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CHAPTER 6 • STRATEGY ANALYSIS AND CHOICE 205

ASSURANCE OF LEARNING EXERCISES

Assurance of Learning Exercise 6A
Developing a SWOT Matrix for McDonald’s

Purpose
The most widely used strategy-formulation technique among U.S. firms is the SWOT Matrix.
This exercise requires the development of a SWOT Matrix for McDonald’s. Matching key exter-
nal and internal factors in a SWOT Matrix requires good intuitive and conceptual skills. You will
improve with practice in developing a SWOT Matrix.
Instructions
Recall from Experiential Exercise 1A that you already may have determined McDonald’s exter-
nal opportunities/threats and internal strengths/weaknesses. This information could be used to
complete this exercise. Follow the steps outlined as follows:
Step 1 On a separate sheet of paper, construct a large nine-cell diagram that will represent your SWOT
Matrix. Appropriately label the cells.
Step 2 Appropriately record McDonald’s opportunities/threats and strengths/weaknesses in your
diagram.
Step 3 Match external and internal factors to generate feasible alternative strategies for McDonald’s.
Record SO, WO, ST, and WT strategies in the appropriate cells of the SWOT Matrix. Use the
proper notation to indicate the rationale for the strategies. You do not necessarily have to have
strategies in all four strategy cells.
Step 4 Compare your SWOT Matrix to another student’s SWOT Matrix. Discuss any major
differences.

Assurance of Learning Exercise 6B

Developing a SPACE Matrix for McDonald’s

Purpose
Should McDonald’s pursue aggressive, conservative, competitive, or defensive strategies? Develop a
SPACE Matrix for McDonald’s to answer this question. Elaborate on the strategic implications of
your directional vector. Be specific in terms of strategies that could benefit McDonald’s.
Instructions
Step 1 Join with two other people in class and develop a joint SPACE Matrix for McDonald’s.
Step 2 Diagram your SPACE Matrix on the board. Compare your matrix with other team’s matrices.
Step 3 Discuss the implications of your SPACE Matrix.

Assurance of Learning Exercise 6C

Developing a BCG Matrix for McDonald’s

Purpose
Portfolio matrices are widely used by multidivisional organizations to help identify and select
strategies to pursue. A BCG analysis identifies particular divisions that should receive fewer
resources than others. It may identify some divisions that need to be divested. This exercise can
give you practice developing a BCG Matrix.