II. Based on the information obtained from the internal and external analyses below: 2) Draw the directional vector in the space matrix (2 Marks) FP 4 Internal Analysis: Financial Position (FP) Return on Investment (ROI) Leverage Liquidity Cash Flow External Analysis: Stability Position (SP) Rate of Inflation Technological changes Price Elasticity of Demand Barriers to Entry into Market 5 -3 -2 -5 Space Matrix 5 4 Financial Position (FP) Average 4.5 Stability Position (SP) Average -3.25 CP IP -7.0 7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0 - 1 ho -2.0 -3.0 -4.0 -5.0 -6.0 -7.0 -5.5 4.0 -2.5 0.5 2.0 3.5 5.0 6.5 -2 Internal Analysis: Competitive Position (CP) Market Share Product Quality Customer Loyalty Technological know-how 5 External Analysis: Industry Position (IP) Growth Potential Financial Stability Ease of Entry into Market Profit Potential 6 -1 -2 -2 5 5 Competitive Position (CP) Average -1.75 Industry Position (IP) Average 5.25 SP 3) Indicate which type of strategy should be pursued by the company. (1 Mark) 1) Describe the industry in which operates the company: its competitive position and financial strength (1 Mark)