Strategic Management

“SPACE MATRIX”

Submitted To: Sir Naveed Muhammad Khan

Submitted By: Shayan Khan (20202-27032)
 Internal Strategic Position External Strategic Position

Y Axis Financial Strength (FS) Environmental Stability

 ROI = +1 (ES)
 ROE= +1  Barriers to entry= -1
 Profitability Ratios=  Inflation= -5
+2  Technology change= -3
 Activity ratios= +3  Competitive pressure=-
 Leverage Ratios= +1 4
FS+ES= 1.66+ (-2.8) =  Liquidity Ratio= +2  Demand variability= -1
-1.14  Average= +1.66  Average= -2.8

Competitive Advantage Industry Strength (IS)

X Axis (CA)  Growth Potential= +3
 Market Share= -1  Market Entry= +1
 Customer Loyalty=-3  Technology
 Direct Flight (point to Knowhow= +2
point)=-1  Financial Stability= +2
 Huge and Young  Fuel Price Stability=
Fleet=-2 +1
 Service Quality =-3  Human resource
 Management availability=+2
CA+IS= (-2.33+1.71) = Experience  Government
-0.62 (Professionalism)=-4 Support=+1
 Average = -2.33  Average= 1.71
 Conservative Aggressive

+6

+4

+2

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

(-0.62,-1.14) 3.00) -4

-6 Competitive
Defensive

The graph indicates the PIAC to be in Third Quadrant which is defensive strategy quadrant
Defensive Strategies
In the defensive quadrant the company may use one of the following strategies rectifying internal
weaknesses and avoiding external threats.
STRATEGIES.
Defensive strategies include
 Retrenchment
 Divestiture
 Liquidation
 Concentric diversification.