SWOT and TOWS Analysis

Intended Audience: EPGDM 2014-2015Term: I Subject: Fundamentals of ManagementPresented by: Neha Ghorad

Introduction• Definition : SWOT and TOWS are strategy tools used in

order to achieve the targeted goals of the organisation.• Used by profit making as well as Non profit making

organizations.• Can be implemented at both the organizational levels

(companies, departments and divisions) as well as individual development.

• These tools are formed by the pneumonic basically representing :• S -> Strength• W -> Weakness• O -> Opportunity• T -> Threat

Strategy/ Business StrategyA business plan intended to achieve long term aim of the organization.

SWOT AnalysisOriginated by Albert S Humphrey in the 1960s, its a decision making tool that analyses your current position in marketplace in comparison with your competitors and helps to achieve the business strategy. It should cover the areas like marketing, financial, manufacturing and organizational.

Introduction

SWOT Analysis

SWOT Analysis

• External• Negative

• External• Positive

• Internal• Negative

• Internal• Positive

STRENGTH WEAKNESS

THREATOPPORTUNITY

SWOT

Advantages

• Simple and only costs time to do• Helps to generate new ideas using a

particular strength to use against a threat in the market.

• When a potential threat is known, company can have responses and plans ready to counter them.

Disadvantages

• It’s a simple list and presented very critically

• If company compiles the lists it may not be focussed sufficiently on how to achieve its objective.

• List approach may not define the priorities well.

Best SWOT Analysis• SWOT softwares are nowadays available to help

formalise the process and give analysis structure.

• Best SWOT will be more than a simple list.• It will consider the degree of strength and

weakness versus its competitors to determine how good that strength really is.

• A best SWOT should also look at the size of the opportunity or threat and inter relate with its strengths and weaknesses.

TOWS Analysis• TOWS analysis is a variation of SWOT analysis• TOWS is a different arrangement of strengths,

weaknesses, opportunities and threats.• TOWS emphasizes the external environment whilst

SWOT emphasizes the internal environment.• The Analysis results in a SWOT or TOWS Matrix as: Strengths Weaknesse

s

Opportunities

Threats

TOWS Analysis

• Identifying Strategic Options like to make most of strengths, Circumvent weaknesses, Capitalize on opportunities and Manage threats.

• A next step of analysis, usually associated with the externally-focused TOWS Matrix, helps to think about the options that one could pursue.

  External Opportunities(O)1.2.3.4.

External Threats (T)1.2.3.4.

Internal Strengths(S)1.2.3.4.

SO"Maxi-Maxi" StrategyStrategies that use

strengths to maximize opportunities.

ST"Maxi-Mini" StrategyStrategies that use

strengths to minimize threats.

Internal Weaknesses (W)1.2.3.4.

WO"Mini-Maxi" Strategy

Strategies that minimize weaknesses by taking

advantage of opportunities.

WT "Mini-Mini" Strategy

Strategies that minimize weaknesses and avoid threats.

TOWS Strategic Alternatives Matrix

Strategically FocusedStrategicAnalysis

StrategicChoice

StrategicImplementation

StrategicControl

SWOT/TOWS