Any number of sets of alternative strategies can be included in the QSPM, and any number of strategies can make up a given set, but only strategies within a given set are evaluated relative to each other. The relative attractiveness of each strategy within a set of alternatives is computed by determining the cumulative impact of each external and internal critical success factor. Strategists should use good intuitive judgment in selecting strategies to include in a QSPM.Ĭonceptually, the Quantitative Strategic Planning Matrix (QSPM) determines the relative attractiveness of various strategies based on the extent to which key external and internal critical success factors are capitalized upon or improved. However, not every strategy suggested by the matching techniques has to be evaluated in a QSPM. These matching tools usually generate similar feasible alternatives. The top row of a QSPM consists of alternative strategies derived from the TOWS Matrix, SPACE Matrix, BCG Matrix, IE Matrix, and Grand Strategy Matrix. In a column adjacent to the critical success factors, the respective weights received by each factor in the EFE Matrix and the IFE Matrix are recorded. Specifically, the left column of a QSPM consists of information obtained directly from the EFE Matrix and IFE Matrix. Left column of a Quantitative Strategic Planning Matrix (QSPM) consists of key external and internal factors (from Stage 1), and the top row consists of feasible alternative strategies (from Stage 2). The quantitative strategic planning matrix is useful since it allows strategists examine various strategies according to the established external and internal critical success factors. Finally, based on the information found in the analysis, a decision is made on which strategy would be best to pursue. Then, once this has been determined, a SWOT analysis, or other similar form of analysis, is performed to objectively weigh the pros and cons of each strategic factor in numerical form. The first step is to define key strategic factors. The Quantitative Strategic Planning Matrix (QSPM) consists of three stages that are used in the strategies formulation process. A basic tenet of the QSPM is that firms need to systematically assess their external and internal environments, conduct research, carefully evaluate the pros and cons of various alternatives, perform analyses, and then decide upon a particular course of action. The QSPM technique determines which of the selected strategic options is feasible, and it actually prioritizes these strategies. Quantitative Strategic Planning Matrix (QSPM) is a strategic management tool used in the evaluation of strategic options and determination of relative attractiveness of strategies.

Bcg matrix home depot