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
TITLE

PAGE
 PLAGIARISM
UNDERTAKING
 F. SWOT Strategies
G. Strategic Position & Action
CONTENTS: Evaluation (SPACE) Matrix
A. Case Abstract
H. Grand Strategy Matrix (GSM)
B. Vision Statement
C. Mission Statement
I. The Internal-External (IE)
D. External Audit
Matrix
- Competitive Profile J. Quantitative Strategic Planning
Matrix (CPM)
Matrix (QSPM)
- Opportunities
- Threats
K. Recommendation
- External Factor L. Implementation
Evaluation (EFE) Matrix
E. Internal Audit
M. References
- Strengths
- Weaknesses
- Internal Factor Evaluation (IFE)
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
company has the chance to take
• OPPORTUNITIES
advantage of and potentially increase
their market share.
 Threats are any external factor which could
potentially negatively impact the company
• THREATS
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
STRATE
GIES
G. SPACE
MATRIX
STRATEGIC
POSITION AND
ACTION
EVALUATION
MATRIX
 STEPS TO DEVELOP A SPACE
MATRIX
• 1. Select a set of variables to define financial position
• 5. Add the two scores on the x-axis
(FP), competitive position (CP), stability position (SP),
and industry position (IP). and plot the resultant point on X.
• 2. Assign a numerical value ranging from +1 (worst) Add the two scores on the y-axis and
to +7 (best) to each of the variables that make up the FP
plot the resultant point on Y. Plot the
and IP dimensions. Assign a numerical value ranging
from –1 (best) to –7 (worst) to each of the variables that intersection of the new xy point.
make up the SP and CP dimensions.

• 3. Compute an average score for FP, CP, IP, and SP.

• 4. Plot the average scores for FP, IP, SP, and CP on the • 6. Draw a directional vector from
appropriate axis.
the origin of the SPACE Matrix
• 5. Add the two scores on the x-axis and plot the
resultant point on X. Add the two scores on the y- through the new intersection point.
axis and plot the resultant point on Y. Plot the
intersection of the new xy point.
 H.
GRAND
STRATE
GY
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 • 4. Determine the Attractiveness

external opportunities and threats Scores (AS).
and internal strengths and
• 5. Compute the Total
weaknesses in the left column.
Attractiveness Scores.
2. Assign weights to each key
• 6. Compute the Sum Total
external and internal factor.
Attractiveness Score.
3. Examine the Stage 2 (matching)
matrices and identify alternative
strategies that the organization
should consider implementing.
 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.
IMPLEMENT
ATION
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.