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. |
