Analysis of Space, Grand, and QSPM Matrices

Answer

Analysis of Space, Grand, and QSP Matrices

The GRAND, Strategic Position and Action Evaluation (SPACE) and Quantitative Strategic Planning (QSP) matrices contribute significantly to the strategic planning of organisations. These three matrices are of great relevance to Disney when it comes to the execution of an effective strategic planning. As such, this paper discusses the significance of these matrices in relation to their relevance for strategic planning, key information for the matrices, and how information from the individual matrices will inform recommendations for strategy selection, implementation, and planning at Disney.

Significance of the Matrices

GRAND matrix serves as a vital tool for strategy formulation. The significance of this matrix for organisation exists in the fact that it is employed in selecting strategies that can enable companies to attain rapid market growth and robust competitive position within the market (Sarfaraz et al. 2015). The QSP plays a significant role in the ultimate phase of strategic formulation, which entails decision-making. As such, the relevance of this matrix to organisations such as Disney lies in the fact that it helps in the determination of the most appropriate strategy to be selected. The QSP serves as the only tool for determining the relative appeal or attractiveness of feasible optional action or strategy that a company should pursue (Pangastuti et al., 2019). The relevance of the SPACE matrix lies in its employment in determining a company’s strategic position and the possible action to be followed by that company (Elezaj, 2017).

Key Information for the Matrices

The primary information provided by the GRAND matrix concerns the competitive position and the market growth of an organisation. For instance, organisations existing in quadrant I are associated with a robust competitive situation as well as rapid market growth (Sarfaraz, 2015). Firms in quadrant II are associated with a rapid market growth and weak competitive situation. Companies in quadrant III have a slow market growth and weak competitive position. Organisations in quadrant IV have a slow market growth and a robust competitive position.

QSP is a quantitative tool or technique employed in collecting data and preparing a matrix for the execution of strategic planning (Pangastuti et al. 2019). This tool is based on identified external and internal crucial factors for success for a company. Examples of primary internal factors are marketing, systems, management, research and development, and operations among others (Pangastuti et al. 2019). External key factors include consumer attitude, economic conditions, as well as technological, competitive, political, and social or cultural factors.  The SPACE matrix possesses four quadrants. The aggressive quadrant exists within the upper right, whereas the conservative quadrant exists within the upper left (Elezaj, 2017). The competitive quadrant exists within the lower right, while the defensive quadrant exists within the lower left (Elezaj, 2017).

How the Matrices Will Influence Recommendations

The outcomes of the three matrices will contribute significantly in influencing the decisions embraced by Disney in three areas including strategy selection, implementation, and planning. When it comes to the GRAND matrix analysis, it can be noted that Disney exists in quadrant I, as it has a rapid market growth and robust competition position. In relation to this, the company exists at an excellent strategic position, and must focus on present market. The appropriate for Disney to follow are market development, product development, and market penetration, as suggested by Sarfaraz et al. (2015). In relation to the outcomes of the QSP matrix, it can be noted that Disney is torn between the selection of two strategies including growing (total score of 123) and expanding into other countries (total score of 106). Pangastuti et al. (2019) assert that the strategy that scores the highest total attractive is the most feasible in a QSP matrix. Therefore, since growing the company has the highest total attractiveness of 123, it is the most feasible strategy for Disney, as opposed to expanding into other countries. The results of the SPACE analysis show that Disney falls in the first quadrant, which the aggressive, and thus should embrace the aggressive strategy.

Conclusion

This paper has effectively discussed the QSP, SPACE, and GRAND matrices by focusing on their relevance to organisations, primary information contained in each of the matrices, and how information obtained from these matrices will guide recommendation for planning, strategy selection, and implementation at Disney.