SAN BEDA UNIVERSITY

College of Arts and Sciences

San Miguel, Mendiola, Manila

In Partial Fulfillment of the Requirements of the

Subject Strategic Management (IBE18)

Submitted by:
Tabarnilla, Junelle G.
4ALM

Submitted to:
Dr. Jenny de Guia

Date Submitted:
2 APRIL 2019
SPACE MATRIX

INTERNAL STRATEGIC POSITION

FINANCIAL STRENGTH (FS)

1. Liquidity (+3)

2. Return on Investment (+4)

3. Working Capital (+2)

4. Cash Flow (+3)

AVERAGE: (+12) ÷ (4) = 3

COMPETITIVE ADVANTAGE (CA)

1. Market Share (-2)

2. Customer Loyalty (-3)

3. Product quality (-4)

4. Control over suppliers and distributors (-5)

AVERAGE: (-14) ÷ (4) = (-3.5)

EXTERNAL STRATEGIC POSITION

ENVIRONMENTAL STABILITY (ES)

1. Rate of Inflation (-2)

2. Barriers to entry into

Market (2)

3. Competitive Pressure (-3)

4. Risk involved in business (-1)

AVERAGE: (-8) ÷ (4) = (-2)

INDUSTRY STRENGTH (IS)

1. Growth Potential (+2)
 2. Profit Potential (+3)

3. Productivity, capacity utilization (+3)

4. Resource Utilization (+2)

AVERAGE: (+10) ÷ (4) = (+2.5)

DIRECTIONAL VECTOR COORDINATES

X-AXIS
CA Average (-3.5) + IS Average (+2.5) = (-1)
Y-AXIS
FS Average (3) + ES Average (-2) = (+1)

ANALYSIS OF SPACE MATRIX

 Considering the well-entrenched data that has been tallied and

computed, Dunkin’ Donuts can be said to be situated in the second quadrant

bearing a conservative mark on the directional vector. This is due to the fact

that the chain is in a relatively close position with its competitors in different

areas of concern. Dunkin’ has managed to successfully prove its dominance in

the mid-tier price point where students and business persons who are in a

budget, can satisfy their wants. In the same vein, based from disputable

assumptions, it can be seen from how Dunkin’ responds to the trends that

customers imply, that it measures first the impact of that certain trend before

it executes its plans (i.e. the need for refurbishment on their furniture and

fixtures). Thus, being in a conservative state, it must be ready to integrate

market penetration by focusing more on their target market, product

development by having the means to introduce innovative products fit for this

generation, also integrating related diversification by forging partnerships with

convenience stores and establishing drive-thru systems. Overall, the directional

vector evinces that Dunkin’, having established its presence and being a

mature market, is seen to protect the company’s reputation by having minimal

steps to venture into new heights and propagate development.

INTERNAL – EXTERNAL MATRIX

THE IFE TOTAL WEIGHTED SCORE

Strong Average Weak

3.0 to 4.0 2.0 to 2.99 1.0 to 1.99

High I II III
 THE EFE TOTAL WEIGHTED SCORE
3.0 to 4.0

Medium
IV VI
2.0 to 2.99

Low
VII VIII IX
1.0 to 1.99

The IE weighted score landed on the 5 th quadrant which

when interpreted, incurs the HOLD AND MAINTAIN
position whereas, it will have to implore Market
Penetration and Product Development.

Analysis of IE Matrix

The IE Matrix of Dunkin’ Donuts implies a hold and maintain position

which ultimately translates to having a healthy capital and taking advantage of

possible opportunities to better serve its primordial desires. By far, Dunkin’

Donuts has already encountered a multitude of problems that has shaped its

strength as a market leader. In addition to the growing concerns of the public,

the inability of the chain to forestall health issues within their products has

made the revenues of the firm stagnant in the past years. The increasing

number of competitors have already paved way to lesser revenues and

competition has decreased the effectivity of the execution plan of the chain.

Furthermore, to combat these negative impacts, Dunkin’ really needs to

consider market penetration by leveraging more on its target market and

catering their needs (i.e students being one of them should answer their needs

for a socket or provide them a greater number of 24-hour stores around the

metro). In addition, it is high time for developing their products and deal with

what the consumers want.

GRAND STRATEGY MATRIX

WEAK COMPETITVE

RAPID MARKET GROWTH

QUADRANT II QUADRANT I
1. Market development 1. Market development
STRONG

2. Market penetration 2. Market penetration

3. Product development 3. Product development
4. Horizontal integration 4. Forward integration
5. Divestiture 5. Backward integration
6. Liquidation 6. Horizontal integration
7. Related diversification
 QUADRANT III
QUADRANT IV
1. Retrenchment
1. Related diversification
2. Related diversification
2. Horizontal
3. Horizontal
diversification
diversification
3. Unrelated
4. Unrelated
diversification
diversification
4. Joint ventures
C
POSITION

5. Liquidation
O
M
P
SLOW MARKET GROWTH
E
TI
TI
V

Analysis of GS Matrix

The fast-paced disposition of doughnuts on almost all branches

nationwide calls for a strong market presence of Dunkin’ Donuts in the

archipelago. Also, the increasing popularity of DD’s coffee line adds to the

impending growth of the company. It bears to say that as of the moment, it can

be deemed that Dunkin’ has rightfully solidify its place as a strong market

competitor which means it is culpable of inculcating steps such as but not

limited to 1.) Market Penetration 2.) Market Development 3.) Product

Development 4.) Forward Integration 5.) Backward Integration and 6.) Related

Diversification.

SUMMARY OF STRATEGIES
 STRATEGIES MATRICES TOTAL
SWOT SPACE IE GSM TOTAL
Market

Development
☼ ☼ ☼ 3

Market Penetration ☼ ☼ ☼ ☼ 4
Product

Development
☼ ☼ ☼ ☼ 4

Horizontal

Integration
- - - ☼ 1

Forward Integration - - - ☼ 0
Backward

Integration
- - - ☼ 0

Divestiture - - - - 0
Liquidation - - - - 0

Related Divesture - ☼ - ☼ 2

Unrelated Divesture - - - - 0
Retrenchment - - - - 0
Joint Ventures - - - - 0