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CHAPTER 6 • STRATEGY ANALYSIS AND CHOICE 209

• How has the role of the board changed in recent years?
• What changes would you like to see in the role of the board?
• To what extent do you prepare for the board meeting?
• To what extent are you involved in strategic management of the firm?

Assurance of Learning Exercise 6I

Locating Companies in a Grand Strategy Matrix

Purpose
The Grand Strategy Matrix is a popular tool for formulating alternative strategies. All organi-
zations can be positioned in one of the Grand Strategy Matrix’s four strategy quadrants. The
divisions of a firm likewise could be positioned. The Grand Strategy Matrix is based on two
evaluative dimensions: competitive position and market growth. Appropriate strategies for an
organization to consider are listed in sequential order of attractiveness in each quadrant of the
matrix. This exercise gives you experience using a Grand Strategy Matrix.

Instructions
Using the year-end 2008 financial information provided, prepare a Grand Strategy Matrix on a
separate sheet of paper. Write the respective company names in the appropriate quadrant of the
matrix. Based on this analysis, what strategies are recommended for each company?

Company Sales/ Industry Sales/
Company Profit Growth (%) Industry Profit Growth (%)
Boeing -8 / -34 Aerospace/defense +7 / +13
DuPont +4 / -33 Chemicals +7 / -23
Wal-Mart +7 / +5 General merchandise -3 / -44
Sears Holdings -8 / -94 General merchandise -3 / -44
Black & Decker -7 / -43 Home equipment -9 / -111
TIAA-CREF +7 / +7 Insurance -1 / -178
Nucor +43 / +24 Metals -16 / -24
Allegheny -3 / -24 Metals -16 / -24