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The QSPM incorporate earlier stage details in an organize way to calculate the score of multiple strategies in order to find the best match strategy for the organization. The best thing about QSPM is that it never insist the strategist to enter the information on assumptions, it extract the information from stage 1 The Input Stage and stage 2 the the matching stage.
The QSPM combine the intuitive thinking of managers with Qatar airways bcg analysis analytical process to decide the best strategy for the organization success.
Adjacent column to key factors is Weight relative importance of the factor which hold the numeric value obtained from EFE and IFE matrix weight column. The next to weight is AS stands for attractive score assign priority to key factors using the numeric value 4 for most importance and 1 for least importance and the last column TAS Total attractive score is the value calculated by multiplying weight by AS.
A minimum of 10 external critical success factors and 10 internal critical success factors should be included in the QSPM. Step 2 Assign weights to each key external and internal factor.
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The weights are presented in a straight column just to the right of the external and internal critical success factors. Step 3 Examine the Stage 2 matching matrices and identify alternative strategies that the organization should consider implementing.
Record these strategies in the top row of the QSPM. Group the strategies into mutually exclusive sets if possible. Step 4 Determine the Attractiveness Scores ASdefined as numerical values that indicate the relative attractiveness of each strategy in a given set of alternatives.
Specifically, Attractiveness Scores should be assigned to each strategy to indicate the relative attractiveness of one strategy over others, considering the particular factor.
If the answer to the above question is no, indicating that the respective key factor has no effect upon the specific choice being made, then do not assign Attractiveness Scores to the strategies in that set.
Use a dash to indicate that the key factor does not affect the choice being made. If you assign an AS score to one strategy, then assign AS score s to the other. In other words, if one strategy receives a dash, then all others must receive a dash in a given row.
Step 5 Compute the Total Attractiveness Scores. Total Attractiveness Scores are defined as the product of multiplying the weights Step 2 by the Attractiveness Scores Step 4 in each row.
The Total Attractiveness Scores indicate the relative attractiveness of each alternative strategy, considering only the impact of the adjacent external or internal critical success factor.
The higher the Total Attractiveness Score, the more attractive the strategic alternative considering only the adjacent critical success factor. The Sum Total Attractiveness Scores reveal which strategy is most attractive in each set of alternatives.
Higher scores indicate more attractive strategies, considering all the relevant external and internal factors that could affect the strategic decisions.
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.
Another limitation is that it requires good judgment in assigning attractiveness scores. Also, the sum total attractiveness scores can be really close such that a final decision is not clear.
Advantages of QSPM A QSPM provides a framework to prioritize the strategies, it can be used for comparing strategies at any level such as corporate, business and functional. The other positive feature of QSPM that it integrate external and internal factors into decision making process. A QSPM can be developed for small and large scale profit and non-profit organizations.July 22’ – The day I won’t forget!
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