STRATEGIC

MANAGEMENT
Rosita, S.Psi., M.M.
Pembahasan TM 6
◦ TOWS or SWOT Matrix
◦ SPACE Matrix
◦ BCG Matrix
◦ Grand strategy Matrix
◦ Quantitative Strategic Planning Matrix
 STRATEGIC
MANAGEMENT
TM 6 : Strategic Analysis And Choices (Cont..)
 Strategic Analysis An Choice

Process that reconciles strategic actions, market opportunities, corporate strengths and
resource, values of managers, legal requirements and social responsibilitis to select the best
mission, strategic, and set of strategic actions.
Frame work : Three Stage Decision Making

DECISIVE
INPUT STAGE
STAGE
MATCH STAGE
 • Matrik Evaluasi Faktor Eksternal (EFE) 
Input Stage • Matrik Evaluasi Faktor Internal (IFE) dan 
• Matrik Profil Kompetitif (CPM) 

Matching •
•
Strenghts–Weakness-Opportunities-Threats - SWOT
Strategic Position And Action Evaluation - SPACE 

Stage
• Matrik Boston Consulting Group (BCG) 
• Grand Strategic Matrix

Decision • Quantitative Startegic Planning Matrix - QSPM

Stage
 Matching Stage
TOWS or SWOT Matrix :
◦ a systematic identification of the factors and strategy that reflects the best match between them.
◦ An effective strategy maximizes the business’s strengths and opportunities but at the same time minimizes its weaknesses and
threats.

Space Matrix : Strategic Position & Action Evaluation matrix

◦ Focus on strategy formulation especially as related to the competitive position of an organization. There are 4 quadrants:
• Aggressive
• Conservative
• Defensive
• Competitive
 TOWS OR SWOT MATRIX
Internal Strength (S) Internal Weakness (W)
1. 1.
2. 2.
3. 3.
4. 4.
External Opportunities (O) SO (Maximize strength and WO (Minimizes weakness and
1. opportunity maximize opportunities)
2.
3.
4.

External Threats (T) Maximize strengths and minimize Minimize weakness and threats
1. threats
2.
3.
4.
 SPACE
MATRIX

◦ Space matrix analysis upon 2 internal and 2 external strategic dimensions. Space
matrix is based on 4 areas analysis : Financial Strength & Competitive
Advantage (Internal), Environmental stability & Industry strength (External)
 This matrix tell us that our
company should pursue an
aggressive strategy. It has a
strong competitive position . It
needs to use its internal
strengths to develop a market
penetration and market
development strategy.

1. Choose a set of variables : CA, IS, ES, and FS.

2. Rate Individual factors : CA & ES using rating scale from -6 (worst) to -1 (best). Rate IS & FS using
scale form +1 (worst) to +6 (best).
3. Find the average scores for the variables.
4. Plot values from step 3 for each dimension on the SPACE matrix
5. Add the average score for CA and IS. This must put on axis X. add the average score ES dan FS to
find final point on the axis Y.
6. Find intersection of X and Y. This line reveals the type of strategy the company should pursue.
Boston Consulting Group (BCG) Matrix
Two dimensional analysis on management of Strategic Business Units : Comparative business potential and the evaluation of environment.
- Relative Market Share : SBU sales this year leading competitor sales.
- Market Growth Rate : Industry sales this year – Industry sales last year

It has four cells as indicated, four types of SBU’s can be distinguished

1. Stars, represent business units having large market sharein fast growing industry will become a cash cow when industry matures.
2. Cash Cows, represent business units having large market share in a mature, slow growing industry. Its require little investment and generate
cash.
3. Question marks, represent business units having low relative market share and located in a high growth industry. Its require huge amount of
cash to maintain market share. If ignored, question marks become dogs while if huge investment is made, and they have potential becoming
stars.
4. Dogs,represent business having weak market shares in low-growth markets. Due to low market share, its face cost disadvantages. These
have weak market share because of high costs, poor quality, ineffective marketing, etc.
◦ Starts as question marks move into star when strategy succeed. Later become cash cows. Then finally die off or
turn into dogs toward the end of their life cycle.
Grand Strategy Matrix (GSM)
◦ Provide basic direction for
strategic actions toward achieving
long-term business objectives. Its
following 4 important elements :
Rapid market growth, slow market
growth, strong competition
position, and weak competition
position.
 Quantitative Strategic Planning Matrix
QSPM
◦ A HIGH LEVEL STRATEGIC MANAGEMENT APPROACH FOR EVALUATING POSSIBLE STRATEGIES.
◦ PROVIDES ANALYTICAL METHOD FOR COMPARING FEASIBLE ALTERNATIVE ACTIONS. ITS METHOD FALLS
WITHIN SO-CALLED STAGE 3 OF STRATEGY FORMULATION ANALYTICAL FRAMEWORK.
◦ APPROACH TO ATTEMPTS TO OBJECTIVELY SELECT THE BEST STRATEGY USING INPUT FROM OTHER
MANAGEMENTS TECHNIIQUE AND EASY COMPUTATION.
Step 5
Attractive Scores (As) Indicate How Each Factor Is Important Or Attractive To Each Alternative strategy.
as determined by examining each key internal external FACTOR SEPARATELY. The Range For
Attractiveness Scores Is 1 To 4 (Not Attractive To Highly Attractive).
Step 6
Calculate The Total Attractiveness Score. Its Defined As The Product Of Multiplying The Weights (Step 3)
By The Attractiveness Score (Step 4) In Each Row. The Higher The Total Attractiveness Score, The More
Attractive The Strategy Alternative Or Critical Factor.
Step 7
Callculate The Sum Total Attractiveness Score By Adding Total As In Each Strategy Column.
Higher Scores Point At A More Attractive Strategy, Considering All The Relevant External And Internal
Critical Factors That Should Affect The Strategic Decision.