In the 1970s, general electric company was an umbrella corporation managing a wide array of complex and unrelated products. It is a 9 cell matrix based on longterm industry attractiveness and business. The ge multi factoral was first developed by mckinsey for general electric in the 1970s. Ge 9 cell mckinsey matrix ge matrix portfolio analysis model ge mckinsey matrix thege matrix mckinsey matrix is a model to perform a business portfolio analysis on the strategic business units of a corporation.
Get the combined excel and word templates package at 30% discount and a free copy of our strategic planning workbook. A detailed analysis on ge nine cell grid for your benefit and how it differs from bcg matrix. These individual businesses are often referred to as strategic business units sbus. It was originally used for a visual representation of ge s 150 business units to determine which business units were doing well, which needed support, and which should be discontinued. Ge nine cell matrix management guru management guru. Strategic management is an important part for any business which helps for strategy formulation and business decisions. The gemckinsey ninebox matrix is a strategy tool that offers a. The ge mckinsey matrix this is a form of portfolio analysis used for classifying product lines or strategic business units within a large company it was developed by mckinsey for the us general electric company it assesses areas of the business in terms of two criteria. It is used to perform business portfolio analysis for classifying product lines or sbus within a large company. The general electric ge mckinsey matrix template is a nine cell 3 by 3 matrix used to perform business portfolio analysis as one of the steps in the strategic planning process. Both matrices are used to analyze companys product or business unit portfolio and facilitate the investment decisions.
Strategic analysis through the general electricmckinsey. The ge mckinsey matrix does not only consider growth, it mainly considers market attractiveness. This is an ideal template for demonstrating mckinsey strategy or raci matrix of an organization. The nine cell grid measures business unit strength against industry attractiveness and this is the key difference. The ge mckinsey matrix identifies the optimum business portfolio as one that fits perfectly to the companys strengths and helps to explore the most attractive. Corporate level analytical tools ge nine cell matrix the ge matrix was developed jointly by mckinsey and general electric in the early 1970s as a derivation of the bcg matrix. Ge nine cell matrix the gemckinsey matrix is a ninecell 3 by 3 matrix usedto perform business portfolio analysis as a step in the. Ge matrix for powerpoint contains all you need to model a mckinsey ge matrix presentation slide.
Mckinsey itself provides a most lucid definition of the gemckinsey matrix. The attached excel workbook uses tables to support dropdown selection. Use of the ge mckinsey matrix is recommended if an organisation is made up of many business units or if a business unit is made up of a number of different product lines. Bcg matrix, ge 9 cell matrix, porters 5 cell corporate. Ge nine cell matrix the ge mckinsey matrix is a nine cell 3 by 3 matrix used to perform business portfolio analysis as a step in the strategic planning process. The ge mckinsey 9 box matrix is a tool that can be used by an organization to prioritize investment among business units. This presentation covers the topic a ge 9 cell matrix bbcg matrix cporters 5 cell with relevant examples to make it easy to understand. The matrix template shows 9 slides highlighting one cell at a time.
If you continue browsing the site, you agree to the use of cookies on this website. Difference between bcg and ge matrices with comparison. The ge mckinsey matrix identifies the optimum business portfolio as one that fits perfectly to the companys strengths and helps to explore the most attractive industry sectors or. However, it is equally suitable to explain similar 9 cells matrix. Bcg matrix and ge nine cell matrix bcg matrix bcg matrix conclusion bcg matrix strategic analysis ge nine cell matrix bcg matrix mother dairy bcg matrix nestle amul. Bcg matrix can be understood as the growth share model, that reflects growth of business and the market share possessed by the firm. Use this resourceful info to strategically position your products in the market. Ge nine cell matrixthis matrix was developed in 1970s by the general electric company with the assistance of the consulting firm, matrix comprises two axes. Here we have given strategic management multiple choice questions with answers which can be used for internal exams, skill test or aptitude test. Ge nine cell matrix the ge mckinsey matrix is a nine cell 3 by 3 matrix usedto perform business portfolio analysis as a step in the strategicplanning process.
This presentation template for microsoft powerpoint contains multiple slides with 3d matrix design that you can use for different purposes and design the ge matrix model in consulting presentations which was based on the works by mckinsey with general electric with a tool for screening ge s large. Ge matrix in hindi general electric stoplight matrix mckinsey matrix strategic management ppt duration. A business portfolio is a group of businesses that collectively make up a company. Bcg growthshare matrixbcg growthshare matrix dimensions. This video looks at the components of the ge mckinsey model.
The ge mckinsey matrix identifies the optimum businessportfolio as one that fits perfectly to the companys strengthsand helps to explore the most attractive industry sectors ormarkets. On the other hand, ge matrix is also termed as multifactor portfolio matrix, which businesses use in making strategic choices for product lines or business units based on. One variant adds a third factor of market size by sizing the plotpoint bubbles. More more information on the bcg matrix, please visit. It is more refined than the bcg matrix as it replaces a single factor, market growth, with.
Strategic management general electric ge nine cell matrix. Ge mckinsey matrix is a very similar portfolio evaluation framework to bcg matrix. Low strong averag weak e th different groupings businesses of scores of 6. This business screen became known as the gemckinsey matrix and is shown below. Ge nine 9 cell matrix ge ninebox matrix is a strategy tool that offers a systematic approach for the multi business enterprises to prioritize their investments among the various business units. Easytouse and simple ge matrix chart generator solved. The ge mckinsey matrix, also know as the mckinsey nine box matrix is a strategic tool used for business portfolio planning. Strategic management multiple choice questions with.
Ge ninebox matrix is a strategy tool that offers a systematic approach for the multi business enterprises to prioritize their investments among the various business units. The specialty unit is appraised against relative piece of the pie and industry development rate in former matrix however the business unit is appraised against business quality and industry allure in later. Attractivenesscompetitive strength the matrix the xaxis is of high competitiveness the yaxis is of attractiveness med. How the boston consulting group bcg growthshare matrix works duration. The ge mckinsey matrix was developed in response to the shortcomings of the bcg matrix, which does not account for a number of factors. The ge matrix was developed by mckinsey and company consultancy group in the 1970s. Ge nine cell matrix another popular corporate portfolio analysis technique is the result of pioneering effort of general electric company along with mckinsey consultants which is known as the ge nine cell matrix. It is a framework that evaluates business portfolio and provides further strategic implications. Ge 9 cell matrix 33 is used to perform business port folio analysis as a step in strategic management process matrix identifies the optimum business port folio as one that fit perfectly strengths and help to explore most attractive industry sector or market each matrix is depend upon the industrial attractiveness and the strength low medium high.
Bcg matrix the main advantage of the ge matrix as a strategy tool is, of course, that it tries to answer the question of where scarce resources should be invested. Gemckinsey matrix the gemckinsey matrix was developed jointly by mckinsey and general electric in 1970s. The attractiveness of the market is represented on the yaxis and the competitiveness and competence of the business unit are plotted on the xaxis. Hi all, for those of you involved in marketing, the ge matrix sometimes referred to as the ge mckinsey matrix is a mechanism for plotting market attractiveness against competitive positioning as a bubble chart using a pair of 1 9 ratings. A step by step guide to making the bcg matrix from start to finish on excel. Like in bcg analysis, a twodimensional portfolio matrix is created. This article explains the ge mckinsey matrix in a practical way. The ge nine cell matrix is also known as mckinsey matrix. Many people have trouble in understanding the difference between bcg and ge matrices. General electric ge mckinsey matrix template msexcel. How it works the ge mckinsey matrix is a nine cell 3 by 3 matrix and it is primary used to perform business portfolio analysis on the strategic business units sbu of a corporation. Bcg matrix, ge 9 cell matrix, porters 5 cell corporate portfolio analysis free download as powerpoint presentation. Ge multifactoral analysis is a technique used in brand marketing and product management to help a company decide what products to add to its product portfolio and which opportunities in the market they should continue to invest in.
The ge mckinsey matrix solves most of the issues of the bcg model and proposes a more sophisticated and comprehensive approach to investment decision making. This matrix was created by mckinsey consulting company for ge. It is conceptually similar to bcg analysis, but somewhat more complicated. Industry growth rate relative market share position of the businesses sbus plotted as circles with area proportional to their contribution to overall corporate sales. Bcg matrix is not flexible where as ge 9 cell model consider all the factors related to market attractiveness. Whereas bcg is limited to products, business units can be. The ge mckinsey matrix templates can be used in conjunction with, or as an alternative to, other tools such as s. More specifically, the ge mckinsey 9 box matrix offers a systematic approach to evaluate the strengths and weaknesses of a business unit along two dimensions. General electric used this matrix at five different levels in the organisation. Bcg is only a four cell matrix, while ge mckinsey is a nine cell matrix. It could save users time on creating copies to focus on one component of matrix.
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