qspm (quantitative strategic planning matrix)
DESCRIPTION
definition, positive and negative, steps, qspmTRANSCRIPT
STRATEGY-FORMULATION ANALYTICAL FRAMEWORK
Stage 1Stage 2
Stage 3INPUT
MATCHING
DECISION
QUANTITATIVE STRATEGIC PLANNING MATRIX (QSPM)
Stage 3 - Decision Stageinvolves the Quantitative Strategic Planning Matrix (QSPM)
reveals the relative attractiveness of alternative strategies and thus provides objective basis for selecting specific strategies
STRATEGY-FORMULATION ANALYTICAL FRAMEWORK
QUANTITATIVE STRATEGIC PLANNING MATRIX (QSPM)
objectively indicates which alternative strategies are best
uses input from Stage 1 analyses and matching results from Stage 2 analyses to decide objectively among alternative strategies
The Quantitative Strategic Planning Matrix (QSPM)
1. Make a list of the firm’s key external opportunities/threats and internal strengths/weaknesses
2. Assign weights to each key external and internal factor
The Quantitative Strategic Planning Matrix (QSPM)
The Quantitative Strategic Planning Matrix (QSPM)
3. Examine the Stage 2 matrices, and identify alternative strategies that the organization should consider implementing
The Quantitative Strategic Planning Matrix (QSPM)
AS
AS
4. Determine the Attractiveness Scores (AS)
1= not attractive
2= somewhat attractive
3= reasonably attractive4= highly attractive
AS
AS
-/0= no effect
The Quantitative Strategic Planning Matrix (QSPM)
AS
AS
4. Determine the Attractiveness Scores (AS)
AS
AS
Note:1. Never duplicate scores
in a row2. Never rate one
strategy and not the other
The Quantitative Strategic Planning Matrix (QSPM)
5. Determine the Total Attractiveness Scores (TAS)
TAS
TAS
TAS
TAS TAS = WEIGHT x AS
The Quantitative Strategic Planning Matrix (QSPM)
6. Compute the Sum Total Attractiveness Scores (STAS)
AS AS
AS AS
STAS
STAS
Positive Features of the QSPM
Sets of strategies can be examined sequentially or simultaneously
No limit as to the number of strategies to be evaluated
Requires strategists to integrate pertinent external and internal factors into the decision process
Can be adapted for use by small and large for-profit and nonprofit organizations