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SPACE Matrix P& G

FS 6 5 4 3 2 1 CA IS

Conservative

Aggressive

-6

-5

-4

-3

-2

-1 -1 -2 -3 -4 -5 -6

Defensive
Financial Strength (FS) Return on Investment Leverage Liquidity Working Capital Cash Flow Financial Strength (FS) Average

ES
6 6 6 6 6 6.0 Environmental Stability (ES) Rate of Inflation Technological Changes Price Elasticity of Demand Competitive Pressure Barriers to Entry into Market

Competitive

-2 -2 -1 -5 -3 -2.6

Environmental Stability (ES) Average

Competitive Advantage (CA) Market Share Product Quality Customer Loyalty Technological Know-how Control over Suppliers and Distributors Competitive Advantage (CA) Average

-2 -2 -3 -2 -2 -2.2

Industry Strength (IS) Growth Potential Financial Stability Ease of Entry into Market Resource Utilization Profit Potential Industry Strength (IS) Average

6 6 3 5 6 5.2

y-axis = FS + ES = 6.0 + (-2.6) = 3.4 x-axis = CA + IS = -2.2 + (+5.2) = 3.0

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