SPACE MATRIX

Strategic Position and Action Evaluation Matrix

This will help the Security Bank Corp. to have an effective current strategic plan in business organization
and the essential actions need to be taken by the company after assessing the internal and external
factors.

Plotting Scores on the AXIS

The following shows the tally from a rating of 1 to 7, from worst to best, the analysis of each sub-factor
along with the components of the Security Bank Company.

Sub-Factors Score Average Axis Value

Industry Strength (+ X Axis)  
Growth Potential 5
Profit Potential 5
4.75
Financial Stability 5
Ease of entry into market 4
Competitive Advantage (-X Axis) -0.75
Stock Market Share 5
Brand & Image 7
-6.25
Customer Loyalty 7
Technological know-how 6
Financial Strength (+Y Axis)  
Return on Investment 5
Earnings per share 5
Liquidity 7 5.8
Working Capital 5
Cash Flow 7
0.65
Environmental Stability (-Y Axis)
Inflation Rate 4
Technology 6
-4.5
Barriers to entry into market 4
Risk involved in business 4

Conclusion: X- Axis = (IA + CA) 4.75 + (-6.25) = -0.75

Y- Axis = (FS + ES) 5.8 + (-4.5) = 0.65

Finalizing the Quadrant

The chart below shows that the Strongest Factor is the Competitive Advantage in the second quadrant
followed by the Financial Strength. On the other hand, the weakest factor shows the Environmental
Stability because of the risk involved in the nature of business alongside with the pandemic crisis we are
experiencing, it followed by the second weakness factor which is Industry Attractiveness. It is also
affected by the pandemic which mostly of the banks are struggling to be more profitable.

      FP Aggressive       
Conservative  7 
 
FINANCIAL STRENGTH
6 

      5       

      4       

X = -0.75     3       
Y = 0.65   
2 

  COMPETITIVE ADVANTAGE     1       

CP             
IP 
-7 -6 -5 -4 -3 -2  -1  1 2 3 4  5  6  7 

      -1   
INDUSTRY    
STRENGTH
      -2       

      -3       

      -4       

      -5       

     
ENVIRONMENTAL -6       

  STABILITY     -7       

Defensive      SP Competitive       

Financial Position (FP)      Stability Position (SP)       

Return on Investment (ROI)     Inflation Rate      

Earnings Per Share (EPS)      Technology       

Liquidity     Barriers to entry      

Working Capital     Risk involved in business      

Cash Flow          

Financial Position (FP) Average      Stability Position (SP) Average       

Competitive Position (CP)      Industry Position (IP)       

Stock Market Share     Growth Potential       

Brand & Image     Profit Potential      

Customer Loyalty     Financial Stability      

Technological know-how     Ease of Entry into Market      

 Competitive Position (CP)     Industry Position (IP) Average       
Average 

Analysis of 4 Quadrants-Strategic Positions

Quadrant 1 (Top Right)

Aggressive Position-The industry is interesting and the company shows a strong financial firm.

Quadrant 2 (Top Left)

Conservative Position- The industry is highly unstable but despite of that, the company is highly
liquid and financially stable.

Quadrant 3 (Bottom Left)

Defensive Position- Affected by the pandemic crisis, the industry is still struggling and the
company’s growth is also influenced by it. The company should focus more on the growth and
profitability.

Quadrant 4 (Bottom Right)

Competitive Position- The industry is most likely stable and the company maintains a great
image.

RAPID MARKET GROWTH

 SLOW MARKET GROWTH

GRAND STRATEGY MATRIX

Security Bank Corp. competes in a rapid growth industry with a strong competitive position. The firm
shows a stability and mild growth mainly because of the pandemic crisis. With this, market penetration
is an appropriate strategic plan. Since the company offers different financial market segments, focusing
on a specific segment can boost company’s growth. An alternative strategy is market development by
launching new products or offers to the customers like new credit offers which are in demand in today’s
pandemic setup. A last option to consider if plan did not work out is to diversify.