- 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.”