MDP Strategy Building Tool

Vision

Core ideology

Core Values

Purpose

Envisioned future

BHAG

Vivid Description

PTCL-MDP/ MFG Strategic Planning Tools

Make a list of Strengths, Weaknesses, Opportunities and

Threats

Strength Weakness Opportunity Threat

1

Long Term Objectives

Keeping in view SWOT and Vision of the organization, set long term objectives (i.e. 5 Years)

PTCL-MDP/ MFG Strategic Planning Tools

PTCL-MDP/ MFG Strategic Planning Tools
Strategy Inputs

Internal Factor Evaluation Matrix (IFE Matrix)

List key internal factors. Use a total of from 5-10 internal factors, including both strengths and
weaknesses.
1. List strengths first and then weaknesses. Be as specific as possible, using percentages, ratios,
and comparative numbers.
2. Assign a weight that ranges from 0.0 (not important) to 1.0 (all-important) to each factor.
The weight assigned to a given factor indicates the relative importance of the factor to being
successful in the firm’s industry. Regardless of whether a key factor is an internal strength or
weakness, factors considered to have the greatest effect on organizational performance
should be assigned the highest weights. The sum of all weights must equal 1.0.
3. Assign a 1-to-4 rating to each factor to indicate whether that factor represents a major
weakness (rating = 1), a minor weakness (rating = 2), a minor strength (rating = 3), or a
major strength (rating = 4). Note that strengths must receive a 3 or 4 rating and weaknesses
must receive a 1 or 2 rating. Ratings are thus company-based, whereas the weights in step 2
are industry-based.
4. Multiply each factor’s weight by its rating to determine a weighted score for each variable.
5. Sum the weighted scores for each variable to determine the total weighted score for the
organization.
Strengths
Parameter Information Weight Score
1
2
3
4
5
Weaknesses
1
2
3
4
5
Total Score Σ=¿

PTCL-MDP/ MFG Strategic Planning Tools

External Factor Evaluation Matrix (EFE Matrix)

List key external factors. Include a total of 5-10 factors, including both opportunities and threats, that
affect the firm and its industry.
1. List the opportunities first and then the threats. Be as specific as possible, using
percentages, ratios, and comparative numbers whenever possible.
2. Assign to each factor a weight that ranges from 0.0 (not important) to 1.0 (very important).
The weight indicates the relative importance of that factor to being successful in the firm’s
industry. Opportunities often receive higher weights than threats, but threats can receive
high weights if they are especially severe or threatening. Appropriate weights can be
determined by comparing successful with unsuccessful competitors or by discussing the
factor and reaching a group consensus. The sum of all weights assigned to the factors must
equal 1.0.
3. Assign a rating between 1 and 4 to each key external factor to indicate how effectively the
firm’s current strategies respond to the factor, where 4 = the response is superior, 3 = the
response is above average, 2 = the response is average, and 1 = the response is poor.
Ratings are based on effectiveness of the firm’s strategies. Ratings are thus company-based,
whereas the weights in Step 2 are industry-based. It is important to note that both threats
and opportunities can receive a 1, 2, 3, or 4.
4. Multiply each factor’s weight by its rating to determine a weighted score.
5. Sum the weighted scores for each variable to determine the total weighted score for the
organization.

Opportunities
Parameter Information Weight Score
1
2
3
4
5
Threats
1
2
3
4
5
Total Score Σ=¿

PTCL-MDP/ MFG Strategic Planning Tools

Strategic Choices

Internal-External Matrix

The Internal-External (IE) Matrix positions an organization’s various divisions in a nine cell
Display. Consider your organization as a whole in this activity.

Use the scores of IFE and EFE (already calculated) to map and identify the strategic choices most relevant to you.

Identify the cell where your company belongs and circle the list of strategic choices relevant to that cell in the

following picture.

Now list down the available strategic choices as strategy 1, 2, & 3

Strategy 1=

Strategy 2=

Strategy 3=

PTCL-MDP/ MFG Strategic Planning Tools

Strategy Selection

Quantitative Strategic Planning Matrix (QSPM)

1. Step 1 Make a list of the firm’s key external opportunities/threats and internal
strengths/weaknesses in the left column of the QSPM. This information should be taken directly
from the EFE Matrix and IFE Matrix.
2. Step 2 Compute the Sum Score. Add Total Scores in each strategy column of the QSPM. The Sum
Total reveal which strategy is most attractive in each set of alternatives. Higher scores indicate
more attractive strategies, considering all the relevant external and internal factors that could
affect the strategic decisions. The magnitude of the difference between the Sum Total Scores in
a given set of strategic alternatives indicates the relative desirability of one strategy over
another.
Quantitative Strategic Planning Matrix (QSPM)
Parameter Strategy 1 Strategy 2 Strategy 3
Strengths
1
2
3
4
5
Weaknesses
1
2
3
4
5
Total Score
Opportunities
Parameter
1
2
3
4
5
Threats
1
2
3
4
5
Total Score Σ= Σ= Σ=¿

PTCL-MDP/ MFG Strategic Planning Tools