Summary

Interpret directional positioning with SPACE and Grand Strategy outputs

From: PepsiCo Strategic Planning: SPACE, Grand Strategy, and QSP Matrices

The SPACE section uses five factors for each axis: Financial Position (FP), Stability Position (SP), Competitive Position (CP), and Industry Position (IP). Ratings are combined to position the company and suggest a broad strategic posture.

Using the outputs

  1. Verify that each axis has the required factors and defensible ratings.
  2. Review the plotted or calculated position.
  3. Use the direction as guidance, not as a substitute for judgment.
  4. Compare the direction with the Grand Strategy and SWOT alternatives.

The purpose of SPACE and Grand Strategy is to narrow the feasible direction before final strategy selection. The outputs should be consistent with the evidence entered in the earlier factor-analysis sheets.