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Thread: Strategic Management (MGT603) assignment no 3 solution fall 2010

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    Icon14 Strategic Management (MGT603) assignment no 3 solution fall 2010

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    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

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    Watch the solution and try to make your self
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