The tnsnames.ora file is not found or not accessible or current Oracle Home PATH is wrong.
RESOLUTION 1:
Verify that the correct client is selected in the "Connect Using" drop down for the Installed Clients section of the connection window.
RESOLUTION 2:
Verify that the tnsnames.ora file is accessible.
RESOLUTION 3:
Verify that your Oracle Home BIN path is in the beginning of your Environment Variable PATH.
RESOLUTION 4:
Verify the Windows Environmental Variables. A TNS_ADMIN entry may be needed in the environmental variables. This is especially true for environments using an Oracle instant client.
Please refer to Sol76454: How to configure TNSNAMES.ORA for use with Oracle Instant Client and Toad, for further information about setting up your TNSnames.ora file.