What is GE planning grid?

What is GE planning grid?

The GE matrix was developed by Mckinsey and Company consultancy group in the 1970s. The nine cell grid measures business unit strength against industry attractiveness and this is the key difference. Whereas BCG is limited to products, business units can be products, whole product lines, a service or even a brand.

What is GE framework?

GE-McKinsey is a framework that evaluates business portfolio, provides further strategic implications and helps to prioritize the investment needed for each business unit (BU).

What is GE matrix in strategic management?

The GE-McKinsey Matrix (a.k.a. GE Matrix, General Electric Matrix, Nine-box matrix) is a portfolio analysis tool used in corporate strategy to analyze strategic business units or product lines. This matrix combines two dimensions: industry attractiveness and the competitive strength of a business unit into a matrix.

What is GE matrix explain in detail?

The GE/McKinsey Matrix or GE-McKinsey nine-box matrix is a business portfolio analysis that provides a structured way to evaluate business units on two key dimensions: the attractiveness of the market involved and the strength of the firm’s position in that market.

How does the GE planning grid differ from the BCG matrix?

BCG matrix is simpler in comparison to GE matrix, as the former is easy to draw and consist of only four cells, while the latter consist of nine cells. In contrast, in GE matrix there are three degrees of business strength, i.e. strong, average and weak, and industry attractiveness, are high, medium and low.

What is the full meaning of SBU?

Strategic Business Unit
Definition of ‘Strategic Business Unit’ Definition: A strategic business unit, popularly known as SBU, is a fully-functional unit of a business that has its own vision and direction. Typically, a strategic business unit operates as a separate unit, but it is also an important part of the company.

What is the difference between BCG and GE?

BCG matrix is used by the companies to deploy their resources among various business units. On the contrary, firms use GE matrix to prioritize investment among various business units. In BCG matrix only a single measure is used, whereas in GE matrix multiple measures are used.

What is GE matrix with example?

The GE McKinsey Matrix, also know as the McKinsey Nine Box Matrix is a strategic tool used for business portfolio planning. As an example of a business portfolio, consider Hilton Hotels. The Hilton Hotels group is made up of many SBUs including Hilton Double Tree, Hilton, Conrad Hotels, and Waldorf Astoria Hotels.

How is the concept of GE Grid helpful to manage the portfolio?

The GE McKinsey matrix is a nine-box matrix which is used as a strategy tool. It helps multi-business corporations evaluate business portfolios and prioritize investments among different business units in a systematic manner. This technique is used in brand marketing and product management.

Why GE Matrix is better than BCG Matrix?

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. It is more refined than the BCG Matrix as it replaces a single factor, “market growth,” with many factors under “market attractiveness.”

Is GE Matrix better than BCG Matrix?

What are four types of SBUs?

The growth-share matrix classifies four types of SBUs:

• Stars. SBUs in the high-growth and high-share quadrant represent the company’s shining businesses.
• Cash cows. Cash cows dominate in slow growth markets.
• Question marks.
• Dogs.