All - Template Chap6 - Strategy Formulation As of June 22 2019

Name of Student/SECTION: (LAST NAME, FIRST NAME / _ OM)
Chapter SIX
STRATEGY FORMULATION OF (WRITE HERE THE NAME OF COMPANY)
(WRITE HERE NATURE OF BUSINESS AND PRODUCT OR SERVICES BEING OFFERED BY THE COMPANY;
short sentence)
Introduction [– 3 quality sentences]
6.1) Strengths-Weaknesses-Opportunities-Threats (SWOT) Matrix

1st paragraph, definition and principles [– 3 quality sentences]
SWOT Matrix [use the exact format from the detailed instructions]
Example of Significant Strategies from Each Quadrant
Frequency of Identified Alternative Strategies
Relevance of SWOT [– 3 quality sentences; check the format in the detailed portion]
6.2) Strategic Position and Action Evaluation (SPACE) Matrix

Table SPACE Matrix, Computation of FS, IP, SP, CP Average
Computation in SPACE
SPACE Matrix with Directional Vector [use the exact format from the detailed instructions]
Relevance of SPACE [– 3 quality sentences; check the format in the detailed portion]
6.3) Boston Consulting Group (BCG) Matrix

BCG Matrix [use the exact format from the detailed instructions]
Information and relevant computation on relative market share and industry growth rate
in BCG Matrix
Relevance of BCG [– 3 quality sentences]
6.4) Internal-External (IE) Matrix

IE Matrix [use the exact format from the detailed instructions]
Information and Explanation about IFE and EFE
Relevance of IE [– 3 quality sentences]
6.5) Grand Strategy (GS) Matrix

GS Matrix [use the exact format from the detailed instructions]
Information and explanation about market growth and competitive position from GS
Matrix
Relevance of GS [– 3 quality sentences]
6.6) Tally of Alternative Strategies from Matching Stage Matrices

Tally Table
Relevance of Tallying [– 3 quality sentences]
6.7) Quantitative Strategic Planning Matrix (QSPM)

QSPM Matrix [use the exact format from the detailed instructions]
Relevance of QSPM
Detailed Instructions
FONT TYPE: ARIAL
FONT SIZE: 12
SPACING: 1.5
Chapter SIX
(Delete this)
STRATEGY FORMULATION OF (WRITE HERE THE NAME OF COMPANY)
(WRITE HERE NATURE OF BUSINESS AND PRODUCT OR SERVICES BEING OFFERED BY THE COMPANY;
short sentence)
(Introductory Paragraph for Chapter 6. This chapter is all about generation of

alternative strategy, evaluate those alternatives and choose a specific course of action
to achieve its mission and objectives. Strategy-Formulation Framework and its stages
must be also written in this introductory Paragraph.) [– 3 sentences min]
By this time, the student or strategist should realize that strategy formulation consist of 3
stages.
Stage 1 Input Stage

Summarizes the basic input information (from Chapter 4 and 5) needed to formulate
strategies
Consists of the EFE Matrix, the IFE Matrix, and the Competitive Profile Matrix (CPM)
Stage 2 Matching Stage

Focuses on generating feasible alternative strategies by aligning key external and
internal factors
Techniques include the Strengths-Weaknesses-Opportunities-Threats (SWOT) Matrix,
the Strategic Position and Action Evaluation (SPACE) Matrix, the Boston Consulting
Group (BCG) Matrix, the Internal-External (IE) Matrix, and the Grand Strategy Matrix
Stage 3 Decision Stage

Involves the Quantitative Strategic Planning Matrix (QSPM)
Reveals the relative attractiveness of alternative strategies and thus provides objective
basis for selecting specific strategies
6.1) Strengths-Weaknesses-Opportunities-Threats (SWOT) Matrix
(Definition and principles of SWOT Analysis must be explained here. How SWOT
Analysis is being constructed should be also mentioned here. For review of creating
SWOT Matrix check pages 205 to 208 of textbook.) [– 3 quality sentences]
Figure 6._ : SWOT Matrix of (Company)

(Make it sure this Matrix will fit in one page only by adjusting font size from 8 to 6, if necessary)
Strengths Weaknesses
S1. (Copy paste the exact sentence from IFE) W1. (Copy paste the exact sentence from IFE)
INTERNAL S2. W2.
FACTORS S3. W3.
S4. W4.
S5. W5.
(# of strengths must be the same inside IFE) (# of weaknesses must be the same inside IFE)
ALL FONTS INSIDE THIS TABLE:

EXTERNAL FACTORS FONT TYPE: ARIAL
Opportunities S-O Strategies (Type) W-O Strategies (Type) FONT SIZE: 8 to 6 (put in one page)
SPACING: 1.0
O1. (Copy paste the exact sentence from EFE) BOARDER, SHADING, HEIGHT AND WIDTH OF
THIS TABLE SHOULD BE SMALL AND CANNOT
O2. (Minimum of 4 Strategic Options, check page (Minimum of 4 Strategic Options, check page
BE ADJUSTED
O3. 206 for suggested SO strategies; Be specific 206 for suggested WO strategies;
(Delete this) Be specific in
O4. in thinking of strategies; Use of strengths to thinking of strategies; Take advantage of
O5. take advantage of opportunities) opportunities by overcoming weaknesses)
(# of opportunity must be the same inside EFE)
Strategy 1 Generated [factor source] – Strategy 1 Generated [factor source] –
Alternative Strategy Classification Alternative Strategy Classification



Threat S-T Strategies (Type) W-T Strategies (Type)

T1. (Copy paste the exact sentence from EFE)
T2. (Minimum of 4 Strategic Options, , check page (Minimum of 2 Strategic Options, , check page
T3. 206 for suggested ST strategies; Be specific 206 for suggested WT strategies; Be specific in
T4. in thinking of strategies; Use of strengths as thinking of strategies; Act to minimize
T5. ways to solve or avoid/minimize impact of weaknesses and avoid threats.)
(# of threat must be the same inside EFE) threats)
Strategy 1 Generated [factor source] –
Strategy 1 Generated [factor source] – Alternative Strategy Classification
Alternative Strategy Classification
Strategy 2 Generated [factor source] – Alternative Strategy Classification


(Note: Be specific in thinking and generating strategies inside this matrix. By undergoing
this process of matching, the strama student would be able to explore all possible
solutions. These generated strategies inside the SWOT matrix will be useful in Chapter
7: Strategy Implementation)
Write one example of important strategy derived from each quadrant
Quadrant Example of Significant Strategies from the Quadrant

S.O. (Copy paste one example of strategy from this quadrant)
W.O. (Copy paste one example of strategy from this quadrant)
S.T. (Copy paste one example of strategy from this quadrant)
W.T. (Copy paste one example of strategy from this quadrant)
Table 6._ : Frequency of Identified Alternative Strategies from the SWOT Matrix
(This is based on appearance of alternative strategies in all quadrant of SWOT)
Frequency in
Alternative Strategies
SWOT Matrix
1. Forward Integration
2. Backward Integration
3. Horizontal Integration ALL FONTS INSIDE THIS TABLE:
4. Market Penetration FONT TYPE: ARIAL
FONT SIZE: 10
5. Market Development SPACING: 1.0
BOARDER, SHADING, HEIGHT AND WIDTH OF
6. Product Development BE ADJUSTED
7. Related Diversification (Delete this)
8. Unrelated Diversification
9. Retrenchment
10. Divestiture
11. Liquidation
Relevance of SWOT
After discussion and construction of SWOT Matrix, relevance will proceed. In this
relevance analysis, the student must identify the top 3 (or 4) Alternative Strategies with
highest frequencies in the table above. The alternative strategies are tallied at the end
of this chapter. The student may mention examples of specific strategies from those top
3 alternative strategies. All the generated strategies can serve as starting point for deep
discussion. The student or strategist must relate or check the alignment of the result of
SWOT Matrix to the current situation of the company. Also, the student can also
comment if the company is already doing or not yet doing this strategies or dwelling in
this strategies already. [– 3 sentences min]
Example. HI, MD and PD are identified

here.
Example. HI, MD and RD are identified

here.
Example. In this case, the identified

strategies are FI, BI, HI and MD
6.2) Strategic Position and Action Evaluation (SPACE) Matrix
(Definition and principles of Strategic Position and Action Evaluation must be explained
here. How SPACE is being constructed should be also mentioned here. For review of
creating SPACE Matrix check pages 208 to 212 of textbook.) [– 3 quality sentences]
Next, the strama student must compute the average score for FP, CP, IP and SP based
on the variables (opportunities, threats, strengths and weaknesses) and their numerical
value rates.
Table 6. _ : SPACE Matrix for (Company)

Financial Position (FP) Rate
(Same Rate w/ that in
(Copy and Paste here KEY Strength and Weakness Factors that falls under the last table in Chap 5)
the Internal Dimension of Financial Position) (all rate here must be
positive)

FONT TYPE: ARIAL
FONT SIZE: 10
SPACING: 1.0
BE ADJUSTED
Total (Delete this)
Industry Position (IP) Rate

(Copy and Paste here KEY Opportunity and Threat Factors that falls under the last table in Chap 4)
the External Dimension of Industry Position) (all rate here must be
positive)
Total
Stability Position (SP) Rate

Competitive Position (CP) Rate
(Same Rate w/ that in the
(Copy and Paste here KEY Strength and Weakness Factors that falls under last table in Chap 5)
the Internal Dimension of Financial Position) (all rate here must be
negative)
Total
(Copy and Paste here KEY Opportunity and Threat Factors that falls under the last table in Chap 4)
the External Dimension of Stability Position) (all rate here must be
negative)
Total
Computation in SPACE
FS average = Total Rate / Number of Factor = ( + __ )

IP average = Total Rate / Number of Factor = ( + __ )
SP average = Total Rate / Number of Factor = ( - __ )
CP average = Total Rate / Number of Factor = ( -__ )
X axis: IP average + CP average = (+__ ) + (- __ ) = + ()

Y axis: FS average + SP average = (+ __ ) + (- __ ) = - ()
Figure 6. _ : SPACE Matrix of Company
FS
6
Conservative 4 Aggressive
3
1
-6 -5 -4 -3 -2 -1 1 2 3 4 5 6
CA IS
-1
-2
-3
Defensive -4 Competitive
-5
-6
ES
(student can also use this graphic SPACE graph, just enlarge this, the graphic below)
(Note: Draw a directional vector to show the positioning of the company. Logo of the company must be
placed also near to that vector. The SPACE figure drawing object above can be expanded which can be
used, in case of error occur in editing the figure)
Relevance of SPACE
After discussion and construction of SPACE Matrix, relevance will proceed. In the
analysis, the student must write and explain which quadrant does the company fall.
Then, all the feasible alternative strategies being recommended by the directional vector
in a quadrant must be mentioned here (check page 208 for the feasible strategies in
each quadrant or powerpoint lecture slide). The alternative strategies are tallied at the
end of this chapter. The student or strategist must relate or check the alignment of the
result of SPACE Matrix to the current situation of the company. Also, the student can
also comment if the company is already doing or already in that position. Proof,
indicators, evidence must be mentioned here especially in oral defense to prove that the
company must really be in aggressive, competitive, defensive or conservative
positioning. [– 3 quality sentences]
6.3) Boston Consulting Group (BCG) Matrix
(Definition and principles of BCG must be explained here. How BCG is being
constructed should be also mentioned here. For review of creating BCG Matrix check
pages 212 to 216 of textbook.) [– 3 quality sentences]
Figure 6. __ : BCG Matrix of (Company)
Relative Market Share Position
Low
High Medium
1.0 0.50 0.0
High +20
Growth Rate (Percentage)
II STARS I QUESTION MARKS

Medium 0
III CASH COWS IV DOGS
Low -20
Note: Locate in the BCG Matrix if the company is in quadrant of stars, question marks,
cash cows or dogs. Logo of the company must be placed also.
Must also show and explain here the information and relevant computation on relative
market share and industry growth rate.
Information and Computations on Related Market Share

-(min of 2 sentence explanations with computations)
Information and Computations on Industry Sales Growth Rate

-(min of 2 sentence explanations with computations)
Relevance of BCG
After discussion and construction of BCG Matrix, analysis will proceed. The student or
strategist must explain what quadrant does the company fall. In this analysis, the
student must identify the feasible Alternative Strategies or Alternative Strategies being
recommended in the corresponding Quadrant. (check page 215 for the feasible
strategies in each quadrant or powerpoint lecture slide) The alternative strategies are
tallied at the end of this chapter. The student or strategist must relate or check the
alignment of the result of BCG Matrix to the current situation of the company. Also, the
student can also comment if the company is already doing or already in that quadrant.
Proof, indicators, evidence must be mentioned here especially in oral defense to prove
that the company is in question marks, stars, cash cows or dogs. [– 3 quality sentences
min]
6.4) Internal-External (IE) Matrix

(Definition and principles of Internal and External (I.E.) Evaluation must be explained
here. How IE Matrix can be constructed must be also mentioned here. For review of
creating IE Matrix check pages 216 to 219 of textbook.) [– 3 quality sentences]
Figure 6. _ : IE Matrix of Company
IFE Total Weighted Score
Strong Average Weak

4.0 3.0 2.0 1.0
High III
I II
EFE Total Weighted Score
3.0
Delete this instruction
Medium
IV V VI
Plot the score of IFE in the top most
horizontal axis and EFE score in the left most
vertical axis. Then extend the lines, until
2.0 intersection is visible
Low
VII VIII IX
1.0
Note: Locate in the I.E. Matrix if the company is in region of grow and build, hold and
maintain or harvest or divest. Logo of the company must be placed also in that region.
Must also show and explain here again the score in EFE and IFE
Information about IFE
-(min of 2 sentence explanations regarding total score of IFE and its interpretation)
Information about EFE

-(min of 2 sentence explanations regarding total score of EFE and its interpretation)
Relevance of I.E.
After discussion and construction of IE Matrix, ANALYSIS will proceed. The analysis
must explain which cell or zone does the company fall, based on EFE and IFE score.
The student or strategist must relate or check the alignment of the result of IE Matrix to
the current situation of the company. Also, the student can also comment if the
company is already doing the harvesting or divesting, holding and maintaining or
growing and building. In the ANALYSIS, the student must also identify the feasible
Alternative Strategies or Alternative Strategies being recommended in the region in the
cell. (check page 217 for the feasible strategies in each quadrant or powerpoint lecture
slide) The alternative strategies are tallied at the end of this chapter. [– 3 quality
sentences min]
6.5) Grand Strategy (GS) Matrix

(Definition and principles of Grand Strategy Evaluation must be explained here. How
GS is being constructed should be also mentioned here. For review of creating GS
Matrix check pages 219 to 220 of textbook.) [– 3 quality sentences]
GS Matrix *Note: Any industry whose annual growth in sales
exceeds 5% could be considered to have rapid
growth.
Rapid Market Growth
(Delete this)
Quadrant II Quadrant I
Strong Competitive Position

Weak Competitive Position
Quadrant III Quadrant IV
Slow Market Growth
Note: Locate in the GS Matrix if the company is in quadrant I, II, III or IV. Logo of the
company must be placed also inside the GS Matrix.
Must also show and explain here about market growth and competitive position
pertaining to GS Matrix.
Information about market growth

-(min of 2 sentence explanations)
*Note: Any industry whose annual growth in sales exceeds 5% could be considered to
have rapid growth.
Information about competitive position
-(min of 2 sentence explanations)
Relevance of GS
After discussion and construction of GS Matrix, Analysis will proceed. The analysis must
explain which quadrant does the company fall, based on competitive position and
market growth. The student or strategist must relate or check the alignment of the result
of GS Matrix to the current situation of the company. Also, the student can also
comment if the company is already doing or already in that quadrant.) In the analysis,
the student must identify the feasible Alternative Strategies or Alternative Strategies
being recommended in the quadrant where the company is located. (check page 220 for
the feasible strategies in each quadrant or powerpoint lecture slide). Proof, indicators,
evidence must be mentioned here especially in oral defense to prove that the company
is in quadrant I, II, III or IV in the GS Matrix. The alternative strategies are tallied at the
end of this chapter. [– 3 quality sentences]
6.6) Tally of Alternative Strategies from Matching Stage Matrices

(Discussion on tallying of strategies that came from evaluation of SWOT, SPACE, BCG,
IE and GS must be explained here. This is still part of the Matching stage of strategy
formulation framework wherein this will reveal the top 3 Alternative Strategy) [– 1
sentences]
Tally of Alternative Strategies from Matching Stage Matrices

SWOT SPACE BCG IE GS Total
1. Forward Integration (use x symbol) (use x symbol) (use x symbol) (use x symbol) (use x symbol) (use # symbol)
2. Backward Integration (use x symbol) (use x symbol) (use x symbol) (use x symbol) (use x symbol) (use # symbol)
3. Horizontal Integration In the
(use x symbol)
tallying,
(use x use
symbol)
X symbol
(use x symbol)
in strategy
(use x symbol) (use x symbol) (use # symbol)
4. Market Penetration occurrence

(use x symbol) (use x for the
symbol)
matrix
(use x column,
symbol) (use
instead
x symbol)
of
(use x symbol) (use # symbol)
5. Market Development Number.

(use x symbol) (use x symbol) (use x symbol) (use x symbol) (use x symbol) (use # symbol)
6. Product Development (use x symbol) (use x symbol) (use x symbol) (use x symbol) (use x symbol) (use # symbol)
Of course, x
use Number x
symbol for x
total (use x symbol) (use # symbol)
7. Related Diversification (use x symbol) (use symbol) (use symbol) (use symbol)
column.
Check example below

8. Unrelated Diversification (use x symbol) (use x symbol) (use x symbol) (use x symbol) (use x symbol) (use # symbol)
9. Retrenchment (use x symbol) (use x symbol) (use x symbol) (use x symbol) (use x symbol) (use # symbol)
10. Divestiture (use x symbol) (use x symbol) (use x symbol) (use x symbol) (use x symbol) (use # symbol)
11. Liquidation (use x symbol) (use x symbol) (use x symbol) (use x symbol) (use x symbol) (use # symbol)
Relevance of Tally Table

After discussion and construction of Tally of Alternative Strategies, Analysis will
proceed. In the evaluation, the student must identify and highlight the top 3 Alternative
Strategies that has the highest frequency. Take note that the Top 3 alternative
strategies here have no ranking or prioritization. [– 3 quality sentences]
In rare situation, sometimes Top 4 Alternative Strategies can be generated.
Example of Tallying. Based on the tallying, the highest are Backward Integration,
Horizontal Integration and Unrelated Diversification.
(Delete this example of tallying)
6.7) Quantitative Strategic Planning Matrix (QSPM)

(Definition and principles of QSPM must be explained here. QSPM is the decision stage
where best strategies could be achieved. How QSPM is being constructed should be
also mentioned here. ) [– 3 quality sentences]
Table of Quantitative Strategic Planning Matrix

(The top alternative strategy 1, 2, 3 in this QSPM must be coming from tallying table)
Top Alternative Top Alternative Top Alternative

Strategy 1 Strategy 2 Strategy 3
(based on tallying table) (based on tallying table) (based on tallying table)
Key Factors Weight AS TAS AS TAS AS TAS
Opportunities
O1. 0.9
Use Same 8 Opportunity Factors from
lete this text book)
EFE
(delete this text book reminder)
Delete this. Reminder
Do not duplicating the scores per factor in order to
emphasize the relative attractiveness of each strategy
. So, no double 1’s, 2’s, 3’s and 4’s in a raw
Threats If the factor has no effect, then put dash to all in the
T1. raw. Read pp 223 to 224 of textbook
Use Same 8 Threat Factors from EFE (delete this text box)
(delete this text book)

FONT TYPE: ARIAL
FONT SIZE: 10
SPACING: 1.0
BE ADJUSTED
(Delete this)
Total Weight for Opportunities and Threats 1.00
Strengths
Same weight with IFE (delete this text book)
S1.
Use same 8 Strength Factors from IFE
Weaknesses
W1.
Use same 8 Weakness Factors from
IFE
Total Weight for Opportunities and Threats 1.00

Sum Total Attractiveness Score Sum Sum Sum
of TAS of TAS of TAS
Note: It is advisable that the strama student must double check the rates and other
computations inside the QSPM in order to validate the resulting prioritization of strategies.
1 – not attractive, 2 – somewhat attractive, 3 – reasonably attractive, 4 – highly attractive

Attractiveness Scores (AS) are determined by examining each key external or internal
factor, one at a time, and asking the question “Does this factor affect the choice of
strategies being made?” (Does Opportunity No. 2 highly affects the strategy no. 1? Or
Does strategy no. 1 attractive in capitalizing that opportunity 2, Does strategy no. 1
solves weakness no. 5?) If the answer to this question is yes, then the strategies should
be compared relative to that key factor (Please check complete instruction of QSPM
below or in pages 221 - 224).
(After filling up and computing the Sum of Total Attractiveness Score for each of
the alternative strategy, the student or strategist must explain the new ranking and
prioritization of the strategies to be implemented)
Relevance of QSPM
After discussion and construction of QSPM, ANALYSIS will proceed. In the ANALYSIS,
the student or strategies must report which of the 3 alternative strategies is the most
attractive, the ranking and the magnitude of differences. The full blown details of the
implementation of the strategies will be in chapter 7. (Note: Sometimes the OM student
may need to further check if the Strategy Ranked #1 is really the best strategy. Result of
QSPM is a mathematical approach, intuition and experience maybe applied. It is
advisable that the strama student must consult his/her friend or connection to the
company) [– 3 quality sentences]
Ranking of Alternative Alternative Strategy Sum Total Attractiveness

Strategy Score obtained from QSPM
1
2
3
Instruction in Constructing the QSPM (delete this in the actual Strama Paper)
Conceptually, the 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. 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. 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.
Step 1 Make a list of the firm’s key external opportunities/threats and internal strengths/weaknesses in the left column of the QSPM. This
information should be taken directly from the EFE Matrix and IFE Matrix.
Step 2 Assign weights to each key external and internal factor. These weights are identical to those in the EFE Matrix and the IFE Matrix. 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 (AS) defined as numerical values that indicate the relative attractiveness of each strategy
considering a single external or internal factor. Attractiveness Scores (AS) are determined by examining each key external or internal factor, one
at a time, and asking the question “Does this factor affect the choice of strategies being made?” If the answer to this question is yes, then the
strategies should be compared relative to that key factor. Specifically, Attractiveness Scores should be assigned to each strategy to indicate the
relative attractiveness of one strategy over others, considering the particular factor.
The range for Attractiveness Scores is

1 = not attractive, 2 = somewhat attractive, 3 = reasonably attractive, and 4 = highly attractive.
By attractive, we mean the extent that one strategy, compared to others, enables the firm to either capitalize on the strength, improve on the
weakness, exploit the opportunity, or avoid the threat. Work row by row in developing a QSPM. If the answer to the previous 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.
Note: 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 (TAS) 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).
Step 6 Compute the Sum Total Attractiveness Score. Add Total Attractiveness Scores in each strategy column of the QSPM. The Sum Total
Attractiveness Scores (STAS) 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.
Note the use of dashes to indicate which factors do not affect the strategy choice being considered. If a particular factor affects one strategy but
not the other, it affects the choice being made, so attractiveness scores should be recorded for both strategies. Never rate one strategy and not
the other.
Note that there are no double 1’s, 2’s, 3’s, or 4’s in a row. Never duplicate scores in a row. Never work column by column; always prepare a
QSPM working row by row. If you have more than one strategy in the QSPM, then let the AS scores range from 1 to “the number of strategies
being evaluated.” This will enable you to have a different AS score for each strategy. These are all important guidelines to follow in developing a
QSPM. Avoid giving each strategy the same AS score. Again work row by row, not column by column. These are important guidelines to follow in
constructing a QSPM.
(Note: Sometimes the OM student may need to further check if the Strategy Ranked #1 here in QSPM is really the best strategy.
Result of QSPM is a mathematical approach, intuition and experience maybe applied.)

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Name of Student/SECTION: (LAST NAME, FIRST NAME / _ OM)

Introduction [– 3 quality sentences]

6.1) Strengths-Weaknesses-Opportunities-Threats (SWOT) Matrix

6.2) Strategic Position and Action Evaluation (SPACE) Matrix

6.3) Boston Consulting Group (BCG) Matrix

6.4) Internal-External (IE) Matrix

6.5) Grand Strategy (GS) Matrix

6.6) Tally of Alternative Strategies from Matching Stage Matrices

6.7) Quantitative Strategic Planning Matrix (QSPM)

(Introductory Paragraph for Chapter 6. This chapter is all about generation of

Stage 1 Input Stage

Stage 2 Matching Stage

Stage 3 Decision Stage

Figure 6._ : SWOT Matrix of (Company)

ALL FONTS INSIDE THIS TABLE:

Strategy 2 Generated [factor source] – Strategy 2 Generated [factor source] –

Strategy 3 Generated [factor source] – Strategy 3 Generated [factor source] –

Strategy 4 Generated [factor source] – Strategy 4 Generated [factor source] –

Threat S-T Strategies (Type) W-T Strategies (Type)

Strategy 3 Generated [factor source] –

Strategy 4 Generated [factor source] –

Write one example of important strategy derived from each quadrant

Quadrant Example of Significant Strategies from the Quadrant

7. Related Diversification (Delete this)

Example. HI, MD and PD are identified

Example. HI, MD and RD are identified

Example. In this case, the identified

Table 6. _ : SPACE Matrix for (Company)

ALL FONTS INSIDE THIS TABLE:

Industry Position (IP) Rate

Stability Position (SP) Rate

FS average = Total Rate / Number of Factor = ( + __ )

X axis: IP average + CP average = (+__ ) + (- __ ) = + ()

6.3) Boston Consulting Group (BCG) Matrix

Figure 6. __ : BCG Matrix of (Company)

Relative Market Share Position

II STARS I QUESTION MARKS

Information and Computations on Related Market Share

Information and Computations on Industry Sales Growth Rate

6.4) Internal-External (IE) Matrix

Figure 6. _ : IE Matrix of Company

IFE Total Weighted Score

Strong Average Weak

Information about EFE

6.5) Grand Strategy (GS) Matrix

Strong Competitive Position

Quadrant III Quadrant IV

Slow Market Growth

Information about market growth

6.6) Tally of Alternative Strategies from Matching Stage Matrices

Tally of Alternative Strategies from Matching Stage Matrices

4. Market Penetration occurrence

5. Market Development Number.

Check example below

Relevance of Tally Table

In rare situation, sometimes Top 4 Alternative Strategies can be generated.

6.7) Quantitative Strategic Planning Matrix (QSPM)

Table of Quantitative Strategic Planning Matrix

Top Alternative Top Alternative Top Alternative

ALL FONTS INSIDE THIS TABLE:

Total Weight for Opportunities and Threats 1.00

Total Weight for Opportunities and Threats 1.00

1 – not attractive, 2 – somewhat attractive, 3 – reasonably attractive, 4 – highly attractive

X axis: IP average + CP average = (+ ) + (- ) = + ()