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The TOWS Matrix

The TOWS matrix is a tool for strategic analysis that involves examining an organization's strengths, weaknesses, opportunities, and threats. It helps develop four types of strategies: SO (strengths-opportunities), WO (weaknesses-opportunities), ST (strengths-threats), and WT (weaknesses-threats). The TOWS matrix matches an organization's strengths to external opportunities, weaknesses to opportunities, strengths to threats, and weaknesses to threats to formulate appropriate strategies. It is used during strategic planning to evaluate strategic alternatives and ensure consistency between an organization's profile, environment, and resources. The TOWS matrix also considers the time dimension to develop contingency plans for an uncertain future.

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Amar Singh Yadav
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Download as PPTX, PDF, TXT or read online on Scribd
132 views

The TOWS Matrix

The TOWS matrix is a tool for strategic analysis that involves examining an organization's strengths, weaknesses, opportunities, and threats. It helps develop four types of strategies: SO (strengths-opportunities), WO (weaknesses-opportunities), ST (strengths-threats), and WT (weaknesses-threats). The TOWS matrix matches an organization's strengths to external opportunities, weaknesses to opportunities, strengths to threats, and weaknesses to threats to formulate appropriate strategies. It is used during strategic planning to evaluate strategic alternatives and ensure consistency between an organization's profile, environment, and resources. The TOWS matrix also considers the time dimension to develop contingency plans for an uncertain future.

Uploaded by

Amar Singh Yadav
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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The TOWS Matrix: A tool for

situational analysis by Heinz Weihrich

Presented by
Amar S. Yadav
Arvind Kumar Yadav
Bhavesh Jha
Thangal Luwang
Chandan Singh
Purpose

TOWS matrix for


meeting the
environmental
Review general threats and
considerations in opportunities
Strategic with company’s
planning weakness &
strengths
Strategic
planning process
Inputs for Strategic
planning

People, Capital, managerial &


technical knowledge and skills

Employees want higher pay,


more benefits & job security.

Suppliers want assurance that


their products are purchased

Government depends on taxes .


The enterprise
profile

Competitive situation Top management


Geographic orientation firm's long-range orientation
Where are our potential An enterprise
customers? price, quality, profile is shaped by
people
Where are those cost, services,
Development of
who should be product enterprise profile, &
our customers, innovation, policy.
but are not at distribution Set the
present? systems, facilities organization climate
and locations
The external environment: the
opportunities

Market & Economic


competition
Demographic Social &
factor Factors political factor
-'Who are our
competitors?'
In 1960s Income levels Products Social
business are expected
'How does our
created big to change, and developm
company ents also
compare with the opportuniti although the Technology-
es direction is influence
competition’ less clear and Products
'What are the But in the the
recession
may vary need to be business
strengths and fordifferent
weaknesses of required sectors of the adjusted to strategy
our competitors?' many labor market technologica product
'What are their industry age
safety and
strategies?' change composition l changes
will also truth in
'How do we best their
compete strategy change packaging
Internal environment

Operations-marketing
Management and
must be assessed in
organization-
terms of product Finance-capital
encompasses labour
distribution channels, structure, financing,
relations; personnel Other factors-patents
brand name profitability, the tax
policies; the appraisal, inventions and the
protection, situation, financial
selection, training and firms image
competitive pricing, planning and the
development of
appropriate customer accounting system
employees; and the
identification, service,
reward system
and company image
Strategic
alternatives
Backward and Forward Integration- In backward integration a company may
acquire suppliers to ensure a steady flow of materials. In forward integration the
attempt is to secure outlets for products or services and to reach toward the
ultimate user of the product

Diversification- moving into new and profitable markets. This may result in
greater growth than would be possible without diversification

Joint Ventures- which may take different forms. For example,


corporations may join with foreign firms to overcome political and cultural
barriers
Evaluation and Choice of Strategies- The strategic manager has to evaluate a
multiplicity of possible strategies. Clearly, such a manager has to take
into consideration both external realities and internal capabilities
Timing is another critical element in the strategic decision

Consistency Testing- During all stages of strategy formulation, the steps have to be
examined for consistency with the enterprise profile, the present and projected
environment, and the resources of the firm

Contingency Plans- Contingency plans will have to be prepared. Since the future
cannot be predicted with great accuracy, plans
need to be made with different premises
Process of corporate strategy
and TOWS Matrix
Time Dimension and the TOWS
Matrix
'+' indicates a match between the strengths of the company and external
opportunities, while an '0' indicates a weak or nonexistent relationship
Thank You

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