S.W.O.T. / T.O.W.S.

One of the most celebrated characteristics of an entrepreneur is their ability to spot and exploit opportunities. Many business writers took pains to emphasize this unique quality and contrast it with the qualities of an “administrator” i.e., managers. To adequately differentiate the two, it is necessary to understand the difference from SWOT and TOWS. SWOT is the acronym for Strength, Weakness, Opportunities, and Threats analysis of the environment and company while TOWS is short for Threats, Opportunities, Strength, and Weaknesses analysis of environment and the company. Technically both are the same except for the order of wording and it is in the wording sequence that spells the difference between the two. I’m not playing semantics here but with SWOT analysis, one would always proceed by determining the strength and weakness that one possesses and try to look for the opportunity to exploit that could utilizes the strength that an individual possesses. In short, it is playing to one’s own limitation. This is the archetypal “administrator”. Administrator are ones who exploits opportunities as long as he could reach it else, the best thing he could do is wait and see. The typical order of questioning by an administrator is what resources do I have and what can I do? Followed by “what opportunities are available to us?” TOWS analysis on the other hand, would start by identifying the threats and opportunities in the environment, then determining what skills, capabilities are needed to exploit it, followed by an audit of the skills and capabilities available and develop those that are not present. Here, capabilities are not the pre-requisite to exploiting the opportunity rather the opportunity is the paramount. It is in the creative nature of an entrepreneur that he could remedy his “weaknesses” in order to exploit the opportunity. In fact, “weakness” is not the traditional definition as weakness but rather a “things to do or develop” list in order to exploit opportunity. An administrator would balk in exploiting an opportunity when he doesn’t have the funding to do so while an entrepreneur would not be deterred, instead if he lacks the capital to exploit the opportunities; he finds a “creative” solution to his problems. Possible solutions include borrowing capital, raising it through some offerings or finding a joint business venture partner or some other creative method. Here, the entrepreneur often ask, “What is the next big thing that we could try our hands on?” first. Followed by “what do we need to get things going?” then by the question, “What do we have?” and lastly, “what should we do about it?” An entrepreneur is not in any way hindered by his limitation. I’m not deriding the “administrator” here but one would often expects their attitude to be as perceived because most of the time, administrators are given a mandate and a “budget” to work with and they are expected to do what is necessary within the limitation provided. Entrepreneurs on the other hand, create his own mandate and they are expected to work towards the goal a.k.a. the dream they set.