Tows matrix

Tows Matrix

1. TOOL OF PLANNING Presented by: Anju Rana

2. STRATEGIC PLANNING Analyze the current and expected future situation Determine the direction of the firm Develop means for achieving the mission

3. Nature & Purpose of Strategies The determination of the mission or purpose and the basic long-term objectives of an enterprise.

4. POLICIES General statements or understandings that guide managers’ thinking in decision making.

5. TOWS MATRIX : A MODERN TOOL FOR ANALYSIS OF THE SITUATION T O W S THREATS OPPORTUNITIES WEAKNESS STRENGHTS It is a conceptual framework for a systematic analysis that facilitates matching the external threats and opportunities with the internal weaknesses and strengths of the organization.

6. Alternative strategies of TOWS Matrix The strategies are based on the external environment and the internal environment: WT Strategy WO Strategy ST Strategy SO Strategy

7. WT Strategy It aims to minimize both weaknesses and threats and may be called the Mini-Mini Strategy. Eg . Joint ventures, retrench or liquidate

8. 2. WO Strategy Attempts to minimize the weaknesses and maximize the opportunities.

9. 3. ST Strategy It is based on using organization’s strengths to deal with threats in the environment. The aim is to maximize the former while minimizing the latter.

10. 4. SO Strategy It capitalizes on a company’s strengths to take advantage of opportunities. If a company have weaknesses, they will strive to overcome them, by making them strengths.

11. Time Dimension and TOWS Matrix External and internal environments are dynamic PAST PRESENT PRESENT+T PRESENT+T2 TIME

12. Applications of TOWS Merger Matrix Mergers Acquisitions Joint Ventures Alliances