Which matrix is included in the decision stage of the strategy formulation framework?

The Quantitative Strategic Planning Matrix (QSPM) is indeed the correct answer as it is specifically designed for the decision stage in the strategy formulation framework. The QSPM facilitates the evaluation of various strategic alternatives by providing a systematic approach to prioritize them based on their attractiveness. It does this by translating the qualitative factors identified in earlier analysis phases into quantitative scores, allowing organizations to assess which strategies offer the best potential for success given the identified strengths, weaknesses, opportunities, and threats.

In the decision stage of strategy formulation, organizations focus on choosing among the strategies they have evaluated. The QSPM is particularly useful at this juncture because it combines the results of other analyses (like the Internal Factor Evaluation and External Factor Evaluation) and allows for a clear and objective comparison of strategic options. This structured decision-making tool helps management allocate resources effectively and select the most promising strategic initiatives.

Other matrices like the SPACE, IFE, and BCG matrices serve different purposes within the strategic planning process. The SPACE Matrix, for example, assists in assessing a company’s strategic posture, the IFE Matrix evaluates internal strengths and weaknesses, and the BCG Matrix categorizes business units based on market growth and market share. While these matrices are valuable in their own right,