1.space matrix + value chain
TRANSCRIPT
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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