ANSOFF MATRIX STAKEHOLDER

MANAGEMENT

ANALYSIS

SWOT ANALYSIS TOWS MATRIX

STRATEGIC

MANAGEMENT

ANALYSIS TOOLS

1. Ansoff Matrix

PRODUCT MARKET

How to grow business /

organization through existing or

new products OR in existing or

new markets.

Help to assess and analyze

different degree of risk

associated with moving the

organization forward

4 growth strategies

i. Market Penetration

ii. Market Development

iii. Product Diversification

iv. Product Development

Example:

A business that operates in an

expanding market can grow

through market penetration.

A business in a mature, stable

market may choose to grow either

through market development or

product development depending

on its internal strengths.

If neither of these offers sufficient

potential, a business may consider

diversification to achieve further

growth

1. Ansoff Matrix Increasing risk

Increasing risk

Based on recommended strategies identified using SPACE matrix, IE Matrix

1. Ansoff Matrix

Strategic planning tool that provides a

framework to help executives, senior

managers, and marketers devise strategies

for future growth.

4 growth strategies alternative: 1. Market Penetration An organization tries to grow using its

existing offerings (products and services) in existing markets. In

other words, it tries to increase its market share in current market

scenario.

2. Market Development An organization tries to expand into new

markets (geographies, countries etc.) using its existing offerings.

3. Product Development Organization tries to create new

products and services targeted at its existing markets to achieve

growth.

4. Diversification - In diversification, an organization tries to grow

their introducing new offerings in new markets. It is the most risky

strategy because both product and market development is

required.

1. Ansoff Matrix

EXAMPLES

Penetration:

Existing product to the existing customers -

changing pricing, adding minor features ,

changing packaging (size), highlighting

alternative uses (eg. Chocolate as a seasonal

gift)

Product Development:

New/improved product in existing market

Burger with salads (Mcdonald), new variety of

chocolate (Kitkat Rubies), Go Shop service

(ASTRO)

Market Development:

Existing product in different markets -

Mcdonald (opening new outlet), CIMB

Indonesia branch,

Diversification:

Requires product and market development

Mcdonald (McCaf), iPod touch (itunes)

5

Background :

SWOT analysis was created in the 1960s by

business gurus Edmund P. Learned, C. Roland

Christensen, Kenneth Andrews and William D.

Book. SWOT, which stands for Strengths,

Weaknesses, Opportunities and Threats, is an

analytical framework that can help your company

face its greatest challenges and find its most

promising new markets.

What is the purpose:

SWOT analysis enables organizations to identify

both internal and external influences. Outside of

business, other organizations have found much

use in the method's guiding principles.

SWOT's primary objective is to help organizations

develop a full awareness of all the factors, positive

and negative, that may affect strategic planning

and decision-making. This goal can be applied to

almost any aspect of industry.

2. SWOT Analysis

6

When to use SWOT :

SWOT is meant to be used during the proposal

stage of strategic planning. It acts as a

precursor to any sort of company action, which

makes it appropriate for the following moments: Exploring avenues for new initiatives

Making decisions about execution strategies for a new policy

Identifying possible areas for change in a program

Refining and redirecting efforts midplan

Internal factors

The first two letters in the acronym, S (Strengths)

and W (Weaknesses), refer to internal factors,

which means the resources and experience readily

available to you. Examples of areas typically

considered include: Financial resources, such as funding, sources of income and

investment opportunities

2. SWOT Analysis

Physical resources, such as your company's

location, facilities & equipment

Human resources, such as employees,

volunteers and target audiences

Access to natural resources, trademarks,

patents and copyrights

Current processes, such as employee programs,

department hierarchies and software systems

External factors

External forces influence and affect every

company, organization and individual. Whether

these factors are connected directly or indirectly

to an opportunity or threat, it is important to take

note of and document each one. External factors

typically reference things you or your company do

not control, such as: Market trends, like new products and technology or shifts in audience

needs

Economic trends, such as local, national and international financial trends

Funding, such as donations, legislature and other sources

Demographics, such as a target audience's age, race, gender and culture

Relationships with suppliers and partners

Political, environmental and economic regulations

2. SWOT Analysis

SWOT Analysis - Sample 2012- Maybank Auto Finance SWOT analysis to become No#1 Financer

8

OPPORTUNITIES Cross-sell products and services as most

customers acquired from dealers are N2B.

Diversify to C&I, equipment finance, CVs and non -

prime used car market.

Revisit TOM to be more lean, efficient and effective.

Invest in HPS modernization/ platform and

processes re-engineering with more advanced

capabilities

THREATS Highly competitive business environment with

declining spread/ NII, some segments below

ROCA.

Maturing business. High market penetration and

vehicle population density.

New competitors from in-house finance

companies and offer new market entrants.

STRENGTHS Reputation & brand. A well - respected and

recognizable BOB brand in Auto finance.

#1 dealer finance position that provides strategic

advantages and strong retail market position

among dealers.

Strong performance with lowest GIL rates and

highest growth in the industry.

Strong and hungry marketing and processing team

(MOPO) who are focus on delivery excellence

services to the dealers.

WEAKNESSES Rising CIR due to lower margin and higher cost.

High Fixed cost structure.

Limited fee-based income opportunities and

business regulated by HP Act.

Managing non-performer (10%), increasing staff

complacency and lack of staff diversity.

Old HPS system and business processes.

S W O T

2. SWOT Analysis Example 2012- Maybank Auto Finance SWOT analysis to become No#1 Financer

TOWS is simply SWOT spelled backwards.

The TOWS matrix is used for strategic

planning and helps to identify opportunities

and threats and measure them against

internal strengths and weaknesses.

How to use tool:

To carry out a TOWS Analysis, consider the

following combinations:

Strengths/Opportunities:

Consider all strengths one by one listed in

the SWOT Analysis with each opportunity

to determine how each internal strength

can help to capitalize on each external

opportunity.

Strength/Threats:

Consider all strengths one by one listed in

the SWOT Analysis with each threat to

determine how each internal strength can

help to avoid every external threat.

3. TOWS Matrix

http://www.volunteerhub.com/blog/time-to-call-the-swot-team/

Weaknesses/Opportunities: Consider all weaknesses one by one listed in the SWOT Analysis with each opportunity to determine how each internal weakness can be eliminated by using each external opportunity.

Weaknesses/Threats: Consider all weaknesses one by one listed in the SWOT Analysis with each threat to determine both can be avoided

3. TOWS Matrix

Strengths (S) Weakness (W)

Opportunities (O)

SO

"Maxi-Maxi" Strategy

Strategies that use

strengths to maximize

opportunities.

ST

"Maxi-Mini" Strategy

Strategies that use

strengths to minimize

threats.

Threats (T)

WO

"Mini-Maxi" Strategy

Strategies that minimize

weaknesses by taking

advantage of

opportunities.

WT

"Mini-Mini" Strategy

Strategies that minimize

weaknesses and avoid

threats.

Internal Factors

External Factors

3. TOWS Matrix

TOWS Matrix To generating strategic options

12

Strengths (S)

1. Strong R & D and Engineering

2. Strong sales and service network

3. Efficient production/automation

Capabilities

Weaknesses (W)

1. Heavy reliance on one product

(Although Several Less

Successful Models were

Introduced)

2. Rising costs in Germany .

3. No experience with U.S. labor

unions if building plant in the U.S.

Opportunities (O)

1. Growing affluent market demands

more luxurious cars with many

option.

2. Attractive offers to build an

assembly plant in U.S.

3. Chrysler and American Motors

need small engines.

(O1S1S2) Develop and produce

multiproduct line with many options, in

different price classes (Dasher,

Scirocco, Rabbit Audi Line)

(O1W1) Develop compatible models

for different price levels (Ranging from

Rabbit to Audi Line)

Threats (T)

1. Exchange Rate - Devaluation of

Dollar in relation to Deutshe Mark

(DM).

2. Competition from Japanese and

U.S. Automakers.

3. Fuel shortage and price

(T3S1) Improve fuel consumption

through, fuel injection and develop fuel

efficient diesel engines

(T2,W1) Reduce threat of competition

by developing flexible product line.

Internal Factors

External Factors

3. TOWS Matrix

What are the purpose:

Using the opinions of the most powerful

stakeholders to shape the projects at an early

stage.

Gaining support from powerful stakeholders can

help to win more resources

Anticipating what people's reaction to project

Identifying all persons, groups and institutions who

may have an interest in a project and taking steps

to manage their interests and expectations so that

the project runs as smoothly as possible

When to use :

Needs to be done in the early stages of a project

so that any risks and required communication can

be included in the overall project plan

4. Stakeholder Management

Who to use :

Being used by aid agencies, governments or

consultant groups: 1. Imperial College London

2. Office of Government Commerce UK 2003

3. Aubrey L. Mendelow, Kent State University, Ohio 1991

How to use the tool:

Step 1. Identify Your Stakeholders

Who are stakeholders? Involved in the development of the product

Managing the development of the product

Working with the product

Owner of the product

Affected by the development of the product.

Directly or indirectly involved in rules and regulations of the product usage

4. Stakeholder Management

Step 2. Prioritize Your Stakeholders

Specifies how each stakeholder influences the organization

Decides what the organization needs from each one of them

Rank them with respect to their influence and importance

Analyse on the power versus interest grid and which defines the power of these stakeholders in implementing any changes versus interests of them in order to implement these changes.

4. Stakeholder Management

Step 3. Understand Your Key Stakeholders

Need to know more about key stakeholders.

Need to know how they are likely to feel about and react to the project

Need to know how best to engage them in the project and how best to communicate with them.

4. Stakeholder Management