Scribd Logo
Upload

Welcome to Scribd!

  • 179 views

    GE-Mckinsey Nine-Box Matrix Summary

    Uploaded by

    Naveen Choudhury
    The GE-McKinsey nine-box matrix provides a framework for multi-business enterprises to systematically prioritize investments among business units based on two factors: the attractiveness of the industry and the competitive strength of the unit within that industry. Business units are placed in boxes in the matrix to determine where to focus growth, selective investment, or divestment strategies. The nine-box matrix has been widely adopted by large companies as a tool to model and manage their diverse business portfolios.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    GE-Mckinsey Nine-Box Matrix Summary

    Uploaded by

    Naveen Choudhury
    179 views1 page
    The GE-McKinsey nine-box matrix provides a framework for multi-business enterprises to systematically prioritize investments among business units based on two factors: the attractiveness of the industry and the competitive strength of the unit within that industry. Business units are placed in boxes in the matrix to determine where to focus growth, selective investment, or divestment strategies. The nine-box matrix has been widely adopted by large companies as a tool to model and manage their diverse business portfolios.

    Original Description:

    9 box

    Original Title

    GE-Mckinsey Nine-Box Matrix Summary (1)

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The GE-McKinsey nine-box matrix provides a framework for multi-business enterprises to systematically prioritize investments among business units based on two factors: the attractiveness of the industry and the competitive strength of the unit within that industry. Business units are placed in boxes in the matrix to determine where to focus growth, selective investment, or divestment strategies. The nine-box matrix has been widely adopted by large companies as a tool to model and manage their diverse business portfolios.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    179 views1 page

    GE-Mckinsey Nine-Box Matrix Summary

    Uploaded by

    Naveen Choudhury
    The GE-McKinsey nine-box matrix provides a framework for multi-business enterprises to systematically prioritize investments among business units based on two factors: the attractiveness of the industry and the competitive strength of the unit within that industry. Business units are placed in boxes in the matrix to determine where to focus growth, selective investment, or divestment strategies. The nine-box matrix has been widely adopted by large companies as a tool to model and manage their diverse business portfolios.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 1

    Enduring ideas: The GE-McKinsey nine-box matrix

    Reading Summary

    The reading describes the framework that offers a systematic approach for organisations to
    prioritize their investments among their business units.
    The rise of multi-business enterprises in the 20th century has seen companies struggling to
    manage various business units profitably. In the early 1970s management thinkers developed
    the GE-McKinsey nine-box matrix framework to overcome this complexity. This followed
    Boston Consulting Groups well known growth share matrix.
    The Nine-Box Matrix offers a systematic approach for decentralised corporations to help
    determine best areas to invest their cash. A company can judge a business unit about its
    performance on following factors
    1. Attractiveness of the relevant industry and,
    2. Units competitive strength within that industry.
    The business units are placed within the matrix such as to provide an analytical map to manage
    them. A company may pursue investment and growth strategies for units above the diagonal.
    Those along the diagonal are candidates for selective investment. Those lying below the
    diagonal might be sold, liquidated or run purely for cash.
    Starting point for this is sorting the units for analysis where judgement is essential to measure
    the trade-offs. E.g. A strong unit in a weak industry vs a weak unit in a strong industry. Over
    the years, the criteria for assessing industry attractiveness and competitive strength have grown
    more sophisticated. Most large companies refer to this matrix to model their businesses.
    GE-McKinsey Nine-Box Matrix

    High

    Industry Medium
    Attractiveness

    Low

    High Medium Low

    Competitive strength of
    business unit

    You might also like