Planning Matrix Essay

The Decision StageAnalysis and intuition provide a basis for making st appreciategy-formulation closings. The matching techniques just discussed reveal feasible alternate(a) strategies. Many of these strategies will likely postulate been proposed by managers and employees participating in the outline analysis and choice activity. Any additional strategies resulting from the matching analyses could be discussed and added to the listen of feasible alternate options. As indicated earlier in this chapter, participants could rate these strategies on a 1 to 4 scale so that a prioritized list of the best strategies could be achieved.The Quantitative Strategic Planning matrixQuantitative Strategic Planning matrix (QSPM) is a high-level strategicalal management approach for evaluating possible strategies. Quantitative Strategic Planning Matrix or a QSPM provides an analytical method for comparing feasible alternative actions. The QSPM method falls within so-called form 3 of the dod ge formulation analytical framework.picThe left field editorial of a QSPM consists of tonality international and inbred factors (identified in stage 1). The left column of a QSPM lists factors obtained instantly from the EFE matrix and IFE matrix. The top row consists of feasible alternative strategies (provided in stage 2) derived from the SWOT analysis, SPACE matrix, BCG matrix, and IE matrix. The first column with numbers includes weights charge to factors.How to Construct a QSPM smell 1Make a list of the devoteds key foreign opportunities/threats and inwrought strengths/weaknesses in the left column of the QSPM. This information should be taken directly from the EFE Matrix and IFE Matrix. A minimum of 10external diminutive success factors and 10 indwelling critical success factors should be included in the QSPM. stride 2Assign weights to from each(prenominal) one key external and internal factor. These weights are analogous to those in the EFE Matrix and the IFE Ma trix. The weights are presented in a straight column just to the right of the external and internal critical success factors.Step 3Examine the Stage 2 (matching) matrices and identify alternative strategies that the ecesis should consider implementing. Record these strategies in the top row of the QSPM. Group the strategies into in return exclusive sets if possible.Step 4Determine the attracter gain (AS), define as numerical values that indicate the congress attractiveness of each schema in a given set of alternatives. attracter haemorrhoid are determined by examining each key external or internal factor, one at a time, and asking the question, Does this factor tinge 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, magnet slews should be dispenseed to each strategy to indicate the relative attractiveness of one strategy over others, considering the particular fa ctor. The range for Attractiveness Scores is 1 = non attractive, 2 = somewhat attractive, 3 = reasonably attractive, and 4 = highly attractive. If the answer to the higher up question is no, indicating that the respective key factor has no effect upon the particular 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 onestrategy receives a dash, then all others mustiness receive a dash in a given row.Step 5Compute the radical 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 critica l success factor. The higher the Total Attractiveness Score, the more attractive the strategic alternative (considering only the adjacent critical success factor).Step 6Compute the Sum Total Attractiveness Score. Add Total Attractiveness Scores in each strategy column of the QSPM. The Sum Total Attractiveness Scores reveal which strategy is most attractive in each set of alternatives. Higher slews 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.Limitations of QSPMA terminal point of the QSPM is that it tin gouge be only as good as the necessity information and matching analyses upon which it is based. Another limitation is that it requires good judgment in assigning attractiveness scores. Also, the sum total at tractiveness scores can be really close such that a final decision is not clear. Like all analytical tools however, the QSPM should not dictate decisions merely rather should be developed as input into the owners final decision.Advantages of QSPMA 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 crowing scale profit and non-profit organizations.Cultural Aspects of Strategy ChoiceAll organizations have a culture. grow includes the set of shared values, beliefs, attitudes, customs, norms, personalities, heroes, and heroines that describe a firm. Culture is the unique way an organization does business. It is the human dimension that creates solidarity and meaning, and it inspires commitment and productiveness in an organization when s trategy changes are made.It is beneficial to view strategic management from a cultural perspective because success often rests upon the layer of support that strategies receive from a firms culture. If a firms strategies are supported by cultural products such as values, beliefs, rites, rituals,ceremonies, stories, symbols, language, heroes, and heroines, then managers often canimplement changes swiftly and easily. However, if a supportive culture does not exist and is not cultivated, then strategy changes may be ineffectual or even counterproductive.A firms culture can become antagonistic to new strategies, and the result of that antagonism may be confusion and disarray.Culture provides an explanation for the difficulties a firm encounters when it attempts to shift its strategic direction.