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Presentationon
General Electric (GE) Matrix ByRomi Patel 44Monali Shah 51Nidhi Sahu 57
Roadmap For The Presentation
ROADMAP
STRATEGIC PLANNING
BCG & GE MATRIX
ABOUT GE
CLASSIFICATION
STRATEGIES
BCG v/s GE
CASE STUDY
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
BCG & GE Matrix
Mar
ket
Att
ract
iven
ess
Business Strength
Mar
ket
Gro
wth
Relative Position
(Market Share)
About GE Matrix
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.
Classification M
arke
t A
ttra
ctiv
enes
s
Strong Medium Weak
Lo
wM
ed
ium
Hig
hBusiness Strength
5.00 1.002.333.67
5.00
3.67
2.33
Annual market growth rate Overall market size Historical profit margin Current size of market Market structure Market rivalry Demand variability Global opportunities
Market Attractiveness
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
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
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
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
Factors Weight Rating
(1 –5)
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 Market Attractiveness
Factors Weight Rating
(1 –5)
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 Market Strength
Classification M
arke
t A
ttra
ctiv
enes
s
Strong Medium Weak
Lo
wM
ed
ium
Hig
hBusiness Strength
5.00 1.002.333.67
5.00
3.67
2.33
Case Study
Overview
Business StrengthsM
ark
et A
ttra
ctiv
enes
s
Low
High
LowHigh
Attractive
Moderate Attractive
Unattractive
Case Study of TATA
TATA
• IT (Information Technology) : TCS
• Consumer Durable : Automobiles, Titan etc.
•Textiles : Tata Fabrics, West Sides etc
GE Matrix For TATA
Business StrengthsM
ark
et A
ttra
ctiv
enes
s
Low
High
LowHigh
ITConsumer Durables
Textiles
BCG v/s GE
BCG GE
Market Growth
Market share
4 cell
Multi Products
Primary tools
Market Attractiveness
Market strength
9 cell
Multi Business Units
Secondary tools
Corporate Strategies - Bani Banerjee Marketing Management - Philip Kotler Strategic Planning - V S Ramaswamy
Bibliography
Recommended