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Quantitative Strategic Planning Matrix (QSPM)

- Evaluate alternative strategies objectively


- Based on previously identified external and internal critical success factors
- Purpose: Which alternative strategies are best?
Components of QSPM
• Strategic Alternative
• Key Factors
• Weights
• Attractiveness Scores (AS)
• Total Attractiveness Scores (TAS)
• Sum Total Attractiveness Scores
6 steps to develop QSPM
1) Make a list of the firm’s key external opportunities/threats and internal
strengths/ weaknesses in the left column of the QSPM.
2) Assign weights to each key external and internal factor.
3) Examine the Stage 2 (matching) matrices, and identify alternative strategies that
the organization should consider implementing
4) Determine the Attractiveness Scores (AS)

5) Compute the Total Attractiveness Scores

6) Compute the Sum Total Attractiveness Score.


Positive Features and Limitations

Positive features Limitations


• Sequentially or simultaneously examines sets • Requires the use of intuitive judgments and
of strategies. educated assumptions (Objective).
• Integrate pertinent external and internal • It can only be as good as the pre-requisite
factors into decision process. information and matching analyses in which
it was based.
• Focuses more on the important relationships
that affects strategic decision.
• Can be applied to any type of organization.
Cultural Aspects of Strategy Choice

Significance of culture to Strategic Management


• If a firm’s strategies are supported by cultural products, managers often can
implement changes swiftly and easily.
• if a supportive culture does not exist and is not cultivated, then strategy changes
may be ineffective or even counterproductive.
• It provides an explanation for the difficulties a firm encounters when it attempts to
shift its strategic direction.
• “Not only has the “right” corporate culture become the essence and foundation of
corporate excellence, but success or failure of needed corporate reforms hinges on
management’s sagacity and ability to change the firm’s driving culture in time and in
tune with required changes in strategies.”