GE's STRATEGIC BUSINESS PLANNING GRID
GE’s Strategic Business
Planning Grid
General Electric (or McKinsey) matrix uses market attractiveness
as not merely the growth rate of sales of the product, but as a compound
variable dependent on different factors influencing the future profitability of
the business sector. These different factors are either subjectively judged or
objectively computed on the basis of certain weightages, to arrive at the
Industry Attractiveness Index. The Index is thus based on a thorough
environmental assessment influencing the sector profitability.
Factors determining Industry Attractiveness:
|
Sl. No
|
Factors Determining Industry
Attractiveness:
|
Typical Weightage
|
|
1)
|
Size of market
|
10%
|
|
2)
|
Rate of growth of sales
and cyclic nature of business
|
15%
|
|
3)
|
Nature of competition
including vulnerability to foreign competition
|
15%
|
|
4)
|
Susceptibility to
technological obsolescence and new products
|
10%
|
|
5)
|
Entry conditions and
social factors
|
10%
|
|
6)
|
Profitability
|
40%
|
|
|
