Essay About Strategic Position And Financial Position

The Strategic Position and Action Evaluation (space) Matrix
THE STRATEGIC POSITION AND ACTION EVALUATION (SPACE) MATRIXThe 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)RATINGSNestle’s sales increased by 4.39% in 2014 compared to 20135Debt Equity Ratio increased from 1.56% to 1.96% from 2013 to 20144Current Ratio decreased from 0.87% in 2013 to 0.68% in 20143Return On Asset decreased by 0.03% from a year earlier3Price Earning ratio increased by 0.79% to achieved a ratio of 29.18% in 20144AVERAGE3.8INDUSTRY POSITION (IP)RATINGSThe rising of potential growth of private labels from competitors2Market segment growth attracted new entrants to increase profit potentials3Halal issue in Malaysia2Increasing population of consumers in the country4AVERAGE2.75COMPETITIVE POSITION (CP)RATINGSNestle enjoys strongs relationship with retailers-2Nestle product are market leader in many product categories-3Strong brand reputations and public image-3Highly cost incurred to launch new product or brand-4AVERAGE-3STABILITY POSITION (SP)RATINGSEconomics instability can reduce the demand-5Technologial changes and enhancement-3Highly competitive pressure due to many subtitutes products-3An anticipation of counterfeit products -4AVERAGE-3.75