Which of the following is NOT a step in constructing a SWOT Matrix?

The correct response is that listing the firm's external weaknesses is not a step in constructing a SWOT Matrix. The SWOT Matrix is designed to facilitate strategic planning by evaluating internal and external factors. It stands for Strengths, Weaknesses, Opportunities, and Threats.

In the context of this framework, weaknesses refer specifically to internal factors that can hinder an organization’s performance and competitive advantage. Therefore, while it is essential to identify internal weaknesses, these should not be classified as external. Conversely, the other options correctly represent steps in the SWOT analysis: identifying external threats and opportunities helps in understanding the market context, while matching internal strengths with external threats aids in developing strategies that leverage strengths to mitigate risks.

Recognizing the distinction between internal and external factors is fundamental in strategic management, as it allows for a more accurate analysis and formulation of strategic initiatives.