When we have a good understanding of where we are now, it is time to think about where we want to get to. A good tool to provide focus for developing strategic plans using the information from the SWOT analysis is called a TOWS analysis (see below).

A TOWS analysis is the “so what…” that follows the SWOT. It uses the internal and external factors identified in the SWOT to identify strategic plans. It is best illustrated in four quadrants with the columns labelled Strengths and Weaknesses and the two rows labelled Opportunities and Threats.

Quadrant one identifies the plans we can make using our strengths to take advantage of the opportunities. Quadrant two identifies plans that are needed to overcome the weaknesses that prevent us from taking advantage of the opportunities. Quadrant three identifies the plans to use our strengths to overcome the external threats we face. Finally, quadrant four identifies those plans needed to minimise any threats that occur because of our weaknesses.

If we were to consider this in light of the management information generated above, we can start to be specific about our plans. This will give us a much clearer idea of the activities needed to take advantage of opportunities, or mitigate threats, that will allow us to be more successful. For example, growing dispensing items might be seen as an opportunity. The plans we identify for this will possibly be vague. If we were to segment the dispensing items, we might find that there are a number of threats to our walk-in prescription volume, but there might be great opportunities to increase prescriptions collected from GP surgeries. Our plans, therefore, will be much more specific and will probably improve our level of success.

The TOWS analysis provides a focus for the activities we can undertake to protect current business and grow new business. This will generate many plans, too many to implement. The next stage from this analysis is to identify the value that would be generated by each plan and prioritise which plans should be implemented to add or preserve the greatest value to the business.