7/30/2019 PBM_GE

1/21

Presentation

onGeneral Electric (GE) MatrixBy:

Kedar

7/30/2019 PBM_GE

2/21

Roadmap For The Presentation

ROADMAP

STRATEGIC PLANNING

BCG & GE MATRIX

ABOUT GE

CLASSIFICATION

STRATEGIES

BCG v/s GE

CASE STUDY

7/30/2019 PBM_GE

3/21

It is the management taskconcerned with the growthand future of business

enterprise.

It provides the route map forthe firm and helps to takedecision in the future with agreater awareness

Strategic Planning

7/30/2019 PBM_GE

4/21

BCG & GE Matrix

Market

Attractiven

ess

Business Strength

Ma

rketGrowth

Relative Position(Market Share)

7/30/2019 PBM_GE

5/21

About GE Matrix

Developed by McKinsey & Company in1970s.

GE is a model to perform businessportfolio analysis on the SBUs.

GE is rated in terms of MarketAttractiveness& Business Strength

It is an Enlarged & Sophisticated versionof BCG.

7/30/2019 PBM_GE

6/21

Classification

MarketA

ttractiveness

Strong Medium Weak

Low

Medium

High

Business Strength

5.00 1.002.333.67

5.00

3.67

2.33

7/30/2019 PBM_GE

7/21

Annual market growth rate

Overall market size

Historical profit margin

Current size of market

Market structure

Market rivalry

Demand variability

Global opportunities

Market Attractiveness

7/30/2019 PBM_GE

8/21

Current market share

Brand image

Brand equity

Production capacity

Corporate image

Profit margins relative tocompetitors

R & D performance

Managerial personal

Promotional effectiveness

Business Strength

7/30/2019 PBM_GE

9/21

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

7/30/2019 PBM_GE

10/21

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 sustainablegrowth are lacking

7/30/2019 PBM_GE

11/21

Strategies

Manage for Earnings Protect position in profitable segment

Upgrade product line

Minimize investment

Limited Expansion for Harvest Look for ways to expandwithout high risk

Harvest Sell at time that will maximize cash value

Cut fixed costs and avoid investmentmeanwhile

7/30/2019 PBM_GE

12/21

Factors Weight Rating

(15)

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 MarketAttractiveness

7/30/2019 PBM_GE

13/21

Factors Weight Rating

(15)

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 MarketStrength

7/30/2019 PBM_GE

14/21

Classification

MarketA

ttractivene

ss

Strong Medium Weak

Low

Medium

High

Business Strength

5.00 1.002.333.67

5.00

3.67

2.33

7/30/2019 PBM_GE

15/21

Case Study

7/30/2019 PBM_GE

16/21

Overview

Business Strengths

Market

Attractiveness

Low

High

LowHigh

Attractive

Moderate

Attractive

Unattractive

7/30/2019 PBM_GE

17/21

Case Study of TATA

TATA

IT (Information Technology) : TCS

Consumer Durable : Automobiles,Titan etc.

Textiles : Tata Fabrics, West Sides etc

7/30/2019 PBM_GE

18/21

GE Matrix For TATA

Business Strengths

MarketAttractiveness

Low

High

LowHigh

IT

Consumer

Durables

Textiles

7/30/2019 PBM_GE

19/21

BCG v/s GE

BCG GE

Market Growth

Market share

4 cell

Multi Products

Primary tools

MarketAttractiveness

Market strength

9 cell

Multi BusinessUnits

Secondary tools

7/30/2019 PBM_GE

20/21

Corporate Strategies - Bani Banerjee

Marketing Management - Philip Kotler

Strategic Planning - V S Ramaswamy

Bibliography

7/30/2019 PBM_GE

21/21