Purpose The Grand Strategy Matrix is a popular tool for formulating alternative strategies. All organizations can be positioned in one of the Grand Strategy Matrixs 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 Company Sales/ Profit Growth (%) Industry Industry Sales/ 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

Assurance of Learning Exercise 61 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 Boeing DuPont Wal-Mart Sears Holdings Black & Decker TIAA-CREF Nucor Allegheny Company Sales/ Profit Growth (%) -87-34 +4/-33 +7 / +5 -8/-94 -77-43 +7 / +7 +43 / +24 -3/-24 Industry Aerospace/defense Chemicals General merchandise General merchandise Home equipment Insurance Metals Metals Industry Sales Profit Growth (%) +7 / +13 +71-23 -3/-44 -3/-44 -9/-111 -1/-178 -16/-24 -16/-24