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.
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 |
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 |
|
S2 |
Customer Service |
.05 |
3.5 |
.18 |
Progressive policy holders rate high |
|
S3 |
Employee Satisfaction |
.10 |
3.5 |
.35 |
Most employees are happy but limited |
|
W1 |
Out Dated Technology |
.10 |
2.5 |
.25 |
Progressive operating systems are |
|
W2 |
Claims Errors |
.05 |
2.5 |
.13 |
Progressive has a goal of below 10% |
|
O1 |
Technology |
.15 |
2 |
.30 |
Progressive needs to grow its |
|
O2 |
Department of Insurance |
.05 |
2 |
.10 |
Progressive has had a difficult past |
|
T1 |
Competition |
.10 |
2.5 |
.25 |
Progressive needs to diversify its |
|
T2 |
Stock Market |
.10 |
3.5 |
.35 |
Progressive’s profitability is tied |
|
T4 |
Weather |
.15 |
4 |
.60 |
Progressive sets aside a certain |
|
TOTAL |
1.00 |
3.23 |
|
US Airways (USA) TOWS ANALYSIS
|
||
|
External |
Strengths (S)
S1: Innovative Thinking S2: Employee Incentives
|
Weaknesses (W)
W1: Fleet Variety W2: West Coast Presence
|
|
Opportunities O1: Merger & Acquisitions O2: Special Events |
SO Strategies S1/O1-USAused an innovative thought process by |
WO Strategies W2/O1- |
|
Threats (T) T1: Government Regulations T2: Fuel Prices |
ST Strategies S2/T2- |
WT Strategies W1/T2- |
Internal