This website uses cookies to ensure you have the best experience. Learn more

Space Matrix Strategic Management Method Essay

912 words - 4 pages

The SPACE matrix is a management tool used to analyze a company. It is used to determine what type of a strategy a company should undertake.

The Strategic Position & ACtion Evaluation matrix or short a SPACE matrix is a strategic management tool that focuses on strategy formulation especially as related to the competitive position of an organization.

The SPACE matrix can be used as a basis for other analyses, such as the SWOT analysis, BCG matrix model, industry analysis, or assessing strategic alternatives (IE matrix).
What is the SPACE matrix strategic management method?

To explain how the SPACE matrix works, it is best to reverse-engineer it. First, let's take a look at what the ...view middle of the document...

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 SPACE matrix calculates the importance of each of these dimensions and places them on a Cartesian graph with X and Y coordinates.

The following are a few model technical assumptions:

- By definition, the CA and IS values in the SPACE matrix are plotted on the X axis.
- CA values can range from -1 to -6.
- IS values can take +1 to +6.

- The FS and ES dimensions of the model are plotted on the Y axis.
- ES values can be between -1 and -6.
- FS values range from +1 to +6.
How do I construct a SPACE matrix?

The SPACE matrix is constructed by plotting calculated values for the competitive advantage (CA) and industry strength (IS) dimensions on the X axis. The Y axis is based on the environmental stability (ES) and financial strength (FS) dimensions. The SPACE matrix can be created using the following seven steps:

Step 1: Choose a set of variables to be used to gauge the competitive advantage (CA), industry strength (IS), environmental...

Other Papers Like Space Matrix Strategic Management Method

Business Strategy Essay

3566 words - 15 pages the effectiveness of techniques used when developing strategic business plans 8 BCG Matrix: 8 SPACE (Strategic Position and Action Evaluation) 9 Directional policy matrices (GE matrix) 11 PIMS 12 About PepsiCo 12 Bibliography 14 L.O 1: Assess how business missions, visions, objectives, goals and core competencies inform strategic planning | Analyze | Example (Pepsico) | Mission | Statement of business:States the business

Assignment-Marketing Plan

3227 words - 13 pages country experienced a sharp drop in wearing apparel industry, after the cessation of Multi Fiber agreement. In order for us to regain the lost business, we need to improve the cycle time, price (cost) and quality. Global supply chain management is one important method to achieve those goals. The Ten Step Strategic Marketing Process The ten steps in Strategic Marketing Planning as learned in the classroom can be graphically presented

Mcdonald’s Swot & Space Matrix

689 words - 3 pages sometime considering that media has factor in on their unhealthy menu and tied it into contributing to obesity in the world. The overwhelming lawsuits that McDonald’s has experience and more to come have contribute to its reputation in a negative way. However McDonald’s still has managed to overcome and adapt and appeal to local taste of the people in community in which they operate in. Space Matrix of McDonald’s | Internal Strategic

Comparing the Bcg Matrix with the Mckinsey 7s Model

4036 words - 17 pages explain how the framework in question is used and what weaknesses it possesses. Secondly this paper will develop a guideline when to use which framework and how both frameworks can be applied simultaneously or successively to further increase the value output. Boston Consulting Group (BCG) Growth Matrix Composition and Framework In 1968 Bruce Henderson developed a strategic framework, which is based upon the product life cycle and the experience

Implementing Strategic Management for Apple Inc

5454 words - 22 pages Evaluation Matrix…………………………………… 13 14. SWOT Matrix………………………………………………………… 15 15. The Strategic Position and Action Evaluation (SPACE) Matrix…….. 16 16. BCG Matrix………………………………………………………….. 17 17. Internal External Matrix……………………………………………... 18 18. Grand Matrix………………………………………………………… 18 19. The Quantitative Strategic Planning Matrix (QSPM)………………. 19 20. Finance/ Accounting………………………………………………… 20 21. Conclusion

Business Strategy

4768 words - 20 pages , 2014). Information for this research was gathered from the below sources: 1. Types, Process & Importance of Benchmarking (Best Practices LLC, 1998). 2. Change Factory (2014). Good strategic choices – Directional Policy Matrix. 3. What is Benchmarking? Definition, Types, Process & Examples (Hawthorne, 2003). 4. BCG matrix (Jurevicius, 2013). 5. Stakeholder mapping and management is key to successful project management

Literature Review Business Ethics

1615 words - 7 pages use, this literature review focuses in on only three tools. The three strategic analysis tools researched in this literature review are the PEST analysis, the BCG growth matrix, and Porter’s five-force model. This literature review compares the work of the different articles to show how each strategic tool was used in the different articles and where ethics play a role in each research method. The end of the literature review entails different

Creme de La Creme

2166 words - 9 pages • Planning/Executing strategies • Techniques • Business/Organisation/People • PMI • Project life cycle • PM Process • Project Integration/Scope/Time/Cost/Quality/HR/Comm./Risk Management 2 What is the so-called iron triangle? Explain how it may be used in order to evaluate strategic choices in a project. (4 points) • [Draw picture] • Time/Quality/Cost/(Customer satisfaction) • Trade off

Terminal % Disaster

2127 words - 9 pages emphasize on cost-minimization in a focused market or product/service differentiation in a focused market. Porter’s generic strategies are an important way towards the strategic design process for a company’s strategic management exercise. However it would also be fundamental to note that the method is not one that can be considered as fools-proof. It is realistically not possible for a company to merely focus on any one aspect detailed in the

STR 581 Research Proposal

945 words - 4 pages services in Puerto Rico. Conclusion The recommendations arising from this business initiative during class will be part of the Strategic Business Plan to be presented to the Bank. The purpose of the strategic business plan is to have an efficient and fiscally responsible plan, which in turn tends toward sustainable economic growth. References Ingram, D. (2014). Internal & External Strategic Plan Development. Retrieved from http://smallbusiness.chron.com/internal-external-strategic-plan-development-12123.html Pearce, J., & Robinson, R. (2013). Strategic Management : Planning for Domestic & Global Competition (13th ed.). New York, NY: McGraw-Hill/Irwin.

Management Evolution

1438 words - 6 pages evolved over the last century as a result of increased understanding of human and organizational behavior, the economic climate and historical context and the changes in generations over time. KEY MANAGEMENT THEORY AN OVERVIEWi Fedrick w Taylor (1986-1915) rested his philosophy on four basic principles. 1. The development of a true science of management so that the best method for performing each task could be determined. 2. The Scientific selection

Related Essays

Management Stategic Essay

1985 words - 8 pages Development 161 Internal and External R&D 161 B Research and Development Audit 162 Management Information Systems 162 Strategic-Planning Software 163 B Management Information Systems Audit 163 Value Chain Analysis (VCA) 164 Benchmarking 166 The Internal Factor Evaluation (IFE) Matrix 166 EXPERIENTIAL EXERCISES 172 Experiential Exercise 4A: Performing a Financial Ratio Analysis for Walt Disney Company 172 Experiential Exercise 4B: Constructing an IFE

Harley Davidson Case Study

2286 words - 10 pages assessment in time May lead the firm to overemphasize a single internal or external factor in formulating strategies Please note this is not a comprehensive source for studying Ch 6 -13 Strategy-Formulation Framework SWOT Matrix SPACE Matrix Stage 2: The Matching Stage BCG Matrix IE Matrix Grand Strategy Matrix Please note this is not a comprehensive source for studying Ch 6 -14 SPACE Matrix Strategic Position

Strategic Mangement Essay

783 words - 4 pages above 8. SBU stands fora. Simple Basic Unit b. Strategic Basic Unit c. Strategic Business Unit d. Speed Business Unit 9. The BCG matrix is known as: a. Growth share matrix b. Directional policy matrix c. GE nine-cell matrix d. Space matrix 10. ______________ specifies sales revenues and selling distribution and marketing costs. a. Financial budget b. Sales budget c. Operating budget d. Expenses budget Part Two: 1. What are the dimensions of

Matrix Organisation Essay

1083 words - 5 pages Aeronautics & Space Administration (NASA) in association with its suppliers, this structure gets its name from its resemblance to a table (matrix) where every element is included in a row as well as a column. Matrix Organisation - Meaning Matrix Organisation was introduced in USA in the early 1960's. It was used to solve management problems in the Aerospace industry. Matrix Organisation is a combination of two or more organisation structures