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The Strategic Position and Action Evaluation (space) Matrix

Autor:   •  December 20, 2015  •  Case Study  •  489 Words (2 Pages)  •  1,859 Views

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THE STRATEGIC POSITION AND ACTION EVALUATION (SPACE) MATRIX

The SPACE Matrix containts a four-quadrant framework indicates whether aggressive, conservative, defensive or competitive strategies are most appropiate for Nestle. The axes of the SPACE Matrix represent two internal dimension and two external dimension. Two internal dimension includes Financial position (FP) and Competitive Position (CP), while a two external dimension consist of Stability Position (SP) and Industry Position (IP).

A SPACE Matrix for Nestle is provided in the table below.

FINANCIAL POSITION (FP)

RATINGS

Nestle’s sales increased by 4.39% in 2014 compared to 2013

5

Debt Equity Ratio increased from 1.56% to 1.96% from 2013 to 2014

4

Current Ratio decreased from 0.87% in 2013 to 0.68% in 2014

3

Return On Asset decreased by 0.03% from a year earlier

3

Price Earning ratio increased by 0.79% to achieved a ratio of 29.18% in 2014

4

AVERAGE

3.8

INDUSTRY POSITION (IP)

RATINGS

The rising of potential growth of private labels from competitors

2

Market segment growth attracted new entrants to increase profit potentials

3

Halal issue in Malaysia

2

Increasing population of consumers in the country

4

AVERAGE

2.75

COMPETITIVE POSITION (CP)

RATINGS

Nestle enjoys strongs relationship with retailers

-2

Nestle product are market leader in many product categories

-3

Strong brand reputations and public image

-3

Highly cost incurred to launch new product or brand

-4

AVERAGE

-3

STABILITY POSITION (SP)

RATINGS

Economics instability can reduce the demand

-5

Technologial changes and enhancement

-3

Highly competitive pressure due to many subtitutes products

-3

An anticipation of counterfeit products

-4

AVERAGE

-3.75

...

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