Q.2. Based on following table (one next page) with reference to Quantitative Strategic Planning Matrix answer the following questions: 15 Which matrixes are the source of information for Quantitative Strategic Planning Matrix? Justify the ratings of different strengths, weaknesses, threats and opportunities with respect to alternative decisions? . Briefly discuss the calculation process? Identify and justify the best alternative decisions? . TABLE 6-7 A QSPM for a Retail Computer Store STRATEGIC ALTERNATIVES 1 2 Buy New Land and Build New Larger Store Fully Renovate Existing Store Weight AS TAS AS TAS 4 0.40 2 0.10 0.10 0.08 2 0.20 4 0.20 0.40 0.32 1 0.08 4 Key Factors Opportunities 1. Population of city growing 10% 2. Rival computer store opening 1 mile away 3. Vehicle traffic passing store up 12% 4. Vendors average six new products/year 5. Senior citizen use of computers up 8% Strengths 1. Inventory turnover increased from 5.8 to 6.7 2. Average customer purchase increased from $97 to $128 3. Employee morale is excellent 4. In-store promotions resulted in 20% increase in sales 5. Newspaper advertising expenditures increased 10% 0.05 0.05 0.05 0.07 0.10 2 0.14 4 0.28 III TA! 0.05 0.02 0.15 4 0.60 3 0.45 Threats 1. Best Buy opening new store nearby in 1 year 2. Local university offers computer repair 3. New bypass for Hwy 34 in 1 year will divert traffic 4. New mall being built nearby 0.08 0.12 4 0.48 1 0.12 0.08 2 0.16 4 0.32 Weaknesses 1. Revenues from software segment of store down 12% 2. Location of store negatively impacted by new Hwy 34 3. Carpet and paint in store somewhat in disrepair 4. Bathroom in store needs refurbishing 0.10 0.15 4 0.60 1 0.15 1 4 0.08 0.02 0.02 0.02 0.02 1 4 0.08