Question

Describe the positive features and limitations of the Quantitative Strategic Planning Matrix (QSPM).

Answer 1

Advantages of QSPM:

• QSPM provides a framework which helps in prioritizing strategies.
• At all the levels like corporate, business, functional etc, QSPM is used to compare strategies.
• It helps in integrating internal and external factors that facilitate the decision-making process.
• QSPM can be developed for all small scale, large scale and profit, non- profit organizations.

Limitations of QSPM:

• QSPM is successful only if the information and analysis match the requirement, if good prerequisites are not used that may give negative results.
• Good judgment is required to assign attractiveness scores.
• Sometimes the attractiveness scores are really close and make it complicated to make a clear decision.
• To overcome the limitations, QSPM should not be made decision maker but it should give inputs to the management to decide.