Professional Documents
Culture Documents
The QSPM strategy matrix has become a popular tool for formulating alternative
strategies. All organisations can be positioned in one of the QSPM strategy matrix's four
strategy quadrants.
The QSPM strategy matrix is based on two evaluative dimensions: competitive
position and market growth. Appropriate strategies for an organisation to consider are
determined based on whether quadrant I, II III and IV best describe the farm.
According to the results of the TOWS matrix, the farm plan to focus on the two
main strategies that the farm think to be mostly important. The farm will
concentrate to improve the following items :
> Improve the level of technology for a better milk quality (I)
> Find new market opportunities (II)
(I) Reflects the farm need for new technology in order to maintain and improve
the quality of the milk. New technology can also improve the economic efficiency by
reducing cost and increasing the productivity (of the labour and of the herd). This is
possible by the availability of credit.
(II) Find new openings in a growing market. The foreseeable local market
saturation urge us to find solutions if the farm wants to increase the production.
The QSPM will help us by determining priorities between the two strategies.
Here, it is clearly demonstrated that the strategy (I), with a score of 4,75 is the most
attractive and feasible strategy for UM&M farm. The second strategy is less attractive
though, it is still important.
METHODOLOGY