II. Threats-Opportunities-Weaknesses-Strengths (TOWS) Matrix.

STRENGTHS- S WEAKNESSES- W
1. 1.
2. 2.

OPPORTUNITIES- O SO STRATEGIES WO STRATEGIES

1. 1. 1.
2. 2. 2.

THREATS- T ST STRATEGIES WT STRATEGIES

1. 1. 1.
2. 2. 2.
III. Strategic Position and Action Evaluation (SPACE) Matrix. Enter the five factors you
wish to use each for FP, SP, CP, and IP and the corresponding rating each factor should
receive. Use the factors provided here, but try to determine key factors related to your
business and industry in the same manner you did with CPM. Compute the rating scale,
write Y and Y points and then plot the two points in the space provided.

Internal Strategic Position External Strategic Position

Financial Strength (FS)
Risk involve in business
Debt to equity ratio
Working Capital Condition
Leverage
Ease of exit from market
Cash flow statement
Return on Investment
Financial Strength Average
Environmental stability (ES)
Impact of technology
Price elasticity of demand
Political situation
Demand variability
Price range of competing products
Rate of inflation
Environmental stability Average

Competitive Advantage (CA) Industry Strength (IS)

Access to the Market Demand and supply factors
Market Share Resource utilization
Quality of product and services Growth potential
Product life cycle Profit potential
Customer loyalty Financial stability
Capacity, location and layout Technological know-how
Technological know-how Productivity, capacity, utilization
Backward and forward integration Capital intensity
Ease of entry into market
Competitive Advantage Average Industry Strength Average
IV. Boston Consulting Group (BCG) Matrix. Using the relative market position and the
industry sales growth rate try to situate your business in the space provided. Make sure to
review first all the inputs in the strengths, weaknesses, opportunities and threats analysis.

Relative Market Share Position

High medium low

STAR QUESTION MARK

CASH COW DOG

 V. Internal- External(IE) Matrix. Using the scores from the EFE and IFE matrices of your
business plot those points here in the space provided. Now you have the idea on strategies
your business may use.
TOTAL IFE SCORE

1 4 2 3 3 2 4 1

GROW AND
BUILD
T
O
T
A
L HOLD AND
EF MAINTAIN
E
SC
O
R
E
HARVEST OR
DIVEST
VI. Grand Strategy Matrix. Using as criteria the market growth and competitive position,
situate your business in this matrix. The use of strategies shall depend what quadrant your
business will be located. In table 15, all strategies for each quadrant are contained. Write
the applicable strategies for your business.

VII. Quantitative Strategic Planning Matrix (QSPM). From the matching tools starting
from Threats-Opportunities-Weaknesses-Strengths (TOWS) Matrix, the Strategic Position
and Action Evaluation (SPACE) Matrix, the Boston Consulting Group (BCG) Matrix, the
Internal-External (IE) Matrix, the Grand Strategy Matrix you may now pick your choices of
strategies you may recommend for your business to use. Then make an analysis having as
pattern the discussion in this chapter. The highest score is the best recommendable
strategy.
STRATEGIC ALTERNATIVES
A B C D
Weigh AS TAS AS TAS AS TAS AS TAS
t
OPPORTUNITIES
1
2
3
4
5
THREATS
1
2
3
4
5
Total Opportunities/ Threats 1.00
STRENGTHS
1
2
3
4
5
WEAKNESSES
1
2
3
4
5
Total Strength and Weaknesses
AGGREGATE TAS