Strategy Classics: GE-McKinsey Matrix (PowerPoint PPTX Slide Deck)

PORTFOLIO STRATEGY PPT DESCRIPTION

GE-McKinsey Matrix PPT: Learn this strategic portfolio tool with examples, templates, and competitive analysis frameworks. Download the PowerPoint now. GE-McKinsey Matrix is a 28-slide PPT PowerPoint presentation slide deck (PPTX) available for immediate download upon purchase.

Explore Slides inside the Deck:

Investment Strategies in the GE-McKinsey Matrix Comparative Analysis of GE-McKinsey and BCG Matrices Assessing Industry Attractiveness in Strategic Planning

GE-McKinsey Matrix was outlined by McKinsey & Co. in the 1970s, when they were commissioned by General Electric (GE) to develop a Portfolio Management model. The matrix serves as a multi-factorial analysis technique that is useful for the senior leadership in determining the product(s)—that should be essentially added to the product portfolio—and the opportunities to invest in the market.

This presentation provides a detailed overview of the 5-step approach to formulating the GE-McKinsey Matrix:

1. Establish Industry Attractiveness of each business unit
2. Ascertain the Competitive Strength of each business unit
3. Outline the position of business units on the Matrix
4. Analyze the data
5. Ascertain the future direction and prioritize investments

The presentation also deliberates on the core components, the pros and cons associated with the GE-McKinsey Matrix, as well as provides a comparison of the framework with the BCG Matrix.

The slide deck also includes some slide templates for you to use in your own business presentations.

The GE-McKinsey Matrix is a robust tool for evaluating the competitive strengths of business units against industry attractiveness. It offers a comprehensive 3x3 grid framework, facilitating strategic decision-making by plotting business units on the matrix. This presentation provides actionable insights into leveraging this matrix to prioritize investments and identify growth opportunities.

The PPT includes detailed templates to visualize the GE-McKinsey Matrix, making it easier for you to apply this framework in your strategic planning. Whether you are looking to invest, hold, or divest, this presentation equips you with the necessary tools to make informed decisions and optimize your product portfolio for maximum profitability.

Got a question about this document? Email us at [e-mail].

PORTFOLIO STRATEGY PPT SLIDES

Investment Strategies in the GE-McKinsey Matrix

This PPT slide outlines investment strategies using the GE-McKinsey Matrix, which categorizes business units (BUs) by market attractiveness and company strengths. It features 3 categories: Grow/Invest Box, Hold/Protect Box, and Harvest/Divest Box. In the Grow/Invest Box, BUs in growing markets should receive significant investment for research and development, marketing, and production enhancements to maintain or expand market share. The Hold/Protect Box requires cautious investment only if future profitability is likely, focusing on maintaining current performance. The Harvest/Divest Box necessitates critical evaluation, recommending limited investment or divestment for underperforming BUs in unattractive markets. This structured approach encourages leaders to strategically allocate resources based on market conditions and potential returns.

Comparative Analysis of GE-McKinsey and BCG Matrices

This PPT slide analyzes the GE-McKinsey Matrix and the BCG Matrix, frameworks for evaluating a firm's product or business unit portfolio. The BCG Matrix features a simpler 4-cell structure assessing market share and market growth, while the GE-McKinsey Matrix offers a more complex 9-cell framework that evaluates multiple factors for market attractiveness and business strengths. The GE-McKinsey Matrix replaces the singular market growth factor with a broader assessment of market attractiveness and incorporates various elements beyond market share in its Business Unit Strength factor. Additionally, it classifies determining factors as high, medium, or low, contrasting with the BCG Matrix's binary classification. However, the GE-McKinsey Matrix does not account for interdependencies between business units, which may overlook potential synergies.

Assessing Industry Attractiveness in Strategic Planning

This PPT slide outlines Industry Attractiveness within the GE-McKinsey Matrix, a strategic tool for evaluating business units. Key elements include long-term growth rate, industry structure, and profitability, which encompasses entry barriers, buyer and supplier power, and threats from new entrants. Additional factors affecting industry attractiveness are product lifecycle changes, price trends, and demand pattern shifts, which are essential for forecasting market behavior. Market segmentation and labor availability are critical considerations impacting operational efficiency and market entry strategies. Evaluating these components is vital for multinational companies aiming for global expansion while effectively managing their strategic business units.

Optimizing Resource Allocation Using the GE-McKinsey Framework

The GE-McKinsey Matrix is a strategic tool for evaluating business units based on industry attractiveness and business unit strength. This 3x3 grid categorizes units into nine segments, guiding investment decisions. The "Grow / Invest" quadrant indicates high market share in promising industries, suggesting strong candidates for investment. The "Hold / Protect" category advises caution, recommending investment only if resources allow after addressing more profitable units. The "Harvest / Divest" quadrant targets underperformers in unattractive industries, advocating for strategic retreat or divestment. The matrix illustrates that moving downwards decreases industry attractiveness, while moving right indicates declining business unit strength. It also compares with the BCG Growth-Share Matrix, highlighting the GE-McKinsey Matrix's nuanced view of both dimensions for informed strategic decisions.

Strategic Evaluation Using the GE-McKinsey Matrix

The GE-McKinsey Matrix is a strategic tool for evaluating business units based on 2 dimensions: Industry Attractiveness and Business Unit Strength. The matrix is a 3x3 grid, with Industry Attractiveness on the Y-axis and Business Unit Strength on the X-axis. Industry Attractiveness measures market entry potential, categorized into high, medium, or low scores, while Business Unit Strength assesses competitive position, considering market share, brand positioning, and customer loyalty. This framework informs Investment Strategies: Grow/Invest, Hold/Protect, and Harvest/Divest, based on business unit positioning. For example, units in the "Harvest" section should only be divested or invested in if they generate more revenue than incurred costs. The matrix facilitates structured portfolio management, guiding resource allocation and strategic direction.

Source: Best Practices in Growth Strategy, Strategic Planning PowerPoint Slides: Strategy Classics: GE-McKinsey Matrix PowerPoint (PPTX) Presentation Slide Deck, LearnPPT Consulting