Formulating strategy through QSPM based on SWOT framework: a case study spin-off company in Malaysia

Abstract

A spin-off is a new company that is formed by individual or group who were part of a parent organization exploiting a university or research institution intellectual property. A spin-off company needs to analyze its external and internal environment for sustainable development. The study examines a spin-off company that engaged in the field of biotechnology product invented by a university in Malaysia. This study is designed to formulate strategy that may be related to David’s study, which presented a method to quantify internal factors: strength and weakness, and external factors: opportunity and threats (SWOT) analysis and also prioritize the strategy using quantitative strategic planning matrix (QSPM). Data for this research were obtained from both primary and secondary sources. The primary data were obtained through semi-structured interviews and questionnaire with experts from the parent organization and the spin-off company. The results of internal factor evaluation (IFE) and external factor evaluation (EFE) implies that the company has more strength than weakness (IFE >2.5) and has more opportunities than threats (EFE > 2.5). Therefore, SO strategies for utilizing the strength and employing opportunities are recommended. In addition, three different alternative strategies have been prioritized using QSPM. Since the QSPM has been conducted, it is possible to randomize the prioritized strategy by considering between the suitability and the vision and mission of the company or other aspects.