Ge matrix
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The GE matrix is a strategy tool used by multi-business corporations to evaluate the market position and profitability of their business units. It analyzes each unit based on industry attractiveness and competitive strength. Industry attractiveness considers factors like growth, size, and profitability. Competitive strength examines a unit's market share, brand strength, and profitability versus rivals. The matrix helps companies prioritize investments by identifying units in attractive industries with strong competitive positions or those needing improvements.
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Ge matrix
The GE/McKinsey Matrix is a portfolio analysis tool used to classify business units within a large company based on two criteria: industry attractiveness and business unit strength. It evaluates each unit and places it in one of nine cells based on its criteria scores, recommending different strategies for units in each cell ranging from investing for growth to harvesting or divesting.
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Ge matrix
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The document discusses the Boston Consulting Group (BCG) Matrix, which classifies business units into four categories based on their relative market share and market growth rate: Question Marks, Stars, Cash Cows, and Dogs. Question Marks have high growth but low market share, requiring high investment. Stars have high growth and market share but also require heavy investment. Cash Cows have low growth but high market share, generating cash with little investment. Dogs have low growth and market share and are cash traps. The BCG Matrix helps assess a product portfolio, cash demands, resource allocation, and divestment decisions.
Strategic evaluation and control
Strategic evaluation and control is the final phase of strategic management. It operates at two strategic and operational levels to assess consistency with the environment and pursuit of strategy. The purpose is to evaluate strategy effectiveness in achieving objectives. It tests strategy effectiveness and keeps the organization on track to objectives through feedback and corrective actions. Strategic evaluation involves participants across the organization and provides lessons for new planning, though barriers like measurement difficulties must be addressed.
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The document discusses the GE Nine Cell Matrix, which is a portfolio analysis tool developed by McKinsey & Company for General Electric in the 1970s. It evaluates business units based on their market attractiveness and business strength. Market attractiveness depends on factors like market size, growth rate, and profit margins. Business strength is assessed by metrics such as market share, brand strength, and competitiveness. The matrix plots business units into nine cells that indicate whether a unit should be invested in, maintained, or harvested. It provides a more nuanced analysis than the Boston Consulting Group matrix.
STABILITY AND GROWTH OF STRATEGY
This document discusses stability and growth strategies as game changers for organizations. It defines stability strategies as focusing on maintaining current performance levels and minor functional improvements. Growth strategies aim to significantly increase objectives like market share and sales. The document outlines different forms of stability and growth strategies such as stability through diversification or minor strategies. It also discusses reasons for pursuing stability or growth and how to implement these strategies, giving examples from Indian companies. Risks of stability strategies and reasons for growth strategy failure are presented.
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The document discusses strategic control, which involves tracking a strategy as it is implemented to detect problems, make necessary adjustments, and guide action. There are four main types of strategic control: premise control checks assumptions, strategic surveillance broadly monitors for relevant information, special alert control triggers reassessments due to unexpected events, and implementation control assesses strategy based on incremental actions taken. Monitoring involves asking if direction, timing, and strategy need adjustment based on conditions.
Corporate Level Strategies
Corporate level strategies are basically about the choice of direction that a firm adopts in order to achieve its objectives.
Corporate strategy is essentially a blueprint for the growth of the firm.
The corporate strategy sets the overall direction for the organization to follow.
It also spells out the extent, pace and timing of the firm’s growth.
STRUCTURAL IMPLEMENTATION
This presentation covers one of the process of Strategic Management; Strategic Implementation. There are 2 sub divisions; Functional Implementation and Structural Implementation. This section deals with Structural Implementation in detail.
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Meaning, types (permise, implementation, strategic surveillance, special alert control) of Strategic Control
Diversification (2)
Diversification is a corporate strategy where a firm enters new markets or industries that are not currently part of its business by developing new products for those markets. Firms diversify for reasons such as having excess resources, diminishing growth in their current industry, cost savings opportunities, or spreading business risks. There are two main types of diversification: related diversification, where a firm leverages its technical expertise across industries, and unrelated diversification, where a firm enters industries with no strategic fit. Firms must evaluate the attractiveness and costs of new industries as well as whether diversification creates shareholder value.
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This document discusses different levels of strategy, including corporate strategy, business strategy, and functional strategy.
Corporate strategy involves top-level decisions about the overall scope and direction of a corporation. It occupies the highest decision-making level. Corporate strategies include stability, expansion, retrenchment, and combinations of those. Expansion strategies involve concentrating resources, diversifying, integrating operations, cooperating with competitors, and internationalization. Retrenchment strategies are turnaround, divestment, and liquidation.
Business strategy details how a firm provides value to customers within a specific industry. Common business strategies are cost leadership, differentiation, focused low cost, focused differentiation, and integrated low cost/differentiation.
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This document discusses the GE Nine Cell Matrix, which is a tool used in strategic portfolio analysis and planning. It involves plotting business units on a 3x3 grid based on their strengths and the attractiveness of the industry they operate in. Strengths and attractiveness are each rated as high, medium, or low. The matrix then recommends different strategic approaches - grow, hold, or harvest - for business units in each of the nine cells. It provides a framework for allocating resources effectively based on where a business unit sits within the matrix. The document outlines typical factors considered when rating strengths and attractiveness, and provides an example analysis of Maruti Udyog, an Indian automaker.
Diversification strategies
Diversification allows companies to enter new business lines different from current operations. Firms diversify to utilize excess resources, capture synergies, spread risk, and leverage brands. There are four main types of diversification: horizontal involves similar firms; vertical integrates suppliers and customers; concentric pursues synergistic but not identical markets; and conglomerate comprises unrelated industries. Common diversification strategies include acquisition, internal start-ups, joint ventures, and entering new businesses.
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Strategic evaluation
Strategic evaluation is defined as determining the effectiveness of an organization's strategy in achieving objectives and taking corrective actions. It is the final step in strategic management and involves appraising internal/external factors, measuring performance, and making adjustments. Strategic evaluation is important because it assesses the efficiency and effectiveness of plans in achieving goals. It allows managers to evaluate current strategies in a changing environment. The process involves setting benchmarks, measuring actual performance, analyzing variances, and taking corrective actions. Participants include shareholders, directors, executives, and managers.
Ge nine cell matrix
The GE nine cell matrix was developed by McKinsey for General Electric in the 1970s to analyze business portfolio. Instead of the four cells in the BCG Matrix, the GE matrix creates nine cells based on a 3x3 grid that considers both long-term industry attractiveness (high, medium, low) and a business unit's strength within that industry (strong, average, weak). The matrix is used to identify a business portfolio that optimally matches strengths with attractive industries. Strategies like growth, hold, and harvest are then determined for each cell based on the business unit's strength and the industry attractiveness.
Sales meeting AND SALES CONTEST
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This document summarizes Michael Porter's Five Forces model of strategic analysis. The five competitive forces that determine the profitability and attractiveness of an industry are: the bargaining power of suppliers, the bargaining power of customers, the threat of new entrants, the threat of substitutes, and the threat of existing competition. Each force is influenced by several factors that must be analyzed internally regarding a company's resources and externally regarding industry conditions. The model provides a framework for analyzing an industry's structure to determine where power lies and how a company can gain competitive advantages.
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Ge matrix
The GE Matrix is a 9-cell matrix developed by General Electric and McKinsey & Company to evaluate industry attractiveness and business strength/competitive position. It plots individual product lines or business units based on a scale of 1 to 5 for industry attractiveness factors like growth, profitability and size, and for business strength factors like technology, profitability and size. Companies use the matrix to assess their current portfolio, identify performance gaps, and review strategies. While more comprehensive than previous models, the GE Matrix can also be complicated and subjective ratings may vary between users.
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The document discusses strategic intent and the balanced scorecard approach to strategic management. It defines strategic intent as the purpose and direction an organization aims to achieve. Key elements of strategic intent include vision, mission, goals, and objectives. These elements form a hierarchy with the vision at the top as the long-term goal, followed by the mission which articulates how the vision will be achieved, then specific goals and objectives with metrics to evaluate performance. The balanced scorecard framework translates strategic intent into objectives and measures across financial, customer, internal process, and learning/growth perspectives.
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The document discusses the Boston Consulting Group (BCG) Matrix, which classifies businesses into four categories based on their relative market share and market growth rate. The four categories are stars, question marks, cash cows, and dogs. Stars have high market share and growth, while cash cows have high share but low growth. Question marks and dogs have low relative market share, with question marks in a high growth market and dogs in a low growth market. The BCG Matrix helps companies assess their product portfolios and allocate resources efficiently.
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Strategic analysis involves understanding a company's internal strengths and weaknesses as well as external opportunities and threats. This allows a company to effectively deploy resources and strategies. Key aspects of strategic analysis include industry analysis, competitive analysis, SWOT analysis, and identifying strategic options. Industry analysis examines factors like market size, competitors, barriers to entry/exit, while competitive analysis identifies areas of competition and the strongest/weakest competitors. SWOT analysis evaluates internal strengths/weaknesses and external opportunities/threats. Strategic options are then identified that leverage strengths, address weaknesses, pursue opportunities, and mitigate threats.
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Product Portfolio Strategies, BCG Matrix, How to make a BCG Matrix, Apple case study, BCG AND PLC, Merits and Demerits of BCG Matrix, GE Matrix, Merits and Demerits of GE Matrix
Clarifying Strategic Positioning: An RBL Approach
This document discusses strategies at the enterprise and business levels. At the enterprise level, a company must choose an enterprise model of holding company, allied businesses, or single business. This choice impacts governance, resource allocation, and functional strategies. At the business level, companies determine competitive advantage through technical capabilities and customer value proposition through focus on customer/market, distribution, etc. and differentiation in innovation, quality, price, etc. Clarifying these strategies provides focus, efficiency and growth, while lack of clarity causes confusion and suboptimal performance.
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This document provides an overview of strategic analysis methods and frameworks. It discusses conducting an external analysis of industries and competitors to understand competitive conditions. Internal analysis methods like SWOT and value chain analysis are also covered. The document emphasizes understanding both the internal and external environment to develop a strategic vision and select the best strategy. Key frameworks discussed include Porter's 5 forces, strategic group mapping, and analyzing the attractiveness and risks of different industries.
Organization and Management Robbins & Coulter Chapter 8: Strategic Management
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This document provides an overview of various strategic analysis tools including SWOT analysis, industry analysis using Porter's Five Forces and PEST frameworks, driving forces analysis, the BCG growth-share matrix, GE business screen matrix, value chain analysis, McKinsey 7S framework, strategic relationship analysis, and critical success factors analysis. It describes the purpose and methodology for each tool. The document is authored by Dr. Elijah Ezendu, an award-winning business expert and management consultant with expertise in various fields including strategy, competitive intelligence, and international business.
Strategy Frameworks & Tools Reference Guide
[To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
This comprehensive presentation contains 30 common frameworks, models and tools for strategic planning.
A detailed summary is provided for each strategy framework, model or tool.
The frameworks in this deck span across the key domains of strategic planning. They include stakeholder analysis, internal analysis, environmental analysis, industry analysis, market analysis, competitive analysis, strategy development and strategy implementation.
INCLUDED FRAMEWORKS, MODELS & TOOLS:
1. Power/Interest Grid
2. VRIO Framework
3. Porter's Value Chain
4. PESTEL Analysis
5. BCG Growth/Share Matrix
6. GE-McKinsey Matrix
7. Porter's Five Forces
8. Industry Life Cycle Model
9. Competitive Profile Matrix
10. SWOT Analysis
11. Porter's Generic Strategies
12. Value Disciplines Model
13. Ansoff Matrix
14. BCG Strategy Palette
15. Blue Ocean Strategy
16. Greiner's Growth Model
17. McKinsey's Three Horizons of Growth
18. Disruptive Innovation (Christensen)
19. Value Proposition Canvas
20. Business Model Canvas
21. Core Competencies Model (Hamel & Prahalad)
22. Risk Management Process
23. Probability-Impact Matrix
24. Big Hairy Audacious Goal (BHAG)
25. Vision, Mission & Values
26. SMART Objectives
27. Hoshin Planning
28. Balanced Scorecard
29. McKinsey's 7-S Framework
30. Kotter's 8-Step Process for Leading Change
These frameworks and templates are used in many strategy consulting firms. With this comprehensive document in your back pocket, you can find a way to address just about any strategic planning challenge that can arise in your organization.
The level of detail varies by framework, depending on the nature of the model or tool. Examples and templates are provided.
Business Strategy Creating and Sustaining Competitive Advantages
Effective strategies in an environment of constant change are a key requirement for success.
Corporate strategy: Deciding on the scope and purpose of the business, its objectives, and the initiatives and resources necessary to achieve the objectives.
CHAPTER THREE.pptx
This document summarizes internal analysis techniques for assessing a business's strategic options. It discusses analyzing financial performance, beyond just profits, to evaluate past strategies and identify strengths and weaknesses. A self-analysis involves assessing sales, costs, structure, management style and more. Key measures include customer satisfaction, product quality, brand associations, costs, new products, and manager capabilities. Models like the BCG matrix and GE Business Screen evaluate strategic business units based on industry growth and market share. The analysis aims to determine where to invest, selectively invest, or harvest/divest.
Portfolio analysis and case study of Tata group
This document provides an overview of portfolio analysis and different portfolio analysis models. It discusses the meaning of portfolio analysis, elements of a good business portfolio, advantages and disadvantages of portfolio analysis, and challenges. It then describes four commonly used portfolio analysis models: Boston Consulting Group (BCG) Matrix, General Electric/McKinsey Matrix, Shell Directional Policy Matrix, and Arthur D. Little Strategic Condition Matrix. It provides details on the methodology and assessment criteria used for each model. Finally, it provides an example analysis of the business portfolio of Tata Group using the BCG Matrix framework to classify its different business units and recommend post-analysis strategies.
Chapter 02 strategy analysis
This document discusses business strategy analysis for assessing a firm's performance and value. It covers:
1. Strategy analysis identifies a firm's profit drivers and risks by probing business reality qualitatively.
2. Industry analysis assesses industry profit potential using models like five forces analysis of competition.
3. Competitive strategy analysis evaluates a firm's cost leadership or differentiation strategies.
4. Corporate strategy analysis examines value from operating multiple businesses under one firm.
5. Strategy analysis guides financial analysis by linking strategies and financial metrics over time.
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Ge matrix
- 1. By, KARAN CHHEDA MEKHALA LAUD PRIYANKA THAKUR
- 3. What is ge-matrix? • It is a strategy tool that offers • systematic approach for multi business corporations • to identify market position and profitability • and further prioritize its investments among its business units.
- 4. How it came into being? • In 1970’s , GE was unsatisfied with the returns on investments. • It consulted with McKinsey & company and this resulted into a formation of a nine-box matrix. • That helped analyze portfolio of the strategic business unit (SBU) of the corporation. • Computation of this matrix allows business to take decision on whether to invest or to divest or carry a further research on the product .
- 5. Components of ge-matrix For the calculation process the company needs to evaluate following : • Industry attractiveness. • Competitive strength.
- 6. Industry Attractiveness • Industry attractiveness indicates how hard or easy it will be for a company to compete in the market and earn profits. • More profitable = More attractive . • Factors used to determine Industry Attractiveness. Factors used to determine Industry Attractiveness. Long run growth rate Trend of prices Industry size Macro environment factors Industry profitability Seasonality Industry structure Availability of labor Product life cycle changes Market segmentation Changes in demand
- 7. Competitive strength of a business unit or a product • The matrix measures how strong, in terms of competition, a particular business unit is against its rivals. • If the company has a sustainable competitive advantage, the next question is: “For how long it will be sustained?” Factors used to determine Competitive strength of a business unit . Total market share. Customer loyalty. Market share growth compared to rivals. Strength of a value chain. Brand strength. Level of product differentiation. Profitability of the company. Production flexibility.
- 8. Industry Attractiveness. Competitive strength of a business unit or a product. How do we Calculate GE-Matrix?
- 10. Advantages • Helps to prioritize the limited resources in order to achieve the best returns. • Managers become more aware of how their products or business units perform. • Identifies the strategic steps the company needs to make to improve the performance of its business portfolio.
- 11. • Requires a consultant or a highly experienced person to determine industry’s attractiveness and business unit strength as accurately as possible. • It is costly to conduct. • It doesn’t take into account the synergies that could exist between two or more business units. Disadvantages