Categories: Strategy

Quantitative Strategic Planning Matrix (QSPM)

&NewLine;<&excl;-- WP QUADS Content Ad Plugin v&period; 2&period;0&period;95 -->&NewLine;<div class&equals;"quads-location quads-ad1" id&equals;"quads-ad1" style&equals;"float&colon;left&semi;margin&colon;0px 0px 0px 0&semi;">&NewLine;&NewLine;<&sol;div>&NewLine;<p><strong>Step 4<&sol;strong><&sol;p>&NewLine;<p>Determine the Attractiveness Scores &lpar;AS&rpar;&comma; defined as numerical values that indicate the relative attractiveness of each strategy in a given set of alternatives&period; Attractiveness Scores are determined by examining each key&lbrack;linkunit&rsqb; external or internal factor&comma; one at a time&comma; and asking the question&comma; &OpenCurlyDoubleQuote;Does this factor affect the choice of strategies being made&quest;” If the answer to this question is yes&comma; then the strategies should be compared relative to that key factor&period; Specifically&comma; Attractiveness Scores should be assigned to each strategy to indicate the relative attractiveness of one strategy over others&comma; considering the particular factor&period; The range for Attractiveness Scores is 1 &equals; not attractive&comma; 2 &equals; somewhat attractive&comma; 3 &equals; reasonably attractive&comma; and 4 &equals; highly attractive&period; If the answer to the above question is no&comma; indicating that the respective key factor has no effect upon the specific choice being made&comma; then do not assign Attractiveness Scores to the strategies in that set&period; Use a dash to indicate that the key factor does not affect the choice being made&period; Note&colon; If you assign an AS score to one strategy&comma; then assign AS score&lpar;s&rpar; to the other&period; In other words&comma; if one strategy receives a dash&comma; then all others must receive a dash in a given row&period;<&sol;p>&NewLine;<p><strong>Step 5<&sol;strong><&sol;p>&NewLine;<p>Compute the Total Attractiveness Scores&period; Total Attractiveness Scores are defined as the product of multiplying the weights &lpar;Step 2&rpar; by the Attractiveness Scores &lpar;Step 4&rpar; in each row&period; The Total Attractiveness Scores indicate the relative attractiveness of each alternative strategy&comma; considering only the impact of the adjacent external or internal critical success factor&period; The higher the Total Attractiveness Score&comma; the more attractive the strategic alternative &lpar;considering only the adjacent critical success factor&rpar;&period;<&sol;p>&NewLine;<p><strong>Step 6<&sol;strong><&sol;p>&NewLine;<p>Compute the Sum Total Attractiveness Score&period; Add Total Attractiveness Scores in each strategy column of the QSPM&period; The Sum Total Attractiveness Scores reveal which strategy is most attractive in each set of alternatives&period; Higher scores indicate more attractive strategies&comma; considering all the relevant external and internal factors that could affect the strategic decisions&period; The magnitude of the difference between the Sum Total Attractiveness Scores in a given set of strategic alternatives indicates the relative desirability of one strategy over another&period;<&sol;p>&NewLine;<&excl;-- WP QUADS Content Ad Plugin v&period; 2&period;0&period;95 -->&NewLine;<div class&equals;"quads-location quads-ad2" id&equals;"quads-ad2" style&equals;"float&colon;none&semi;margin&colon;0px 0 0px 0&semi;text-align&colon;center&semi;">&NewLine;&NewLine;<&sol;div>&NewLine;&NewLine;<h3>Limitations of QSPM<&sol;h3>&NewLine;<p>A limitation of the QSPM is that it can be only as good as the prerequisite information and matching analyses upon which it is based&period; Another limitation is that it requires good judgment in assigning attractiveness scores&period; Also&comma; the sum total attractiveness scores can be really close such that a final decision is not clear&period; Like all analytical tools however&comma; the QSPM should not dictate decisions but rather should be developed as input into the owner’s final decision&period;<&sol;p>&NewLine;<h3>Advantages of QSPM<&sol;h3>&NewLine;<p>A QSPM provides a framework to prioritize the strategies&comma; it can be used for comparing strategies at any level such as corporate&comma; business and functional&period;The other positive feature of QSPM that it integrate external and internal factors into decision making process&period;A QSPM can be developed for small and large scale profit and non-profit organizations&period;<&sol;p>&NewLine;<p>&lbrack;adsense&rsqb;&NewLine;<&excl;-- WP QUADS Content Ad Plugin v&period; 2&period;0&period;95 -->&NewLine;<div class&equals;"quads-location quads-ad3" id&equals;"quads-ad3" style&equals;"float&colon;none&semi;margin&colon;0px&semi;">&NewLine;&NewLine;<&sol;div>&NewLine;&NewLine;

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