Daniel Sanchez

Mr. Sherwin Yu
LS 126 - A (8:00-9:30 am)
26 October 2017
WAC: QSPM and SPACE Matrix for Philippine Columbian Association
With the recent problems Philippine Columbian Association is experiencing, their
management should come up with strategies that they can implement in order to solve these
problems. PCA has been criticized of having inferior equipment and poor customer service.
They also have had problems regarding the payment of their fees to their creditors. Moreover,
some of their lands have been occupied by informal settlers. These problems are poorly
managed due to their problematic hiring process wherein they hire people related to them.
Because of these hiring process, PCA have incompetent employees which led to problems such
as poor services, theft, corruption, etc.
In order to decide on the strategies that PCA would take in the future, the management
should first analyze the firm and know their strategic choices. Strategic Position & Action
Evaluation (SPACE) matrix is used in analyzing the firm so that it can determine to the type of
strategy the firm should take. The firm will be analyzed on four dimensions Financial strength
(FS), Competitive advantage (CA), Environmental stability (ES), Industry strength (IS).
Depending on the analysis, the firm can undertake four type of strategiesaggressive,
conservative, defensive, and competitive.

Axis X:
Competitive Advantage (CA) Industry Strength (IS)
-2 Service diversification +4 Growth potential
-5 Customer loyalty +4 Industry profits
-1 Brand image +2 Market entry
Average: -2.67 Average: +3.33
Total X Axis Score: +0.67

Axis Y:
Financial Strength (FS) Environmental Stability (ES)
+2 Net Income -3 Competitive pressure
+4 Liquidity -1 Economic development
+6 Leverage -6 Traffic
Average: +4.00 Average: -3.33
Total Y Axis Score: +0.67
 As pointed out in the cartesian plane above, the point falls in the first quadrant. Firms
that fall in this quadrant mean that they are aggressive. In light of this, the company can manage
to conduct an aggressive strategy. They can be aggressive in improving their business that they
become a threat to their competitors.With this, PCA can initiate an aggressive strategy based
on the analyises of its internal and external elements.
Given that they have an aggresive nature, I propose that PCA would spnsor sports
competition other than tennis, or they would hire third-party management to handle their
business especially the HR department. In order to decide on which between the two would be
used, I will use the Quantitative Strategic Planning Matrix (QSPM). QSPM is an analysis for
businesses which helps them decide on which strategies they would implement based on their
strengths, weaknesses, opportunities, and threats (SWOT) analysis.
 1 - Sponsor sports 2 - Hire third-party
competition other than concessionaires to
Tennis manage
Key Factors Weight

AS TAS AS TAS

Strengths
Famous tennis
0.2 4 0.8 3 0.6
tournaments
Strong financials 0.1 3 0.3 3 0.3
Established brand
0.2 3 0.6 4 0.8
name
Weaknesses
Outdated machines 0.15 2 0.3 3 0.45
Poor service 0.2 1 0.2 4 0.8
Problematic hiring
0.15 2 0.3 4 0.6
practices
Sum of Weights 100%
Opportunities
Economic
0.1 3 0.3 2 0.2
improvement
Digital marketing 0.1 4 0.4 4 0.4
Increasing health
0.2 3 0.6 2 0.4
awareness
Threats
Informal settlers
0.2 1 0.2 2 0.4
around the area
Heavy traffic in the
0.2 1 0.2 1 0.2
area
Popularity of
sports clubs with 0.2 1 0.2 1 0.2
golf
Sum of Weights 100%

Sum Total Attractiveness Score 4.4 < 5.35

 Looking at the QSPM, it shows that the 2nd option has a higher total attractiveness
score. This means that this strategy would be more effective to utilize than the other option.
Both of the strategies would be effective; however, this shows that solving the problematic
hiring process first is more beneficial for the firm. Because of how incompetent their employees
are, PCA is suffering different problems that could be easily fixed through an effective
management. By having third-party concessionaires, the firm would reduce their problems
regarding the hiring process such as nepotism, overemployment, etc. Also, they can improve
their services. This would be only possible because of the excellent financial standing of the
company.
By analyzing different aspects of the firm, we would have a deeper understanding of
how the firm works. Knowing all of these information, we can have a more effective strategy
for the firm to implement. All of the various matrix that I've used in analyzing PCA has
eventually led me in proposing a strategy that is based on the firm's current situation as well as
the industry and the environment.