Presentation on General Electric (GE) Matrix  By Romi Patel 44 Monali Shah   51 Nidhi 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 Market Attractiveness Business Strength Market Growth Relative Position (Market Share)
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. About GE Matrix
Classification  Market Attractiveness Strong Medium Weak Low Medium High Business Strength 5.00 1.00 2.33 3.67 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 Underlying Market Attractiveness 2.75 1.0 Total 0.5 2.5 0.20 Technological requirements 0.25 2.5 0.10 Competitive intensity 0.45 3 0.15 Profitability 0.6 3 0.20 Annual Market growth rate 0.45 3 0.15 Overall market size 0.5 2.5 0.20 Resource availability Value = (Weight * Rating) Rating (1 –5) Weight  Factors
Factors Underlying Market Strength 0.45 4.5 0.10 Product quality 0.45 3 0.15 R&D Performance 3.75 1.0 Total 0.45 4.5 0.10 Distribution capacity 0.45 3 0.15 Pricing 0.45 3 0.15 Sales force 0.40 4 0.10 Brand Image 0.35 3.5 0.10 New product development 0.75 5 0.15 Market share Value = (Weight * Rating) Rating (1 –5) Weight  Factors
Classification  Market Attractiveness Strong Medium Weak Low Medium High Business Strength 5.00 1.00 2.33 3.67 5.00 3.67 2.33
Case Study
Overview Business Strengths Market Attractiveness Low High Low High 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 Strengths Market Attractiveness Low High Low High IT Consumer Durables Textiles
BCG v/s GE Market Attractiveness Market strength  9 cell Multi Business Units Secondary tools Market Growth Multi Products Primary tools 4 cell Market share GE BCG
Corporate Strategies -  Bani Banerjee   Marketing Management -  Philip Kotler Strategic Planning -  V S Ramaswamy Bibliography
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Ge Final[1]

  • 1.
    Presentation on GeneralElectric (GE) Matrix By Romi Patel 44 Monali Shah 51 Nidhi Sahu 57
  • 2.
    Roadmap For ThePresentation ROADMAP STRATEGIC PLANNING BCG & GE MATRIX ABOUT GE CLASSIFICATION STRATEGIES BCG v/s GE CASE STUDY
  • 3.
    It is themanagement 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 & GEMatrix Market Attractiveness Business Strength Market Growth Relative Position (Market Share)
  • 5.
    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. About GE Matrix
  • 6.
    Classification MarketAttractiveness Strong Medium Weak Low Medium High Business Strength 5.00 1.00 2.33 3.67 5.00 3.67 2.33
  • 7.
    Annual market growthrate Overall market size Historical profit margin Current size of market Market structure Market rivalry Demand variability Global opportunities Market Attractiveness
  • 8.
    Current market shareBrand image Brand equity Production capacity Corporate image Profit margins relative to competitors R & D performance Managerial personal Promotional effectiveness Business Strength
  • 9.
    Strategies Invest toBuild 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 forEarnings 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 Underlying MarketAttractiveness 2.75 1.0 Total 0.5 2.5 0.20 Technological requirements 0.25 2.5 0.10 Competitive intensity 0.45 3 0.15 Profitability 0.6 3 0.20 Annual Market growth rate 0.45 3 0.15 Overall market size 0.5 2.5 0.20 Resource availability Value = (Weight * Rating) Rating (1 –5) Weight Factors
  • 13.
    Factors Underlying MarketStrength 0.45 4.5 0.10 Product quality 0.45 3 0.15 R&D Performance 3.75 1.0 Total 0.45 4.5 0.10 Distribution capacity 0.45 3 0.15 Pricing 0.45 3 0.15 Sales force 0.40 4 0.10 Brand Image 0.35 3.5 0.10 New product development 0.75 5 0.15 Market share Value = (Weight * Rating) Rating (1 –5) Weight Factors
  • 14.
    Classification MarketAttractiveness Strong Medium Weak Low Medium High Business Strength 5.00 1.00 2.33 3.67 5.00 3.67 2.33
  • 15.
  • 16.
    Overview Business StrengthsMarket Attractiveness Low High Low High Attractive Moderate Attractive Unattractive
  • 17.
    Case Study ofTATA TATA IT (Information Technology) : TCS Consumer Durable : Automobiles, Titan etc. Textiles : Tata Fabrics, West Sides etc
  • 18.
    GE Matrix ForTATA Business Strengths Market Attractiveness Low High Low High IT Consumer Durables Textiles
  • 19.
    BCG v/s GEMarket Attractiveness Market strength 9 cell Multi Business Units Secondary tools Market Growth Multi Products Primary tools 4 cell Market share GE BCG
  • 20.
    Corporate Strategies - Bani Banerjee Marketing Management - Philip Kotler Strategic Planning - V S Ramaswamy Bibliography
  • 21.