Swot Matrix

Topics: Strategic management, Hewlett-Packard, Dimension Pages: 5 (1439 words) Published: February 19, 2011
ATW393E Tutorial Exercise
Group: F4 Chan Kean Sam (100235) Kong Feng Pei (100309) Wong Kit Wah (100437) Zhao Yu (103247) ____________________________________________________________


Exercise 5
* SWOT Matrix
SWOT analysis, or SWOT Matrix model is a useful method to analyze the competitive level of a company. When we want to analyze an internal environment of an organizational, we have to identify its strength (what an organization best in) and weaknesses (what an organization weak in). While, to analyze the external environment of a company, we have to identify it opportunities (potential favorable conditions for an organization) and threats (potential unfavorable conditions for an organization). This methodology, which is often referred to by the acronym of SWOT analysis is used to analyze an organization. The following is the SWOT Matrix for HP Corporation: Strengths| Weaknesses|

* Strong HP brand recognition * Successful strategic merger and acquisition * Leading provider of imaging and printing products| * Deteriorating competitive advantage * Limited product and service offering * Lack of research and development| Opportunities| Threats|

* Existing emerging market * Strong position in market after merger with other companies * Demand Growing| * Major competition with other companies * Short life cycle of technology products * Global economic recession|

* SPACE Matrix
One of the famous management framework that is used to analyse or evaluate a company is the Strategic Position and Action Evaluation, also known as SPACE Matrix. It focuses on strategy formulation especially related to the competitive position of a company. This SPACE Matrix used to determine what kind of strategies that a company should undertake in order to maximize the profitability and company performance. Besides, SPACE Matrix can also be used as a basis for other analyses, such as the internal and external analysis (SWOT analysis), industry analysis, and so forth. The SPACE matrix is broken down to four quadrants framework where each quadrant of framework indicates different types of strategies whether aggressive, conservative, defensive, or competitive strategies. Organizations falling into four quadrants should adopt the strategies as follows:

Quadrant| Meaning| Strategies|
I| Financial Stability and Industry Strength| Aggressive| II| Financial Stability and Competitive Advantage| Conservative| III| Competitive Advantage and Environmental Stability| Defensive| IV| Industry Strength and Environmental Stability| Competitive |

The steps required to develop a SPACE Matrix:
1. A set of related variables selected to define the company financial strength, competitive advantage, environmental stability, and industry strengths position. 2. A numerical value ranging from +1 (the worst) to +6(the best) assign to each of the variable that comprise of the Quadrat I dimension (financial stability and industry strength) whereas, for the variables that consist of Quadrat III dimension (environmental stability and competitive advantage) a numerical value ranging from -1 (the best) to -6(the worst) should assign to each of variables. For your information, the financial stability and competitive advantage (Quadrat II) side comparison is made to competitors whereas on the industry strength and environmental stability (Quadrat IV) side comparison is made to other industries. 3. Calculate the average of the values for each dimension. 4. The average values that calculated in the step 3 are plotted on the appropriate axis in the SPACE Matrix. 5. Add the two values on x-axis (competitive advantage and industry strength) and plot the resultant value on x-axis. Using the same method, add also the two values on y-axis (financial strength and environmental stability) and plot it on y-axis. Then, drawn...

References: * Google (2011). International Business Machines Crop. Retrieved 31 January 2010 from http://www.mba-tutorials.com/strategy/1151-strategic-position-and-action-evaluation-space-matrix.html
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