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TOWS Guidelines

Start with your SFAS matrix.

Identify what you believe to be the two
most strategic S,W,O, and T factors facing your firm.

Place these eight factors on your TOWS
matrix, with the two Opportunities and the two Threats going down the first right
column. Place your two Strengths and
your two Weaknesses in the first row at the top of the TOWS matrix.

Review a sample TOWS matrix to make
sure you have your S,W,O, and T factors correctly positioned.

Designate each factor as either #1 or
#2.

Now create what you think are the four
best strategies using the S,W,O, and T factors.

You will create a SO Strategy using
either one of your Strengths and Opportunities.

You will create a WO Strategy using
either of your Weaknesses and Opportunities.

You will create a ST Strategy using
either of your Strengths and Threats.

You will create a WT Strategy using
either of your Weaknesses and Threats.

Designate which factor (S2/T1, W1/T1)
you are using.

Each of these strategies should
incorporate the two factors you have selected.
See the TOWS matrix examples. You
can use the same factor, say S1 in both strategies.

See the attached examples of TOWS
matrixes.

SFAS
Guidelines

·
Start with your EFAS
and IFAS assignments.

o Make
all corrections to these assignments.

·
The SFAS matrix is to
contain the ten most strategic factors from your EFAS and IFAS.

·
You need to include at
least two factors from your S,W,O, and T factors in your EFAS and IFAS
assignments.

·
Label each factor on
your SFAS matrix, such as S1, S2, W1, etc.
These numbers need not corresponding with the numbers you used on your
EFAS and IFAS assignments.

·
So now you have the
“SWOT #” for each SFAS factor and ten “SFAS factors”,
develop a “Weight” for each factor.

·
Make sure the total
weights for these ten factors equals 1.0.

·
Now work on your
“Comments” for each factor.
You may have to revise your comments to reflect the instructor’s remarks
on your EFAS and IFAS assignments.

·
Use your comments to
develop your “Ratings” for each factor.

·
Remember, good
comments should be reflected in ratings of 3.8 and higher, average comments
should have ratings of 3.3-3.5, and poorly performed comments tend to have
ratings below 3.3.

·
Multiple your
“Weight” and “Rating” for each factor, and place these
numbers in the “Weighted Score” column.

·
Total up the
“Weighted Score” column and enter at the bottom of the matrix.

·
Make sure the
“Total Weighted Score” matches your perception of how well a firm is
operating.

STRATEGIC
FACTOR ANALYSIS SUMMARY (SFAS)

SWOT

#

FACTORS

WEIGHT

RATING

WGTD

SCORE

COMMENTS

TOTAL
SCORES

STRATEGIC FACTOR
ANALYSIS SUMMARY (SFAS)

Progressive
Auto Insurance

SWOT

#

FACTORS

WEIGHT

RATING

WGTD

SCORE

COMMENTS

S1

Claims Handling

.15

4.8

.72

Progressive is considered a leader in
the industry

S2

Customer Service

.05

3.5

.18

Progressive policy holders rate high
but none policy holders rate low. Gap needs bridged.

S3

Employee Satisfaction

.10

3.5

.35

Most employees are happy but limited
advancement opportunities frustrates some

W1

Out Dated Technology

.10

2.5

.25

Progressive operating systems are
over 10 yrs old

W2

Claims Errors

.05

2.5

.13

Progressive has a goal of below 10%
currently around15%

O1

Technology

.15

2

.30

Progressive needs to grow its
technology reach by using more social media and other online support tools to
consumers vs. the competition.

O2

Department of Insurance

.05

2

.10

Progressive has had a difficult past
with the DOI. Improvement on relationship needed to make business easier.

T1

Competition

.10

2.5

.25

Progressive needs to diversify its
product offering. Many other companies offer multiple lines of coverage for
easy to the consumer.

T2

Stock Market

.10

3.5

.35

Progressive’s profitability is tied
to the stock market heavily. If the market falls, so do Progressive’s
profits. This accounts for a large sum of profits.

T4

Weather

.15

4

.60

Progressive sets aside a certain
reserve each year. If weather is more damaging than predicted the cash flow
of the company is put in serious jeopardy.

TOTAL
SCORES

1.00

3.23

US Airways (USA) TOWS ANALYSIS

Internal
Factors

External
Factors

Strengths (S)

S1: Innovative Thinking

S2: Employee Incentives

Weaknesses (W)

W1: Fleet Variety

W2: West Coast Presence

Opportunities
(O)

O1: Merger & Acquisitions

O2: Special Events

SO Strategies

S1/O1-USAused an innovative thought process by
talking to the unions of American Airlines (AA), which gained their support
for a merger with USA prior to going into negotiations with AMR, parent
company of American Airlines.

WO Strategies

W2/O1-
A merger between USA and AA would increase the routes and presence of the
consolidated airlines on the west coast.
In addition, a hub would be gained in Dallas – Forth Worth that would
present stronger routes in the mid-west.

Threats (T)

T1: Government Regulations

T2: Fuel Prices

ST Strategies

S2/T2-
There is not much the airlines can do about the price of fuel. However, innovative thinking on the part of
employees has developed ways of reducing fuel consumption of the aircraft.

WT Strategies

W1/T2-
USA operates a number of different aircraft.
The use of smaller aircraft in many cases result in the consumption of
less fuel.

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