This document outlines the TOWS matrix analysis strategic planning tool. It discusses using the TOWS matrix to identify strategic options by examining how strengths, weaknesses, opportunities, and threats can be connected. The goal is to develop SO strategies to leverage strengths and opportunities, ST strategies to use strengths against threats, WO strategies to overcome weaknesses with opportunities, and WT strategies to minimize weaknesses and threats. The document provides examples of conducting a SWOT analysis and populating the TOWS matrix before formulating business strategies for each quadrant.
SWOT Analysis Presentation.
SWOT (Strengths, Weaknesses, Opportunities, Threats) is a Business Analysis tool used by Business Analyst worldwide.
This presentation is just a glimpse of it.
This presentation is a general introduction/refresher to marketing planning and it will guide you through the planning process and building the plan itself. The presentation starts with an overview of marketing and this part is generally aimed individuals with limited marketing management experience or marketers who want a refresher. The next sections go into the market planning process, marketing communications planning, marketing budgets and forecasts, and the final section covers writing the marketing plan.
To understand strategic planning, its linkage to strategic marketing and marketing management
To know how sales strategy is developed from marketing strategy
To learn basic terms used in forecasting, forecasting approaches, and methods of sales forecasting
To understand purposes and the process of sales budget
SWOT Analysis is a simple but useful framework for analyzing your organization's strengths and weaknesses, and the opportunities and threats that you face. It helps you focus on your strengths, minimize threats, and take the greatest possible advantage of opportunities available to you.
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Strategic planning is a systematic process organizations use to outline and implement their long-term goals and objectives. It involves defining the organization's direction, making decisions on allocating resources to pursue this direction, and guiding the implementation of these decisions.
SWOT Analysis Presentation.
SWOT (Strengths, Weaknesses, Opportunities, Threats) is a Business Analysis tool used by Business Analyst worldwide.
This presentation is just a glimpse of it.
This presentation is a general introduction/refresher to marketing planning and it will guide you through the planning process and building the plan itself. The presentation starts with an overview of marketing and this part is generally aimed individuals with limited marketing management experience or marketers who want a refresher. The next sections go into the market planning process, marketing communications planning, marketing budgets and forecasts, and the final section covers writing the marketing plan.
To understand strategic planning, its linkage to strategic marketing and marketing management
To know how sales strategy is developed from marketing strategy
To learn basic terms used in forecasting, forecasting approaches, and methods of sales forecasting
To understand purposes and the process of sales budget
SWOT Analysis is a simple but useful framework for analyzing your organization's strengths and weaknesses, and the opportunities and threats that you face. It helps you focus on your strengths, minimize threats, and take the greatest possible advantage of opportunities available to you.
https://www.apnamba.com/
Strategic planning is a systematic process organizations use to outline and implement their long-term goals and objectives. It involves defining the organization's direction, making decisions on allocating resources to pursue this direction, and guiding the implementation of these decisions.
Learn how to apply and interpret SWOT analysis for strategic planning. SWOT is a simple yet powerful tool used to analyze the positives and negatives of a business or project, helping to make informed decisions. Learning to use the SWOT matrix will help you in developing strategies to overcome weaknesses using your strengths and opportunities.
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Intensive Strategies: These strategies focus on increasing market share and profitability within existing markets. This may involve expanding product lines, increasing marketing efforts, or improving distribution channels.
Diversification Strategies: These strategies involve expanding into new markets or industries. This can be done through related diversification, where the company enters a new market that is related to its existing business, or unrelated diversification, where the company enters a completely new market.
Defensive Strategies: These strategies are designed to protect the company from external threats. This may involve reducing costs, divesting non-core businesses, or implementing anti-takeover measures.
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The Competitive Profile Matrix (CPM) is a strategic management tool that provides a comparative analysis of a company against its major competitors within the industry. It serves as an essential device for competitive advantage assessment and is often used to evaluate the firm's strengths and weaknesses relative to competitors' strategic positions. The CPM utilizes specific critical success factors, both internal and external to the organization, as its primary analytical basis.
In a typical CPM, a table is constructed with the evaluated firm and its main competitors listed horizontally, while the critical success factors are listed vertically. Each entity is scored based on how well they perform on each critical success factor. These scores are then weighted according to the importance of each factor, resulting in a composite score for each competitor.
Michael Porter's Five Forces analysis is a critical tool for evaluating the competitive landscape and underlying structure of an industry, aiding in effective strategy formulation and risk management. By examining factors like the level of rivalry, barriers to entry, and the power dynamics with suppliers and buyers, businesses can make informed decisions on resource allocation and market positioning. The framework also serves as a valuable guide for investors to assess industry attractiveness and long-term profitability. Overall, this analysis is indispensable for achieving a sustainable competitive advantage and informed strategic planning.
SWOT Analysis is a strategic planning tool used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project, business venture, or any situation requiring a decision. The SWOT Analysis Tool helps organizations identify their internal advantages and disadvantages as well as external favorable conditions and potential challenges.
Components
Internal Factors:
Strengths: These are attributes within the organization that add value or offer a competitive edge. Examples can include skilled human resources, proprietary technology, or strong brand equity.
Weaknesses: These are internal constraints or limitations that hinder performance and competitiveness. Examples may be outdated technology, lack of skilled personnel, or poor management systems.
External Factors:
Opportunities: These are external conditions that an organization can capitalize on or use to its advantage. For instance, market growth, a shift in consumer behavior, or technological advancements represent opportunities.
Threats: These are external conditions that could jeopardize the organizationโs success. This can include regulatory changes, economic downturns, or increasing competition.
PEST analysis is a strategic framework used by organizations to assess and analyze the external macro-environmental factors that can impact their business. The acronym stands for Political, Economic, Social, and Technological factors. PEST analysis involves identifying and evaluating these four categories of factors to gain insights into potential opportunities and threats in the market. It helps businesses adapt their strategies and make informed decisions based on the prevailing political climate, economic conditions, societal trends, and technological advancements.
A mission and vision audit is a strategic process that organizations undertake to assess and evaluate their current mission and vision statements. These statements are fundamental components of an organization's identity, providing direction, purpose, and a sense of aspiration. Conducting a mission and vision audit ensures that these statements remain aligned with the organization's goals, values, and the evolving external environment.
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TOWS Matrix Analysis - Dr. Emmanuel Dotong.pdf
1. MODULE 8:
STRATEGY FORMULATION:
TOWS MATRIX ANALYSIS
STRATEGIC
MANAGEMENT
DR. EMMANUEL DOTONG
Associate Professor of Business
ejdotong@alum.up.edu.ph
STRATEGIC TOOLS AND MODELS
4. The goal of TOWS Matrix Analysis is
to identify strategic options: SO
strategies (using strengths to take
advantage of opportunities), ST
strategies (using strengths to avoid
threats), WO strategies (overcoming
weaknesses by taking advantage of
opportunities), and WT strategies
(minimizing weaknesses and avoiding
threats).
GOAL
A strategic planning tool used to
evaluate the Threats, Opportunities,
Weaknesses, and Strengths involved
in a business venture or project. It's
essentially an extended version of
SWOT analysis, but with a focus on
examining how the identified
elements can be connected to each
other to develop strategic actions.
DEFINITION
TOWS MATRIX ANALYSIS
WO STRATEGY
ST STRATEGY
SO STRATEGY
WT STRATEGY
DEFINITION AND GOAL
5. TOWS VARIABLES
These are external
factors that could
potentially harm the
organization or project.
They could be economic,
social, political,
technological, or
environmental.
These are external
factors that the
organization or project
could exploit for its
advantage. They also
could be economic,
social, political,
technological, or
environmental.
These are internal factors
that could potentially
harm the organization or
project. They could
relate to resources,
processes, capabilities,
etc.
These are internal factors
that give the
organization or project
an advantage. They also
could relate to resources,
processes, capabilities,
etc.
T O W S
THREATS OPPORTUNITIES WEAKNESSES STRENGTHS
DEFINITION AND FACTORS
6. TOWS MATRIX
WT STRATEGY (WEAKNESSES โ THREATS)
This strategy is about minimizing weaknesses and avoiding threats. It is largely defensive
and is about risk management and damage control.
ST STRATEGY (STRENGTHS-THREATS)
This strategy focuses on using strengths to avoid or mitigate threats. It's about leveraging
what you're good at to navigate potential challenges
WO STRATEGY (WEAKNESSES-OPPORTUNITIES)
This strategy aims to overcome weaknesses by taking advantage of opportunities. It's about
turning negatives into positives.
SO STRATEGY (STRENGTHS-OPPORTUNITIES)
This strategy involves using strengths to take advantage of opportunities. It's about
capitalizing on positives.
STRATEGIC APPROACHES
8. TOWS MATRIX
01
02
03
Identify Strengths, Weaknesses, Opportunities, and Threats of your
organization or project.
Create a 3x3 grid with SWOT variables and SO, WO, ST, and WT quadrants.
Fill in with elements from your SWOT analysis.
Formulate business strategies for each quadrant: SO (use strengths to
leverage opportunities), WO (overcome weaknesses using opportunities),
ST (use strengths to mitigate threats), and WT (minimize weaknesses and
avoid threats). Compile and summarize the developed strategies.
SWOT ANALYSIS
TOWS MATRIX CONSTRUCTION
STRATEGY DEVELOPMENT
PROCEDURES
9. TOWS
MATRIX
Use Strengths to
take advantage of
Opportunities
STRENGTHS
List strengths
1.
2.
3.
4.
5.
WEAKNESSES
List weaknesses
1.
2.
3.
4.
5.
OPPORTUNITIES
List weaknesses
1.
2.
3.
4.
5.
THREATS
List weaknesses
1.
2.
3.
4.
5.
SO STRATEGIES
1.
2.
3.
4.
5.
WO STRATEGIES
1.
2.
3.
4.
5.
ST STRATEGIES
1.
2.
3.
4.
5.
WT STRATEGIES
1.
2.
3.
4.
5.
Overcome
Weaknesses by
taking advantage of
Opportunities
Use Strengths to
mitigate Threats
Minimize
Weaknesses to
avoid Threats
S
W
O
T
11. SWOT ANALYSIS
INTERNAL FACTORS EXTERNAL FACTORS
POSITIVE
NEGATIVE
S1 High Customer Traffic (SM)
S2 Hybrid Service Offerings (OP)
S3 High Revenue Growth Rate (AF)
STRENGTHS
W1 Low Table Turnover Rate (OP)
W2 Limited Sitting Capacity (OP)
W3 Poor Social Media Presence (SM)
WEAKNESSES
O1 Partnership with Online Delivery Services (S2,T2)
O2 Potential Increase in Productivity (T2, T3, S2)
O3 Develop Local Events Sales Promotion (S3, T1)
OPPORTUNITIES
T1 Potential Increase in Production Cost (E1, E2, E3)
T2 Potential Decrease in Demand (P1, P2, P3, E2)
T3 Potential Increase in Product Price (E1, E2, E3)
THREATS
MATRIX
12. TOWS
MATRIX
Use Strengths to
take advantage of
Opportunities
STRENGTHS
List strengths
1.
2.
3.
4.
5.
WEAKNESSES
List weaknesses
1.
2.
3.
4.
5.
OPPORTUNITIES
List weaknesses
1.
2.
3.
4.
5.
THREATS
List weaknesses
1.
2.
3.
4.
5.
SO STRATEGIES
1.
2.
3.
4.
5.
WO STRATEGIES
1.
2.
3.
4.
5.
ST STRATEGIES
1.
2.
3.
4.
5.
WT STRATEGIES
1.
2.
3.
4.
5.
Overcome
Weaknesses by
taking advantage of
Opportunities
Use Strengths to
mitigate Threats
Minimize
Weaknesses to
avoid Threats
S
W
O
T
13. STRENGTHS WEAKNESSES
OPPORTUNITIES
THREATS
SO STRATEGIES WO STRATEGIES
ST STRATEGIES WT STRATEGIES
S1 High Customer Traffic
S2 Hybrid Service Offerings
S3 High Revenue Growth Rate
W1 Low Table Turnover Rate
W2 Limited Seating Capacity
W3 Poor Social Media Presence
O1 Partnership with Online
Delivery Services
O2 Potential Increase in
Productivity
O3 Develop Local Events Sales
Promotion
T1 Potential Increase in
Production Cost
T2 Potential Decrease in
Demand
T3 Potential Increase in
Product Price
MP - Drive high customer traffic towards
online platforms to increase productivity
(S1,O2)
HD - Promote hybrid service offerings at
local events to differentiate from
competitors (S2, O3)
FI - Partner with online delivery services
to extend reach and boost sales (S1, O1)
BUSINESS
STRATEGIES
INTEGRATION STRATEGIES
HI โ Horizontal Integration
BI โ Backward Integration
FI โ Forward Integration
INTENSIVE STRATEGIES
PD โ Product Development
MD โ Market Development
MP โ Market Penetration
DIVERSIFICATION STRATEGIES
RD โ Concentric Diversification
HD โ Horizontal Diversification
CD โ Conglomerate
Diversification
DEFENSIVE STRATEGIES
RE โ Retrenchment
CL โ Cost Leadership
DV โ Divestiture
LI - Liquidation
MD - Expand online services to offset
limited seating capacity and reach a
wider market
(W2, O1)
HD - Launch a new engaging social
media campaign unrelated to current
operations to enhance online presence
and increase productivity (W3, O2)
REโ Use high revenue growth to invest in
cost-efficient technologies or practices to
counter potential increases in production
costs (S3, T1)
MP - Enhance and extend social media
presence of the business to increase the
potential demand of the company (W2,
T2).
BI- Consider possibilities for physical
expansion or restructuring This allows the
company to control more of our supply
chain, ensuring consistent supply and
potentially reducing costs (W2,T1)
TOWS
MATRIX
14. INTENSIVE STRATEGIES (Market Penetration, Market Development)
Market Penetration - Leverage our strong online platforms to drive high customer traffic, thereby increasing productivity and market share.
This can be achieved through targeted marketing campaigns and promotions to attract more users to our platforms (S1,O2).
Market Penetration - Enhance and extend social media presence of the business to increase the potential demand of the company (W2, T2).
Market Development - To counteract our limited seating capacity, expand our online services to reach a wider market. By offering more
online services, we can cater to more customers without physical space constraints, tapping into new customer segments and geographical
areas (W2,O1).
INTEGRATION STRATEGIES (Forward and Backward)
Forward Integration - To extend our reach and boost sales, partner with online delivery services. This forward integration strategy allows us
to tap into the existing customer base of these services, increasing our market penetration (S1,O1).
Backward Integration - To address our limited seating capacity and potential supply chain disruptions, consider possibilities for physical
expansion or restructuring. This vertical integration strategy allows us to control more of our supply chain, ensuring consistent supply and
potentially reducing costs (W2,T1) .
DIVERSIFICATION STRATEGIES (Concentric and Horizontal)
Concentric Diversification - Stand out from competitors by promoting our hybrid service offerings at local events. This related
diversification strategy leverages our existing strengths and resources while introducing a new dimension to our services (S2,O3)
Horizontal Diversification - To counter our limited online presence, launch a new engaging social media campaign that's unrelated to
current operations. This unrelated diversification strategy will help increase our online visibility, attract more customers, and ultimately increase
productivity (W3,O2)
DEFENSIVE STRATEGIES (Retrenchment)
Retrenchment - Utilize our high revenue growth to invest in cost-efficient technologies or practices. This proactive measure will help us
counter potential increases in production costs, ensuring we maintain profitability and competitiveness (S3,T1)
BUSINESS
STRATEGIES
SUMMARY
15. END Thank you for Listening!
ASSOC. PROF. EMMANUEL DOTONG
Management Consultant
ejdotong@alum.up.edu.ph