Cpm Matrix

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Rating
Rating in CPM represent the response of firm toward the critical success factors. Highest the rating better the response of the firm towards the critical success factor ,rating range from 1.0 to 4.0 and can be applied to any factor. [pic][pic]There are some important point related to rating in CPM. • Rating is applied to each factor.

• The response is poor represented by 1.0
• The response is average is represented by 2.0
• The response is above average represented by 3.0
• The response is superior represented by 4.0

Weight

Weight attribute in CPM indicates the relative importance of factor to being successful in the firm’s industry. The weight range from 0.0 means not important and 1.0 means important, sum of all assigned weight to factors must be equal to 1.0 otherwise the calculation would not be consider correct.

Weighted Score

Weighted score value is the result achieved after multiplying each factor rating with the weight.

Total Weighted Score

The sum of all weighted score is equal to the total weighted score, final value of total weighted score should be between range 1.0 (low) to 4.0(high). The average weighted score for CPM matrix is 2.5 any company total weighted score fall below 2.5 consider as weak. The company total weighted score higher then 2.5 is consider as strong in position.The other dimension of CPM is the firm with higher total weighted score considered as the winner among the competitors. Competitive Profile Matrix Example

CPM matrix shown below show the comparison among Harley,Honda and Yamaha. [pic]
As the result show Harley davidson is dominating on critical success factors because the total weighted score is high compare to Yamha and Honda.
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