1.space matrix + value chain

8/10/2019 1.SPACE MATRIX + VALUE CHAIN

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STRATEGIC TOOLS:

Presented to: Dr. Amir Raslan

Presented By:

Emran Bin Ismail G1317529

Abdirisak Mohamed Ali G1235995

Amir Syafiq Bin NOORDIN G1311181

Abdulalim Tahir G1324365

1. Space Matrix Tool2. Value Chain Analysis


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The SPACE matrixis a management tool used to analyze a compan

determine what type of a strategy a company should undertake.

INTRODU TION

Why we use: The SPACE matrixis a management tool used to analyzused to determine what type of a strategy a company should undeused also as a basis for other analyses, such as the SWOT analysis, BCindustry analysis, or assessing strategic alternatives (IE matrix)

When to use it: It is used during strategic formulation

Best to use when finding the competitive position of an organizat

The SPACE matrix is broken down to four quadrants where each qudifferent type or a nature of a strategy:

1. Aggressive 2. Conservative 3. Defensive


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Financial Strength (FS)

Return on Investment

Leverage

Liquidity

Working Capital

Cash Flow

Ease of market exit

Risk involved in business

Competitive Advantage (CA)

Market share

Product quality

Product life cycle

Customer loyalty

Competitions capacity utilization

Technological know-how

Control over suppliers &

distributors

Environmental stability (ES)

Technological changes

Rate of inflation

Demand variability

Price range of competing products

Barriers to entry into market

Competitive pressure

Price elasticity of demand

Industry Strength (IS)

Growth potential

Profit potential

Financial stability

Technological know

Resource utilization

Capital intensity

East of entry into ma

Productivity, capac

Important dorganizations

po


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OMalley, Ouellette, Plourde, & Roy 2009

McDonalds SPACE Matrix

FS

+6

+1

+5

+4+3

+2

-6

-5

-4

-3

-2

-1-6 -5 -4 -3 -2 -1 +1 +2 +3 +4 +5

ES

CA

Conservative Aggressive

Defensive Competitive


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CONCLUSIONSPACE MATRIX TOOL

Strategic Position and Action Evaluation (SPACE) Matrix

Variables from Internal Factor Evaluation (IFE) External Factor Evamatrix.

Depending on the particular environment, strategies will be deve

Penetration, development, diversification and etc..


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It describes the activities that take place in a business and relate

an analysis of the competitive strength of the business.could be grouped under two headings:

(1) Primary Activities- those that are directly concerned with cre

delivering a product (e.g. component assembly)(2) Support Activities, they are not directly involved in productio

increase effectiveness or efficiency (e.g. human resource mana

Advantages:

Increase your competitiveness

Reduce your costs

Improve your market share

Bottom Line - improve

overall profitability!

2ndTOOL:

Value Chain An


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COMPANY VALUE CHAIN


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PRIMARY

ACTIVITIES

AND COSTS

Inbound Logistics-selection ofcontractors

-materialprocurements

Operations-BPA approval

-Construction

Marketing andSales-Promotion-Roadshow-SalesAdministration

OutboundLogistics-Quality check-CCC-HOVP

ServComman

-DefProjerepo

SUPPORTACTIVITIES

AND COSTS

PRODUCT DEVELOPMENT, IT, INNOVATION, SYSTEM DEVELOPMENT (PMO)

HUMAN RESOURCE MANAGEMENT (COMPENSATION, TALENT MANAGEMENT)

GENERAL ADMINISTRATION (SPACE PLANNING, CORPORATE COMMUNICATION

COMPANY VALUE CHAIN


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Performing a Value Chain Analysis

To gain a differentiation advantage: Identify the value creating activities for the customer, and focus on the specific actions

Evaluate the differentiation strategies to improve value to the customer

Identify the best differentiation method that is sustainable long term

To gain a cost advantage:

Determine the primary activity of the company, and all the support activities performed

Look at each activity at all value chains

Analyze how the work is done surrounding every separate activity, and identify how it ad

Rank each activity in terms of relative importance to the total cost of the product

Investigate all of the costs of producing the product

Identify all of the cost drivers, for every activity.


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CONCLUSIONIntroduction

-Background

Usage

Application

Conclusion

1.space matrix + value chain

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