01-12-2011, 07:43 PM
Assignment No. 2 Marks: 20
Global Aim Limited (GAL) is the pioneer manufacturer of electrical goods in
Pakistan. Mr. Mohsin, CEO of the company has always been contributing towards
the advancement and development of the engineering sector in Pakistan by
introducing a range of quality electrical equipments and home appliances. He has
also produced hundreds of engineers, skilled workers and technicians through its
apprenticeship schemes and training programmes. His vision is to produce best
quality of products on affordable prices that’s why the company is having high
market growth and good competitive position in the market. But still he wants to
know the current strategic position of his company whether aggressive,
conservative, defensive or competitive strategies are most appropriate for his
company. He has called a meeting with all senior strategic managers to talk on this
issue and suggested to develop a SPACE Matrix. They have included the following
factors identified earlier in EFE and IFE Matrices which should be considered in
developing the SPACE Matrix.
FINANCIAL STRENGTH
ROA = 4
Profitability = 3
Debt-Equity Ratio = 4
Liquidity = 2
Total= 13/4 = 3.25
INDUSTRY STRENGTH
Ease of entrance = 2
Cost of new entrance = 4
Saturation level = 5
Market conditions = 4
Total = 15/4 = 3.75
COMPETITIVE ADVANTAGE
Innovation = -1
Strong culture = -2
Global reach = -4
Leadership = -2
Total= -9/4 = 2.25
ENVIRONMENTAL STABILITY
Political stability = -2
Infrastructure available = -1
Incentives provided = -3
Govt. Regulations = -2
Total = -8/4 = 2
Global Aim Limited (GAL) is the pioneer manufacturer of electrical goods in
Pakistan. Mr. Mohsin, CEO of the company has always been contributing towards
the advancement and development of the engineering sector in Pakistan by
introducing a range of quality electrical equipments and home appliances. He has
also produced hundreds of engineers, skilled workers and technicians through its
apprenticeship schemes and training programmes. His vision is to produce best
quality of products on affordable prices that’s why the company is having high
market growth and good competitive position in the market. But still he wants to
know the current strategic position of his company whether aggressive,
conservative, defensive or competitive strategies are most appropriate for his
company. He has called a meeting with all senior strategic managers to talk on this
issue and suggested to develop a SPACE Matrix. They have included the following
factors identified earlier in EFE and IFE Matrices which should be considered in
developing the SPACE Matrix.
FINANCIAL STRENGTH
ROA = 4
Profitability = 3
Debt-Equity Ratio = 4
Liquidity = 2
Total= 13/4 = 3.25
INDUSTRY STRENGTH
Ease of entrance = 2
Cost of new entrance = 4
Saturation level = 5
Market conditions = 4
Total = 15/4 = 3.75
COMPETITIVE ADVANTAGE
Innovation = -1
Strong culture = -2
Global reach = -4
Leadership = -2
Total= -9/4 = 2.25
ENVIRONMENTAL STABILITY
Political stability = -2
Infrastructure available = -1
Incentives provided = -3
Govt. Regulations = -2
Total = -8/4 = 2