Scribd Logo
Upload

Welcome to Scribd!

  • Space Matrix

    Uploaded by

    Nafis Hasan
    216 views1 page
    The document discusses the SPACE matrix, which is used to assess a company's strategic position based on internal and external factors. It has four quadrants that indicate whether a competitive, aggressive, conservative, or defensive strategy should be adopted. The document provides steps for constructing a SPACE matrix, including assigning numerical values to internal strengths and external stability and opportunity factors, then plotting the scores on each axis. The document includes a SPACE matrix analysis of Coca-Cola, showing it falls in the aggressive quadrant based on its scores. This suggests Coca-Cola should pursue growth strategies to take advantage of opportunities while overcoming weaknesses.

    Original Description:

    Copyright

    © Attribution Non-Commercial (BY-NC)

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    The document discusses the SPACE matrix, which is used to assess a company's strategic position based on internal and external factors. It has four quadrants that indicate whether a competitive, aggressive, conservative, or defensive strategy should be adopted. The document provides steps for constructing a SPACE matrix, including assigning numerical values to internal strengths and external stability and opportunity factors, then plotting the scores on each axis. The document includes a SPACE matrix analysis of Coca-Cola, showing it falls in the aggressive quadrant based on its scores. This suggests Coca-Cola should pursue growth strategies to take advantage of opportunities while overcoming weaknesses.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    216 views1 page

    Space Matrix

    Uploaded by

    Nafis Hasan
    The document discusses the SPACE matrix, which is used to assess a company's strategic position based on internal and external factors. It has four quadrants that indicate whether a competitive, aggressive, conservative, or defensive strategy should be adopted. The document provides steps for constructing a SPACE matrix, including assigning numerical values to internal strengths and external stability and opportunity factors, then plotting the scores on each axis. The document includes a SPACE matrix analysis of Coca-Cola, showing it falls in the aggressive quadrant based on its scores. This suggests Coca-Cola should pursue growth strategies to take advantage of opportunities while overcoming weaknesses.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    of 1

    SPACE Matrix of Coca Cola Company:

    The Strategic Position and Action Evaluation Matrix commonly (SPACE Matrix) is one of the important tools to
    assess the company and its environment. It has four quadrants and each quadrant indicates which strategy a firm
    should adopt i.e. competitive, aggressive, conservative, or defensive in a current position. X axis of the SPACE
    Matrix contain internal dimensions (Competitive Advantage (CA) and Financial Strengths (FS)) and Y-axis contain
    external dimensions (Industry Strengths (IS) and Environmental Stability (ES)). These four dimensions are the
    most important determinants of a firm’s overall strategic position. Each dimension holds many factors from EFE,
    IFE, and SWOT Analysis etc.

    How to Construct Space Matrix?


    Following are some of the important steps involved in the construction of Space Matrix.
    1. Choose a set of variables to define industry strength (IS), Environmental stability (ES), Competitive
    advantage (CA), and financial strength (FS).
    2. Assign numerical values to all the variables of FS and IS ranging from +1(worst) to +6 (best).
    3. Assign numerical values to all the variables of ES and CA ranging from -1(best) to -6 (worst).
    4. Calculate the scores for CA, ES, FS, and IS.
    5. Plot the average for CA, ES, FS, and IS on the appropriate axis.
    6. Now add the two scores on the Y-axis and plot the resultant point on Y. Similarly add the two scores on the
    x axis and plot the resultant point on X and Plot the intersection of the new XY point.
    7. Sketch a directional vector from the origin of the SPACE Matrix through the new intersection point. The
    vector shows the type of strategies recommended for the organization: competitive, conservative
    defensive, and aggressive.

    According to the graph above, we noticed that


    the Coca-Cola Company falls into the
    aggressive quadrant of the SPACE matrix. It is
    located at the coordinates of +3.50 for x-
    component and a y-component of 3.17. It
    shows that the company has an admirable
    position to use its IS in order to take
    advantage of external opportunities,
    overcome weaknesses, and avoid threats. So,
    in this position Coca-Cola Company has set of
    possible strategies such as market
    development, product development, market
    Space Matrix Calculations penetration, forward integration, backward
    ES Average Score = -1.83 + Average FS Score (+5.00) = +3.17  integration, horizontal integration, horizontal
    Average CA Score = -1.50 + Average IS Score (+5.00) = +3.50 diversification, concentric diversification and
    conglomerate diversification depending on
    detailed conditions that face the company.       

    You might also like