Page 237 -

CHAPTER 6 • STRATEGY ANALYSIS AND CHOICE 203

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 7. Fred David, “Computer-Assisted Strategic Planning in
Planning Process,” Business Horizons 30, no. 1 Small Businesses,” Journal of Systems Management 36,
(January–February 1987): 37. no. 7 (July 1985): 24–34.
2. Robert Grant, “The Resource-Based Theory of 8. Y. Allarie and M. Firsirotu, “How to Implement Radical
Competitive Advantage: Implications for Strategy Strategies in Large Organizations,” Sloan Management
Formulation,” California Management Review (Spring Review 26, no. 3 (Spring 1985): 19. Another excellent
1991): 114. article is P. Shrivastava, “Integrating Strategy Formulation
3. Heinz Weihrich, “The TOWS Matrix: A Tool for with Organizational Culture,” Journal of Business Strategy
Situational Analysis,” Long Range Planning 15, no. 2 5, no. 3 (Winter 1985): 103–111.
(April 1982): 61. Note: Although Dr. Weihrich first 9. James Brian Quinn, Strategies for Changes: Logical
modified SWOT analysis to form the TOWS matrix, the Incrementalism (Homewood, IL: Richard D. Irwin, 1980):
acronym SWOT is much more widely used than TOWS 128–145. These political tactics are listed in A. Thompson
in practice. and A. Strickland, Strategic Management: Concepts and
4. Greg, Dess, G. T. Lumpkin, and Alan Eisner, Strategic Cases (Plano, TX: Business Publications, 1984): 261.
Management: Text and Cases (New York: McGraw- 10. William Guth and Ian MacMillan, “Strategy Implementation
Hill/Irwin, 2006): 72. Versus Middle Management Self-Interest,” Strategic
5. Adapted from H. Rowe, R. Mason, and K. Dickel, Management Journal 7, no. 4 (July–August 1986): 321.
Strategic Management and Business Policy: A 11. Joann Lublin, “Corporate Directors’ Group Gives Repair
Methodological Approach (Reading, MA: Addison- Plan to Boards,” Wall Street Journal (March 24, 2009): B4.
Wesley, 1982): 155–156. 12. Phred Dvorak, “Poor Year Doesn’t Stop CEO Bonuses,”
6. Fred David, “The Strategic Planning Matrix—A Wall Street Journal (March 18, 2009): B1.
Quantitative Approach,” Long Range Planning 19, no. 5 13. Louis Lavelle, “The Best and Worst Boards,”
(October 1986): 102; Andre Gib and Robert Margulies, BusinessWeek (October 7, 2002): 104–110.
“Making Competitive Intelligence Relevant to the User,” 14. Matt Murray, “Private Companies Also Feel Pressure to
Planning Review 19, no. 3 (May–June 1991): 21. Clean Up Acts,” Wall Street Journal (July 22, 2003): B1.

Current Readings

Angwin, Duncan, Sotirios, Paroutis, and Sarah Mitson. Knowledge and Innovation Positions to the Mix.” MIT
“Connecting Up Strategy: Are Senior Strategy Directors a Sloan Management Review 50, no. 1 (Fall 2008): 53.
Missing Link?” California Management Review (Spring Capron, Laurence, and Mauro Guillen. “National Corporate
2009): 49–73. Governance Institutions and Post-Acquisition Target
Berdrow, Iris, Hsing-Er Lin, Edward F. McDonough, and Reorganization.” Strategic Management Journal (August
Michael H. Zack. “The Threefold Path to Strategy: Adding 2008): 803–833.