1.
The Matching Matrix (SWOT)
In a practical organization, this matrix is used to generate four types of strategies by
"matching" internal and external factors.
Strategy Logic Practical Example
Type
SO Use internal Strengths to take Using strong R&D (Strength) to enter a
Strategies advantage of external Opportunities. rapidly growing AI market (Opportunity).
WO Overcome internal Weaknesses by Hiring a new marketing firm (Weakness in
Strategies exploiting external Opportunities. branding) to capture a new demographic
(Opportunity).
ST Use Strengths to avoid or reduce the Using a huge cash reserve (Strength) to
Strategies impact of external Threats. outlast a price war started by a competitor
(Threat).
WT Defensive tactics aimed at reducing Restructuring/Downsizing (Weakness in
Strategies internal Weaknesses and efficiency) to avoid bankruptcy during a
avoiding Threats. recession (Threat).
2. The Strategic Decision Matrix (QSPM)
The Quantitative Strategic Planning Matrix is the final step. It allows an
organization to evaluate alternative strategies objectively based on the factors
identified in the "Input" stage.
QSPM Structure
Key Factors Weight Strategy 1: Market Strategy 2: Product
Penetration Development
External Factors (0.0– AS (Attractiveness Score) AS (Attractiveness Score)
1.0)
Factor A (e.g., Market 0.20 4 (Highly Attractive) 2 (Somewhat Attractive)
Growth)
Internal Factors
Factor B (e.g., Excess 0.15 3 (Attractive) 1 (Not Attractive)
Capacity)
TOTAL SCORES 1.00 Sum of (Weight Sum of (Weight
AS) AS)
Decision Rule: The strategy with the highest Total Attractiveness Score is the one
the organization should implement.
3. Practical Evaluation: Why this matters
Your PDF emphasizes that Strategy Implementation (Chapter 7) is "primarily
operational" and "requires coordination among many people."
The Link: The Decision Matrix (QSPM) tells you what to do, but
the Implementation Issues (Page 5 of your PDF) tell you how to survive it.
The Risk: If you use a Matching Matrix to choose a complex Matrix Structure (from
Page 17) without having the "special motivation and leadership skills" mentioned on
Page 3, the strategy will likely fail despite being "analytically" correct.