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Semester “Fall 2010”

Strategic Management (MGT603)


Assignment No. 2 Marks: 20

Global Aim Limited (GAL) is the pioneer manufacturer of electrical goods in


Pakistan. Mr. Mohsin, CEO of the company has always been contributing towards
the advancement and development of the engineering sector in Pakistan by
introducing a range of quality electrical equipments and home appliances. He has
also produced hundreds of engineers, skilled workers and technicians through its
apprenticeship schemes and training programmes. His vision is to produce best
quality of products on affordable prices that’s why the company is having high
market growth and good competitive position in the market. But still he wants to
know the current strategic position of his company whether aggressive,
conservative, defensive or competitive strategies are most appropriate for his
company. He has called a meeting with all senior strategic managers to talk on this
issue and suggested to develop a SPACE Matrix. They have included the following
factors identified earlier in EFE and IFE Matrices which should be considered in
developing the SPACE Matrix.

FINANCIAL STRENGTH

ROA =4
Profitability =3
Debt-Equity Ratio =4
Liquidity =2

Total= 13/4 = 3.25

INDUSTRY STRENGTH

Ease of entrance =2
Cost of new entrance =4
Saturation level =5
Market conditions =4

Total = 15/4 = 3.75


COMPETITIVE ADVANTAGE

Innovation = -1
Strong culture = -2
Global reach = -4
Leadership = -2

Total= -9/4 = 2.25

ENVIRONMENTAL STABILITY

Political stability = -2
Infrastructure available = -1
Incentives provided = -3
Govt. Regulations = -2

Total = -8/4 = 2

SPACE Matrix
FS
Conservative Aggressive
+6
+5
+4 3.25
+3
+2
-2.25 +1
3.75
CA IS
-6 -5 -4 -3 -2 -1 -1 +1 +2 +3 +4 +5 +6

-2 -2.00

-3

-4

Defensive -5 Competitive
-6
ES
REQUIRED:

Being a strategic Manager of Global Aim Limited you are required to:

A. Draw a directional vector from the origin of the SPACE Matrix


through the new insertion point and identify which one is the
most important determinant (aggressive, conservative,
defensive or competitive) of GAL’s overall strategic position?
(10 Marks)

B. Suggest most appropriate strategies to the company according


to the selected quadrant. (10 Marks)

NOTE: You are encourage to use the SPACE Matrix Template in word file provided in
VULMS download section to draw a directional vector in the appropriate quadrant or you can
also develop SPACE Matrix by yourself.

SPACE MATRIX TEMPLATE:

SPACE Matrix
FS
Conservative Aggressive
+6
+5
+4
+3
+2
+1

CA IS
-6 -5 -4 -3 -2 -1 -1 +1 +2 +3 +4 +5 +6

-2
-3

-4

Defensive -5 Competitive
-6
ES
Important Tips
1. This Assignment can be best attempted from the knowledge acquired after
watching video lecture no. 23 to lecture no. 32 and reading handouts as well as
recommended text book.
2. Video lectures can be downloaded for free from www.youtube.com/vu.
3. Do not write more than 300 words and write down the solution in a bulleted form
only.
4. If cheated or copied from other students, internet, books, journals or
blogs, will be straight away marked ZERO.

Schedule
Opening Date and Time January 12 , 2011 At 12:01 A.M. (Mid-Night)
Due Date and Time January 17 , 2011 At 11:59 P.M. (Mid-Night)
Note: Only in the case of Assignment, 24 Hrs extra / grace period after the above mentioned
due date is usually available to overcome uploading difficulties which may be faced by the
students on last date. This extra time should only be used to meet the emergencies and above
mentioned due dates should always be treated as final to avoid any inconvenience.
Important Instructions:
Please read the following instructions carefully before attempting the assignment solution.

Deadline:
• Make sure that you upload the solution file before the due date. No
assignment will be accepted through e-mail once the solution has been
uploaded by the instructor.

Formatting guidelines:
• Use the font style “Times New Roman” and font size “12”.
• It is advised to compose your document in MS-Word 2003.
• Use black and blue font colors only.

Solution guidelines:
• Use APA style for referencing and citation. For guidance search “APA
reference style” in Google and read various website containing
information for better understanding or visit
http://linguistics.byu.edu/faculty/henrichsenl/apa/APA01.html
• Every student will work individually and has to write in the form of an
analytical assignment.
• Ideally your answer should be within 200 to 250 words.
• Give the answer according to question, there will be negative marking
for irrelevant material.
• For acquiring the relevant knowledge don’t rely only on handouts but
watch the video lectures and use other reference books also.

Rules for Marking


Please note that your assignment will not be graded or graded as Zero (0) if:
• It has been submitted after due date
• The file you uploaded does not open or is corrupt
• It is in any format other than .doc (MS. Word)
• It is cheated or copied from other students, internet, books, journals etc…