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    Mckinsey 9 Model Grid

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    liam3decker
    The GE-McKinsey nine-box matrix is a framework developed in the 1970s to help multibusiness corporations evaluate their various business units and prioritize investments. It plots each business unit along two axes: the attractiveness of the industry it operates in and the unit's competitive strength within that industry. Placements in the nine boxes provide a map to classify units as candidates for investment, selective investment, or divestment. While simple in structure, judgment is still needed to account for different situations like a strong unit in a weak industry. The nine-box matrix pioneered portfolio models still used today.

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    Mckinsey 9 Model Grid

    Uploaded by

    liam3decker
    110 views3 pages
    The GE-McKinsey nine-box matrix is a framework developed in the 1970s to help multibusiness corporations evaluate their various business units and prioritize investments. It plots each business unit along two axes: the attractiveness of the industry it operates in and the unit's competitive strength within that industry. Placements in the nine boxes provide a map to classify units as candidates for investment, selective investment, or divestment. While simple in structure, judgment is still needed to account for different situations like a strong unit in a weak industry. The nine-box matrix pioneered portfolio models still used today.

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    Competency Modelling by Mckinsey

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    The GE-McKinsey nine-box matrix is a framework developed in the 1970s to help multibusiness corporations evaluate their various business units and prioritize investments. It plots each business unit along two axes: the attractiveness of the industry it operates in and the unit's competitive strength within that industry. Placements in the nine boxes provide a map to classify units as candidates for investment, selective investment, or divestment. While simple in structure, judgment is still needed to account for different situations like a strong unit in a weak industry. The nine-box matrix pioneered portfolio models still used today.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    110 views3 pages

    Mckinsey 9 Model Grid

    Uploaded by

    liam3decker
    The GE-McKinsey nine-box matrix is a framework developed in the 1970s to help multibusiness corporations evaluate their various business units and prioritize investments. It plots each business unit along two axes: the attractiveness of the industry it operates in and the unit's competitive strength within that industry. Placements in the nine boxes provide a map to classify units as candidates for investment, selective investment, or divestment. While simple in structure, judgment is still needed to account for different situations like a strong unit in a weak industry. The nine-box matrix pioneered portfolio models still used today.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 3

    In this interactive presentationone in a series of multimedia frameworksMcKinsey

    alumnus Kevin Coyne describes the GEMcKinsey nine-box matrix, a framework that
    offers a systematic approach for the multibusiness corporation to prioritize its
    investments among its business units.

    With the rise of multibusiness enterprises in the 20th century, companies began to
    struggle with managing a number of business units profitably. In response, management
    thinkers developed frameworks to address this new complexity. One that arose in the
    early 1970s was the GEMcKinsey nine-box framework, following on the heels of the
    Boston Consulting Groups well-known growth share matrix.
    play
    14:40
    Podcast
    Enduring Ideas: The GE-McKinsey nine-box matrix

    The nine-box matrix offers a systematic approach for the decentralized corporation to
    determine where best to invest its cash. Rather than rely on each business unit's
    projections of its future prospects, the company can judge a unit by two factors that will
    determine whether it's going to do well in the future: the attractiveness of the relevant
    industry and the units competitive strength within that industry.

    Placement of business units within the matrix provides an analytic map for managing
    them. With units above the diagonal, a company may pursue strategies of investment
    and growth; those along the diagonal may be candidates for selective investment; those
    below the diagonal might be best sold, liquidated, or run purely for cash. Sorting units
    into these three categories is an essential starting point for the analysis, but judgment is
    required to weigh the trade-offs involved. For example, a strong unit in a weak industry
    is in a very different situation than a weak unit in a highly attractive industry.

    The nine-box matrix is the forerunner of a number of portfolio models, including MACS1
    and the portfolio of initiatives.2 The criteria for assessing industry attractiveness and
    competitive strength have grown more sophisticated over the years. To this day, most
    large companies with a formal approach to modeling their businesses refer to the ninebox matrix or some descendant of it.

    In one of a series of interactive presentations, McKinsey alumnus Kevin Coyne describes


    the GEMcKinsey nine-box matrix, a framework that offers a systematic approach for the
    multibusiness corporation to prioritize its investments among its business units.

    The GE-McKinsey nine-box matrix


    A systematic approach for the multibusiness corporation to prioritize investments among
    its business units

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