Probability of success

s high low
high e
r
i
o 1 2
u
s
n
e 3 4
low s
s
s

Threat matrix:

Cell 1:
• Threats are serious and have high probability of occurrence
• Strategist needs to monitor developments closely and have a
contingency plans available.

Cell 2&3:
• Threats need to be closely mentioned – incase they become critical
• Contingency plans not necessary.

Cell 4
• Threats are very minor and can be largely ignored.
Thr performance importance matrix

Performance

high low
high i
m Focus on greater
p managerial efforts to Ensure performance doesn’t
o improve fall.
r performance
t
a
n Areas of low priority Rethink current efforts. Is
low c
e

For example: telecom sector like Reliance industries.

SWOT to TOWS

• One of the the major criticism of swot is that the manager do not come
to terms with strategic choices that the outcomes demand,
• For this reason TOWS has been recommended,
• This would help better integrating with the strategic planning process.

Competitive advantage and value chain.

• Having analysed the strengths and weakness

• Now it is time to improve organisation’s performance through the
optimum utilization of resources.
• TOWS framework provides this value chain.
TOWS Framework.

• Address basic question concerning the internal and external

environments.
o Step 1: Prepare the enterprise profile of
a) Types of current business
b) Competitive situation
c) Geographic domain.
d) Pre occupation and culture of the senior management teams.
• Focus on the present and future external environment.
o Step 2: Identify and evaluate
a) Economic, social, political & demographics, products and
technology and market/ competitive environment.
• Focus on the Present and future external environment
o Step 3: Prepare a forecast, make predictions and assess the future.
• Audit of the organisation’s internal resources
o Step 4: Prepare a detailed Strength and Weaknesses audit of
a) Management and organisation, operations, finance,
marketing other parts of the organisation. Everyone is
audited in this system and this is beauty of this system.
Everyone is open for critics. They accept it and its
important for them to develop.
• Actions needed to achieve organisation’s overall purpose and
objectives. Under this system the individual himself motivates himself
to contribute. He says himself to do and not that others ask him to do.
o Step 5:
a) Identify the strategic choices facing the organisation.
• Actions needed to achieve organisation’s overall purpose and
objectives.
o Step 6:
a) Prepare the contingency plans.

Marketing Audit

Characteristics of Effective Audits:

• It should be comprehensive
• It should be systematic
• It should be completely independent. This is the reason why the
company generally asks the outside consultants to do it.
• It should be done periodically and not once in blue moon. It should be
monthly, weekly, etc.,

Components of Audit
• Marketing environment audit
• Marketing strategy audit.
• Marketing organisation audit.
• Marketing systems audit.
• Marketing Productivity audit.
• Marketing functions audit. (Market research, advertisement etc )

SLIDE NO: 28.