Page 87 - DCOM506_DMGT502_STRATEGIC_MANAGEMENT

Unit 5: Organisational Appraisal: Internal Assessment 1

WO Strategies Notes

WO Strategies attempt to take advantage of opportunities by overcoming its weaknesses. For
example, for textile machinery manufacturers in India the main weakness was dependence on
foreign firms for technology and the long time taken to execute an order. The strategy followed
was the thrust given to R&D to develop indigenous technology so as to be in a better position to
exploit the opportunity of growing demand for textile machinery.

WT Strategies

WT Strategies are basically defensive strategies and primarily aimed at minimizing weaknesses
and avoiding threats. For example, managerial weakness may be solved by change of managerial
personnel, training and development etc. Weakness due to excess manpower may be addressed
by restructuring, downsizing, delayering and voluntary retirement schemes. External threats
may be met by joint ventures and other types of strategic alliances. In some cases, an unprofitable
business that cannot be revived may be divested.
Strategies which utilize a strength to take advantage of an opportunity are generally referred to
as “exploitative” or “developmental strategies”. Strategies which use a strength to eliminate a
weakness may be referred to as “blocking strategies”. Strategies which overcome a weakness to
take advantage of an opportunity or eliminate a threat may be referred to as “remedial strategies”.
The TOWS matrix is a very useful tool for generating a series of alternative strategies that the
decision-makers of the firm might not otherwise have considered. It can be used for the company
as a whole or it can be used for a specific business unit within a company. However, it may be
noted that the TOWS matrix is only one of many ways to generate alternative strategies.

Caselet SWOT Analysis of Tata Motors

ata Motors began in 1945 and has produced more than 4 million vehicles. Tata
Motors Limited is the largest car producer in India. It manufactures commercial
Tand passenger vehicles, and employs in excess of 23,000 people. This SWOT analysis
is about Tata Motors.
Strengths

1. The internationalisation strategy so far has been to keep local managers in new
acquisitions, and to only transplant a couple of senior managers from India into the
new market. The benefit is that Tata has been able to exchange expertise. For example
after the Daewoo acquisition the Indian company leaned work discipline and how
to get the final product 'right first time.'
2. The company has a strategy in place for the next stage of its expansion. Not only is
it focusing upon new products and acquisitions, but it also has a programme of
intensive management development in place in order to establish its leaders for
tomorrow.

3. The company has had a successful alliance with Italian mass producer Fiat since
2006. This has enhanced the product portfolio for Tata and Fiat in terms of production
and knowledge exchange. For example, the Fiat Palio Style was launched by Tata in
2007, and the companies have an agreement to build a pick-up targeted at Central
and South America.
Contd...

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