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PBM Ge

This presentation provides an overview of General Electric's (GE) matrix for analyzing a company's strategic business units. The GE matrix evaluates SBUs based on their relative market attractiveness and business strength. It then assigns strategies for each SBU depending on where it falls within the nine cells of the matrix. These include strategies like investing to build strength in attractive markets or harvesting/divesting in unattractive markets. The presentation also compares the GE matrix to the Boston Consulting Group matrix and provides the example of analyzing Tata's various business units using the GE framework.

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Niladri Bhusan
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194 views21 pages

PBM Ge

This presentation provides an overview of General Electric's (GE) matrix for analyzing a company's strategic business units. The GE matrix evaluates SBUs based on their relative market attractiveness and business strength. It then assigns strategies for each SBU depending on where it falls within the nine cells of the matrix. These include strategies like investing to build strength in attractive markets or harvesting/divesting in unattractive markets. The presentation also compares the GE matrix to the Boston Consulting Group matrix and provides the example of analyzing Tata's various business units using the GE framework.

Uploaded by

Niladri Bhusan
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Presentation on

General Electric (GE) Matrix


By: Kedar

Roadmap For The Presentation

ROADMAP STRATEGIC PLANNING BCG & GE MATRIX ABOUT GE

CLASSIFICATION
STRATEGIES BCG v/s GE CASE STUDY

Strategic Planning
It is the management task concerned with the growth and future of business enterprise. It provides the route map for the firm and helps to take decision in the future with a greater awareness

BCG & GE Matrix


Relative Position (Market Share) Market Attractiveness

Business Strength

Market Growth

About GE Matrix
Developed by McKinsey & Company in 1970s. GE is a model to perform business portfolio analysis on the SBUs. GE is rated in terms of Market Attractiveness & Business Strength It is an Enlarged & Sophisticated version of BCG.

Classification
Business Strength
Strong High Medium Weak
5.00

Market Attractiveness

3.67

Medium

2.33

Low
5.00

3.67

2.33

1.00

Market Attractiveness
Annual market growth rate Overall market size Historical profit margin Current size of market Market structure Market rivalry Demand variability Global opportunities

Business Strength
Current market share Brand image Brand equity Production capacity Corporate image Profit margins relative to competitors R & D performance Managerial personal Promotional effectiveness

Strategies
Protect Position Invest to grow Effort on maintaining strength Invest to Build Challenge for leadership Build selectively on strength

Build Selectively Invest in most attractive segment Build up ability to counter competition Emphasize profitability by raising productivity

Strategies
Protect & Refocus Manage for current earning Defend strength

Selectivity for Earning Protect existing program Investments in profitable segments

Build Selectively
Specialize around limited strength Seek ways to overcome weaknesses Withdraw if indication of sustainable growth are lacking

Strategies
Limited Expansion for Harvest Look for ways to expand without high risk

Manage for Earnings Protect position in profitable segment Upgrade product line Minimize investment
Harvest Sell at time that will maximize cash value Cut fixed costs and avoid investment meanwhile

Factors Underlying Market Attractiveness


Factors Resource availability Weight 0.20 Rating (1 5) 2.5 Value = (Weight * Rating) 0.5

Overall market size Annual Market growth rate


Profitability

0.15 0.20
0.15

3 3
3

0.45 0.6
0.45

Competitive intensity
Technological requirements Total

0.10
0.20 1.0

2.5
2.5

0.25
0.5 2.75

Factors Underlying Market Strength


Factors Weight Rating (1 5) 5 3.5 4 3 Value = (Weight * Rating) 0.75 0.35 0.40 0.45 Market share New product development Brand Image Sales force 0.15 0.10 0.10 0.15

Pricing
Distribution capacity Product quality R&D Performance Total

0.15
0.10 0.10 0.15 1.0

3
4.5 4.5 3

0.45
0.45 0.45 0.45 3.75

Classification
Business Strength
Strong High Medium Weak
5.00

Market Attractiveness

3.67

Medium

2.33

Low
5.00

3.67

2.33

1.00

Case Study

Overview
High
High

Business Strengths

Low

Market Attractiveness

Attractive

Moderate Attractive

Unattractive

Low

Case Study of TATA


TATA

IT (Information Technology) : TCS Consumer Durable : Automobiles, Titan etc. Textiles : Tata Fabrics, West Sides etc

GE Matrix For TATA


High High

Business Strengths
IT Consumer Durables

Low

Market Attractiveness

Low

Textiles

BCG v/s GE
BCG
Market Growth

GE Market Attractiveness
Market strength 9 cell

Market share 4 cell Multi Products Primary tools

Multi Business Units


Secondary tools

Bibliography
Corporate Strategies - Bani Banerjee Marketing Management - Philip Kotler Strategic Planning - V S Ramaswamy

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