strategic-management

38. Rank BusinessWeek’s “principles of good governance” from 1 to 14 (1 being most important
and 14 least important) to reveal your assessment of these new rules.
39. Why is it important to work row by row instead of column by column in preparing a QSPM?
40. Why should one avoid putting double 4’s in a row in preparing a QSPM?
41. Envision a QSPM with no weight column. Would that still be a useful analysis? Why or why
not? What do you lose by deleting the weight column?
42. Prepare a BCG Matrix for a two-division firm with sales of $5 and $8 versus profits of $3 and
$1, respectively. State assumptions for the RMSP and IGR axes to enable you to construct the
diagram.
43. Consider developing a before-and-after BCG or IE Matrix to reveal the expected results of
your proposed strategies. What limitation of the analysis would this procedure overcome
somewhat?
44. If a firm has the leading market share in its industry, where on the BCG Matrix would the
circle lie?
45. If a firm competes in a very unstable industry, such as telecommunications, where on the SP
axis of the SPACE Matrix would you plot the appropriate point?
46. Why do you think the SWOT Matrix is the most widely used of all strategy matrices?
47. The strategy templates described at the www.strategyclub.com Web site have templates for
all of the Chapter 6 matrices. How could those templates be useful in preparing an example
BCG or IE Matrix?
Notes
1. R. T. Lenz, “Managing the Evolution of the Strategic
Planning Process,” Business Horizons 30, no. 1
(January–February 1987): 37.
2. Robert Grant, “The Resource-Based Theory of
Competitive Advantage: Implications for Strategy
Formulation,” California Management Review (Spring
1991): 114.
3. Heinz Weihrich, “The TOWS Matrix: A Tool for
Situational Analysis,” Long Range Planning 15, no. 2
(April 1982): 61. Note: Although Dr. Weihrich first
modified SWOT analysis to form the TOWS matrix, the
acronym SWOT is much more widely used than TOWS
in practice.
4. Greg, Dess, G. T. Lumpkin, and Alan Eisner, Strategic
Management: Text and Cases (New York: McGraw-
Hill/Irwin, 2006): 72.
5. Adapted from H. Rowe, R. Mason, and K. Dickel,
Strategic Management and Business Policy: A
Methodological Approach (Reading, MA: Addison-
Wesley, 1982): 155–156.
6. Fred David, “The Strategic Planning Matrix—A
Quantitative Approach,” Long Range Planning 19, no. 5
(October 1986): 102; Andre Gib and Robert Margulies,
“Making Competitive Intelligence Relevant to the User,”
Planning Review 19, no. 3 (May–June 1991): 21.
Current Readings
Angwin, Duncan, Sotirios, Paroutis, and Sarah Mitson.
“Connecting Up Strategy: Are Senior Strategy Directors a
Missing Link?” California Management Review (Spring
2009): 49–73.
Berdrow, Iris, Hsing-Er Lin, Edward F. McDonough, and
Michael H. Zack. “The Threefold Path to Strategy: Adding
CHAPTER 6 • STRATEGY ANALYSIS AND CHOICE 203
7. Fred David, “Computer-Assisted Strategic Planning in
Small Businesses,” Journal of Systems Management 36,
no. 7 (July 1985): 24–34.
8. Y. Allarie and M. Firsirotu, “How to Implement Radical
Strategies in Large Organizations,” Sloan Management
Review 26, no. 3 (Spring 1985): 19. Another excellent
article is P. Shrivastava, “Integrating Strategy Formulation
with Organizational Culture,” Journal of Business Strategy
5, no. 3 (Winter 1985): 103–111.
9. James Brian Quinn, Strategies for Changes: Logical
Incrementalism (Homewood, IL: Richard D. Irwin, 1980):
128–145. These political tactics are listed in A. Thompson
and A. Strickland, Strategic Management: Concepts and
Cases (Plano, TX: Business Publications, 1984): 261.
10. William Guth and Ian MacMillan, “Strategy Implementation
Versus Middle Management Self-Interest,” Strategic
Management Journal 7, no. 4 (July–August 1986): 321.
11. Joann Lublin, “Corporate Directors’ Group Gives Repair
Plan to Boards,” Wall Street Journal (March 24, 2009): B4.
12. Phred Dvorak, “Poor Year Doesn’t Stop CEO Bonuses,”
Wall Street Journal (March 18, 2009): B1.
13. Louis Lavelle, “The Best and Worst Boards,”
BusinessWeek (October 7, 2002): 104–110.
14. Matt Murray, “Private Companies Also Feel Pressure to
Clean Up Acts,” Wall Street Journal (July 22, 2003): B1.
Knowledge and Innovation Positions to the Mix.” MIT
Sloan Management Review 50, no. 1 (Fall 2008): 53.
Capron, Laurence, and Mauro Guillen. “National Corporate
Governance Institutions and Post-Acquisition Target
Reorganization.” Strategic Management Journal (August
2008): 803–833.