INDIVIDUAL ACTIVITY

Answer the following questions:

1. Cite three (3) importance of using matrix analysis in Strategic Management.

Making better decisions in strategic management is possible through the application of the matrix
analysis. In order to pinpoint the most pressing problems and come up with the most effective solutions,
managers might use this technique to consider many elements and their interactions. For me, the three
importance of using matrix analysis in Strategic Management are:

• It can pinpoint the most crucial problems. Businesses may quickly identify which problems are
most crucial and which ones are less urgent by evaluating data in matrixes. This can assist
companies in concentrating their efforts on the most crucial problems;
• Find the best solution. Matrix analysis can be used to solve issues in a variety of ways. The
greatest way to find the best answer is to try out many approaches and evaluate which one
works best for the current issue. Matrix analysis cannot handle all issues in a single flawless
manner;
• And make better decisions. Making better decisions can be challenging, but with the help of
matrix analysis we can make wise decisions. A matrix, or grid, is used in matrix analysis to
organize the data being analyzed. This approach can be used to evaluate various choices and
choose the best one depending on the information.

2. Identify three (3) appropriate matrices to be used by a challenger company and briefly explain use
of each matrix.

• The challenger company can use the grand strategy matrix to guide their strategic choices so
they can compete with or even outperform other businesses. GSM matrix serves as a framework
for assessing many alternative strategy and picking the optimal course of action. Challenger
companies might benefit from using the grand strategy matrix since it considers both internal
and external elements that may have an impact on a business. The grand strategy matrix has
four quadrants and each quadrant has a different type of strategy that can be used by
companies. Quadrant 1 - Market penetration is a business strategy that focuses on boosting
sales of its current items in its current markets. If the challenger company is in this position, they
can use the strategies to maintain in this quadrant. Quadrant 2 - Market development is where
company uses its current products to enter new markets. Quadrant 3 - Product development is a
strategy where a business creates new products for its existing markets. This quadrant might be
the worst quadrant so if they are here, they must make changes in order for them to cope up
and improve the performance of the company. And quadrant 4 - Diversification is a strategy
where a business expands into new markets with new products.
• They can also use the SWOT matrix. We are familiar with the meaning of SWOT which stands for
Strengths, Weaknesses, Opportunities, and Threats. To determine the precise strategy
challenger companies will employ, the SWOT matrix compares internal and external aspects.
The four categories of strategy in this matrix are SO strategy (Utilizing a company's internal
strengths to seize possibilities outside the company), WO strategy (addressing internal issues by
 utilizing opportunities from outside sources), ST strategy (Utilize a company's advantages to
prevent or lessen the effects of external threats) and WT strategy (defensive strategies designed
to strengthen internal weakness and limits external threats.) this strategies can be used by
challenger company in order for them to maximize positive effects in the company and minimize
negative effects.
• Lastly, The Quantitative strategic planning matrix (QSPM). The QSPM is based on four key
factors: objectives, alternatives, criteria, and weights. Objectives are the goals that the company
seeks to accomplish. Alternatives are another courses of action that the company could do
accomplish its goals. Criteria are the variables that will be considered in evaluating the
alternatives. Weights are assigned to the criteria to indicate their importance. This matrix can
help challenger companies because this matrix used to calculate a score for each alternative. It
will help them decide which strategy they need the most. The alternative with the highest score
is the one that should be chosen.

3. Cite three (3) benefits of the subject Strategic Management in your degree program.

• Studying Strategic Management in Accountancy provides students with the skills and knowledge
necessary to effectively manage a business. This can help us with our future careers, since most
people in the business industry often ask for advice from accountants. We will be able to apply
these skills in real situation in the future.
• I learned how to manage companies to achieve their goals, both short-term and long-term. This
includes developing strategies, setting goals, and making decisions that will help the company
achieve its objectives.
• One more benefit to learning this topic is that it hones students' critical thinking skills, which is
key for success in our analytical accounting program.