Internal Factor Evaluation Matrix (IFEM)--Main Matrix A

Internal Key Factors Rate Weight Total

MG-Management Philosophy 1 0.09 0.09

MG-Weak Organizational Structure 1 0.06 0.06
MG-Impending Resignation of President 2 0.03 0.06
MG-Chaotic, but very creative atmosphere 3 0.08 0.24
MG-Depends on Ext Suppliers for software 2 0.04 0.08
FN-Financial condition (see SubMatrix B) 4 0.16 0.64
MK-Sales to Foreign Markets 3 0.05 0.15
MK-Established Sales force 4 0.07 0.28
MK-Channels of Distribution 3 0.05 0.15
MK-"AMB" Program 3 0.05 0.15
MK-Marketing Problems for Lisa and MAC 1 0.09 0.09
MK-IIE shows promise over 5 year period 3 0.08 0.24
PR-50 million startup costs for the Lisa 2 0.03 0.06
PR-Production inefficiencies 2 0.05 0.10
RD-Design and Tech problems with the III 1 0.07 0.07
0.00 0 0.00
0.00 0 0.00
0.00 0 0.00
0.00 0 0.00

Totals 1.00 2.46

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

FINANCE 0.00
1. Current Ratio: 3.63 4 0.05 0.20
2. Quick Ratio: 2.53 4 0.05 0.20
3. Total Debt to Asset Ratio:.32 4 0.15 0.60
4. Long Term debt to asset ratio: .08 4 0.15 0.60
5. Total debt to equity ratio: .49 3 0.10 0.30
6. Long term debt to equity ratio: .1 4 0.10 0.40
7. 68% increase in Sales from 82 4 0.13 0.52
8. 26% incrase in net income 4 0.15 0.60
9. 77% increase in costs and expenses 2 0.12 0.24
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00

Totals 1.00 3.66

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
 External Factor Evaluation Matrix (EFEM)--Main Matrix A

External Key Factors Rate Weight Total

CP-Counterfeit Apples 1 0.03 0.03

CP-IBM gained 17% Market Share in 1 year 1 0.12 0.12
CP-Distribution/dealer problems 2 0.08 0.16
CP-Ptential Japanese competition 2 0.06 0.12
CP-potential conflict w/software vendors 2 0.05 0.10
CP-300 new computer models in 1984 2 0.05 0.10
CP-Approx 150 competitors 1 0.05 0.05
IN-Projected growth in Micro Sales 4 0.08 0.32
IN-Growth and Segmentation of markets 4 0.13 0.52
IN-Looming industry shakeout 4 0.07 0.28
IN-Expanding overseas market 3 0.04 0.12
EC-Sales recession 1 0.11 0.11
LG-Anti - Trust suit 2 0.03 0.06
TC-Technological trends in hardware 4 0.10 0.40
0 0.00
0 0.00
0 0.00
0 0.00
0 0.00

Totals 1.00 2.49

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 MATRIX
STRENGTHS (S) Rating Weight WEAKNESSES (W) Rating Weight
1 FN-Financial condition (see SubMatrix B) 4 0.16 1 MG-Weak Organizational Structure 1 0.06
2 MK-Established Sales force 4 0.07 2 RD-Design and Tech problems with the III 1 0.07
3 MK-IIE shows promise over 5 year period 3 0.08 3 MG-Management Philosophy 1 0.09
4 MG-Chaotic, but very creative atmosphere 3 0.08 4 MK-Marketing Problems for Lisa and MAC 1 0.09
5 MK-Sales to Foreign Markets 3 0.05 5 MG-Impending Resignation of President 2 0.03
6 MK-Channels of Distribution 3 0.05 6 PR-50 million startup costs for the Lisa 2 0.03
7 MK-"AMB" Program 3 0.05 7 MG-Depends on Ext Suppliers for software 2 0.04
8 0 0.00 8 PR-Production inefficiencies 2 0.05
9 0 0.00 9 9 9.00
10 0 0.00 10 9 9.00
11 0 0.00 11 9 9.00
12 0 0.00 12 9 9.00
13 0 0.00 13 9 9.00
14 0 0.00 14 9 9.00
15 0 0.00 15 9 9.00
16 0 0.00 16 9 9.00
17 0 0.00 17 9 9.00
18 0 0.00 18 9 9.00
19 0 0.00 19 9 9.00

OPPORTUNITIES (O) Rating Weight THREATS (T) Rating Weight

1 IN-Growth and Segmentation of markets 4 0.13 1 CP-Counterfeit Apples 1 0.03
2 TC-Technological trends in hardware 4 0.10 2 CP-Approx 150 competitors 1 0.05
3 IN-Projected growth in Micro Sales 4 0.08 3 EC-Sales recession 1 0.11
4 IN-Looming industry shakeout 4 0.07 4 CP-IBM gained 17% Market Share in 1 year 1 0.12
5 IN-Expanding overseas market 3 0.04 5 LG-Anti - Trust suit 2 0.03
6 0 0.00 6 CP-300 new computer models in 1984 2 0.05
7 0 0.00 7 CP-potential conflict w/software vendors 2 0.05
8 0 0.00 8 CP-Ptential Japanese competition 2 0.06
9 0 0.00 9 CP-Distribution/dealer problems 2 0.08
10 0 0.00 10 9 9.00
11 0 0.00 11 9 9.00
12 0 0.00 12 9 9.00
13 0 0.00 13 9 9.00
14 0 0.00 14 9 9.00
15 0 0.00 15 9 9.00
16 0 0.00 16 9 9.00
17 0 0.00 17 9 9.00
18 0 0.00 18 9 9.00
19 0 0.00 19 9 9.00
 THE INTERNAL AND EXTERNAL FACTOR MATRIX (I/E)

IFEM TOTAL WEIGHTED SCORES

INTERNAL FACTOR SPACE
HIGH LOW

EFEM
TOTAL I&E Chart
WEIGHTED HIGH
SCORES II III

EFEM
I
EXTERNAL
FACTOR
IV V VI
FAVORABLENESS

VII VIII IX
EFEM Total: 2.49
LOW IFEM
IFEM Total: 2.46

STRATEGY AREA:
2.48
*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 DIVERSIFICATIO 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
 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 Liquidity 6 1 High Market Share -2

2 Leverage 5 2 Problems with Apple III -5
3 Profitability 5 3 Reliant on Software vendors -4
4 Incr in sales 6 4 Probs w/suppliers and distribs -5
5 Incr in Net Profit 5 5 Lack of strategic direction -5

MEAN 5.40 MEAN -4.20

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 Sales Recession -5 1 Rapid Technological changes 3

2 Major CMPTRS priced higher -2 2 High growth potential 6
3 Competitive Pressure -5 3 Profit potential 6
4 4 Financial stability 5
5 5 Ease of entry 2

Mean -4.00 MEAN 4.40

X Coordinate 0.20
Y Coordinate 1.40

SPACE Matrix

Conservative Aggressive

Defensive Competitive
 THE TOWS MATRIX STRATEGIES
BUSINESS CORPORATE (B/C) AND FUNCTIONAL AREA (F) STRATEGIES
STRENGTH/OPPORTUNITY (SO) STRATEGIES
1. B/C, PD: Speed up the development of less expensive, simpler, more powerful, easier to use computers. S1,s4:O1-3
2. B/C,MP: concentrate sales and marketing on home, small business and institutional markets. S2:O1
3. B/C, PD: Develop a laptop computer. s4,O1-3

WEAKNESS/OPPORTUNITY (WO) STRATEGIES

4. B/C,PD: Develop marketing strategy for the Lisa and MAC. W2,3,w5;O1-3
5. B/C,PD: Speed up the development of less expensive, simpler, more powerful, easier to use computers. W2,3;O1-3
6. B/C,IN: Develop all own applications software. W6;O1-3
A. F/MG: Hire President who can provide strategic direction for apple computers. W1-4, w5; O1-3

STRENGTH/THREAT (ST) STRATEGIES

7. B/C,MP: Continue to expand international sales. S1,2,s7;T1-3
8 B/C,FI: Establish own sales outlets. S1-2,s5;T1,3,t6,8
9. B/C, PD: Develop an IBM compatible. S4;T1,3,t6,8
10. B/C,IN: Expand the :"amb" probram. S6,T1,3,t6,8

WEAKNESS/THREAT (WT) STRATEGIES

11. B/C,PD: Develop all own applications software. W6;t6
12. B/C,PD: Enter the workstation market. W2;T1,3,t6,8
B. F/PR: Improve quality control. W1,3,w5;T1,3, t6,8
C. F/RD: Develop a "market-need" R&D effort. W3w5;T1,3, t6,8
D. F/MG: Restructure & Provide new strategic leadership W4,w8;T1-4, t6-8
 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--X--------------------o----------------------O---"O" |
| | |
| | |
A | CP
TP | OO
TO | NT
ET * * w * * VE
NE w,T w,t | w,o w,O EN
UN | RT
AT | SI
TI | IA
IA | OL
OL * * 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 PD: Speed up development of less expensive, simpler, more… S,O
2 MP: Concentrate Sales and Marketing on Home, Small Business… S,O
3 PD: Develop a laptop computer s,O
4 PD: Develop marketing strategy for the Lisa and the… W,O
5 PD: Speed up development of less expensive, simpler, more… W,O
6 CC: Develop all own applications software w,O
7 MP: Continue to expand international sales S,T
8 FI: Establish own sales outlets S,T
9 PD: Develop an IBM compatible s,T
10 SD: Continue to expand the "AMB" Program s,T
11 CC: Develop all own applications software w.t
12 PD: Enter the workstation market W,T
13
14
15
16
17
18
 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

MG-Management Philosophy 1 2 2 2 2 2 2 2 2 R #VALUE! 2 2

MG-Weak Organizational Structure 1 2 2 2 2 2 2 2 2 E #VALUE! 2 2
MG-Impending Resignation of President 2 3 6 2 4 2 4 2 4 D #VALUE! 2 4
MG-Chaotic, but very creative atmosphere 3 3 9 2 6 3 9 3 9 U #VALUE! 3 9
MG-Depends on Ext Suppliers for software 2 2 4 2 4 2 4 2 4 N #VALUE! 4 8
FN-Financial condition (see SubMatrix B) 4 4 16 2 8 4 16 2 8 D #VALUE! 4 16
MK-Sales to Foreign Markets 3 4 12 4 12 4 12 3 9 AS #VALUE! 3 9
MK-Established Sales force 4 3 12 2 8 3 12 3 12 N #VALUE! 3 12
MK-Channels of Distribution 3 3 9 4 12 3 9 3 9 T #VALUE! 3 9
MK-"AMB" Program 3 3 9 3 9 3 9 3 9 0 3 9
MK-Marketing Problems for Lisa and MAC 1 2 2 4 4 1 1 2 2 W #VALUE! 2 2
MK-IIE shows promise over 5 year period 3 2 6 1 3 2 6 2 6 I #VALUE! 3 9
PR-50 million startup costs for the Lisa 2 1 2 2 4 1 2 1 2 T #VALUE! 1 2
PR-Production inefficiencies 2 2 4 1 2 1 2 1 2 H #VALUE! 1 2
RD-Design and Tech problems with the III 1 3 3 1 1 1 1 1 1 0 1 1
0 0 0 0 0 0 # #VALUE! 0
0 0 0 0 0 0 1 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

CP-Counterfeit Apples 1 4 4 3 3 3 3 3 3 0 0 0
CP-IBM gained 17% Market Share in 1 year 1 4 4 4 4 4 4 3 3 0 2 2
CP-Distribution/dealer problems 2 3 6 3 6 3 6 3 6 0 2 4
CP-Ptential Japanese competition 2 3 6 3 6 4 8 3 6 0 2 4
CP-potential conflict w/software vendors 2 2 4 1 2 1 2 1 2 0 4 8
CP-300 new computer models in 1984 2 3 6 3 6 4 8 3 6 0 1 2
CP-Approx 150 competitors 1 4 4 4 4 4 4 4 4 0 1 1
IN-Projected growth in Micro Sales 4 4 16 4 16 4 16 4 16 0 2 8
IN-Growth and Segmentation of markets 4 4 16 4 16 4 16 4 16 0 2 8
IN-Looming industry shakeout 4 4 16 4 16 4 16 4 16 0 2 8
IN-Expanding overseas market 3 4 12 4 12 4 12 4 12 0 1 3
EC-Sales recession 1 2 2 2 2 1 1 1 1 0 0 0
LG-Anti - Trust suit 2 0 0 0 0 0 0 0 0 0 0 0
TC-Technological trends in hardware 4 4 16 4 16 4 16 3 12 0 1 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

Percent of Maximum Possible Score 0.77 0.70 0.75 0.68 #VALUE! 0.54
Total Spt % of MPSS & Total Arg % of MPAS 0.70 0.85 0.58 0.83 0.65 0.85 0.58 0.78 #VALUE! 0.00 0.69 0.39
QSPM CODE
DESCRIPTION OF THE STRATEGIES: STRATEGY SC=SUPPORT SCORE INT SUPPORT OR EXT ARGUMENT SCORE
PD: Speed up development of less expensive, simpler, more… 1 TSC=TOTAL SUPPORT SCORE SCORE INTERPRETATION SCORE
MP: Concentrate Sales and Marketing on Home, Small Business… 2 AS=ARGUMENT SCORE DOES NOT SPT OR ARGUE FOR 0
PD: Develop a laptop computer 3 TAS=TOTAL ARGUMENT SCORE SLIGHTLY STRG SPT OR ARGUE FOR 1
PD: Develop marketing strategy for the Lisa and the… 4 MPS=MAX POSSIBLE SCORE MODERATE STRG SPT OR ARGUE FOR 2
PD: Speed up development of less expensive, simpler, more… 5 MPSS=MAX POS SUPT SCORE VERY STRONG SPT OR ARGUE FOR 3
CC: Develop all own applications software 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

MG-Management Philosophy 1 3 3 2 2 1 1 3 3 R #VALUE! 2 2

MG-Weak Organizational Structure 1 2 2 1 1 2 2 2 2 E #VALUE! 2 2
MG-Impending Resignation of President 2 2 4 1 2 2 4 2 4 D #VALUE! 2 4
MG-Chaotic, but very creative atmosphere 3 3 9 2 6 3 9 3 9 U #VALUE! 3 9
MG-Depends on Ext Suppliers for software 2 2 4 2 4 3 6 2 4 N #VALUE! 2 4
FN-Financial condition (see SubMatrix B) 4 4 16 4 16 4 16 4 16 D #VALUE! 4 16
MK-Sales to Foreign Markets 3 4 12 2 6 3 9 0 0 A #VALUE! 3 9
MK-Established Sales force 4 4 16 3 12 3 12 3 12 N #VALUE! 3 12
MK-Channels of Distribution 3 4 12 2 6 3 9 3 9 T #VALUE! 3 9
MK-"AMB" Program 3 2 6 3 9 3 9 4 12 0 3 9
MK-Marketing Problems for Lisa and MAC 1 1 1 1 1 1 1 1 1 W #VALUE! 1 1
MK-IIE shows promise over 5 year period 3 3 9 3 9 3 9 3 9 I #VALUE! 3 9
PR-50 million startup costs for the Lisa 2 1 2 1 2 1 2 1 2 T #VALUE! 1 2
PR-Production inefficiencies 2 1 2 1 2 1 2 1 2 H #VALUE! 1 2
RD-Design and Tech problems with the III 1 1 1 1 1 1 1 1 1 0 1 1
0 0 0 0 0 0 # #VALUE! 0
0 0 0 0 0 0 6 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

CP-Counterfeit Apples 1 3 3 2 2 2 2 4 4 0 2 2
CP-IBM gained 17% Market Share in 1 year 1 4 4 3 3 4 4 4 4 0 4 4
CP-Distribution/dealer problems 2 2 4 4 8 3 6 4 8 0 4 8
CP-Ptential Japanese competition 2 3 6 2 4 3 6 4 8 0 4 8
CP-potential conflict w/software vendors 2 2 4 2 4 4 8 1 2 0 2 4
CP-300 new computer models in 1984 2 4 8 3 6 4 8 4 8 0 4 8
CP-Approx 150 competitors 1 4 4 3 3 4 4 4 4 0 4 4
IN-Projected growth in Micro Sales 4 4 16 4 16 4 16 4 16 0 2 8
IN-Growth and Segmentation of markets 4 4 16 4 16 4 16 4 16 0 4 16
IN-Looming industry shakeout 4 4 16 4 16 4 16 4 16 0 4 16
IN-Expanding overseas market 3 4 12 2 6 4 12 3 9 0 4 12
EC-Sales recession 1 1 1 1 1 1 1 4 4 0 4 4
LG-Anti - Trust suit 2 0 0 0 0 0 0 0 0 0 0 0
TC-Technological trends in hardware 4 4 16 4 16 4 16 4 16 0 4 16
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
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 0.77 0.66 0.76 0.74 #VALUE! 0.74
Total Spt % of MPSS & Total Arg % of MPAS 0.71 0.83 0.56 0.77 0.66 0.87 0.61 0.87 #VALUE! 0.00 0.65 0.83
QSPM CODE
DESCRIPTION OF THE STRATEGIES: STRATEGY SC=SUPPORT SCORE INT SUPPORT OR EXT ARGUMENT SCORE
MP: Continue to expand international sales 7 TSC=TOTAL SUPPORT SCORE SCORE INTERPRETATION SCORE
FI: Establish own sales outlets 8 AS=ARGUMENT SCORE DOES NOT SPT OR ARGUE FOR 0
PD: Develop an IBM compatible 9 TAS=TOTAL ARGUMENT SCORE SLIGHTLY STRG SPT OR ARGUE FOR 1
SD: Continue to expand the "AMB" Program 10 MPS=MAX POSSIBLE SCORE MODERATE STRG SPT OR ARGUE FOR 2
CC: Develop all own applications software 11 MPSS=MAX POS SUPT SCORE VERY STRONG SPT OR ARGUE FOR 3
PD: Enter the workstation market 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
MG-Management Philosophy 1 0 0 0 0 0 0
MG-Weak Organizational Structure 1 0 0 0 0 0 0 0 0 0 0 0
MG-Impending Resignation of President 2 0 0 0 0 0 0 0 0 0 0 0
MG-Chaotic, but very creative atmosphere 3 0 0 0 0 0 0 0 0 0 0 0
MG-Depends on Ext Suppliers for software 2 0 0 0 0 0 0 0 0 0 0 0
FN-Financial condition (see SubMatrix B) 4 0 0 0 0 0 0 0 0 0 0 0 0
MK-Sales to Foreign Markets 3 0 0 0 0 0 0 0 0 0 0 0 0
MK-Established Sales force 4 0 0 0 0 0 0 0 0 0 0 0 0
MK-Channels of Distribution 3 0 0 0 0 0 0 0 0 0 0 0 0
MK-"AMB" Program 3 0 0 0 0 0 0 0 0 0 0 0 0
MK-Marketing Problems for Lisa and MAC 1 0 0 0 0 0 0 0 0 0 0 0 0
MK-IIE shows promise over 5 year period 3 0 0 0 0 0 0 0 0 0 0 0 0
PR-50 million startup costs for the Lisa 2 0 0 0 0 0 0 0 0 0 0 0 0
PR-Production inefficiencies 2 0 0 0 0 0 0 0 0 0 0 0 0
RD-Design and Tech problems with the III 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

External Key Factor Rate AS TAS AS TAS AS TAS AS TAS AS TAS AS TAS

CP-Counterfeit Apples 1 0 0 0 0 0 0 0 0 0 0 0 0
CP-IBM gained 17% Market Share in 1 year 1 0 0 0 0 0 0 0 0 0 0 0 0
CP-Distribution/dealer problems 2 0 0 0 0 0 0 0 0 0 0 0 0
CP-Ptential Japanese competition 2 0 0 0 0 0 0 0 0 0 0 0 0
CP-potential conflict w/software vendors 2 0 0 0 0 0 0 0 0 0 0 0 0
CP-300 new computer models in 1984 2 0 0 0 0 0 0 0 0 0 0 0 0
CP-Approx 150 competitors 1 0 0 0 0 0 0 0 0 0 0 0 0
IN-Projected growth in Micro Sales 4 0 0 0 0 0 0
IN-Growth and Segmentation of markets 4 0 0 0 0 0 0 0 0 0 0 0 0
IN-Looming industry shakeout 4 0 0 0 0 0 0 0 0 0 0 0 0
IN-Expanding overseas market 3 0 0 0 0 0 0 0 0 0 0 0 0
EC-Sales recession 1 0 0 0 0 0 0 0 0 0 0 0 0
LG-Anti - Trust suit 2 0 0 0 0 0 0 0 0 0 0 0 0
TC-Technological trends in hardware 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

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
 The QSPM SUMMARY SHEET

STRATEGY DESCRIPTION MPS MPSS MPAS

5 PD: Speed up development of less expensive, simpler, more… ### ### 0.000
11 CC: Develop all own applications software ### ### 0.000
1 PD: Speed up development of less expensive, simpler, more… 0.772 0.700 0.848
7 MP: Continue to expand international sales 0.768 0.707 0.833
9 PD: Develop an IBM compatible 0.761 0.657 0.871
3 PD: Develop a laptop computer 0.746 0.650 0.848
10 SD: Continue to expand the "AMB" Program 0.739 0.614 0.871
12 PD: Enter the workstation market 0.739 0.650 0.833
2 MP: Concentrate Sales and Marketing on Home, Small Business… 0.699 0.579 0.826
4 PD: Develop marketing strategy for the Lisa and the… 0.676 0.579 0.780
8 FI: Establish own sales outlets 0.662 0.564 0.765
6 CC: Develop all own applications software 0.544 0.686 0.394
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