strategic management

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Instructions

Instructions
These matrices were developed in October 1998 by Steve Wood and Jason Bourn at the Portsmouth Campus of
New Hampshire College. They are based on matrices developed by Robert C. Losik and published most recently
as STRATMAX, a LOTUS-based version. These matrices should be used to support strategic decisions
made in ADB421. This file is known as ADB421-SAW98.xls.
A limited Apple98.xls file can be viewed as a sample. The only matrix in that sample that is incomplete is
the "STRATEGIES" matrix. Normally a student would list more strategies (SEE OLD APPLE SAMPLE.)
The sample file (APPLE98.xls) needs to be opened separately.
Since this file contains blank templates to be used when preparing a new case, it should be opened and saved
immediately as a new file, perhaps named after the case. For example, "Norwood.xls". If you do this you will
always have a blank file for future use.
The "VEE-TOWS" and "QSPM SUMMARY" spreadsheets noted by the tabs below contain data that need
to be sorted once other spreadsheets are completed. To sort the data on these sheets just click the "SORT"
button located near the top of each of these pages.
Note to Instructors:
Refer students to the original "Case Guide" developed by Dr. Losik for assistance in preparing these templates.
Comments and questions are welcomed. You can e-mail Steve Wood, and ADB-421 instructor at the Portsmouth
Campus, at [email protected]

IFEM

Internal Factor Evaluation Matrix (IFEM)--Main Matrix A
Internal Key Factors Rate Weight Total
Lagre inventory 2 0.2 0.40
short manufacturing cycle time 3 0.2 0.60
Idlel Capacity 2 0.3 0.60
Long setup times 1 0.1 0.10
Low porportion of stores stocking our bikes 2 0.05 0.10
High beaerkdown 1 0.1 0.10
high rework 2 0.3 0.60
Good starting capacity 4 0.2 0.80
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Totals 1.45 3.30
FACTOR RATING SCALE
1. Major Weakness 3. Minor Strength
2. Minor Weakness 4. Major Strength
INTERNAL FACTOR CODE:
FN = FINANCE
MG = MANAGEMENT
MK = MARKETING
IS = INFORMATION SYSTEMS
PR = PRODUCTION OF A PRODUCT
RD = RESEARCH AND DEVELOPMENT
SV = THE PROVIDING OF A SERVICE
Internal Factor Evaluation Matrix (IFEM)--Sub Matrix B
Internal Key Factors Rate Weight Total
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Totals 0.00 0.00
Rating Summary
1. Major Weakness 3. Minor Strength
2. Minor Weakness 4. Major Strength
INTERNAL FACTOR CODE:
FN = FINANCE
MG = MANAGEMENT
MK = MARKETING
IS = INFORMATION SYSTEMS
PR = PRODUCTION OF A PRODUCT
RD = RESEARCH AND DEVELOPMENT
SV = THE PROVIDING OF A SERVICE
Internal Factor Evaluation Matrix (IFEM)--Sub Matrix C
Internal Key Factors Rate Weight Total
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Totals 0.00 0.00
Rating Summary
1. Major Weakness 3. Minor Strength
2. Minor Weakness 4. Major Strength
INTERNAL FACTOR CODE:
FN = FINANCE
MG = MANAGEMENT
MK = MARKETING
IS = INFORMATION SYSTEMS
PR = PRODUCTION OF A PRODUCT
RD = RESEARCH AND DEVELOPMENT
SV = THE PROVIDING OF A SERVICE

EFEM

External Factor Evaluation Matrix (EFEM)--Main Matrix A
External Key Factors Rate Weight Total
untapped product categroies 3 0.2 0.60
many stores to hold products 3 0.3 0.90
low compeitior quality levels 4 0.3 1.20
other competitors in the adventure bikes field 1 0.2 0.20
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Totals 1.00 2.90
FACTOR RATING SCALE
1. Major Threat 3. Minor Opportunity
2. Minor Threat 4. Major Opportunity
EXTERNAL FACTOR CODE:
CP = COMPETITIVE
CL = CULTURAL
DM = DEMOGRAPHIC
EC = ECONOMIC
GE = GEOGRAPHIC
GV = GOVERNMENT
IN = INDUSTRY
LG = LEGAL
PL = POLITICAL
SC = SOCIAL
TC = TECHNOLOGICAL
External Factor Evaluation Matrix (EFEM)--Sub Matrix B
External Key Factors Rate Weight Total
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Totals 0.00 0.00
FACTOR RATING SCALE
1. Major Threat 3. Minor Opportunity
2. Minor Threat 4. Major Opportunity
EXTERNAL FACTOR CODE:
CP = COMPETITIVE
CL = CULTURAL
DM = DEMOGRAPHIC
EC = ECONOMIC
GE = GEOGRAPHIC
GV = GOVERNMENT
IN = INDUSTRY
LG = LEGAL
PL = POLITICAL
SC = SOCIAL
TC = TECHNOLOGICAL
External Factor Evaluation Matrix (EFEM)--Sub Matrix C
External Key Factors Rate Weight Total
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Totals 0.00 0.00
FACTOR RATING SCALE
1. Major Threat 3. Minor Opportunity
2. Minor Threat 4. Major Opportunity
EXTERNAL FACTOR CODE:
CP = COMPETITIVE
CL = CULTURAL
DM = DEMOGRAPHIC
EC = ECONOMIC
GE = GEOGRAPHIC
GV = GOVERNMENT
IN = INDUSTRY
LG = LEGAL
PL = POLITICAL
SC = SOCIAL
TC = TECHNOLOGICAL

VEE-TOWS

VEE-TOWS MATRIX
STRENGTHS (S) Rating Weight WEAKNESSES (W) Rating Weight
1 0 0 0.00 1 0 9 9.00
2 0 0 0.00 2 Lagre inventory 2 0.20
3 0 0 0.00 3 0 9 9.00
4 short manufacturing cycle time 3 0.20 4 0 9 9.00
5 0 0 0.00 5 Long setup times 1 0.10
6 0 0 0.00 6 0 9 9.00
7 0 0 0.00 7 0 9 9.00
8 0 0 0.00 8 0 9 9.00
9 0 0 0.00 9 Idlel Capacity 2 0.30
10 Good starting capacity 4 0.20 10 Low porportion of stores stocking our bikes 2 0.05
11 0 0 0.00 11 0 9 9.00
12 0 0 0.00 12 0 9 9.00
13 0 0 0.00 13 High beaerkdown 1 0.10
14 0 0 0.00 14 high rework 2 0.30
15 0 0 0.00 15 0 9 9.00
16 0 0 0.00 16 0 9 9.00
17 0 0 0.00 17 0 9 9.00
18 0 0 0.00 18 0 9 9.00
19 0 0 0.00 19 0 9 9.00
OPPORTUNITIES (O) Rating Weight THREATS (T) Rating Weight
1 0 0 0.00 1 0 9 9.00
2 0 0 0.00 2 0 9 9.00
3 untapped product categroies 3 0.20 3 other competitors in the adventure bikes field 1 0.20
4 0 0 0.00 4 0 9 9.00
5 0 0 0.00 5 0 9 9.00
6 0 0 0.00 6 0 9 9.00
7 0 0 0.00 7 0 9 9.00
8 low compeitior quality levels 4 0.30 8 0 9 9.00
9 0 0 0.00 9 0 9 9.00
10 0 0 0.00 10 0 9 9.00
11 0 0 0.00 11 0 9 9.00
12 0 0 0.00 12 0 9 9.00
13 0 0 0.00 13 0 9 9.00
14 0 0 0.00 14 0 9 9.00
15 many stores to hold products 3 0.30 15 0 9 9.00
16 0 0 0.00 16 0 9 9.00
17 0 0 0.00 17 0 9 9.00
18 0 0 0.00 18 0 9 9.00
19 0 0 0.00 19 0 9 9.00
SORT

I&E Matrix

THE INTERNAL AND EXTERNAL FACTOR MATRIX (I/E)
IFEM TOTAL WEIGHTED SCORES
INTERNAL FACTOR SPACE
HIGH LOW
EFEM 3 2 1
TOTAL
WEIGHTED HIGH
SCORES
EXTERNAL
FACTOR
FAVORABLENESS
EFEM Total: 2.90
LOW
IFEM Total: 3.30
STRATEGY AREA:
3.10
*NOTE: DIVESTITURE, LIQUIDATION, RETRENCHMENT,
AND RESTRUCTURING SHOULD BE ONGOING STRATEGIES,
REGARDLESS OF THE ORGANIZATION'S STRATEGIC POSTURE.
POSSIBLE STRATEGIES: GROW & HOLD & HARVEST &
BUILD MAINTAIN DIVEST
BACKWARD INTEGRATION................ X
CONCENTRIC DIVERSIFICATION......... X X X(?)
CONGLOMERATE DIVERSIFICATION....... X X(?)
DIVESTITURE.......................... X* X* X*
FORWARD INTEGRATION............... X
HORIZONTAL DIVESIFICATION........... X X(?)
HORIZONTAL INTEGRATION........... X X(?)
LIQUIDATION.................... X* X* X*
MARKET DEVELOPMENT................ X X(?)
MARKET PENETRATION................ X X
PRODUCT DEVELOPMENT..................... X X(?)
RESTRUCTURING..................... X* X* X*
RETRENCHMEMT...................... X* X* X*
(?) DEPENDS ON THE FINANCIAL CONDITION OF THE ORGANIZATION

I&E Matrix
IFEM
EFEM
I&E Chart

SPACE

THE SPACE MATRIX
RATINGS: +6 IS THE BEST; +1 IS THE WORST. RATINGS: -1 IS THE BEST; -6 IS THE WORST.
FINANCIAL STATUS RATING (+1 ,+6) COMPETITIVE STATUS RATING (-1,-6)
1 1
2 2
3 3
4 4
5 5
MEAN 0.00 MEAN 0.00
RATINGS: -1 IS THE BEST; -6 IS THE WORST. RATINGS: +6 IS THE BEST; +1 IS THE WORST.
ENVIRONMENTAL STATUS RATING (-1, -6) INDUSTRY STATUS RATING (+1,+6)
1 1
2 2
3 3
4 4
5 5
Mean 0.00 MEAN 0.00
X Coordinate 0.00
Y Coordinate 0.00
I
II
III
IV
V
VI
VII
VIII
IX

SPACE
Conservative
Aggressive
Defensive
Competitive
SPACE Matrix

STRATEGIES

THE TOWS MATRIX STRATEGIES
BUSINESS CORPORATE (B/C) AND FUNCTIONAL AREA (F) STRATEGIES
STRENGTH/OPPORTUNITY (SO) STRATEGIES
WEAKNESS/OPPORTUNITY (WO) STRATEGIES
STRENGTH/THREAT (ST) STRATEGIES
WEAKNESS/THREAT (WT) STRATEGIES

QSPM

The Quantitative Strategic Planning Matrix (QSPM)
QSPM NR 1: STRATEGIES 1 THROUGH 6.
STRATEGY 1 STRATEGY 2 STRATEGY 3 STRATEGY 4 STRATEGY 5 STRATEGY 6
Internal Key Factors Rate SC TSC SC TSC SC TSC SC TSC SC TSC SC TSC
Lagre inventory 2 0 0 0 0 0 0
short manufacturing cycle time 3 0 0 0 0 0 0
Idlel Capacity 2 0 0 0 0 0 0
Long setup times 1 0 0 0 0 0 0
Low porportion of stores stocking our bikes 2 0 0 0 0 0 0
High beaerkdown 1 0 0 0 0 0 0
high rework 2 0 0 0 0 0 0
Good starting capacity 4 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
External Key Factor Rate AS TAS AS TAS AS TAS AS TAS AS TAS AS TAS
untapped product categroies 3 0 0 0 0 0 0
many stores to hold products 3 0 0 0 0 0 0
low compeitior quality levels 4 0 0 0 0 0 0
other competitors in the adventure bikes field 1 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
Percent of Maximum Possible Score 0.00 0.00 0.00 0.00 0.00 0.00
Total Spt % of MPSS & Total Arg % of MPAS 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
QSPM CODE
DESCRIPTION OF THE STRATEGIES: STRATEGY SC=SUPPORT SCORE INT SUPPORT OR EXT ARGUMENT SCORE
0 1 TSC=TOTAL SUPPORT SCORE SCORE INTERPRETATION SCORE
0 2 AS=ARGUMENT SCORE DOES NOT SPT OR ARGUE FOR 0
0 3 TAS=TOTAL ARGUMENT SCORE SLIGHTLY STRG SPT OR ARGUE FOR 1
0 4 MPS=MAX POSSIBLE SCORE MODERATE STRG SPT OR ARGUE FOR 2
0 5 MPSS=MAX POS SUPT SCORE VERY STRONG SPT OR ARGUE FOR 3
0 6 MPAS=MAX POS ARG SCORE EXTREMELY STRG SPT OR ARGUE FOR 4
The Quantitative Strategic Planning Matrix (QSPM)--Page 2
QSPM NR 1: STRATEGIES 7 THROUGH 12.
STRATEGY 7 STRATEGY 8 STRATEGY 9 STRATEGY 10 STRATEGY 11 STRATEGY 12
Internal Key Factors Rate SC TSC SC TSC SC TSC SC TSC SC TSC SC TSC
Lagre inventory 2 0 0 0 0 0 0
short manufacturing cycle time 3 0 0 0 0 0 0
Idlel Capacity 2 0 0 0 0 0 0
Long setup times 1 0 0 0 0 0 0
Low porportion of stores stocking our bikes 2 0 0 0 0 0 0
High beaerkdown 1 0 0 0 0 0 0
high rework 2 0 0 0 0 0 0
Good starting capacity 4 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
External Key Factor Rate AS TAS AS TAS AS TAS AS TAS AS TAS AS TAS
untapped product categroies 3 0 0 0 0 0 0
many stores to hold products 3 0 0 0 0 0 0
low compeitior quality levels 4 0 0 0 0 0 0
other competitors in the adventure bikes field 1 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
Percent of Maximum Possible Score 0.00 0.00 0.00 0.00 0.00 0.00
Total Spt % of MPSS & Total Arg % of MPAS 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
QSPM CODE
DESCRIPTION OF THE STRATEGIES: STRATEGY SC=SUPPORT SCORE INT SUPPORT OR EXT ARGUMENT SCORE
0 7 TSC=TOTAL SUPPORT SCORE SCORE INTERPRETATION SCORE
0 8 AS=ARGUMENT SCORE DOES NOT SPT OR ARGUE FOR 0
0 9 TAS=TOTAL ARGUMENT SCORE SLIGHTLY STRG SPT OR ARGUE FOR 1
0 10 MPS=MAX POSSIBLE SCORE MODERATE STRG SPT OR ARGUE FOR 2
0 11 MPSS=MAX POS SUPT SCORE VERY STRONG SPT OR ARGUE FOR 3
0 12 MPAS=MAX POS ARG SCORE EXTREMELY STRG SPT OR ARGUE FOR 4
The Quantitative Strategic Planning Matrix (QSPM)--Page 3
QSPM NR 1: STRATEGIES 13 THROUGH 18.
STRATEGY 13 STRATEGY 14 STRATEGY 15 STRATEGY 16 STRATEGY 17 STRATEGY 18
Internal Key Factors Rate SC TSC SC TSC SC TSC SC TSC SC TSC SC TSC
0
Lagre inventory 2 0 0 0 0 0 0
short manufacturing cycle time 3 0 0 0 0 0 0 0 0 0 0 0
Idlel Capacity 2 0 0 0 0 0 0 0 0 0 0 0
Long setup times 1 0 0 0 0 0 0 0 0 0 0 0
Low porportion of stores stocking our bikes 2 0 0 0 0 0 0 0 0 0 0 0
High beaerkdown 1 0 0 0 0 0 0 0 0 0 0 0 0
high rework 2 0 0 0 0 0 0 0 0 0 0 0 0
Good starting capacity 4 0 0 0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0 0 0 0 0
External Key Factor Rate AS TAS AS TAS AS TAS AS TAS AS TAS AS TAS
untapped product categroies 3 0 0 0 0 0 0 0 0 0 0 0 0
many stores to hold products 3 0 0 0 0 0 0 0 0 0 0 0 0
low compeitior quality levels 4 0 0 0 0 0 0 0 0 0 0 0 0
other competitors in the adventure bikes field 1 0 0 0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0 0 0 0 0
Percent of Maximum Possible Score 0.00 0.00 0.00 0.00 0.00 0.00
Total Spt % of MPSS & Total Arg % of MPAS 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
QSPM CODE
DESCRIPTION OF THE STRATEGIES: STRATEGY SC=SUPPORT SCORE INT SUPPORT OR EXT ARGUMENT SCORE
0 13 TSC=TOTAL SUPPORT SCORE SCORE INTERPRETATION SCORE
0 14 AS=ARGUMENT SCORE DOES NOT SPT OR ARGUE FOR 0
0 15 TAS=TOTAL ARGUMENT SCORE SLIGHTLY STRG SPT OR ARGUE FOR 1
0 16 MPS=MAX POSSIBLE SCORE MODERATE STRG SPT OR ARGUE FOR 2
0 17 MPSS=MAX POS SUPT SCORE VERY STRONG SPT OR ARGUE FOR 3
0 18 MPAS=MAX POS ARG SCORE EXTREMELY STRG SPT OR ARGUE FOR 4

BIMODAL

BI-MODAL STRATEGIC MATRIX
HI LO--------------EFFECTIVE RESOURCE USE-------------HI HI
| "S" |
| ATTENUATE THREATS | MAKE STRENGTHS EFFECTIVE |
| (III) | (I) |
| | O
T * * S * * P
H S,T S,t | S,o S,O P
R | O
E | R
A | T
T | U
| * * s * * N
| s,T s,t | s,o s,O I
| | T
| | Y
| | |
| | |
| "T"--T---------t--------------------o---------4---"O" --X-- ------------------o----------------------O---"O" |
| | |
| | |
A | C P
T P | O O
T O | N T
E T * * w * * V E
N E w,T w,t | w,o w,O E N
U N | R T
A T | S I
T I | I A
I A | O L
O L * * W * * N
N W,T W,t | W,o W,O |
| (IV) | (II) |
| SURVIVE OR RESTRUCTURE | CONV WEAK OR REPOSITION |
| "W" |
LO HI-------------VULNERABILITY TENDENCY--------------LO LO
GEN/CODE STRATEGY DESCRIPTION BMS CODE
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18

QSPM SUMMARY

The QSPM SUMMARY SHEET
STRATEGY DESCRIPTION MPS MPSS MPAS
1 0 0.000 0.000 0.000
2 0 0.000 0.000 0.000
3 0 0.000 0.000 0.000
4 0 0.000 0.000 0.000
5 0 0.000 0.000 0.000
6 0 0.000 0.000 0.000
7 0 0.000 0.000 0.000
8 0 0.000 0.000 0.000
9 0 0.000 0.000 0.000
10 0 0.000 0.000 0.000
11 0 0.000 0.000 0.000
12 0 0.000 0.000 0.000
13 0 0.000 0.000 0.000
14 0 0.000 0.000 0.000
15 0 0.000 0.000 0.000
16 0 0.000 0.000 0.000
17 0 0.000 0.000 0.000
18 0 0.000 0.000 0.000
SCORE DESCRIPTIONS
80 - 100 % Extremely strong
70 - 80 % Very Strong
60 - 70 % Strong
50 - 60 % Moderate
40 - 50 % Weak
30 - 40 % Very Weak
< 30% Extremely Weak
SORT