1. STRATEGIC
PLANNING
SWOT ANALYSIS & TOWS MATRIX

2. CHARACTERISTICS OF STRATEGIC PLANNING
¡ Top management involvement
¡ Requirement of large amounts of resources
¡ Affect the firm's long-term prosperity
¡ Future-oriented
¡ Multi-functional or multi-business consequences
¡ Non-self-generative decisions

3. WE SHALL LEARN …
SWOT
ANALYSIS
Define S-W-O-T
Identify S-W-O-
T
Listing S-W-O-T
TOWS
MATRIX
Creating TOWS
Matrix
Identify SO, ST,
WO, WT
Chalk
Strategies
STRATEGIC
PLANNING
Short Term /
Long Term
Road Map
Delegate
Responsibilities
Evaluation &
Control
PHILOSOPHY
VISION
MISSION
CORE VALUES

4. SWOT ANALYSIS

5. SWOT ANALYSIS
¡ SWOT Analysis (also known as SWOT Matrix) is a
organization framework that helps assessing a wide variety
of factors that may have a profound impact on a
organization’s performance.
¡ These factors may either be internal to a company or
external. Furthermore, these factors may either be
favorable/helpful or unfavorable/harmful to a company.
¡ By combining these two dimensions one can draw a 2×2-
matrix consisting of four quadrants: Strengths, Weaknesses,
Opportunities and Threats.

6. STRENGTHS
¡ A company’s strengths are its characteristics that give it an advantage over others (competitors).
¡ Sometimes these strengths are also referred to as unique selling points (USPs), firm-specific advantages (FSAs) or competitive
advantage.
¡ Examples of valuable company resources are patents, a strong brand reputation, a new innovative product, a talented
workforce, historically developed know-how and large financial reserves.

7. STRENGTHS – HOW TO IDENTIFY THEM?
What are we good
at?
What do we do
better than anyone
else?
What is our
competitive
advantage?
What do we do
that no one else
does?
What resources do
we have at our
disposal?
What are our
ecommerce
company’s
advantages?
What advantages
do our employees
have?
What valuable
assets does our
company have?
What do our
customers like
about our
organization?

8. WEAKNESS
¡ These weaknesses are company characteristics that place a company at a disadvantage relative to others. In other words: they
are harmful to a company.
¡ Weaknesses could for example be a lack of patent protection, poor reputation among customers, a small working capital, bad
leadership and an inefficient production process.
¡ Weaknesses are best discovered by having enough feedback loops in place, both internally and externally.

9. WEAKNESS – HOW TO IDENTIFY THEM?
What are we bad
at?
What do our
competitors do
better than us?
What do our
customers
complain about?
What
disadvantages does
our team carry?
What is holding us
back?
Which resources
are we lacking?
What could we
improve?

10. OPPORTUNITIES
¡ Opportunities are the external factors of the SWOT analysis that may affect a company’s performance positively.
¡ To assess the opportunities, a company should look for elements in the environment that could be exploited to its own
advantage.
¡ The best way to assess the external factors is by using PESTEL analysis for the macro-environment.
¡ PESTEL looks at political, economic, social, technological, environmental and legal trends in the macro-environment.
¡ Examples are the increasing purchasing power of customers, governmental subsidies, more favorable international trade
policies, and general lifestyle changes among the population.

11. OPPORTUNITIES – HOW TO IDENTIFY THEM?
What potential
regulation changes
could help our
organization?
Is the market
changing in a
favorable way?
Is the current
economy going to
affect us in a positive
way?
What opportunities
have we not pursued
yet?
What new
opportunities are
becoming available?
Is our cost of goods
going down?
Is there a way for us
to acquire useful
resources that we do
not already have?

12. THREATS
¡ The threats on the other hand are the external factors that could cause trouble for the company in the future.
¡ Similarly, to the opportunities, one could use a PESTEL analysis to assess the elements in the environment that could harm the
organization.
¡ Examples of harmful macro-environmental developments could be an increasing unemployment rate, disruptive technologies,
protests from NGO’s and increasing government corruption levels.

13. THREATS – HOW TO IDENTIFY THEM?
Who are our existing
competitors?
What new entrants to
the market could
threaten our
organization?
Is our market size
declining?
Is the industry changing
in a way that could
negatively impact our
organization?
Is our cost of
goods/services
increasing?
Is a supply we rely on
becoming scarce?
Are regulations
changing in a way that
could harm our
organization?
Are our stakeholders
unreliable?

14. PESTEL ANALYSIS POLITICAL
ECONOMICAL
SOCIAL
TECHNOLOGICAL
ENVIRONMENTAL
LEGAL

15. TOWS MATRIX

16. TOWS MATRIX
¡ A SWOT analysis helps assessing a company’s current
internal and external situation but does not provide
concrete strategic actions to take. One way to map out the
strategic options a company has, is by using the so-called
TOWS matrix (or TOWS analysis).
¡ By combining the external environment’s opportunities and
threats with the internal organization’s strengths and
weaknesses, management can come up with four basic
strategies to follow based on the situation it is in

17. IDENTIFY STRATEGIC ALTERNATIVES THAT ADDRESS THE
FOLLOWING ADDITIONAL QUESTIONS:
Strengths and Opportunities (SO) – How can you use your strengths to take advantage of the opportunities?
Strengths and Threats (ST) – How can you take advantage of your strengths to avoid real and potential threats?
Weaknesses and Opportunities (WO) – How can you use your opportunities to overcome the weaknesses you are
experiencing?
Weaknesses and Threats (WT) – How can you minimize your weaknesses and avoid threats?

18. TOWS MATRIX

19. SO SITUATION:
MAXI-MAXI
STRATEGY:
¡ Any company would like to be in a position where it can
maximize both strengths and opportunities.
¡ Such an enterprise can lead from strengths, utilizing its
resources to take advantage of the opportunities the
market is offering.
¡ Companies in these situations could think about
expanding internationally or diversifying their product
portfolio to boost revenues.

20. ST SITUATION:
MAXI-MINI
STRATEGY:
¡ In this case we see a strong company operating in a
hostile environment.
¡ The aim of a Maxi-Mini strategy is to maximize the
strengths of a company while minimizing the threats
through these strengths.
¡ A company with strong financial capabilities and cost-
reducing skills, could lower its prices to drive out
competition.

21. WO SITUATION:
MINI-MAXI
STRATEGY
¡ In this situation the company has more vulnerabilities
(weaknesses), but its environment provides plenty of
opportunities to resolve that.
¡ The Mini-Maxi strategy attempts to minimize the
weaknesses and to maximize the opportunities.
¡ The strategy should include the exploitation of these
opportunities while reducing or correcting weaknesses
within the organization.
¡ Outsourcing activities or acquiring another company with
the right resources could be an option for example.

22. WT SITUATION:
MINI-MINI
STRATEGY
¡ The organization in this case has little development
opportunities.
¡ It operates in a hostile environment and its potential for
change is small.
¡ It does not have significant strengths, which could
withstand threats.
¡ The aim of the Mini-Mini strategy is to minimize both
weaknesses and threats.
¡ Mini-Mini strategy boils down to a pessimistic scenario
such as the liquidation of a company or in an optimistic
situation – to strive for survival by merging with another
organization.

23. EXAMPLE OF TOWS MATRIX
PEPSI CO.

24. PEPSI CO.
Pepsi is among the two leading soda beverages of the brand globally. Its products are sold in more than
200 countries. Some key strengths of the brand are its financial strength, its marketing capabilities, as
well as a large product portfolio. In the recent years, the brand has invested a lot in digitization as well
as expanded its product portfolio to add more nutritious and healthy products like low calorie drinks and
healthy oat meals. Extensive investment in digital technology has helped the brand find faster growth
during the last five years. Apart from product innovation, marketing innovation has also helped the
brand grow internationally.

25. SWOT ANALYSIS – PEPSI CO.
STRENGTHS
S1 - Strong brand image
S2 - Strong financial performance
S3 - Global presence supported by a strong
supply chain and distribution network
S4 - Strong marketing capabilities
S5 - Large and varied product portfolio
WEAKNESSES
W1 - Overdependence on US market
W2 - Reduced Net revenue in Middle East
OPPORTUNITIES
O1 - Technological innovation down the
distribution network
O2 - CSR and water recycling
O3 - Partnerships with related businesses
O4 - Growth through acquisitions
THREATS
T1 - Legal and regulatory threats
T2 - Competitive pressures
T3 - Stronger dollar and fluctuation in
foreign currency exchange rates

26. TOWS ANALYSIS –
PEPSI CO.
STRENGTHS
S1 - Strong brand image
S2 - Strong financial performance
S3 - Global presence supported by a strong supply chain
and distribution network
S4 - Strong marketing capabilities
S5 - Large and varied product portfolio
WEAKNESSES
W1 - Overdependence on US market
W2 - Reduced Net revenue in Middle East
OPPORTUNITIES
O1 - Technological innovation down the distribution
network
O2 - CSR and water recycling
O3 - Partnerships with related businesses
O4 - Growth through acquisitions
THREATS
T1 - Legal and regulatory threats
T2 - Competitive pressures
T3 - Stronger dollar and fluctuation in foreign currency
exchange rates
SO
Using strengths to capitalize on
available opportunities
ST
Use strengths to avoid threats
WO
Overcome weaknesses to
capitalize on opportunities
WT
Reduce weaknesses to avoid
threats

27. SO - STRATEGY
STRENGTHS
S1 - Strong brand image
S2 - Strong financial performance
S3 - Global presence supported by a strong supply chain
and distribution network
S4 - Strong marketing capabilities
S5 - Large and varied product portfolio
OPPORTUNITIES
O1 - Technological innovation down the distribution
network
O2 - CSR and water recycling
O3 - Partnerships with related businesses
O4 - Growth through acquisitions
S1S2S3S4O3 - Pepsi both has a strong image as well as financial strength.
Apart from them it also has stronger marketing capabilities which can help it
grow faster in the Asian nations.
S5O4 - Releasing low-cost options (smaller portion sizes) of its products will
help the brand grow faster internationally and reduce its dependence on the
US markets.
S2S3O3O4 - Finding growth internationally also help it overcome the losses
that time to happen due to currency fluctuations in individual markets.

28. ST - STRATEGY
STRENGTHS
S1 - Strong brand image
S2 - Strong financial performance
S3 - Global presence supported by a strong supply chain
and distribution network
S4 - Strong marketing capabilities
S5 - Large and varied product portfolio
S4S5T2 - To minimize the competitive threat, Pepsi must focus specifically on
marketing of its brand, product innovation and of using its digital capabilities
better. This will reduce the competitive pressure on the brand.
S2S3T2T3 - Forming partnerships with other related businesses as well as
acquiring smaller businesses will minimize the threat from a stronger dollar
and currency conversion rates.
THREATS
T1 - Legal and regulatory threats
T2 - Competitive pressures
T3 - Stronger dollar and fluctuation in foreign currency
exchange rates

29. WO - STRATEGY
W?O? - Innovating the distribution network internationally and investing in
partnerships will also help at reducing the brand’s dependence on the US
market.
W?O? - Partnerships and acquisitions and extending its ecommerce will also
help the brand to grow faster and reduce the losses that happen due to
currency fluctuations.
WEAKNESSES
W1 - Overdependence on US market
W2 - Reduced Net revenue in Middle East
OPPORTUNITIES
O1 - Technological innovation down the distribution
network
O2 - CSR and water recycling
O3 - Partnerships with related businesses
O4 - Growth through acquisitions

30. WO - STRATEGY
W?T? - Reducing its dependence on the US market will also help the brand
overcome some of the competitive threat.
W?T? - Increased international e-commerce presence will help it battle the
losses happening due to economic fluctuations in individual markets. It must
focus on the Asian market which are currently the fastest growing economies
in the world.
WEAKNESSES
W1 - Overdependence on US market
W2 - Reduced Net revenue in Middle East
THREATS
T1 - Legal and regulatory threats
T2 - Competitive pressures
T3 - Stronger dollar and fluctuation in foreign currency
exchange rates

31. MISSION STATEMENT
¡ PepsiCo’s mission statement is to “to provide consumers around the
world with delicious, affordable, convenient and complementary foods
and beverages from wholesome breakfasts to healthy and fun daytime
snacks and beverages to evening treats.” The statement reflects the
company’s determination to have the best impacts on everyone, including
the immediate consumers, through differentiated products. The
statement also links with the continued efforts of PepsiCo to build its
workforce and partners to grow together with the company as well. Based
on this, the following components can be related to this mission
statement:

32. MISSION STATEMENT
1. Improving communities. The first priority of PepsiCo Corporation is on the overall welfare of the
societies across the globe, and the company contributes to this through the conducive environment
it offers for everyone to perform at their level best. Most importantly, PepsiCo takes the protection
of the planet very important as a way of advancing this feature of its mission statement. Over the
years, the company has been recognized for initiating a series of projects that all point towards
its commitment to sustainability especially that of the environment, whose impact in the
communities speaks for itself.
2. Reasonable prices. When PepsiCo talks about putting a smile on everyone, the company alludes to
how much it cares for the pockets of its customers. Pricing is something that greatly impacts the
level of satisfaction of all consumers, considering that they all want the best quality in the market at
the most favorable rates. PepsiCo recognizes this and has taken this up in its marketing mix, and in a
creative manner where it gives all its clients the best prices for every product they get. Sometimes,
the company spices this up with frequent offers on specific brands.
3. Improving health. PepsiCo has remained alive to the demands of the customers, especially in the
nutrition values and other associated aspects. The food and beverage niche is a major influencer of
the health of people around the globe, something that the management at PepsiCo takes very
seriously. To comply with the likes and preferences of the consumers, PepsiCo uses nutritious raw
materials such as grains, vegetables, and fruits throughout the entire manufacturing process to bring
its customers foods and beverages that care about their health. This element of the mission has also
been boosted by the gradual reduction of added sodium, sugars, and saturated fats in compliance
with modern health needs.

33. VISION STATEMENT
¡ PepsiCo’s vision statement is “to deliver top-tier financial performance
over the long term by integrating sustainability into our business
strategy, leaving a positive imprint on society and the environment.”
The statement has the following components:

34. VISION STATEMENT
1. Be a global leader. Although the origins of the company are in the U.S., there
is no doubt PepsiCo has grown into a multinational corporation with several
subsidiaries. All this growth has been propelled by the clarity of purpose in the
company – to offer leadership in the food and beverages at the global level.
With this approach, the company has tremendously influenced the business
landscape in this sector and the markets through its brands and branding, led
by its team of highly experienced experts.
2. Leave a positive impact. PepsiCo Corporation shows how it satisfies this
component in various ways with some of these comprising how it
keeps broadening its product portfolio and accelerating the expansion of
international businesses. There is so much more that speaks to the purpose of
this company such as the influence it has on the farming practices and
economy for the holistic growth of everyone the company interacts with. Such
lengths show how comprehensive and purpose-led PepsiCo is.

35. CORE VALUES
1. PepsiCo’s core values include “sustained growth, empowering people,
trust, and responsibility.” PepsiCo is a company that aspires to be the
best both socially and economically, and therefore, these values show
exactly what the company wants to be. They guide the entire
organization and create a culture that drives the company towards its
vision.

36. DESIGNING THE STRATEGIC PLAN
FORMAT

38. CONTROL & REVIEW SYSTEM

39. GANTT CHART

40. REVISION …
SWOT ANALYSIS
Define S-W-O-T
Identify S-W-O-T
Listing S-W-O-T
TOWS MATRIX
Creating TOWS
Matrix
Identify SO, ST, WO,
WT
Chalk Strategies
STRATEGIC
PLANNING
Short Term / Long
Term
Road Map
Delegate
Responsibilities
Evaluation &
Control
PHILOSOPHY
VISION
MISSION
CORE VALUES

41. THANK YOU