesses usually follow stability strategies. When cash cows loose their appeal and move towards deterioration, then a retrenchment policy may be pursued.

Question Marks- Question marks represent business units having low relative market share and located in a high growth industry. They require huge amount of cash to maintain or gain market share. They require attention to determine if the venture can be viable. Question marks are generally new goods and services which have a good commercial prospective. There is no specific strategy which can be adopted. If the firm thinks it has dominant market share, then it can adopt expansion strategy, else retrenchment strategy can be adopted. Most businesses start as question marks as the company tries to enter a high growth market in which there is already a market-share. If ignored, then question marks may become dogs, while if huge investment is made, then they have potential of becoming stars.

Dogs- Dogs represent businesses having weak market shares in low-growth markets. They neither generate cash nor require huge amount of cash. Due to low market share, these business units face cost disadvantages. Generally retrenchment strategies are adopted because these firms can gain market share only at the expense of competitor’s/rival firms. These business firms have weak market share because of high costs, poor quality, ineffective marketing, etc. Unless a dog has some other strategic aim, it should be liquidated if there is fewer prospects for it to gain market share. Number of dogs should be avoided and minimized in an organization.

SWOT Analysis explained.

SWOT is an acronym for Strengths, Weaknesses, Opportunities and Threats. By definition, Strengths (S) and Weaknesses are considered to be internal factors over which you have some measure of control. Also, by definition, Opportunities (O) and Threats (T) are considered to be external factors over which you have essentially no control.

SWOT Analysis is the most renowned tool for audit and analysis of the overall strategic position of the business and its environment. Its key purpose is to identify the strategies that will create a firm specific business model that will best align an organization’s resources and capabilities to the requirements of the environment in which the firm operates.

In other words, it is the foundation for evaluating the internal potential and limitations and the probable/likely opportunities and threats from the external environment. It views all positive and negative factors inside and outside the firm that affect the success. A consistent study of the environment in which the firm operates helps in forecasting/predicting the changing trends and also helps in including them in the decision-making process of the organization.

An overview of the four factors (Strengths, Weaknesses, Opportunities and Threats) is given below-

Strengths – Strengths are the qualities that enable us to accomplish the organization’s mission. These are the basis on which continued success can be made and continued/sustained.

Strengths can be either tangible or intangible. These are what you are well-versed in or what you have expertise in, the traits and qualities your employees possess (individually and as a team) and the distinct features that give your organization its consistency.

Strengths are the beneficial aspects of the organization or the capabilities of an organization, which includes human competencies, process capabilities, financial resources, products and services, customer goodwill and brand loyalty. Examples of organizational strengths are huge financial resources, broad product line, no debt, committed employees, etc.

Weaknesses – Weaknesses are the qualities that prevent us from accomplishing our mission and achieving our full potential. These weaknesses deteriorate influences on the organizational success and growth. Weaknesses are the factors which do not meet the standards we feel they should meet.

Weaknesses in an organization may be depreciating machinery, insufficient research and development facilities, narrow product range, poor decision-making, etc. Weaknesses are controllable. They must be minimized and eliminated. For instance – to overcome obsolete machinery, new machinery can be purchased. Other examples of organizational weaknesses are huge debts, high employee turnover, complex decision making process, narrow product range, large wastage of raw materials, etc.

Opportunities – Opportunities are presented by the environment within which our organization operates. These arise when an organization can take benefit of conditions in its environment to plan and execute strategies that enable it to become more profitable. Organizations can gain competitive advantage by making use of opportunities.

Organization should be careful and recognize the opportunities and grasp them whenever they arise. Selecting the targets that will best serve the clients while getting desired results is a difficult task. Opportunities may arise from market, competition, industry/government and technology. Increasing demand for telecommunications accompanied by deregulation is a great opportunity for new firms to enter telecom sector and compete with existing firms for revenue.

Threats – Threats arise when conditions in external environment jeopardize the reliability and profitability of the organization’s business. They compound the vulnerability when they relate to the weaknesses. Threats are uncontrollable. When a threat comes, the stability and survival can be at stake. Examples of threats are – unrest among employees; ever changing technology; increasing competition leading to excess capacity, price wars and reducing industry profits; etc.

SWOT Analysis is a strategic management tool that assists an enterprise in discerning their internal Strengths, and Weaknesses, and external Opportunities, and Threats, to determine its competitive position in the market.

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