Ge Final[1]
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The document presents a roadmap for a presentation on General Electric's (GE) matrix, which is used to analyze business portfolio. It discusses strategic planning, the BCG matrix, GE matrix, and how GE classifies businesses based on their market attractiveness and business strength. It then provides examples of different strategies associated with each classification in the GE matrix and factors considered in assessing market attractiveness and business strength. Finally, it gives a case study comparing Tata's businesses using the BCG and GE matrices.
Ge Final[1]
- 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 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 Market Attractiveness 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 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 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
- 13. 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
- 14. 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
- 15. Case Study
- 16. Overview Business Strengths Market Attractiveness Low High Low High 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 Strengths Market Attractiveness Low High Low High IT Consumer Durables Textiles
- 19. 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
- 20. Corporate Strategies - Bani Banerjee Marketing Management - Philip Kotler Strategic Planning - V S Ramaswamy Bibliography
- 21. BEGINING