GE/Mckinsey Matrix
- Topics:
- Strategic Analysis
- Tags:
- GE/McKinsey Matrix,
- General Electric Co.,
- Industry,
- Management,
- Matrix,
- Quick MBA.com,
- Strategy
- Source:
- Quick MBA.com
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Overview: In consulting engagements with General Electric in the 1970's, McKinsey & Company developed a nine-cell portfolio matrix as a tool for screening GE's large portfolio of strategic business units (SBU). This business screen became known as the GE/McKinsey Matrix and has been explained through diagram. The GE / McKinsey matrix is similar to the BCG growth-share matrix in that it maps strategic business units on a grid of the industry and the SBU's position in the industry. The GE matrix however, attempts to improve upon the BCG matrix. Industry attractiveness and business unit strength are calculated by first identifying criteria for each, determining the value of each parameter in the criteria, and multiplying that value by a weighting factor. The result is a quantitative measure of industry attractiveness and the business unit's relative performance in that commerce.
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Format: HTML | Date: Jan 2003 | Pages: 1
