Tows mtrixCharacteristicTOWS analysis is an algorithm
Tows mtrix
Characteristic
.
TOWS analysis is an algorithm of the strategic analysis process, involving systematic and comprehensive assessment of external and internal factors that determine current condition and growth potential of the company.
It is based on a simple classification scheme: all of the factors influencing the current and future position of the organization is divided into:
External and internal to the organization,
Having negative and positive impact on the organization.
The intersection of above distinctions gives four categories of factors:
External and positive (opportunities)
External and negative (threats)
Internal and positive (strengths)
Internal and negative (weaknesses)
Comparing opportunities and threats with strengths and weaknesses of the company allows to define its strategic position, and can also be a source of interesting ideas of strategies.
Strenghts Weeknesses
Opportunities S / O S / T
Threats W / O W / T
Stages of TOWS analysis
Identification of opportunities and threats
Identification and analysis of strengths and weaknesses
Determination of strategic position and directions of business development
General guidelines for company derived from the TOWS analysis are simple but difficult in execution in practice:
Company should avoid threats
Company should exploit opportunities
Company should strengthen its weaknesses
Company should base important activities on its strengths
There are four basic strategies depending on the prevalence of the analyzed group of factors (positive or negative) in the environment and within the company:
SO situation - maxi-maxi strategy. This situation applies to the company for which dominates strengths in the environment and opportunities within. This situation corresponds to the maxi-maxi strategy: strong expansion and diversified development.
WO situation - mini-maxi strategy. In this situation company has the more vulnerabilities - weaknesses, but its environment gives more
Characteristic
.
TOWS analysis is an algorithm of the strategic analysis process, involving systematic and comprehensive assessment of external and internal factors that determine current condition and growth potential of the company.
It is based on a simple classification scheme: all of the factors influencing the current and future position of the organization is divided into:
External and internal to the organization,
Having negative and positive impact on the organization.
The intersection of above distinctions gives four categories of factors:
External and positive (opportunities)
External and negative (threats)
Internal and positive (strengths)
Internal and negative (weaknesses)
Comparing opportunities and threats with strengths and weaknesses of the company allows to define its strategic position, and can also be a source of interesting ideas of strategies.
Strenghts Weeknesses
Opportunities S / O S / T
Threats W / O W / T
Stages of TOWS analysis
Identification of opportunities and threats
Identification and analysis of strengths and weaknesses
Determination of strategic position and directions of business development
General guidelines for company derived from the TOWS analysis are simple but difficult in execution in practice:
Company should avoid threats
Company should exploit opportunities
Company should strengthen its weaknesses
Company should base important activities on its strengths
There are four basic strategies depending on the prevalence of the analyzed group of factors (positive or negative) in the environment and within the company:
SO situation - maxi-maxi strategy. This situation applies to the company for which dominates strengths in the environment and opportunities within. This situation corresponds to the maxi-maxi strategy: strong expansion and diversified development.
WO situation - mini-maxi strategy. In this situation company has the more vulnerabilities - weaknesses, but its environment gives more