Document Text Contents
Page 1
BABS‐STRATEGIC MANAGEMENT
HHAASSAANN RRIIAAZZ
LLSSCC SSttuuddeenntt ## 00667733MMSSMMSS11000077
UUWWIICC SSttuuddeenntt ## 0077000044447700
1
Page 29
BABS‐STRATEGIC MANAGEMENT
HHAASSAANN RRIIAAZZ
LLSSCC SSttuuddeenntt ## 00667733MMSSMMSS11000077
UUWWIICC SSttuuddeenntt ## 0077000044447700
29
Compiling the GE matrix: The five steps in compiling the GE matrix are:
1. Identify strategic business units;
2. Determine factors contributing to market attractiveness;
3. Determine factors contributing to business position;
4. Establish ways of measuring market attractiveness and business position
5. Rank each strategic business unit according to whether it is high, medium
or low on business strength and again on market attractiveness.
HIGH
SBU 1
MEDIUM
SBU 3
LOW
SBU 2
SBU 4
STRONG MEDIUM WEAK
Figure: Illustrative Presentation of a GE Matrix Source: Lancaster, G., Massingham
L.,and Ashford R. (2002) Essentials of Marketing, 4th edn, McGraw‐Hill, Berkshire.
Boston Consulting Group’s Growth Share Matrix –Assessing the
Need for Financing in Diversified Corporations.
‘The usefulness of BCG Matrix lay in using it to plot the relative positions
of business units within a portfolio. This made it possible to identify winners
(market leaders) and to determine whether a balance existed between units
in the four quadrants. The theory is that business units in fast growing
industries need a constant input of capital to enable them to expand their
capacity. Business units in slow growing industries on the other hand, are
expected to generate a positive cash flow’ (Karlof, 1993).
Competitive Position Score
M
ar
ke
t
A
tt
ra
ct
iv
en
es
s
Sc
o
re
BABS‐STRATEGIC MANAGEMENT
HHAASSAANN RRIIAAZZ
LLSSCC SSttuuddeenntt ## 00667733MMSSMMSS11000077
UUWWIICC SSttuuddeenntt ## 0077000044447700
1
Page 29
BABS‐STRATEGIC MANAGEMENT
HHAASSAANN RRIIAAZZ
LLSSCC SSttuuddeenntt ## 00667733MMSSMMSS11000077
UUWWIICC SSttuuddeenntt ## 0077000044447700
29
Compiling the GE matrix: The five steps in compiling the GE matrix are:
1. Identify strategic business units;
2. Determine factors contributing to market attractiveness;
3. Determine factors contributing to business position;
4. Establish ways of measuring market attractiveness and business position
5. Rank each strategic business unit according to whether it is high, medium
or low on business strength and again on market attractiveness.
HIGH
SBU 1
MEDIUM
SBU 3
LOW
SBU 2
SBU 4
STRONG MEDIUM WEAK
Figure: Illustrative Presentation of a GE Matrix Source: Lancaster, G., Massingham
L.,and Ashford R. (2002) Essentials of Marketing, 4th edn, McGraw‐Hill, Berkshire.
Boston Consulting Group’s Growth Share Matrix –Assessing the
Need for Financing in Diversified Corporations.
‘The usefulness of BCG Matrix lay in using it to plot the relative positions
of business units within a portfolio. This made it possible to identify winners
(market leaders) and to determine whether a balance existed between units
in the four quadrants. The theory is that business units in fast growing
industries need a constant input of capital to enable them to expand their
capacity. Business units in slow growing industries on the other hand, are
expected to generate a positive cash flow’ (Karlof, 1993).
Competitive Position Score
M
ar
ke
t
A
tt
ra
ct
iv
en
es
s
Sc
o
re
