Mahbub Alam Royal

ID:B10201042
Ques-1: In prepairing a QSPM , what should be done if the TAS for each strategy
are identical ?

The Quantitative Planning Matrix is a strategic tool which is used to evaluate alternative
set of The strategies .QSPM incorporate earlier stage details in an organize way to
calculate The score of multiple strategies in order to find the best match strategy for the
organization . The QSPM comes under the third stage strategy formulation which is
called 'The Decision stage and also the final stage of this process. The best thing about
QSPM is that it never insistthe strategies to enter the information on assumptions ,it
extract the information from stage 1the Input Stage and stage 2 the the matching stage.
The input stage is based on EFE Matrix. Ifematrix and CPM and stage 2 made up
TOWS matrix, SPACE Matrix. BCG Matrix, IE matrixgrand strategy Matrix.The QSPM
combine the intuitive thinking of managers with the analytical process to decide the best
strategy for the organizational success .

The total Attractiveness score indicate the relative attractiveness of each key factor and
related individual strategy. Total Attractiveness Scores are defined as the product of
multiplying the weights by the Attractiveness Scores in each row. Calculate the Sum
Total Attractiveness Score by adding all Total Attractiveness Scores in each strategy
column of the QSPM. The range for Attractiveness Scores is 1 = not attractive, 2 =
somewhat attractive, 3 reasonably attractive, and 4 = highly attractive.TAS in QSPM
indicate how each factor is important or attractive to each alternative strategy
.attractiveness score are determined by examining each key external and internal factor
separately And attractiveness score asking for following questions :

Does this factor make a difference in our decision about which strategy to pursue ?

If the ans to the ques is yes,then the strategies should be compared related to that key
factor and if the answer to the above ques is no then the respective key factor has no
effect on our decision .but here the ques are not specified the exact attractiveness score
,we know that Total attractiveness score are 4 range 1,2,3,4 here 1 is not acceptable ,2
is possibly acceptable ,3 is probably acceptable ,4 is most acceptable and 0 is not
relevant . So if the score is 2,3,4 in each strategy its not a problem and we accept it but
the score is 0 or 1 its not acceptable ,and for that we change our decision in QSRM.

Ques-2: Understand the “Implications for students“ section and discuss what is
to be in mind while preparing strategy formulation matrices ?

A company’s strategic formulation is a major factor in the successful management of the

enterprise, but its growth rate may also influence its long-term future development; too
rapid growth can exhaust resources but a slow growing company may not be able to
utilize its resources effectively.
Objective of sytategy formulation :
Objective placing an important role in strategic management Strategic analysis and
choice largely involves making subjective decisions based on objective information. This
topic includes important concepts that can help strategists generate feasible
alternatives, evaluate those alternatives, and choose a specific course of action.
Behavioral aspects of strategy formulation are described, including politics, culture,
ethics, and social responsibility considerations. Modern tools for formulating strategies
are described, and the appropriate role of a board of directors is discussed.
Comprehensive Strategy-Formulation Framework :
Important strategy-formulation techniques can be integrated into a three-stage decision-
making framework, as shown below. The tools presented in this framework are
applicable to all sizes and types of organizations and can help strategists identify,
evaluate, and select strategies.
  The input stage
 External factor evaluation
 Competitive matrix profile
 Internal factor evaluation
 The Matching stage
 TWOS Matrix (Threats-Opportunities-Weaknesses-Strengths)
 SPACE Matrix (Strategic Position and Action Evaluation)
 BCG Matrix (Boston Consulting Group) 
 IE Matrix (Internal and external)
 GS Matrix (Grand Strategy)
 The Decision stage
 QSPM (Quantitative Strategic Planning Matrix)

The input stage: The input tools require strategists to quantify subjectivity during early
stages of the Strategy Formulation process ,making small decisions in the input
matrices regarding the relative importance of external and internal factors allows
strategies to more effectively generate ,prioritize evaluate and select among alternative
strategies .good initiative judgement is always needed in determining appropriate
weights and ratings ,but keep in mind that a rating of 3 .

The matching stage: strategy is sometimes defined as the match an organization makes
between its internal resources and skills and the opportunities and risks created by its
external factors . The matching stage is the strategy formulation framework consist of 5
techniques that can be used in any sequence the SWOT matrix ,the space matrix ,the
bcg matrix ,the ie matrix and the grand strategy matrix .these tools rely on information
derived from the input stage to match external opportunities and threats with internal
strengths and weekness . Matching external and internal key factors is the essential for
effectively generating fesible alternative strategies.
The decision stage: An indicated above, participants could individually rate strategies on
a 1 to 4 scale as to desirability, and then sum the ratings from all participants, so that a
prioritized list of the best strategies could be acheived.
To preparing this strategic formulation my mind consider some things like :

 Increase profitability.

 Gain more market share.

 Increase approval ratings, or boost customer satisfaction.

 Complete a project under budget.

To determine your strategy, you must understand fully the internal and external
environmental factors that affect you. With that understanding, you can identify your
clear advantages and use these to be successful. From there, you can make informed
choices and implement your strategy effectively.

Ques-3 : Explain what should be done if the SPACE vector cordinate point is
(0,0) ?

The strategic position and action evaluation (SPACE) matrix has four quadrant
framework indecates whether aggresive ,conservative ,defensive,or competitive
strategies are most appropriate for a given organization .the axes of the SPACE matrix
represent two internal dimentions FP(financial position) and CP(competitive position)
and two external dimentions SP( stability position) and IP(industry position).these four
factors are perhaps the most important determinants of an organizations overall
strategic position .And computing an average score for FP,CP,IP and SP by summering
the values given to the variables of each dimension and then by dividing by the number
of variables included in the respective dimension .The two scores on the x-axis and plot
the resultant point on X,add the two scores on the y-axis and plot the resultant point on
Y .plot the intersection of the new (x,y) cordinate .A directional vector from the origin of
the SPACE Matrix (0,0) through the new (x,y) cordinate .that vector,being located in a
particular quadrant,reveals particular strategies the organization should consider .