ISAAC, Patricia Claire G.

BUSINESS POLICY HOMEWORK 11/22/19

CUETO, Denise Marie S.

SPACE MATRIX

INTERNAL STRATEGIC POSITION EXTERNAL STRATEGIC POSITION

COMPETITIVE (CA) INDUSTRY (IS)
Customer Loyalty -2 Growth Potential 7
Market Share -1 Barriers to entry 3
Product Quality -3 Financial Stability 7
Control over the Suppliers -2 Profit Potential 6
AVERAGE (CA) -2.0 AVERAGE (IS) 5.7
TOTAL X AXIS = 3.7

FINANCIAL (FS) ENVIRONMENTAL (ES)

Leverage 4 Inflation -2
Liquidity 6 Technology Changes -2
Return on Investment 4 Competitive Pressure -4
Cash Flow 5 Price Elasticity of Demand -2
Working Capital 6 Tax -3
AVERAGE (FS) AVERAGE (ES) -2.6
5.0
TOTAL Y AXIS = 2.4
BGC MATRIX
HIGH LOW

STARS QUESTION MARKS

 SilverFresh Toothpaste  Other Flavors of SilverFresh

 Fern Activ, Fern C, Fern D and Milkca Toothpaste
 Strategy: Boost these products by  Strategy: They do not generate
appropriate investments to monitor profits unless the company decides
the growth & maintain a position of to invest resources to maintain and
strength. even increase the market share.

(High Market Share, High Market Growth) (High Market Growth, Low Market Share)
CASH COWS DOGS

 Aurora Bar Soap  Beauty Products (Day & Night

 Strategy: This product is matured by Cream, Serum Creams, etc.)
generates profit and cash but it is in  Strategy: This product is near in
need to be replace because the growth declining market and highly
for the company would be lower. competitive.
(Low Market Growth, High Market Share) (Low Market Growth, Low Market Share)

THE IE MATRIX
STRONG 3.0-4.0 AVERAGE 2.0-2.99 WEAK 1.0-1.99

I II III

IV V VI

VII VIII IX

GRAND STRATEGY MATRIX

 QUADRANT II QUADRANT I
Market Development Market Penetration
Market Penetration Market Development
Product Development Product Development
Liquidation Forward Integration
QUADRANT III QUADRANT IV
Concentric Diversification Horizontal Diversification
Retrenchment Concentric Diversification
Conglomerate Joint Ventures
Liquidation

THE QUANTITATIVE STRATEGIC PLANNING MATRIX (QSPM)

 MARKET PENETRATION & DEVELOPMENT CONCENTRIC DIVERSIFICATION

STRENGTHS WEIGHT AS TAS WEIGHT AS TAS

Quality of 0.12 4 0.48 0.15 1 0.14
product
Location of 0.10 3 0.30 0.13 2 0.16
the Business
Employee’s 0.09 1 0.09 0.10 2 0.20
Unique Skill
set
SilverFresh 0.06 2 0.12 0.08 3 0.24
ranked as the
number one
toothpaste in
the world.

MARKET PENETRATION & DEVELOPMENT CONCENTRIC DIVERSIFICATION

WEAKNESSES WEIGHT AS TAS WEIGHT AS TAS

Manufacturer/ 0.16 3 0.48 0.15 2 0.30
Suppliers
produces over 20
brands of
toothpaste not
only to them.
The way of 0.15 4 0.60 0.14 1 0.14
promoting the
toothpaste is the
same as the
competitor; they
have limited on
advertising their
products.
Limited sizes of 0.14 2 0.28 0.13 2 0.30
the product
Lack of Brand 0.18 2 0.36 0.12 2 0.24
Awareness

MARKET PENETRATION & DEVELOPMENT CONCENTRIC DIVERSIFICATION

 OPPORTUNITIES WEIGHT AS TAS WEIGHT AS TAS
Products that 0.09 1 0.09 0.14 2 0.28
have been
approved by the
FDA and has its
own
ingeniousness
will increase in
demand
There will be a 0.13 2 0.26 0.17 2 0.34
possible increase
in demand for the
product by ages
15-65 years old
Demand for 0.18 2 0.36 0.11 1 0.11
products that
have fewer
chemical
ingredients will
increase
There will be an 0.15 4 0.60 0.13 1 0.13
increase in sales
using e-
commerce and
can easily attract
potential
customers or
people might be
interested in
applying to the
company as a
member

MARKET PENETRATION & DEVELOPMENT CONCENTRIC DIVERSIFICATION

 THREATS WEIGHT AS TAS WEIGHT AS TAS
Inflation that 0.14 2 0.28 0.18 3 0.54
causes the
ingredients price
to be excessive
The way 0.13 1 0.13 0.14 2 0.28
competitor’s
market their
products through
e-commerce
Some people 0.18 1 0.18 0.13 1 0.13
might imitate
product
description or the
products itself
that can be seen
online.

SUMMARY OF ALL MATRICES

STRATEGIC OPTIONS TOWS SPACE IE GSM TOTAL

INTEGRATION STRATEGIES
1. Forward Integration 0
2. Backward Integration 0
3. Horizontal Integration 0
INTENSIVE STRATEGIES
4. Market Penetration 1 1 1 3
5. Market Development 1 1 1 3
6. Product Development 1 1 1 1 4
DIVERSIFICATION STRATEGIES
7. Concentric 1 1
Diversification
8. Conglomerate 1 1
Diversification
9. Horizontal 1 1
Diversification
DEFENSIVE STRATEGIES
10. Joint Venture 0
11. Retrenchment 0
12. Divestiture 0
13. Liquidation 1 1 2
 Based on the Summary of matrices, we can reveal which strategy is most attractive. The
Intensive Strategies namely Market Penetration, Market Development and Product
Development got higher score than the other strategies. We can say that higher score
point at a more attractive strategy, affects the strategic decision for the company.