Format & Content

of the
Strategic Management Paper
(Prepared by Buenconsejo, R., 2021)

Faculty:
Prof. Johnelyn G. Tangpus
Guidelines:
• Short bond paper
• 1 inch margin on all sides
• Double spaced
• Font size is 12
• Font type (Arial, Century Gothic, Cambria)
• Font color is black
• Page number at the lower right
Title
Page
 Plagiarism
Undertaking
 Contents:
A. Case Abstract F. SWOT Strategies
B. Vision Statement G. Strategic Position & Action
C. Mission Statement Evaluation (SPACE) Matrix
D. External Audit H. Grand Strategy Matrix (GSM)
- Competitive Profile Matrix (CPM) I. The Internal-External (IE) Matrix
- Opportunities J. Quantitative Strategic Planning
- Threats Matrix (QSPM)
- External Factor Evaluation (EFE) K. Recommendation
Matrix
L. Implementation
E. Internal Audit
M. References
- Strengths
- Weaknesses
- Internal Factor Evaluation
(EFE) Matrix
A. ABSTRACT
In not more than 10
sentences introduce the
Company. Write when was
it established, what
products and services it
offers, milestones and
breakthroughs, and other
vital information. End with
the current gross sales and
what it still aspires or what
it is facing (positive or
negative) at this time.
B. VISION STATEMENT
Copy verbatim
C. MISSION STATEMENT
• Actual • Proposed
make your own
and label the 9
components
D. EXTERNAL AUDIT

• Competitive Profile Matrix

• Opportunities
• Threats
• EFE Matrix
• Analysis (Narrative)
• Competitive Profile Matrix
Identifies firm's major competitors and their
strengths & weaknesses in relation to a sample
firm’s(your company) strategic positions

Critical success factors include internal and

external issues
An Example Competitive Profile Matrix
▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬
Company 1 Company 2 Company 3____________
Critical Success
Factors_ ___ _ Weight Rating Score Rating Score Rating Score____ ____
Advertising 0.20 1 0.20 4 0.80 3 0.60
Product Quality 0.10 4 0.40 3 0.30 2 0.20
Price Competitiveness 0.10 3 0.30 2 0.20 1 0.10
Management 0.10 4 0.40 3 0.20 1 0.10
Financial Position 0.15 4 0.60 2 0.30 3 0.45
Customer Loyalty 0.10 4 0.40 3 0.30 2 0.20
Global Expansion 0.20 4 0.80 1 0.20 2 0.40
Market Share 0.05 1 0.05 4 0.20 3 0.15
Total 1.00 3.15 2.50 2.20

Note: The ratings values are as follows: 1 = major weakness, 2 = minor weakness, 3 = minor strength, 4 =
major strength. As indicated by the total weighted score of 2.50, Competitor 2 is weakest. Only eight
critical success factors are included for simplicity; this is too few in actuality.
Market Share
Product Quality
Clear strategic direction
Customer service
Customer loyalty
Brand reputation
Customer satisfaction
Financial position
Cash reserves
Profit margin
Inventory turnover
Employee retention
Income per employee
Innovations per employee
Cost per employee
R&D spending
Strong patent portfolio
New patents per year
Revenue per new product
Successful new introductions
Union relations
Skilled workforce
Location of facilities
Production capacity
Added product features
Price competitiveness
Low cost structure
Variety of products
Complementary products
Level of product integration
Successful product promotions
Superior marketing capabilities
Superior advertising capabilities
Superior IT capabilities
Size of advertising budget
Effectiveness of sales distribution
Employee satisfaction
Effective planning and budgeting
Variety of distribution channels
Power over distributors
Power over suppliers
Access to key suppliers
Efficient supply chain
Supply chain integration
On time delivery
Strong online presence
Effective social media
management
Experience and skills
in e-commerce
Management qualification
and experience
Innovation in products and
services
Innovative culture
Efficient production
Lean production system
Strong supplier network
Strong distribution network
Product design
Level of vertical integration
Effective corporate social
responsibility programs
Sales per outlet
Parent company support
 Opportunities are areas in which the

• Opportunities company has the chance to take

advantage of and potentially
increase their market share.
 Threats are any external factor which could
• Threats potentially negatively impact the company
and reduce their market share.
• External Factor Evaluation
(EFE) Matrix

1. List 20 key external factors

2. Weight from 0.0 to 1.0
3. Rate the effectiveness of current strategies
from 1-4
4. Multiply weight * rating
5. Sum weighted scores
Rating indicates how effective the firm’s current strategies respond to the factor.
1 = the response is poor. 2 = the response is below average. 3 = above average. 4
= superior. Weights are industry-specific.
E. INTERNAL AUDIT

• Strengths
• Weakenesses
• IFE Matrix
• Analysis
• Strengths
• Weaknesses
• Internal Factor Evaluation
(IFE) Matrix
1. List key internal factors as identified in the internal-
audit process.
2. Assign a weight that ranges from 0.0 (not important)
to 1.0 (all-important) to each factor.
3. Assign a 1-to-4 rating to each factor to indicate
whether that factor represents a strength or
weakness.
4. Multiply each factor's weight by its rating to determine
a weighted score for each variable.
5. Sum the weighted scores for each variable to
determine the total weighted score for the
organization.
The numbers range from 4 to 1, where 4 means a major strength, 3 –
minor strength, 2 – minor weakness and 1 – major weakness.
 F. SWOT
STRATEGI
ES
G. SPACE
MATRIX
Strategic
Position and
Action
Evaluation
Matrix
Steps to Develop a SPACE
MATRIX
• 1. Select a set of variables to define financial • 5. Add the two scores on the x-
position (FP), competitive position (CP), stability
position (SP), and industry position (IP). axis and plot the resultant point
• 2. Assign a numerical value ranging from +1 on X. Add the two scores on the
(worst) to +7 (best) to each of the variables that y-axis and plot the resultant
make up the FP and IP dimensions. Assign a point on Y. Plot the intersection
numerical value ranging from –1 (best) to –7
(worst) to each of the variables that make up of the new xy point.
the SP and CP dimensions.
• 3. Compute an average score for FP, CP, IP, and
SP. • 6. Draw a directional vector
• 4. Plot the average scores for FP, IP, SP, and CP from the origin of the SPACE
on the appropriate axis.
Matrix through the new
• 5. Add the two scores on the x-axis and plot
the resultant point on X. Add the two scores intersection point.
on the y-axis and plot the resultant point on Y.
Plot the intersection of the new xy point.
H. Grand
Strategy
Matrix
Grand Strategy Matrix
• Quadrant I
• continued concentration on
current markets (market
penetration and market
development) and products
(product development) is an
appropriate strategy
• Quadrant II
• unable to compete effectively
• need to determine why the firm's
current approach is ineffective
and how the company can best
change to improve its
competitiveness
• Quadrant III
• must make some drastic
changes quickly to avoid further
decline and possible liquidation
• Extensive cost and asset
reduction (retrenchment)
should be pursued first
• Quadrant IV
• have characteristically high
cash-flow levels and limited
internal growth needs and often
can pursue related or unrelated
diversification successfully
I. Internal-External (IE) Matrix
J. Quantitative Strategic Planning Matrix
(QSPM)

• Quantitative Strategic Planning Matrix (QSPM)

• objectively indicates which alternative strategies are

best
• uses input from Stage 1 analyses and matching results
from Stage 2 analyses to decide objectively among
alternative strategies
 Steps in a QSPM
1. Make a list of the firm's key
external opportunities and
threats and internal strengths
and weaknesses in the left
column.
2. Assign weights to each key
external and internal factor.
3. Examine the Stage 2
(matching) matrices and
identify alternative strategies
that the organization should
consider implementing.
• 4. Determine the
Attractiveness Scores
(AS).
• 5. Compute the Total
Attractiveness Scores.
• 6. Compute the Sum
Total Attractiveness
Score.
 K. Recommendations
Essay:

Discuss what strategy will you be implementing

based on the results of the various analysis made by
the proponents.
Recommendation/s

• Discuss its benefits to the organization and what

problems would be corrected or avoided;
• Discuss the feasibility of the proposed strategies;
• Make a formal recommendation regarding the
alternative that is best supported by the paper;
• General statement about the nature and timing of an
evaluation plan that would be used to determine the
effectiveness of the proposed strategies or action plan.
• Final Recommendation and Conclusion (at least three
paragraphs)
• This is the overall view of the case. All the salient
points from A to J.
L.
Implementatio
n
M. Illustrations (if needed)
 N. References
• 1. State the name of the author, article title, the
name of the journal/title of the article, volume
number, year of publications as well as the page
numbers.
• 2. Alphabetical order is followed.
• 3. Observe APA Format in citing your references.