Examining Strategy Implementation and Performance Decline: The Strategic Matrix Analysis
This study adopts the “Strategic Matrix Analysis”, which is originally invented by Professor Dah-Hsian Seetoo, to deeply examine the business strategy implementation of a single case company in the construction industry. As the industrial environment has changed dramatically since 2003, the performance of the case company, compared with that of competitors, has shown relatively lower performance in terms of probability and the return on investment in the past three years. The implementation of strategies in different stages reveals its conservative business mentality. Therefore, by analyzing the strategy implementation of the case company with the “Strategic Matrix Analysis”, this study summarizes four issues of strategy implementation and identifies eight problems that resulted in the decline of business performance. This study proposes two future strategies to improve the performance: First, to stabilize the revenue and profit status; Second, to continue the differentiation strategy of product innovations. This study also develops the further functional strategies to implement the above two future strategies, covering the action plans that would be respectively undertook by functional departments. Compare to those analytical methods such as SWOT Analysis, Five Force Model, and Business Model Canvas Analysis, the “Strategic Matrix Analysis” is useful for the verification of business strategy formulation and implementation, providing a more comprehensive, systematic and logical framework for strategy analysis. This study contributes to strategic management by demonstrating that the “Strategic Matrix Analysis” can also be used to analyze the factors that fail to achieve satisfied performance of business strategy implementation. In addition, this study demonstrates a throughout process and complete content of reviewing strategy implementation, which is significant and valuable for strategic management in practice.