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Ge final11249

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Ge final11249

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

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