Strategic Management Test Exam Questions (43 Terms) With Verified Definitions Updated 2024

List three limitations of the SWOT Matrix and analysis. {Ans: Doesn't reveal how to achieve competitive advantage, it's a snapshot in time, there are no rates or weights.}Why do you think the SWOT Matrix is the most widely used of all strategy matrices? {Ans: There are no weights or ratings. No mathematics. It is conceptually simple. It lends itself to brainstorming decisions.}If a firm has the leading market share in its industry. Where on the BCG Matrix would the circle lie? {Ans: It would lie anywhere along the vertical axis on the very left. It could be at the very top or the very bottom. 1.0. Star/Cash Cow.}What are some key differences between the BCG and the IE portfolio matrices? {Ans: The x and y axis are different, BCG has 4 segments and IE has 9, the strategic implications are different, IE requires more information about the divisions than BCG.}Why should one avoid putting double 4s in a row in preparing a QSPM? {Ans: In a QSPM you are trying to prioritize what is most important. We need to decide whether strategy 1 or 2 would be better.}Explain the difference between strategies and recommendations.