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SPACE M ATRIX E XCEL T EMPLATEUser GuideThe SPACE matrix is a strategic planning tool that can be used as a basis forother analyses such as SWOT analysis or Boston Consulting Group (BCG)Matrix analysis. It is used to determine what type of a strategy assessmentcompany should undertake. The template facilitates the data input andanalysis in a structured framework and automatically generates the SPACEMatrix Chart to present the results. .www.businesstoolsstore.com9/3/2012

Page 19/3/2012SPACE MATRIX EXCEL TEMPLATEUser GuideThe SPACE matrix is a strategic planning tool that can be used as a basis for other analysessuch as SWOT analysis or Boston Consulting Group (BCG) Matrix analysis. It is used todetermine what type of a strategy assessment company should undertake. The templatefacilitates the data input and analysis in a structured framework and automatically generatesthe SPACE Matrix Chart to present the results.Figure 1 SPACE Matrix ChartThe Strategic Position & ACtion Evaluation matrix or SPACE matrix focuses on strategyformulation especially as related to the competitive position of an organization.The SPACE matrix can be used as a basis for other analyses, such as the SWOT analysis, BCGmatrix model, industry analysis, or assessing strategic alternatives.The SPACE matrix is broken down to four quadrants where each quadrant suggests a differenttype of a strategy depending on which quadrant the outcome of the analysis places theorganization. The strategy types are: AggressiveConservativeDefensiveCompetitive Copyright The Business Tools Store 2012www.businesstoolsstore.com1

Page 29/3/20121 USER INSTRUCTIONS1.1 SPACE Matrix AnalysisThe SPACE Matrix analysis framework uses two internal and two external strategic dimensions inorder to determine the organization's strategic positioning in the industry.The SPACE matrix uses four areas of analysis; two internal and two external.INTERNAL STRATEGIC DIMENSIONS:The Internal Dimension is based on the analysis of two areas Financial strength (FS)Competitive advantage (CA)EXTERNAL STRATEGIC DIMENSIONS:The Internal Dimension is based on the analysis of two areas Environmental stability (ES)Industry strength (IS)A number of factors that contribute to each four areas are identified, e.g. Product quality, marketshare, distribution channels might all contribute to Competitive Advantage (CA) as per the Inputform as depicted in figure 2 below. Each factor is rated on a scale of 1 to 6.1.2 Data InputCOMPETITIVE ADVANTAGESelect up to 10 variables that are relevant to your Competitive Advantage.Rate them as follows: -6 worst to -1 bestOptionally enter comments.The average rating for Competitive Advantage (CA) is calculated to give a CA Score.INDUSTRIAL STRENGTHSelect up to 10 variables that are relevant to your Industrial Strength.Rate them as follows: 1 worst to 6 bestOptionally enter comments.The average rating for Industrial Strength (IS) is calculated to give an IS Score.ENVIRONMENTAL STABILITYSelect up to 10 variables that are relevant to your Environmental Stability.Rate them as follows: -6 worst to -1 bestOptionally enter comments.The average rating for Environmental Stability (ES) is calculated to give a ES Score. Copyright The Business Tools Store 2012www.businesstoolsstore.com2

Page 39/3/2012Figure 2 SPACE Matrix Input Form Copyright The Business Tools Store 2012www.businesstoolsstore.com3

Page 49/3/2012FINANCIAL STRENGTHSelect up to 10 variables that are relevant to your Financial Strength.Rate them as follows: 1 worst to 6 bestOptionally enter comments.The average rating for Financial Strength (FS) is calculated to give a FS Score.X-Axis ScoreThe Internal Strategies Position is calculated by adding the CA Score and the FS Score.This is plotted on the X-axis.Y-Axis ScoreThe External Strategies Position is calculated by adding the IS score is added to the ES score.This is plotted on the Y-axis.1.3 SPACE Matrix ChartThe point of intersection of the Internal and External Strategies Position is automatically plottedon an X-Y graph (see figure 3 blow).The quadrant that the point of intersection is in will suggest which of the following strategicapproaches are most appropriate: AggressiveConservativeDefensiveCompetitive Copyright The Business Tools Store 2012www.businesstoolsstore.com4

Page 59/3/2012Figure 3 SPACE Matrix Chart Copyright The Business Tools Store 2012www.businesstoolsstore.com5

A number of factors that contribute to each four areas are identified, e.g. Product quality, market share, distribution channels might all contribute to Competitive Advantage (CA) as per the Input form as depicted in figure 2 below. Each factor is rated o