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Ge final11249

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  • 1. Presentation on General Electric (GE) Matrix By Romi Patel 44 Monali Shah 51 Nidhi Sahu 57
  • 2. Roadmap For The Presentation ROADMAP STRATEGIC PLANNING BCG & GE MATRIX ABOUT GE CLASSIFICATION STRATEGIES BCG v/s GE CASE STUDY
  • 3.  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
  • 4. BCG & GE Matrix MarketAttractiveness Business Strength MarketGrowth Relative Position (Market Share)
  • 5. 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.
  • 6. ClassificationMarketAttractiveness Strong Medium Weak LowMediumHigh Business Strength 5.00 1.002.333.67 5.00 3.67 2.33
  • 7.  Annual market growth rate  Overall market size  Historical profit margin  Current size of market  Market structure  Market rivalry  Demand variability  Global opportunities Market Attractiveness
  • 8.  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
  • 9. 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
  • 10. 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
  • 11. 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
  • 12. 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
  • 13. 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
  • 14. ClassificationMarketAttractiveness Strong Medium Weak LowMediumHigh Business Strength 5.00 1.002.333.67 5.00 3.67 2.33
  • 15. Case Study
  • 16. Overview Business StrengthsMarketAttractiveness Low High LowHigh Attractive Moderate Attractive Unattractive
  • 17. Case Study of TATA  TATA • IT (Information Technology) : TCS • Consumer Durable : Automobiles, Titan etc. •Textiles : Tata Fabrics, West Sides etc
  • 18. GE Matrix For TATA Business StrengthsMarketAttractiveness Low High LowHigh IT Consumer Durables Textiles
  • 19. 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
  • 20.  Corporate Strategies - Bani Banerjee  Marketing Management - Philip Kotler  Strategic Planning - V S Ramaswamy Bibliography