Question: Which of the following is the first step in developing a QSPM?
A Compute the Total Attractiveness Scores
B Assign weights to each key external and internal factor
D Determine the Attractiveness Scores
E Make a list of the firm’s key external opportunities and threats and internal strengths and weaknesses in the left column of the QSPM.
Answer: Make a list of the firm’s key external opportunities and threats and internal strengths and weaknesses in the left column of the QSPM.
| Developing a QSPM | Description |
| Step 1 | · Make a list of the firm’s key external opportunities and threats (EFAS) and internal strengths and weaknesses (IFAS) in the left column of the QSPM. |
| Step 2 | · Assign weights to each key factor (EFAS/IFAS) to indicate their relative importance.
· Typically, weights range from 1 for least important to 4 for most important. |
| Step 3 | · List potential alternative strategies that the organization should consider for achieving its objectives and addressing the identified factors. |
| Step 4 | · Evaluate the attractiveness
· Scores for each alternative strategy based on how well they address the key factors (EFAS/IFAS). |
| Step 5 | · Compute total attractiveness scores by multiplying the attractiveness scores by the corresponding factor weights. |
| Step 6 | · Assign Feasibility Scores to assess the feasibility of implementing each alternative strategy.
· Use a scale from 1 for least feasible to 4 for most feasible. |
| Step 7 | · Calculate total feasibility scores by summing the feasibility scores for each alternative strategy. |
| Step 8 | · Construct the QSPM Matrix with alternative strategies in rows.
· Total attractiveness Scores in one column and total feasibility scores in another column. |
| Step 9 | · Analyze and prioritize the alternative strategies based on their combined total attractiveness and total feasibility Scores. |