Presentationon

General Electric (GE) Matrix ByRomi Patel 44Monali Shah 51Nidhi Sahu 57

Roadmap For The Presentation

ROADMAP

STRATEGIC PLANNING

BCG & GE MATRIX

ABOUT GE

CLASSIFICATION

STRATEGIES

BCG v/s GE

CASE STUDY

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

Strategic Planning

BCG & GE Matrix

Mar

ket

Att

ract

iven

ess

Business Strength

Mar

ket

Gro

wth

Relative Position

(Market Share)

About GE Matrix

Developed by McKinsey & Company in 1970’s.

GE is a model to perform business portfolio analysis on the SBU’s.

GE is rated in terms of ‘Market Attractiveness & Business Strength’

It is an Enlarged & Sophisticated version of BCG.

Classification M

arke

t A

ttra

ctiv

enes

s

Strong Medium Weak

Lo

wM

ed

ium

Hig

hBusiness Strength

5.00 1.002.333.67

5.00

3.67

2.33

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

Market Attractiveness

Current market share Brand image Brand equity Production capacity Corporate image Profit margins relative to

competitors R & D performance Managerial personal Promotional effectiveness

Business Strength

Strategies

Invest to Build• Challenge for leadership• Build selectively on strength

Protect Position• Invest to grow• Effort on maintaining 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

Manage for Earnings• Protect position in profitable segment• Upgrade product line• Minimize investment

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

Harvest • Sell at time that will maximize cash value• Cut fixed costs and avoid investment meanwhile

Factors Weight Rating

(1 –5)

Value =

(Weight * Rating)

Resource availability 0.20 2.5 0.5

Overall market size 0.15 3 0.45

Annual Market growth rate 0.20 3 0.6

Profitability 0.15 3 0.45

Competitive intensity 0.10 2.5 0.25

Technological requirements 0.20 2.5 0.5

Total 1.0 2.75

Factors Underlying Market Attractiveness

Factors Weight Rating

(1 –5)

Value =

(Weight * Rating)

Market share 0.15 5 0.75

New product development 0.10 3.5 0.35

Brand Image 0.10 4 0.40

Sales force 0.15 3 0.45

Pricing 0.15 3 0.45

Distribution capacity 0.10 4.5 0.45

Product quality 0.10 4.5 0.45

R&D Performance 0.15 3 0.45

Total 1.0 3.75

Factors Underlying Market Strength

Classification M

arke

t A

ttra

ctiv

enes

s

Strong Medium Weak

Lo

wM

ed

ium

Hig

hBusiness Strength

5.00 1.002.333.67

5.00

3.67

2.33

Case Study

Overview

Business StrengthsM

ark

et A

ttra

ctiv

enes

s

Low

High

LowHigh

Attractive

Moderate Attractive

Unattractive

Case Study of TATA

TATA

• IT (Information Technology) : TCS

• Consumer Durable : Automobiles, Titan etc.

•Textiles : Tata Fabrics, West Sides etc

GE Matrix For TATA

Business StrengthsM

ark

et A

ttra

ctiv

enes

s

Low

High

LowHigh

ITConsumer Durables

Textiles

BCG v/s GE

BCG GE

Market Growth

Market share

4 cell

Multi Products

Primary tools

Market Attractiveness

Market strength

9 cell

Multi Business Units

Secondary tools

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

Bibliography