TOWS ANALYSIS

TOWS Analysis

TOWS Analysis

Introduction

Strategy is the determination of the purpose or mission and objectives long-term basis a company, and the adoption of the resources of action and the allocation of resources necessary to meet those goals. The strategic planning model shows the operation of this process. It identifies the basic elements of the process and shows the relationship between them. It is a modern tool for the analysis of the threats and opportunities of the external conditions and the relationship between them and the strengths and weaknesses (internal) organization. The aim of this paper is to discuss the benefits and aid in building strategic options for the company. The paper has been build on the basis of SWOT analysis understanding. The paper discusses the strategic use of TWOS analysis in WRSX application (Swayne 2012, 247).

Discussion

It is one of the most used tools in strategic planning due to its great simplicity and utility, existing in multiple applications literature and references to it. Its name is an acronym formed from the initials of the four words or elements involved in its analysis (Threats, Opportunities, Weaknesses, and Strengths). It is also useful for identifying the master or development strategies and as the particular strategies necessary for programming and budgeting of the organization. TWOS analysis helps the company to overcome the weakness of SWOT analysis which is basically that the internal strengths are compared with the external environment. On the other hand, TOWS analysis has more focus on the external environment of the company. The internal strengths and weaknesses of the company are linked with the external opportunities and threats of the environment. Apart from strategic management, TWOS analysis focuses on marketing, human resource and other business areas (Weihrich 2010, 122).

Benefits of TOWS analysis

TWOS analysis answers the questions for the organization of what it does and how to make most its strengths. It also helps the organization to know how to mitigate the weaknesses. The organization finds answer on how to take advantage from the market opportunities and deal with threats.

To start with the analysis of TWOS, the company must have to build SWOT analysis first. There are four alternative strategies. TOWS analysis helps the instant situation of the company in a systematic. The TOWS Analysis is based on the idea that the strategic flexibility on the one hand from the respective industry and the competitive situation and the other from the internal situation of the company. The retained therein basic strategic directions are explained by way of example:

WT Strategy (minimizing pursues both weaknesses and threats. The strategy is called mini-mini, e.g. retrenchment, liquidation or company venture). Internal weak and external threats and risks are often attached defensive strategies, e.g. long-term cooperation with other companies or the high-risk dangerous task deterministic divisions.

WO Strategy (meant minimizing the weaknesses and optimization opportunities, thus, a company with some weaknesses in some areas may develop such areas, or acquire the skills and technology or people with the requisite skills in abroad, in order to seize the ...