1. Strategic Position and Action Evaluation Matrix (SPACE)

2. Financial Strength (FS) Return on Investment Leverage Liquidity Working Capital Cash Flow Ease of market exit Risk involved in business Competitive Advantage (CA) Market share Product quality Product life cycle Customer loyalty Competition’s capacity utilization Technological know-how Control over suppliers & distributors Environmental stability (ES) Technological changes Rate of inflation Demand variability Price range of competing products Barriers to entry into market Competitive pressure Price elasticity of demand Industry Strength (IS) Growth potential Profit potential Financial stability Technological know-how Resource utilization Capital intensity East of entry into market Productivity, capacity utilization Internal Strategic Position External Strategic Position Important determinants of organization’s overall strategic position

3. 0 + 1 + 2 +3 + 4 + 5 + 6 -6 -5 -4 -3 -2 -1 +6 +5 +4 +3 +2 +1 -2 -3 -4 -5 -6 ConservativeAggressive Defensive Competitive FS ES CAIS SPACE Matrix Worst Best Worst

4. FS ES CA IS Use internal strengths Take advantage of external opportunities Avoid external threats Market penetration Market development Product development Backward integration Forward integration Horizontal integration Conglomerate diversification Concentric diversification Horizontal diversification Combination Backward integration Forward integration Horizontal integration Market penetration Market development Product development Joint venture Improve internal weaknesses Avoid external threats Retrenchment Divestiture Liquidation Concentric diversification Stay close to competencies Don’t take excessive risks Market penetration Market development Product development Concentric diversification Aggressive Conservative Defensive Competitive