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SPACE Matrix Excel Template User Guide ver 1a Flipbook PDF
SPACE Matrix Excel Template User Guide ver 1a
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SPACE M ATRIX E XCEL T EMPLATE User Guide
The SPACE matrix is a strategic planning tool that can be used as a basis for other analyses such as SWOT analysis or Boston Consulting Group (BCG) Matrix analysis. It is used to determine what type of a strategy assessment company should undertake. The template facilitates the data input and analysis in a structured framework and the Matrix Chart presents the results. .
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SPACE MATRIX EXCEL TEMPLATE User Guide The SPACE matrix is a strategic planning tool that can be used as a basis for other analyses such as SWOT analysis or Boston Consulting Group (BCG) Matrix analysis. It is used to determine what type of a strategy assessment company should undertake. The template facilitates the data input and analysis in a structured framework and the Matrix Chart presents the results.
Figure 1 SPACE Matrix Chart The Strategic Position & ACtion Evaluation matrix or SPACE matrix focuses on strategy formulation especially as related to the competitive position of an organization. The SPACE matrix can be used as a basis for other analyses, such as the SWOT analysis, BCG matrix model, industry analysis, or assessing strategic alternatives. The SPACE matrix is broken down to four quadrants where each quadrant suggests a different type of a strategy depending on which quadrant the outcome of the analysis places the organization. These are: • • •
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Aggressive Conservative Defensive Competitive
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1 USER INSTRUCTIONS 1.1 SPACE Matrix Analysis The SPACE Matrix analysis framework uses two internal and two external strategic dimensions in order to determine the organization's strategic positioning in the industry. The SPACE matrix uses four areas of analysis. INTERNAL STRATEGIC DIMENSIONS:
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Financial strength (FS) Competitive advantage (CA)
EXTERNAL STRATEGIC DIMENSIONS:
• •
Environmental stability (ES) Industry strength (IS)
A number of factors that contribute to each four areas are identified, e.g. Product quality, market share, distribution channels might all contribute to Competitive Advantage (CA) as per the Input form as depicted in figure 2 below. Each factor is rated on a scale of 1 to 6.
1.2 Data Input COMPETITIVE ADVANTAGE
Select up to 10 variables that are relevant to your Competitive Advantage. Rate them as follows: -6 worst to -1 best Optionally enter comments. The average rating for Competitive Advantage (CA) is calculated to give a CA Score. INDUSTRIAL STRENGTH
Select up to 10 variables that are relevant to your Industrial Strength. Rate them as follows: +1 worst to +6 best Optionally enter comments. The average rating for Industrial Strength (IS) is calculated to give an IS Score. ENVIRONMENTAL STABILITY
Select up to 10 variables that are relevant to your Environmental Stability. Rate them as follows: -6 worst to -1 best Optionally enter comments. The average rating for Environmental Stability (ES) is calculated to give a ES Score. © Copyright The Business Tools Store 2012
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Figure 2 SPACE Matrix Input Form © Copyright The Business Tools Store 2012
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FINANCIAL STRENGTH
Select up to 10 variables that are relevant to your Financial Strength. Rate them as follows: +1 worst to +6 best Optionally enter comments. The average rating for Financial Strength (FS) is calculated to give a FS Score. Internal Strategies Position The Internal Strategies Position is calculated by adding the CA Score and the FS Score. This is plotted on the X-axis. External Strategies Position The External Strategies Position is calculated by adding the IS score is added to the ES score. This is plotted on the Y-axis.
1.3 SPACE Matrix Chart The point of intersection of the Internal and External Strategies Position is automatically plotted on an X-Y graph (see figure 3 blow). The quadrant that the point of intersection is in will suggest which of the following strategic approaches are most appropriate: • • • •
Aggressive Conservative Defensive Competitive
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Figure 3 SPACE Matrix Chart
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