STRATEGIC

MANAGEMENT
ASSIGNMENT

PRESENTED TO:
MR. USMAN KEMAL
PRESENTED BY:

IRFAN AHMED
MUHAMMAD AAMIR
MUHAMMAD IFTIKHAR
MUMTAZ ALI
SHAHEER BOKHARI

BCG MATRIX

CASH COW
These units typically generate cash in excess of the amount of cash needed to maintain the
business. They are regarded as staid and boring, in a "mature" market, yet corporations value
owning them due to their cash generating qualities.

DOGS
These units typically "break even", generating barely enough cash to maintain the business's
market share. Though owning a break-even unit provides the social benefit of providing jobs and
possible synergies that assist other business units, from an accounting point of view such a unit is
worthless, not generating cash for the company.

QUESTION MARKS
They have a potential to gain market share and become stars, and eventually cash cows when
market growth slows. If question marks do not succeed in becoming a market leader, then after
perhaps years of cash consumption, they will degenerate into dogs when market growth declines.

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STARS
units with a high market share in a fast-growing industry. Stars require high funding to fight
competitions and maintain a growth rate. When industry growth slows, if they remain a niche
leader or are amongst market leaders its have been able to maintain their category leadership
stars become cash cows, else they become dogs due to low relative market share.

FUNKY TOWN BCG MATIRX

STARS

Skatting plateform
Funky burgers
Grovey sandwiches
Slushies
Cocktails
Fruit cocktails
Shrimp cocktail
Coffe bar

QUESTION MARKS
Kid meals
70 theme party
Professional meetings

CASH COWS

Plain chocolate donut

Chocolate donut
Chocolate filled donut
Boston cream
Raspberry filled donut
Blueberry filled donut
Kentucky cake
Java mocha cake
Chocolate fudge cake
Chocolate truffle cake
Coffee cake
Birthday parties

DOGS

Tiramisu
Baked cheese cake
Strawberry cheese cake
Double chocolate cheese cake

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IE MATRIX

The IE matrix can be divided into three major regions that have different strategy implications.
Cells I, II, and III suggest the grow and build strategy. This means intensive and aggressive
tactical strategies. Your strategies should focus on market penetration, market development, and
product development. From the operational perspective, a backward integration, forward
integration, and horizontal integration should also be considered.
Cells IV, V, and VI suggest the hold and maintain strategy. In this case, your tactical strategies
should focus on market penetration and product development.
Cells VII, VIII, and IX are characterized with the harvest or exit strategy. If costs for
rejuvenating the business are low, then it should be attempted to revitalize the business. In other
cases, aggressive cost management is a way to play the end game.

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SPACE STRATEGIC MATRIX

Internal Strategic position

External strategic position

Competitive: (CA)(-6 worst,-1 Best)

1.Product Quality
-2
2.Market share
-3
3.Customer Loyality
-2
4.Brand Image
-2
5.Manufacturing Exp
-3
6.Product lifecycle
-2
7.Technological know how -3
Average: -2.42
Total X score: 0.722
Financials:(FS)(+6 worst,+1 Best)

Industry:(IS)(+1 worst,+6 Best)

1.Easy to Entry
+3
2.Growth potential
+4
3.Financing availibility
+3
4.Resource Deployment
+4
5.Capital Intensity
+2
6.Profits
+3
7.Technological know how
+3
Average: 3.142

1.Return on assets
2.Liquidity
3.Growth in revenue
4.Leverage
5.Return on equity
6.Cash flows
7.Working capital
Average: 3.7142
Total Y score: 0.4292

1.Competitive price
2.Technological changes
3.Competitive Pressure
4.Demand Elasticity
5.Price Elasticity
6.Taxation
7.Rate of Inflation
Average: -3.285

+3
+5
+3
+5
+3
+3
+4

Environment:(ES)(-6 worst,-1 Best)

-3
-2
-4
-2
-4
-5
-3

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The SPACE matrix is constructed by plotting calculated values for the competitive advantage
(CA) and industry strength (IS) dimensions on the X axis. The Y axis is based on the
environmental stability (ES) and financial strength (FS) dimensions. The SPACE matrix can be
created using the following seven steps:
Step 1: Choose a set of variables to be used to gauge the competitive advantage (CA), industry
strength (IS), environmental stability (ES), and financial strength (FS).
Step 2: Rate individual factors using rating system specific to each dimension. Rate competitive
advantage (CA) and environmental stability (ES) using rating scale from -6 (worst) to -1 (best).
Rate industry strength (IS) and financial strength (FS) using rating scale from +1 (worst) to +6
(best).
Step 3: Find the average scores for competitive advantage (CA), industry strength (IS),
environmental stability (ES), and financial strength (FS).
Step 4: Plot values from step 3 for each dimension on the SPACE matrix on the appropriate axis.
Step 5: Add the average score for the competitive advantage (CA) and industry strength (IS)
dimensions. This will be your final point on axis X on the SPACE matrix.
Step 6: Add the average score for the SPACE matrix environmental stability (ES) and financial
strength (FS) dimensions to find your final point on the axis Y.
Step 7: Find intersection of your X and Y points. Draw a line from the center of the SPACE
matrix to your point. This line reveals the type of strategy the company should pursue.

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