Semester “Fall 2011”
Strategic Management (MGT603)
Assignment No. 02 Marks: 30
Let us assume that a sports company is operating in Pakistan with the name “Indus
Sports”. Indus Sports manufactures sports goods of both indoor and outdoor games. You
are required to formulate strategies based on the following SWOT Analysis of the
company. For your convenience, the boxes of the four groups of strategies (shaded as
yellow) are left vacant for you to fill.
TOWS Matrix for Indus Sports
Strengths-S
• Experienced
top management
• High capital reserves
• Imported machinery
• Factories in more than one
cities
|
Weaknesses-W
• No brand identity
• High employee turnover
• Less diversified portfolio
• Inexperienced lower staff
• No company
owned outlets
|
|
Opportunities-O
• High growth industry
• Sponsorship opportunity
• Growing
number of football fans
• Minimum govt. legislation
• Sports wear products
|
SO-Strategies
|
WO-Strategies
|
Threats-T
• Potential
entrance of multi-national company
• Load shedding
• High no. of competitors
|
ST-Strategies
|
WT-Strategies
|
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Steps for developing strategies:
There are eight steps involved in constructing a TOWS Matrix:
1. Rank external opportunities
2. Rank external threats
3. Rank internal strength
4. Rank internal weaknesses.
5. Match internal strengths with external opportunities and mention the result
in the SO Strategies cell.
6. Match internal weaknesses with external opportunities and mention the result
in the WO Strategies cell..
7. Match internal strengths with external threats and mention the result in the
ST Strategies cell.
8. Match internal weaknesses with external threats and mention the result in
the WT strategies cell.
SO Strategies:
Every firm desires to obtain benefit form its resources such benefit can only
be obtained if utilize its strength to take external opportunity. Resources (Assets)
an important firm’s strength to get opportunity for external resources. For
example the firm enjoying a good financial position which is strength for a
firm and externally opportunity to expand business. The strong financial
position provides an opportunity to expand the business. The matched strategy
is known as SO strategy.
WO Strategies:
WO Strategies developed to match weakness with
opportunities of the firm. WO strategy is very useful if the firm take
advantage to external resources in order to overcome the weakness. For example
the firm is in the critical financial problems that is weakness and firm is
availing merger with Multinational Corporation.
ST Strategies
WT Strategies
Every
firm has a desire to overcome its weakness and reducing threats. This type of
strategy helpful when weaknesses are removed to overcome external threats. It
is difficult to target WT strategy. For example weak distribution network
creating many problems for the firm if it strong many external threats can be
removed.
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