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MGT603 Strategic Management Assignment No 2 Solution & Discussion Due Date:07-06-2012

“Strategic Position and Action Evaluation matrix”
Leaning Objectives:
· To help understand how to prepare a strategic position and action evaluation matrix.
· To introduce the significance of company’s strategic position in the market.
· To understand how it is helpful for strategic formulation framework.
Learning Outcomes:
· Learner will be able to understand and prepare a space matrix for the organization.
· Learner will be able to assess the strategic position of the organization.
· The learner will be able to identify the appropriate strategies for improving the company’s
strategic position.
Umer fabric is a textile company working in Faisalabad since 2008.It is vertically integrated unit
covering complete range of operations from spinning to retailing.
Umer fabric offers a wide range of products and is capable of producing more than 70 million meters
of fabric per annum into garments. Since its inception they are working on the same principles without
taking any innovation in their products. Due to huge competition in the market, company CEO
(Mr. Ahmed) observed a major decline in market share and low market growth for his products. He
appointed you as a “strategic analyst” for this purpose to analyze the company’s strategic position in
the market.
Following are the key indicators of his company’s position.
nternal Strategic Position
Financial Strength (FS) = + 4
Competitive Advantage (CA) = - 4.5
External Strategic Position
Industry Strength (IS) = + 1.5
Environmental Stability (ES) = - 2.0
The Requirement:
· Being a strategic analyst draw a space matrix according to the company’s strategic position and
discuss possible reasons of lying in specific quadrant. (15 marks)
· Suggest most appropriate strategies to the company according to the selected quadrant for
improving its strategic position. (15 marks)
· SPACE Matrix Template is available at LMS in Download section.
The Special Note: How can you avoid zero marks status?
Dear Students!
You are encouraged to consult both online and offline sources with objective to enhance your
understanding of the topic of the assignment. But consulting the sources does not mean that you start
copy-paste the material from sources. If you do so you will certainly lose marks or your assignment
will be graded zero on account of copying from a source. The workable strategy is to consult the
source, enhance your knowledge and write in your own words. A special instruction regarding how to
attempt the assignment is given in the announcement because it has been observed that many site and
blogs are promoting the culture of cheating and copy/paste among the students and adversely
damaging the grades and career of VU students. You all are requested not to copy or read such substandard
answer that not only kills the creativity but also sabotage the career as well.
Best of luck!

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