The TOWS matrix is the most important step to move into the formulation of strategies. It is based on the SFAS table and requires thinking on strategies that for example uses strengths to take advantage of opportunities or strengths to minimize threats.
You have already completed the SFAS table from BUS485A. Use that table to create the TOWS. The template for TOWS Matrix is TemplateSA-EXH7-TOWS.docx available in Course Resources and the attachments here.
The TOWS matrix supports the writing of Section V.
DUE BY THE END OF THE DAY ON SATURDAY OF THIS WEEK. TOWS IS WORTH 9 % OF THE GRADE or 90 POINTS.
Review of how the SFAS table was built for BUS485A
The SFAS (Strategic Factors Analysis Summary) table is Exhibit 3 of your SA.
Complete the SFAS as described on pages 171-173 in the textbook. Focus on identifying the 10 most important strategic factors. Be sure to keep your SWOT tags on each SF.
Revise the weights to add to 1.0 and the ratings as needed.
You must complete the Comments Column in the table. Repeat or revise your comments for each strategic factor from the previous EFAS and IFAS tables.
Be sure to explain WHY it is a strategic factor; a quantified estimate of the potential impact (QPI) in the future of the SF; how you assigned the weight; and how you assigned the rating; and for Internal SF identify the Core Competencies (CC) and Distinctive Competencies (DC). Use the same quantitative analysis that you did for the EFAS and IFAS to estimate and quantify the potential impacts in the future; the impact on the firm’s future survival; and how well or how badly the firm is handling the SF right now.
Use the SFAS Template provided in Module 5. These are just templates with words of reference. Use your own thinking and words.
How to Create a TOWS Matrix
A good explanation to transition from SFAS to TOWS is in reading TOWS Matrix Handout.docx in Module 5 PPT readings.
Using the SFAS you submitted for your last assignment, create a 2×2 matrix for the TOWS matrix as it is shown in TemplateSA-EXH7-TOWS.docx.
Make sure you have at least 2 strategies in each cell of the 2×2 matrix.
TOWS MATRIX on OLALLIEBERRY PIE COMPANY (OPC)
Internal Factors (from IFAS)
|
External Factors (from EFAS) |
Strengths (S) S1 Competent Senior Leadership S2 Supplier Relationships S3 Product Quality and Uniqueness |
Weaknesses (W) W1 Management Information System W2 Corporate Marketing |
|
Opportunities (O) O1 Growing Market in Western States O2 International Growth Opportunities O3 Aging U.S. Population/Demographics |
S/O Strategies · Expand into international arena by forging strategic alliances (Use S1, S3 to gain O2). · Leverage Quality Marketing campaign to increase sales (Use S3 to gain O3). |
W/O Strategies · Implement Online Sales business with customer friendly and responsive web-based systems (Focus on W1, W2 to gain O3). · Develop and field ERP system (Focus on W1to gain O1, O2). |
|
Threats (T) T1 U.S. Competition T2 Imports from China |
S/T Strategies · Contest competition advances by implementing Lean programs (S1, S2, S4, S5 to min T1) · Form strategic alliances with Chinese importers (use S1, S2 to min T2) |
W/T Strategies · Rollout re-designed and enlarged product marketing program (Overcome W1, W2 to min T1). · Invest in downstream supply chain infrastructure improvements (improve W1 to minimize T1). · Modernize MIS/ERP to improve competitiveness (improve W1 to reduce T1 and T2). |
2 of 1
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BUS 485B – STRATEGIC AUDIT PARAGRAPH STRUCTURE
TEMPLATE – Sections V (SWOT) to VIII
1. Follows is a template which shows the paragraphing structure for your SA.
2. It follows the structure in the text, but has new different paragraph structures for Paragraphs V, VI, VII, and VIII.
3. The un-titled sub-paragraphs shown here are not indicative of a minimum or a maximum number of un-titled sub-paragraphs. You should construct your un-titled sub-paragraphs you need based on your written discussion and analysis. Just follow this paragraphing and sub-paragraphing format as you build your SA.
4. Your SA should be in single spaced form with consistent appropriate margins, indentations, and spacing between paragraphs. Use Portrait page mode for your SA text – do not use Landscape page mode for your SA text. Use font size 10-12. Use single spaced format 1.0 – do not use format 1.15.
5. There are three Exhibits. Exhibit 8 should be included in the Excel document called FirmNane-5YFinancials.xlsx that was already created in BUS485A.
6. In addition to this Word document, submit your Excel document with the 5-year financial information.
“AMAZON” Strategic Audit
Student:
Yyyyy Yyyyyyyy
National University
Month, Year
Professor BUS 485B – NNN AAAAA
TABLE OF CONTENTS
V. Analysis of Strategic Factors
A. Situational Analysis (use SFAS (Exh.3) to create SWOT- Exhibit 7)
1. Strengths and Opportunities
2. Strengths and Threats
3. Weaknesses and Opportunities
4. Weaknesses and Threats
B. Review of Current Mission and Objectives
1. Mission
2. Objectives
VI. Strategic Alternatives and Recommended Strategy
A. Strategic Alternatives
1. Strategic Alternative #1 – No Change Alternative
a. Corporate Strategy
b. Supporting Business Strategy
c. Supporting Functional Strategies
d. Corporate Scenario
e. Pros
f. Cons
2. Strategic Alternative #2 – Growth Alternative
a. Corporate Strategy
b. Supporting Business Strategy
c. Supporting Functional Strategies
d. Corporate Scenario
e. Pros
f. Cons
3. Strategic Alternative #3 – Retrenchment Alternative
a. Corporate Strategy
b. Supporting Business Strategy
c. Supporting Functional Strategies
d. Corporate Scenario
e. Pros
f. Cons
B. Recommended Strategy (see Pro Forma Exhibit 8 in 5-Year Financials)
1. Recommended Strategic Alternative
2. Decision Criteria
3. Justification/Rationale
VII. Implementation (see Implementation, Evaluation and Control Plan, Exhibit 6)
A. Corporate Directional Strategy
B. Supporting Business Strategy
C. Supporting Functional Strategies
VIII. Evaluation and Control (See Implementation, Evaluation and Control Plan, Exhibit 6)
A. Evaluation Plan at 3 Strategic Levels
B. Control Measures at 3 Strategic Levels
References
Exhibit 3 – SFAS
Exhibit 6 – Implementation, Evaluation and Control Plan
Exhibit 7 – TOWS Matrix
Exhibit 8 – Pro Forma Income Statements – – Included in 5-Year Financials-Excel
Strategic Audit II
V. Analysis of Strategic Factors
0. Situational Analysis (use SFAS to create SWOT – Exhibit 7)
1. Strengths and Opportunities
a.
b.
c.
2. Strengths and Threats
a.
b.
3. Weaknesses and Opportunities
a.
b.
c.
4. Weaknesses and Threats
a.
b.
c.
B. Review of Current Mission and Objectives
1. Mission
2. Objectives
a.
b.
c.
d.
VI. Strategic Alternatives and Recommended Strategy
0. Strategic Alternatives
1. Strategic Alternative #1 – No Change Alternative
a. Corporate Directional Strategy (describe details)
b. Supporting Business Strategy (describe details)
c. Supporting Functional Strategies (describe details per function)
(1)
(2)
(3)
(4) etc
d. Corporate Scenario (Describe the details of your scenario, predictions, assumptions, and estimates of the future, outcomes, parameters, results, competition, trends, profits, costs, sales, GDP, inflation, revenues, market share, etc etc….what you consider important to your scenario)
(1)
(2)
(3) etc
e. Pros
(1)
(2)
(3) etc
f. Cons
(1)
(2) etc
2. Strategic Alternative #2 – Growth Alternative
a. Corporate Directional Strategy
b. Supporting Business Strategy
c. Supporting Functional Strategies
(1)
(2)
(3)
(4)
d. Corporate Scenario
(1)
(2)
(3)
e. Pros
(1)
(2)
(3)
f. Cons
(1)
(2)
3. Strategic Alternative #3 – Retrenchment Alternative
a. Corporate Directional Strategy
b. Supporting Business Strategy
c. Supporting Functional Strategies
(1)
(2)
(3)
(4)
d. Corporate Scenario
(1)
(2)
(3)
e. Pros
(1)
(2)
(3)
f. Cons
(1)
(2)
B. Recommended Strategy
1. Strategic Alternative Recommended. Name the one you selected
2. Decision Criteria. Name, spell out, and discuss your decision criteria.
3. Rationale / Justification. Discuss how you made the decision. Discuss, analyze, compare and contrast your 3 strategic alternatives based on your decision criteria. You should use your calculations from your 3 pro forma income statements to support your decision rationale / justification.
VII. Implementation (Discuss and describe the details of your implementing plans and actions for the programs, budgets and procedures and the who, what, when, and how details of the implementing plans for your one recommended strategic alternative. You should use all of the lines – corporate, business and functionals – from your Exhibit 6 to identify your discussion/analysis areas.)
A. Corporate Directional Strategy
1.
2.
3.
B. Supporting Business Strategy
1.
2.
C. Supporting Functional Strategies
1.
2.
3.
4.
VIII. Evaluation and Control (Discuss and describe the who, what, when, how, and metrics details of the evaluation and control plans for your one recommended strategic alternative. Like Para VII, you should use all of the lines – corporate, business, and functionals – from your Exhibit 6 to identify your discussion/analysis areas. Don’t forget to discuss metrics)
A. Evaluation Plan at 3 Strategic Levels
1.
2.
B. Control Measures at 3 Strategic Levels
1.
2.
REFERENCES
1
2
EXHIBIT 6
IMPLEMENTATION, EVALUATION & CONTROL PLAN
For Recommended Strategic Alternative #_ – Title of Strategic Alternative goes here
EXHIBIT 7
TOWS MATRIX on
EXHIBIT 8
PRO FORMA INCOME STATEMENT ON XXXXXX
Included in 5-Year Financials
For Strategic Alternative #1 – Title of Strat Alternative goes here
(Dollar amounts in millions)
PRO FORMA INCOME STATEMENT ON XXXXXX
Included in 5-Year Financials
For Strategic Alternative #2 – Title of Strat Alternative goes here
(Dollar amounts in millions)
PRO FORMA INCOME STATEMENT ON XXXXXX
Included in 5-Year Financials
For Strategic Alternative #3 – Title of Strat Alternative goes here
(Dollar amounts in millions)