The Grand Strategy Matrix is based on two dimensions: Data needed for positioning SBUs in the matrix is derived from the portfolio analysis. This matrix offers feasible strategies for a company to consider which are listed in sequential order of attractiveness in each quadrant of the matrix.
It is used to determine what type of a strategy a company should undertake. First, let's take a look at what the outcome of a SPACE matrix analysis can be, take a look at the picture below. The SPACE matrix is broken down to four quadrants where each quadrant suggests a different type or a nature of a strategy: Our company has a strong competitive position it the market with rapid growth.
It needs to use its internal strengths to develop a market penetration and market development strategy. This can include product development, integration with other companies, acquisition of competitors, and so on. The SPACE Matrix analysis functions upon two internal and two external strategic dimensions in order to determine the organization's strategic posture in the industry.
These factors analyze a business internal strategic position. The financial strength factors often come from company accounting.
These SPACE matrix factors can include for example return on investment, leverage, turnover, liquidity, working capital, cash flow, and others.
Competitive advantage factors include for example the speed of innovation by the company, market niche position, customer loyalty, product quality, market share, product life cycle, and others.
Every business is also affected by the environment in which it operates. SPACE matrix factors related to business external strategic dimension are for example overall economic condition, GDP growth, inflation, price elasticity, technology, barriers to entry, competitive pressures, industry growth potential, and others.
These factors can be well analyzed using the Michael Porter's Five Forces model. The following are a few model technical assumptions: Choose a set of variables to be used to gauge the competitive advantage CAindustry strength ISenvironmental stability ESand financial strength FS.
Rate individual factors using rating system specific to each dimension. Rate competitive advantage CA and environmental stability ES using rating scale from -6 worst to -1 best.
Add the average score for the competitive advantage CA and industry strength IS dimensions. Find intersection of your X and Y points. This line reveals the type of strategy the company should pursue. Each factor within each strategic dimension is rated using appropriate rating scale.SWOT Matrix.
Space Matrix. Grand Strategy Matrix. BCG & IE Matrix.
Matrix Analysis. Possible Strategies. QSPM Matrix. Strategic Implementation. 3 Year Objectives.
Strategies & Cost. EPS/EBIT. Projected Financials Strategic Management Plan Last modified by: UMFK Student Senate. Mar 09, · At least one of those tools for this assignment must come from your textbook (SWOT Matrix, SPACE Matrix, BCG Matrix, IE Matrix, Grand Strategy Matrix).
When you have completed the matrixes, write an executive summary to include the following. The Quantitative Strategic Planning Matrix of alternative strategies derived from the TOWS Matrix, SPACE Matrix, BCG Matrix, IE Matrix, and Grand Strategy Matrix.
33) The BCG Matrix requires more information about the divisions than the IE Matrix.
34) On the x-axis of the IE Matrix, an internal factor evaluation score of represents a weak internal position. The second stage is the Matching Stage; researcher using SWOT (Strengths, Weaknesses, Opportunities, Threats) Matrix, SPACE Matrix, BCG (Boston Consulting Group) Matrix, IE .
Prepare any two (2) of the following matrices to justify the strategies you will be recommending: SWOT Matrix, SPACE Matrix, BCG Matrix, IE Matrix, Grand Strategy Matrix, and QSP Matrix.
2. 2. Discuss the advantages and disadvantages of at least two (2) alternative strategies.