A power tool (10) is described which has several modes of operation, such as drilling and screw driving modes. A clutch is provided with various settings for adjusting the torque at which the clutch interrupts power to a spindle (18). Furthermore, a two speed gearbox (16) is provided for adjusting the speed of the spindle. All of these variables are controllable from a single adjustment member or collar (26) thereby reducing necessary decisions needed to be made by an operator for a particular job in hand. For instance, when an operator wants the tool to operate in a screw driving mode, the gearbox is automatically set to drive the spindle at a low speed with the clutch being operable to interrupt drive when a torque force applied to the spindle exceeds a threshold value. Furthermore, if the tool is required to operate in a drilling mode, the gearbox is automatically switched to drive the spindle at a higher speed and the clutch is automatically rendered inoperable.