New Approach to Evaluate the TOWS Matrix and its Application in a Mining Company

"SWOT analyses and the closely related TOWS matrix are frequent starting points for an organization to develop its strategy. The paper deals with the evaluation of the TOWS matrix and presents three novel approaches to evaluate the different factors of the TOWS matrix, namely (1) approach to evaluate the factors with identical weights; (2) approach to evaluate factors with their weights determined within the different quadrants of the TOWS matrix; and (3) approach to evaluate factors with weights determined within the whole TOWS matrix. The third approach has two variants. The proposed approaches to evaluate the TOWS matrix were tested on a SWOT analysis of a significant mining company in the Czech Republic. The results imply that the strategy W-T (weaknesses-threats) is recommended in three cases, while the strategy S-T (strengths-threats) is recommended once. The paper may be valuable for managers responsible for strategic planning.IntroductionThe process of human needs gratification has been closely connected with raw material resources of the planet. In the contemporary socio-economic conditions, the task of the mining company managers, apart from extracting mineral resources, is to meet the owners' intents.The managerial work itself becomes very complex. In mining companies in particular, the complexity is augmented by the characteristics of the business. Undoubtedly, the key factor is that mineral resources cannot be renewed or relocated. Stojanovi (2013) characterizes mining projects as involving great investments in finance and time, as well as consecutive decisions and a 'complex mosaic of numerous unknown factors that affect the value of the project'. He adds that mining projects are typified by a 'number of geological, technological, technical, economic, environmental, social, and financial risks' (Stojanovi , 2013).Inter alia, the managerial work may also be intese due to the dynamic internal and external conditions for the existence of any company (Vane? k, 2014). This tallies with Peter Drucker’s prediction in 1969; that the times at the turn of the millennium could be expected to be turbulent (Drucker, 1969)."