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Thursday, December 22, 2011

MGT603 Assignment No 2 Solution

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


• Experienced top management
• High capital reserves
• Imported machinery
• Factories in more than one

• No brand identity
• High employee turnover
• Less diversified portfolio
• Inexperienced lower staff
• No company owned outlets

• High growth industry
• Sponsorship opportunity
• Growing number of football fans
• Minimum govt. legislation
• Sports wear products

• Potential entrance of multi-national company
• Load shedding
• High no. of competitors


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
ST Strategies is an important strategy to overcome external threats. This does not mean that a strong organization should always meet threats in the external environment head-on. This strategy is adopted by various colleges by opening new branches in order to overcome competitive thereat. These threats also explain by the Porter in its competitive model.

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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