https://cio-wiki.org//index.php?title=GE/McKinsey_Matrix&feed=atom&action=historyGE/McKinsey Matrix - Revision history2024-03-28T16:36:10ZRevision history for this page on the wikiMediaWiki 1.35.1https://cio-wiki.org//index.php?title=GE/McKinsey_Matrix&diff=12242&oldid=prevUser at 01:19, 15 December 20222022-12-15T01:19:31Z<p></p>
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<tr><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>'''GE McKinsey Matrix Disadvantages'''</div></td><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>'''GE McKinsey Matrix Disadvantages'''</div></td></tr>
<tr><td class='diff-marker'>−</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div>*Requires a <del class="diffchange diffchange-inline">[[</del>consultant<del class="diffchange diffchange-inline">]] </del>or a highly experienced person to determine industry’s attractiveness and business unit strength as accurately as possible.</div></td><td class='diff-marker'>+</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div>*Requires a consultant or a highly experienced person to determine industry’s attractiveness and business unit strength as accurately as possible.</div></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>*It is costly to conduct.</div></td><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>*It is costly to conduct.</div></td></tr>
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</table>Userhttps://cio-wiki.org//index.php?title=GE/McKinsey_Matrix&diff=9080&oldid=prevUser: /* See Also */2021-06-09T18:42:16Z<p><span dir="auto"><span class="autocomment">See Also</span></span></p>
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</table>Userhttps://cio-wiki.org//index.php?title=GE/McKinsey_Matrix&diff=9079&oldid=prevUser: /* See Also */2021-06-09T18:27:14Z<p><span dir="auto"><span class="autocomment">See Also</span></span></p>
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</table>Userhttps://cio-wiki.org//index.php?title=GE/McKinsey_Matrix&diff=9078&oldid=prevUser: /* See Also */2021-06-09T18:26:45Z<p><span dir="auto"><span class="autocomment">See Also</span></span></p>
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<tr><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>===References===</div></td><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>===References===</div></td></tr>
</table>Userhttps://cio-wiki.org//index.php?title=GE/McKinsey_Matrix&diff=9076&oldid=prevUser at 18:25, 9 June 20212021-06-09T18:25:01Z<p></p>
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<td colspan="2" style="background-color: #fff; color: #202122; text-align: center;">Revision as of 18:25, 9 June 2021</td>
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<tr><td class='diff-marker'>−</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div>The '''GE/McKinsey Matrix''' is a [[Business Portfolio Analysis|business portfolio analysis]] that provides a structured way to evaluate business units on two key dimensions: the attractiveness of the [[market]] involved and the strength of the firm’s position in that market. The result is graphical portrayal of the various business units on these key dimensions and gives insight to a resource allocation decision.<ref>What is The GE McKinsey Matrix [http://www.niklasblanke.com/ge-mckinsey-matrix.html Niklas Blanke]</ref> '''Business Assessment Array''' is another name for McKinsey’s GE matrix used to assess business portfolio analysis for [[Strategic Business Unit|Strategic Business Units (SBU’s)]] of a corporation. It is a 3*3 matrix having “Market attractiveness” and “Competitive strength” as its axis.<ref>Definition - What is Business Assessment Array? [https://www.mbaskool.com/business-concepts/marketing-and-strategy-terms/1883-business-assessment-array.html#:~:text=What%20is%20Business%20Assessment%20Array,Competitive%20strength%E2%80%9D%20as%20its%20axis. MBA Skool]</ref></div></td><td class='diff-marker'>+</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div>The '''GE/McKinsey Matrix<ins class="diffchange diffchange-inline">''' or '''GE-McKinsey nine-box matrix</ins>''' is a [[Business Portfolio Analysis|business portfolio analysis]] that provides a structured way to evaluate business units on two key dimensions: the attractiveness of the [[market]] involved and the strength of the firm’s position in that market. The result is graphical portrayal of the various business units on these key dimensions and gives insight to a resource allocation decision.<ref>What is The GE McKinsey Matrix [http://www.niklasblanke.com/ge-mckinsey-matrix.html Niklas Blanke]</ref> '''Business Assessment Array''' is another name for McKinsey’s GE matrix used to assess business portfolio analysis for [[Strategic Business Unit|Strategic Business Units (SBU’s)]] of a corporation. It is a 3*3 matrix having “Market attractiveness” and “Competitive strength” as its axis.<ref>Definition - What is Business Assessment Array? [https://www.mbaskool.com/business-concepts/marketing-and-strategy-terms/1883-business-assessment-array.html#:~:text=What%20is%20Business%20Assessment%20Array,Competitive%20strength%E2%80%9D%20as%20its%20axis. MBA Skool]</ref></div></td></tr>
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</table>Userhttps://cio-wiki.org//index.php?title=GE/McKinsey_Matrix&diff=8495&oldid=prevUser at 23:23, 24 March 20212021-03-24T23:23:45Z<p></p>
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<td colspan="2" style="background-color: #fff; color: #202122; text-align: center;">Revision as of 23:23, 24 March 2021</td>
</tr><tr><td colspan="2" class="diff-lineno" id="mw-diff-left-l1" >Line 1:</td>
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<tr><td class='diff-marker'>−</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div>The GE<del class="diffchange diffchange-inline">-[[</del>McKinsey Matrix<del class="diffchange diffchange-inline">]] </del>is a [[business<del class="diffchange diffchange-inline">]] [[</del>portfolio]] <del class="diffchange diffchange-inline">analysis </del>that provides a structured way to evaluate business units on two key dimensions: the attractiveness of the [[market]] involved and the strength of the firm’s position in that market. The result is graphical portrayal of the various business units on these key dimensions and gives insight to a resource allocation decision.<ref>What is The GE McKinsey Matrix [http://www.niklasblanke.com/ge-mckinsey-matrix.html Niklas Blanke]</ref></div></td><td class='diff-marker'>+</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div>The <ins class="diffchange diffchange-inline">'''</ins>GE<ins class="diffchange diffchange-inline">/</ins>McKinsey Matrix<ins class="diffchange diffchange-inline">''' </ins>is a [[<ins class="diffchange diffchange-inline">Business Portfolio Analysis|</ins>business portfolio <ins class="diffchange diffchange-inline">analysis</ins>]] that provides a structured way to evaluate business units on two key dimensions: the attractiveness of the [[market]] involved and the strength of the firm’s position in that market. The result is graphical portrayal of the various business units on these key dimensions and gives insight to a resource allocation decision.<ref>What is The GE McKinsey Matrix [http://www.niklasblanke.com/ge-mckinsey-matrix.html Niklas Blanke<ins class="diffchange diffchange-inline">]</ref> '''Business Assessment Array''' is another name for McKinsey’s GE matrix used to assess business portfolio analysis for [[Strategic Business Unit|Strategic Business Units (SBU’s)]] of a corporation. It is a 3*3 matrix having “Market attractiveness” and “Competitive strength” as its axis.<ref>Definition - What is Business Assessment Array? [https://www.mbaskool.com/business-concepts/marketing-and-strategy-terms/1883-business-assessment-array.html#:~:text=What%20is%20Business%20Assessment%20Array,Competitive%20strength%E2%80%9D%20as%20its%20axis. MBA Skool</ins>]</ref></div></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"></td><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"></td></tr>
<tr><td class='diff-marker'>−</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div>'''<del class="diffchange diffchange-inline">[[</del>Industry<del class="diffchange diffchange-inline">]] </del>Attractiveness'''</div></td><td class='diff-marker'>+</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div>'''Industry Attractiveness'''</div></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>The vertical axis of the GE / McKinsey matrix is industry attractiveness, which is determined by factors such as the following:</div></td><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>The vertical axis of the GE / McKinsey matrix is industry attractiveness, which is determined by factors such as the following:</div></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>*Market growth rate</div></td><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>*Market growth rate</div></td></tr>
</table>Userhttps://cio-wiki.org//index.php?title=GE/McKinsey_Matrix&diff=7294&oldid=prevUser: The LinkTitles extension automatically added links to existing pages (https://github.com/bovender/LinkTitles).2021-02-06T16:01:52Z<p>The LinkTitles extension automatically added links to existing pages (https://github.com/bovender/LinkTitles).</p>
<table class="diff diff-contentalign-left diff-editfont-monospace" data-mw="interface">
<col class="diff-marker" />
<col class="diff-content" />
<col class="diff-marker" />
<col class="diff-content" />
<tr class="diff-title" lang="en">
<td colspan="2" style="background-color: #fff; color: #202122; text-align: center;">← Older revision</td>
<td colspan="2" style="background-color: #fff; color: #202122; text-align: center;">Revision as of 16:01, 6 February 2021</td>
</tr><tr><td colspan="2" class="diff-lineno" id="mw-diff-left-l1" >Line 1:</td>
<td colspan="2" class="diff-lineno">Line 1:</td></tr>
<tr><td class='diff-marker'>−</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div>The GE-McKinsey Matrix is a business portfolio analysis that provides a structured way to evaluate business units on two key dimensions: the attractiveness of the market involved and the strength of the firm’s position in that market. The result is graphical portrayal of the various business units on these key dimensions and gives insight to a resource allocation decision.<ref>What is The GE McKinsey Matrix [http://www.niklasblanke.com/ge-mckinsey-matrix.html Niklas Blanke]</ref></div></td><td class='diff-marker'>+</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div>The GE-<ins class="diffchange diffchange-inline">[[</ins>McKinsey Matrix<ins class="diffchange diffchange-inline">]] </ins>is a <ins class="diffchange diffchange-inline">[[</ins>business<ins class="diffchange diffchange-inline">]] [[</ins>portfolio<ins class="diffchange diffchange-inline">]] </ins>analysis that provides a structured way to evaluate business units on two key dimensions: the attractiveness of the <ins class="diffchange diffchange-inline">[[</ins>market<ins class="diffchange diffchange-inline">]] </ins>involved and the strength of the firm’s position in that market. The result is graphical portrayal of the various business units on these key dimensions and gives insight to a resource allocation decision.<ref>What is The GE McKinsey Matrix [http://www.niklasblanke.com/ge-mckinsey-matrix.html Niklas Blanke]</ref></div></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"></td><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"></td></tr>
<tr><td class='diff-marker'>−</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div>'''Industry Attractiveness'''</div></td><td class='diff-marker'>+</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div>'''<ins class="diffchange diffchange-inline">[[</ins>Industry<ins class="diffchange diffchange-inline">]] </ins>Attractiveness'''</div></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>The vertical axis of the GE / McKinsey matrix is industry attractiveness, which is determined by factors such as the following:</div></td><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>The vertical axis of the GE / McKinsey matrix is industry attractiveness, which is determined by factors such as the following:</div></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>*Market growth rate</div></td><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>*Market growth rate</div></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>*Market size</div></td><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>*Market size</div></td></tr>
<tr><td class='diff-marker'>−</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div>*Demand variability</div></td><td class='diff-marker'>+</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div>*<ins class="diffchange diffchange-inline">[[</ins>Demand<ins class="diffchange diffchange-inline">]] </ins>variability</div></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>*Industry profitability</div></td><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>*Industry profitability</div></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>*Industry rivalry</div></td><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>*Industry rivalry</div></td></tr>
<tr><td colspan="2" class="diff-lineno" id="mw-diff-left-l22" >Line 22:</td>
<td colspan="2" class="diff-lineno">Line 22:</td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>*Market share</div></td><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>*Market share</div></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>*Growth in market share</div></td><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>*Growth in market share</div></td></tr>
<tr><td class='diff-marker'>−</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div>*Brand equity</div></td><td class='diff-marker'>+</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div>*<ins class="diffchange diffchange-inline">[[</ins>Brand<ins class="diffchange diffchange-inline">]] </ins>equity</div></td></tr>
<tr><td class='diff-marker'>−</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div>*Distribution channel access</div></td><td class='diff-marker'>+</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div>*<ins class="diffchange diffchange-inline">[[</ins>Distribution<ins class="diffchange diffchange-inline">]] </ins>channel access</div></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>*Production capacity</div></td><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>*Production capacity</div></td></tr>
<tr><td class='diff-marker'>−</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div>*Profit margins relative to competitors</div></td><td class='diff-marker'>+</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div>*<ins class="diffchange diffchange-inline">[[</ins>Profit<ins class="diffchange diffchange-inline">]] </ins>margins relative to competitors</div></td></tr>
<tr><td class='diff-marker'>−</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div>The business unit strength index can be calculated by multiplying the estimated value of each factor by the factor's weighting, as done for industry attractiveness.<ref>The GE McKinsey Matrix Strategic Management [http://www.quickmba.com/strategy/matrix/ge-mckinsey/ QuickMBA]</ref></div></td><td class='diff-marker'>+</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div>The business unit strength index can be calculated by multiplying the estimated <ins class="diffchange diffchange-inline">[[</ins>value<ins class="diffchange diffchange-inline">]] </ins>of each factor by the factor's weighting, as done for industry attractiveness.<ref>The GE McKinsey Matrix Strategic <ins class="diffchange diffchange-inline">[[</ins>Management<ins class="diffchange diffchange-inline">]] </ins>[http://www.quickmba.com/strategy/matrix/ge-mckinsey/ QuickMBA]</ref></div></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"></td><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"></td><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"></td></tr>
<tr><td colspan="2" class="diff-lineno" id="mw-diff-left-l37" >Line 37:</td>
<td colspan="2" class="diff-lineno">Line 37:</td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>*Grow – If the business unit is strong against a strong attractiveness, you grow the business. This means, that you are ready to invest a higher percentage of your resources in these businesses. These business units have high market attractiveness and high business unit strength. They are most likely to be successful if backed up with more resources. The quadrants marked in green are the places where you can grow your business.</div></td><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>*Grow – If the business unit is strong against a strong attractiveness, you grow the business. This means, that you are ready to invest a higher percentage of your resources in these businesses. These business units have high market attractiveness and high business unit strength. They are most likely to be successful if backed up with more resources. The quadrants marked in green are the places where you can grow your business.</div></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>*Hold – If the business unit strength or attractiveness is average, than you hold the business as it is. It might be that the market is dropping in value, or that there is much high competition which the business unit will be hard put to catch up. In both the cases, the business unit might not give optimum returns even if resources are invested. Thus, in this case, you wait and hold the business unit to see if the market environment changes or if the business unit gains importance in the market as compared to other players.</div></td><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>*Hold – If the business unit strength or attractiveness is average, than you hold the business as it is. It might be that the market is dropping in value, or that there is much high competition which the business unit will be hard put to catch up. In both the cases, the business unit might not give optimum returns even if resources are invested. Thus, in this case, you wait and hold the business unit to see if the market environment changes or if the business unit gains importance in the market as compared to other players.</div></td></tr>
<tr><td class='diff-marker'>−</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div>*Harvest – If the business unit or market has become unattractive, than you either sell or liquidate the business or you can hold it for any residual value that it has. This strategy is used in the GE McKinsey matrix when the business unit strength is weak and the market has lost its attractiveness. The best measure in this case is to harvest the weak businesses and reinvest the money earned into business units which are in growth</div></td><td class='diff-marker'>+</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div>*Harvest – If the business unit or market has become unattractive, than you either sell or liquidate the business or you can hold it for any residual value that it has. This <ins class="diffchange diffchange-inline">[[</ins>strategy<ins class="diffchange diffchange-inline">]] </ins>is used in the GE McKinsey matrix when the business unit strength is weak and the market has lost its attractiveness. The best measure in this case is to harvest the weak businesses and reinvest the money earned into business units which are in growth</div></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"></td><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"></td><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"></td></tr>
<tr><td colspan="2" class="diff-lineno" id="mw-diff-left-l45" >Line 45:</td>
<td colspan="2" class="diff-lineno">Line 45:</td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>*Helps to prioritize the limited resources in order to achieve the best returns.</div></td><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>*Helps to prioritize the limited resources in order to achieve the best returns.</div></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>*Managers become more aware of how their products or business units perform.</div></td><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>*Managers become more aware of how their products or business units perform.</div></td></tr>
<tr><td class='diff-marker'>−</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div>*It’s more sophisticated business portfolio framework than the BCG matrix.</div></td><td class='diff-marker'>+</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div>*It’s more sophisticated business portfolio <ins class="diffchange diffchange-inline">[[</ins>framework<ins class="diffchange diffchange-inline">]] </ins>than the BCG matrix.</div></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>*Identifies the strategic steps the company needs to make to improve the performance of its business portfolio.</div></td><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>*Identifies the strategic steps the company needs to make to improve the performance of its business portfolio.</div></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"></td><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>'''GE McKinsey Matrix Disadvantages'''</div></td><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>'''GE McKinsey Matrix Disadvantages'''</div></td></tr>
<tr><td class='diff-marker'>−</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div>*Requires a consultant or a highly experienced person to determine industry’s attractiveness and business unit strength as accurately as possible.</div></td><td class='diff-marker'>+</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div>*Requires a <ins class="diffchange diffchange-inline">[[</ins>consultant<ins class="diffchange diffchange-inline">]] </ins>or a highly experienced person to determine industry’s attractiveness and business unit strength as accurately as possible.</div></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>*It is costly to conduct.</div></td><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>*It is costly to conduct.</div></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>*It doesn’t take into account the synergies that could exist between two or more business units.</div></td><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>*It doesn’t take into account the synergies that could exist between two or more business units.</div></td></tr>
</table>Userhttps://cio-wiki.org//index.php?title=GE/McKinsey_Matrix&diff=2464&oldid=prevUser: The GE-McKinsey Matrix is a business portfolio analysis that provides a structured way to evaluate business units on two key dimensions: the attractiveness of the market involved and the strength of the firm’s position in that market.2018-12-27T07:56:36Z<p>The GE-McKinsey Matrix is a business portfolio analysis that provides a structured way to evaluate business units on two key dimensions: the attractiveness of the market involved and the strength of the firm’s position in that market.</p>
<p><b>New page</b></p><div>The GE-McKinsey Matrix is a business portfolio analysis that provides a structured way to evaluate business units on two key dimensions: the attractiveness of the market involved and the strength of the firm’s position in that market. The result is graphical portrayal of the various business units on these key dimensions and gives insight to a resource allocation decision.<ref>What is The GE McKinsey Matrix [http://www.niklasblanke.com/ge-mckinsey-matrix.html Niklas Blanke]</ref><br />
<br />
'''Industry Attractiveness'''<br />
The vertical axis of the GE / McKinsey matrix is industry attractiveness, which is determined by factors such as the following:<br />
*Market growth rate<br />
*Market size<br />
*Demand variability<br />
*Industry profitability<br />
*Industry rivalry<br />
*Global opportunities<br />
*Macroenvironmental factors (PEST)<br />
Each factor is assigned a weighting that is appropriate for the industry. The industry attractiveness then is calculated as follows:<br />
Industry attractiveness = factor value1 x factor weighting1<br />
+ factor value2 x factor weighting2<br />
.<br />
.<br />
.<br />
+ factor valueN x factor weightingN<br />
<br />
'''Business Unit Strength'''<br /><br />
The horizontal axis of the GE / McKinsey matrix is the strength of the business unit. Some factors that can be used to determine business unit strength include:<br />
*Market share<br />
*Growth in market share<br />
*Brand equity<br />
*Distribution channel access<br />
*Production capacity<br />
*Profit margins relative to competitors<br />
The business unit strength index can be calculated by multiplying the estimated value of each factor by the factor's weighting, as done for industry attractiveness.<ref>The GE McKinsey Matrix Strategic Management [http://www.quickmba.com/strategy/matrix/ge-mckinsey/ QuickMBA]</ref><br />
<br />
<br />
[[File:GE-McKinsey-matrix-1.png|400px|GE/McKinsey Matrix]]<br /><br />
source: [http://www.marketing91.com/ge-mckinsey-matrix/ Marketing91]<br />
<br />
<br />
'''GE McKinsey Matrix Strategies'''.<ref>GE McKinsey matrix strategies [http://www.marketing91.com/ge-mckinsey-matrix/ Marketing91]</ref><br /><br />
There are 3 main strategies in the GE McKinsey matrix which are grow, hold and harvest.<br />
*Grow – If the business unit is strong against a strong attractiveness, you grow the business. This means, that you are ready to invest a higher percentage of your resources in these businesses. These business units have high market attractiveness and high business unit strength. They are most likely to be successful if backed up with more resources. The quadrants marked in green are the places where you can grow your business.<br />
*Hold – If the business unit strength or attractiveness is average, than you hold the business as it is. It might be that the market is dropping in value, or that there is much high competition which the business unit will be hard put to catch up. In both the cases, the business unit might not give optimum returns even if resources are invested. Thus, in this case, you wait and hold the business unit to see if the market environment changes or if the business unit gains importance in the market as compared to other players.<br />
*Harvest – If the business unit or market has become unattractive, than you either sell or liquidate the business or you can hold it for any residual value that it has. This strategy is used in the GE McKinsey matrix when the business unit strength is weak and the market has lost its attractiveness. The best measure in this case is to harvest the weak businesses and reinvest the money earned into business units which are in growth<br />
<br />
<br />
'''Advantages and Disadvantages of The GE McKinsey Matrix'''<ref>Advantages and Disadvantages of The GE McKinsey Matrix [https://www.strategicmanagementinsight.com/tools/ge-mckinsey-matrix.html SMI]</ref><br /><br />
<br />
'''GE McKinsey Matrix Advantages'''<br />
*Helps to prioritize the limited resources in order to achieve the best returns.<br />
*Managers become more aware of how their products or business units perform.<br />
*It’s more sophisticated business portfolio framework than the BCG matrix.<br />
*Identifies the strategic steps the company needs to make to improve the performance of its business portfolio.<br />
<br />
'''GE McKinsey Matrix Disadvantages'''<br />
*Requires a consultant or a highly experienced person to determine industry’s attractiveness and business unit strength as accurately as possible.<br />
*It is costly to conduct.<br />
*It doesn’t take into account the synergies that could exist between two or more business units.<br />
<br />
<br />
'''GE McKinsey Matrix vs. [[BCG_Matrix|BCG Matrix]]'''<br /><br />
<br />
[[File:Ge vs bcg.png|400px|GE McKinsey Matrix vs. BCG Matrix]]<br /><br />
source: [http://www.bms.co.in/difference-between-bcg-and-ge-matrices/ BMS]<br />
<br />
<br />
===See Also===<br />
[[BCG_Matrix|BCG Matrix]]<br />
<br />
<br />
===References===<br />
<references /><br />
<br />
<br />
===Further Reading===<br />
*Enduring Ideas: The GE–McKinsey nine-box matrix [http://www.mckinsey.com/business-functions/strategy-and-corporate-finance/our-insights/enduring-ideas-the-ge-and-mckinsey-nine-box-matrix McKinsey]<br />
*GE McKinsey Matrix: How To Apply it To Your Business [https://www.cleverism.com/ge-mckinsey-matrix-how-to-apply-it-to-your-business/ Cleverism]</div>User