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# MGT603 GDB No.1 SPACE Matrix (Due Date 01 August 2018)

A SPACE Matrix of the Company XYZ is provided as below:

 Financial Position Ratings Return on Investment 10 Working Capital 3 Cash Flow 8 + 21 Industry Position Growth Potential 9 Financial Stability 5 Productivity 4 + 18 Stability Position Rate of Inflation -3 Competitive Pressure -2 Risk Involved in Business -4 - 9 Competitive Position Market Share -2 Customer Loyalty -2 Technological Know-how -5 - 9

Discussion Question:

Given the information in the above table, according to the ratings of four quadrant framework:

What do you think whether it’s aggressive, conservative, defensive or competitive for the company XYZ? Also discuss any three strategies. (Marks 2 + 3)

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### Replies to This Discussion

any idea ???

Dear all, any idea ?

It seems to be the Aggressive strategy

1. Backward, forward and horizontal integration.

2. Market Development

3. Diversification

Any Idea ?

In the light of given space matrix of XYZ company are the financial, industry, stability and competitive positions are as follows:-

Financial Position

As per given data (10+3+8)/3 = 21/3 = 7.0 it falls in quadrant 1 of the matrix and it depicts the high ratings. Its mean company have strong financial resources and have to adopt aggressive strategy while taking financial decisions.

Industry Position

As per given data (9+5+4)/3 = 18/3 = 6 it falls in quadrant 1 of the matrix and it depicts the high ratings. Its mean company have strong Industry resources and have to adopt aggressive strategy while taking Industry decisions.

Stability Position

As per given data (-3)+(-2)+(-4)/3 = -9/3 =-3 it falls in quadrant 2 of the matrix and it depicts the average ratings. Its mean company have conservative stability position and have to adopt defensive strategy while taking environmental stability decisions.

Competitive Position

As per given data (-2)+(-2)+(-5)/3 = -9/3 =-3 it falls in quadrant 2 of the matrix and it depicts the average ratings. Its mean company have conservative competitive position and have to adopt defensive strategy while taking environmental stability decisions.

As XYZ company is financial and industry wise strong in position and in medium in stability and competitive positions so the company have adopted  aggressive strategy.

Aggressive Strategy

Aggressive Strategy is a very essential variable of strategy formulation framework. XYZ company adopt aggressive strategy for maximize returns by taking a comparatively higher degree of risk.

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