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    Attractiveness Factor 2 Value by Factor 2 Weighting, Etc. Factor 2 Value by Factor 2 Weighting, Etc

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    Issa Vandana
    The GE/McKinsey Matrix is a nine-cell strategic planning tool that evaluates business units based on their strengths and the attractiveness of the industry sectors they operate in. It maps business units as circles on a 3x3 grid using these two axes, with the size of each circle representing additional factors like market size. Multiple weighted factors can be used to assess strengths and attractiveness, rather than single measures like in other tools. The matrix is generated in Excel using a bubble chart with strengths on the Y axis, attractiveness on the X axis, and an adjustable third factor depicted via bubble size.

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    Attractiveness Factor 2 Value by Factor 2 Weighting, Etc. Factor 2 Value by Factor 2 Weighting, Etc

    Uploaded by

    Issa Vandana
    15 views2 pages
    The GE/McKinsey Matrix is a nine-cell strategic planning tool that evaluates business units based on their strengths and the attractiveness of the industry sectors they operate in. It maps business units as circles on a 3x3 grid using these two axes, with the size of each circle representing additional factors like market size. Multiple weighted factors can be used to assess strengths and attractiveness, rather than single measures like in other tools. The matrix is generated in Excel using a bubble chart with strengths on the Y axis, attractiveness on the X axis, and an adjustable third factor depicted via bubble size.

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    MBA

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    The GE

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    The GE/McKinsey Matrix is a nine-cell strategic planning tool that evaluates business units based on their strengths and the attractiveness of the industry sectors they operate in. It maps business units as circles on a 3x3 grid using these two axes, with the size of each circle representing additional factors like market size. Multiple weighted factors can be used to assess strengths and attractiveness, rather than single measures like in other tools. The matrix is generated in Excel using a bubble chart with strengths on the Y axis, attractiveness on the X axis, and an adjustable third factor depicted via bubble size.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    15 views2 pages

    Attractiveness Factor 2 Value by Factor 2 Weighting, Etc. Factor 2 Value by Factor 2 Weighting, Etc

    Uploaded by

    Issa Vandana
    The GE/McKinsey Matrix is a nine-cell strategic planning tool that evaluates business units based on their strengths and the attractiveness of the industry sectors they operate in. It maps business units as circles on a 3x3 grid using these two axes, with the size of each circle representing additional factors like market size. Multiple weighted factors can be used to assess strengths and attractiveness, rather than single measures like in other tools. The matrix is generated in Excel using a bubble chart with strengths on the Y axis, attractiveness on the X axis, and an adjustable third factor depicted via bubble size.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    of 2

    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 Matrix identifies the optimum business portfolio as one that fits perfectly to the company's strengths and helps to exploit the most attractive industry sectors or markets. Thus, the objective of the analysis is to position each SBU on the chart depending on the SBU's Strength and the Attractiveness of the Industry Sector or Market on which it is focused. Each axis is divided into Low, Medium and High, giving the nine-cell matrix as depicted below.

    SBUs are portrayed as a circle plotted on the GE/McKinsey Matrix, where the size of the circle represents a factor such as Market Size. The GE/McKinsey Matrix differs from other tools, like the Boston Consulting Group Matrix, in that multiple factors are used to define Industry Attractiveness and Business Unit Strength. Each factor can be given a different weighting in calculating the overall attractiveness of a particular industry. Typically: Industry Attractiveness = Attractiveness Factor 1 Value by Factor 1 weighting + Attractiveness Factor 2 Value by Factor 2 weighting, etc. Business Unit Strength = Strength Factor 1 Value by Factor 1 weighting + Strength Factor 2 Value by Factor 2 weighting, etc. . Up to 10 different factors can be used to define Industry Attractiveness, Typical factors would be Market Size, Market Growth Rate, Industry Profitability, Competitive Rivalry, etc. Up to 10 factors can also be used to define SBU Strength. Typical factors are Market Share, Distribution Channel Access, Financial Resources, R&D Capability, etc The factors and their relative weightings are selected. The rating values for each factor are entered for each SBU and Industry.

    The SBU Strength and Industry Sector Attractiveness are calculated and the GE/McKinsey Matrix is automatically produced The format used to produce the Matrix is a MS-Excel Bubble Chart. Industry Attractiveness and Business Strength are plotted on the X and Y axes. The size of the Bubble allows a further factor to be depicted on the chart. The default factor used is Market Size. However, a Dropdown list is available allowing the user to dynamically select any of the Industry Attractiveness factors as an alternative

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