Positive Features and Limitations of the QSPM
A positive feature of the QSPM is that sets of strategies can be examined. sequentially or simultaneously. For example, corporate level strategies could be evaluated first; followed by division level strategies, and then function level strategies. There is no limit to the number of strategies that can be evaluated or the number of sets of strategies that can be examined at once using the QSPM.
Another positive feature of the QSPM is that it requires strategists to integrate pertinent external and internal factors into the decision process. Developing a QSPM makes it less likely that key factors will be overlooked or weighted inappropriately. A QSPM draws attention to important relationships that affect strategy decisions. Although developing a QSPM requires a number of subjective decisions, making small decisions along the way enhances the probability that the final strategic decisions will be best for the organization. A QSPM can be adapted for use by small and large for profit and nonprofit organizations and can be applied to virtually any type of organization. A QSPM especially can enhance strategic choice in multinational firms because many key factors and strategies can be considered at once. It also has been applied .successfully by a number of small businesses.
The QSPM is not without some limitations. First, it always requires intuitive judgments and educated assumptions. The ratings and attractiveness scores require judgmental decisions, even though they should be based on objective information. Discussion among strategists, managers, and employees throughout the strategy formulation process, including development of a QSPM, is constructive and improves strategic decisions. Constructive discussion during strategy analysis and choice may arise because of genuine differences of interpretation of information and varying opinions. Another limitation of the QSPM is that it can be only as good as the...