Investment Strategies in the GE-McKinsey Matrix PPT

This PPT slide, part of the 28-slide Strategy Classics: GE-McKinsey Matrix PowerPoint presentation, outlines the investment strategies associated with the GE-McKinsey Matrix, which categorizes business units (BUs) based on their market attractiveness and the company's strengths. It presents 3 distinct categories: Grow/Invest Box, Hold/Protect Box, and Harvest/Divest Box, each with specific recommendations for senior leadership.

In the Grow/Invest Box, the guidance is clear. BUs that fit here are in growing markets and are expected to yield high returns. Companies are advised to invest significantly in these units, allocating resources for research and development, marketing, and production enhancements. This proactive approach aims to maintain or expand market share.

The Hold/Protect Box requires a more cautious strategy. BUs in this category should only receive investment if there is confidence in their potential for future profitability. Leadership is urged to be wary of the risks involved, as these units may not have clear pathways to success. The focus should be on maintaining current performance rather than aggressive growth.

Lastly, the Harvest/Divest Box indicates a need for critical evaluation. Investments in these BUs should be limited to situations where they do not exceed the revenue they generate. This category includes units that are underperforming and situated in unattractive markets. The recommendation here is to consider divesting or liquidating these BUs, especially if they are consistently losing money or unable to become profitable.

Overall, the slide emphasizes a structured approach to investment decisions, encouraging leaders to assess their BUs carefully and allocate resources strategically based on market conditions and potential returns.

This slide is part of the Strategy Classics: GE-McKinsey Matrix PowerPoint presentation.

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