QSPM Matrix Analysis or Quantitative Strategic Planning Matrix Analysis is one of the popular, statistical business data analysis tool. The business strategy evaluation tool is used in the decision making stage of developing a business strategy. Strategic decision making is the last stage of the business strategy formulation process.
QSPM matrix analysis is an integral tool for supporting informed decision making. It helps managers in picking appropriate business options. This is done through a reproducible, statistical qspm matrix model of analyzing alternative options.
#Steps of QSPM Matrix Analysis Process
The QSPM Matrix Analysis tool is comprised of a series of steps that employ popular business analysis tools. These statistical business strategy analysis tools include:
Strategic options are selected after a SWOT analysis of strengths, weaknesses, opportunities, and threats of a business organization. Strengths and weaknesses, also known as internal business factors, are then accorded ratings through an IFE matrix factor analysis.
On the other hand, opportunities and threats, also known as external business factors, are assigned ratings through an EFE matrix factor analysis. The scores of IFE and EFE matrix analyses define the importance of internal factors and external factors in affecting a business strategy.
The final step of QSPM Matrix Analysis is the evaluation of the most appropriate combinations of internal and external factors in a QSPM Matrix template. The efficacy of a QSPM template and the results of a quantitative strategic planning matrix analysis model is largely determined by the rating of scores in IFE and EFE matrix analyses. To develop a perfect business strategy, managers must ensure a high degree of accuracy when selecting and rating internal (IFE) and external (EFE) business factors.
Additional business analysis tools and descriptions of the application of statistical business data analytics tools like SWOT analysis, IFE and EFE matrix analysis, and Quantitative Strategic Planning Matrix analysis in strategic management can be found at Business Study Notes.
#IFE Matrix Analysis
#IFE and EFE Matrix
#QSPM Matrix Analysis
#Rating Scores in QSPM Analysis