STAGE 2

The Matching
Stage

FERRER, Jude Vincent M.

 STAGE 2 THE MATCHING STAGE

SWOT Matrix……………………………..………………………………………………………..……5
SWOT Matrix Definition………………………………………………………………..6
SWOT Matrix Methodology Steps…………………………………………………7
SWOT Matrix example of UNILEVER.…………………………………………...8
Table of Contents
SWOT Matrix Insights…………………….……………………………………………..9

SPACE Matrix……………………………..……………………………………………………………10
SPACE Matrix Definition………………………………………………………………11
SPACE Matrix Methodology Steps………………………………………………12
SPACE Matrix example of UNILEVER.………………………………………….13
SPACE Matrix example of UNILEVER.…………………………….14
SPACE Matrix example of UNILEVER.…………………………….15
SPACE Matrix Insights………………………………………………………………..16
 BCG Matrix…….…………………………..………………………………………………………..…17
BCG Matrix Definition…………………………………………………………………18
BCG Matrix Methodology Steps…………………………………………………19
BCG Matrix example of UNILEVER.…………………………………………….20
BCG Matrix Insights…………………….……………………………………………..21
Table of Contents
IE Matrix……………………………..………………………………………………………..……..…22
IE Matrix Definition……………………………………………………………………23
IE Matrix Methodology Steps…………………………………………………….24
IE Matrix Methodology Steps……………………………………….25
IE Matrix example of UNILEVER.……………………………………………….26
IE Matrix Insights…………………………..…………….…………………………..27
 GSM Matrix…….…………………………..………………………………………………………..…28
GSM Matrix Definition……………………………………………………………..…29
Table of Contents GSM Matrix Methodology Steps…………………………………………………30
GSM Matrix Methodology Steps……………………………………31
GSM Matrix example of UNILEVER.…………………………………………….32
GSM Matrix Insights…………………….…………………………………………....33
SWOT Matrix
SWOT Matrix • Gives sets of strategies by analyzing internal capacity of the
Definition company and external environment of the industry. It is an
important matching tools that helps managers develop and
constructing 4 types of strategies which are: SO, WO, ST and WT.

• Matching key external and internal factors is the most difficult

part of developing a SWOT Matrix.
 SWOT Matrix STEPS

List the firm key external List the firm key external List the firm key internal List the firm key internal
opportunities threats strengths weaknesses

Match internal strengths

Match internal weaknesses Match internal strength Match internal weaknesses
with external opportunities
with external opportunities with external threats and with external threats and
and record the resultant SO
and record the resultant record the resultant ST record the resultant WT
strategies in appropriate
WO strategies. strategies. strategies.
cell.
SWOT MATRIX Of Unilever
 SWOT Matrix does not reveal the steps which need to be
followed in order to achieve competitive advantage. The matrix
SWOT Matrix Insights does not show how to implement the strategies successfully.

Organizations always face challenging competitive environment.

Due to continuous improvements, it becomes difficult for the
organizations to reveal the dynamic of a competitive
environment in a single matrix.
Space Matrix
 Refer to the strategic position and action evaluation matrix.

Is an important strategic management tool used for the purpose of determining

the type of a strategy a company should undertake.

The top management of an organization could easily identify the most appropriate
Space Matrix strategy for a given enterprise. It is four-quadrant framework indicates whether
aggressive, conservative, defensive or competitive strategies are most appropriate
Definition for a given organization.

The axes of the SPACE Matrix represent 2 internal dimensions (financial position-FP
and competitive position- CP) and 2 external dimensions (stability position-SP and
industry position-IP)

These 4 factors perhaps the most important determinants of an organization’s

overall strategic position.
 Select a set of variables to define financial position (FP), competitive position (CP),
stability position (SP) and industry position (IP).

Assign a numerical value ranging from +1 (worst) to +7 (best) to each of the

variables that make up the FP and IP dimension. Assign a numerical value ranging
from -1 (best) to -7 (worst) to each of the variables that make up the SP and CP
dimensions. On the FP and CP axes, make comparison to competitors. On the IP
and SP axes, makes comparison to other industries.

Space Matrix Compute an average score for FP, CP, IP and SP by summing the value given to the
variables of each dimension and then by dividing by the number of variables
STEPS included in the respective dimension.

Plot the average score for FP, IP, SP and CP on the appropriate axis in the space
matrix.

Add the 2 scores on the x-axis and plot the resultant point on x. add the 2 scores
on the y-axis and plot the resultant point on y. plot the intersection of the new xy
point.

Draw a directional vector from the origin of the SPACE matrix through the new
intersection point. This vector reveals the type of strategies recommended for the
organization: aggressive, competitive, defensive or conservative.
Space Matrix Of
Unilever
Space Matrix Of
Unilever
Space Matrix Of Unilever
 Based on the Strategic Position and Action Evaluation
(SPACE) Matrix it can be concluded that Unilever
Indonesia located in Aggressive directional vector of
Space Matrix Profiles.
Insights Strategies that can be taken :
* Integration Strategies (forward, backward, and
horizontal integration)
* Intensive Strategies (market penetration, market
development, and product development)
* Diversification strategy or combination
BCG Matrix
 Are designed specifically to enhance a multidivisional firm’s
effort to formulate strategies. Allows a multidivisional
BCG Matrix organization to manage its portfolio of businesses by examining
Definition the relative market share position and the industry growth rate
of each division relative to all other divisions in the
organization.
 Choose the product The choice of the unit impacts the whole analysis.
Therefore, defining the unit is necessary.

Define the market An incorrectly defined market can lead to a poor

classification of products.
BCG Matrix
STEPS
Calculate the relative market share We use Relative Market Share in a BCG
matrix, comparing our product sales with the leading rival’s sales for the same
product.

Find out the market growth rate The industry growth rate can be easily found
through free online sources.

Draw the circles on a matrix The x-axis shows the relative market share and
the y-axis shows the industry growth rate.
BCG Matrix Of Unilever

UNILEVER INDONESIA has 2 division which is:

Home & personal care has the biggest

contribution up to 78% of the total revenue
and 22% of growth rate.

Food & ice cream contribution to 22% of total

revenue and 19% of growth rate.
 • It is simple and easy to understand.

• It helps you to quickly and simply screen

the opportunities open to you, and helps
BCG Matrix you think about how you can make the
Insights most of them.

• The construction of BCG Matrix requires a

lot of information, actual facts and figures.
IE Matrix
 The IE Matrix is a strategic management
tool which is used to analyze the current
position of the divisions and suggest the
strategies for the future.
IE Matrix
Definition
The Internal-External (IE) Matrix is based
on an analysis of internal and external
business factors which are combined into
one suggestive model.
 01- There are two key dimensions which provide the
basis of the IE matrix. These dimensions are EFE matrix
& IFE matrix because all the input data is obtained from
these two matrices in order to proceed to the IE matrix.

02- The total weighted score of IFE matrix are plotted on

the x-axis while on the y-axis the total weighted score of
IE Matrix STEPS EFE matrix is plotted.

03- The x-axis portion of the IE matrix includes the total

weighted score of IFE matrix. The total weighted score
from 1.0 to 1.99 indicates that the internal position of
the organization is weaker. The total weighted score of
2.0 to 2.99 represents that the internal position of
organization is in average. While the total weighted
score of 3.0 to 4.0 indicates that the internal position of
the organization is stronger enough.
 04- The y-axis portion of IE matrix includes the total weighted
score of EFE matrix. The total weighted score of 1.0 to 1.99 is
represents the low level. The medium range is represented by
the score 2.0 to 2.99. While the total weighted score of 3.0 to
4.0 is regarded as high.
IE Matrix STEPS
05- There are three main regions of IE matrix and each region
indicates different actions to be taken. These three regions are
as follow.

1. Grow & Build Region which is specified through I, II & IV

cells of the IE matrix.
2. Hold & Maintain Region which is covered by the III, V or VII
cells of the IF matrix.
3. Harvest or divest region which is covered through the VI,
VIII or IX cells of the IE matrix.
IE Matrix Of
Unilever

EXPLANATION
The IFE total weighted score for Unilever is 3.31 and the EFE total weighted
score is 3.34. Therefore, our IE matrix falls more around ‘I’ cell.

The company should adopt Grow and Build Strategies. We recommend Market
Development and Product Development for UNILEVER. UNILEVER can introduce
existing products to new geographical area that are rural markets and markets
of developing nations. On the other hand UNILEVER can also modifying its
existing products and introduce variants in order raise its market share
 • Strategists in multidivisional firms often develop both
the BCG Matrix and IE Matrix in formulating alternative
strategies.
IE Matrix Insights • A common practice is to develop a BCG Matrix and an
IE Matrix for the present and then develop projected
matrices to reflect expectations of the future.
• This before-and-after analysis forecasts the expected
effect of strategic decisions on an organization’s
portfolio of divisions.
GSM Matrix
 Grand strategy matrix is the instrument for creating
GSM Matrix alternative and different strategies for the organization. All
Definition companies and divisions can be positioned in one of the
Grand Strategy Matrix's four strategy quadrants.

The Grand Strategy Matrix is based on two dimensions:

competitive position and market growth.
 Setting up Quadrants
You will have four quadrants for your grand strategy matrix. The first
represents strategies for maintaining rapid growth when you have a
strong competitive position. The second offers rapid-growth strategies
when you have a weak competitive position. The third provides
strategies that relate to a weak competitive position and slow growth.
GSM Matrix The final quadrant lists strategies appropriate to strong competitive
STEPS attributes with slow market growth.
Purpose of Your Strategies
The strategies you list in the first quadrant should be those that will
maintain your competitive edge and help you continue to create rapid
growth. The strategies in the other three quadrants represent the
actions you would take to get yourself into the best position, which is
quadrant No. 1. You may list the same strategy in several quadrants, but
some may appear in only a single quadrant.
 Suggestions for Strategies
Your strategies will be unique to your business, but some suggestions
include “increasing market share, finding new markets, developing new
products, selling assets” and “selling the business.”
GSM Matrix
STEPS

Utilizing Strategies
Having a list of possible strategies for each of the four conditions
represented by the matrix will help you act quickly to keep your business
growing.
GSM Matrix Of
Unilever

Based on its competitive position and market growth.

UNILEVER lies in Q1 which represents excellent strategic
position of company. For these firms, continued
concentration of current market and products is an
appropriate strategy. UNILEVER has abundant resources
so backward, forward and horizontal integration may also
prove effective.
 GSM model allows better implementation of strategy
because of the intensified focus and objectivity. It conveys a
lot of information about corporate plans in a simplified
GSM Matrix format. However, Grand Strategy Matrix may not be as
Insights simple as it seems, upon application to real life due to the
unforeseen factors and also complications in the business
world. In addition, the relationship between market share
and profitability differs in different industries.