logo image

McKinsey matrix Essay

McKinsey Matrix (The GE multi factoral)
With the help of McKinsey and Company, a leading consulting group, the General Electric Company (GE) developed a popular business portfolio analysis tool called the GE Multifactor Portfolio Matrix. This tool helps managers develop organizational strategy that is based primarily on market attractiveness and business strengths.

Industry attractiveness might be determined by such factors as the rate of industry growth, the number of competitors in an industry, and the weakness of competitors within an industry. Business strengths might be determined by such factors as a company’s core competencies and capabilities, financially solid position, its good bargaining position over suppliers, and its high level of technology use.

The Boston Consulting Group portfolio matrix
is a chart that had been created by Bruce D. Henderson for the Boston Consulting Group in 1970 to help corporations with analyzing their business units or product lines. This helps the company allocate resources and is used as an analytical tool in brand marketing, product management, strategic management, and portfolio analysis.

Cash Cow – a business unit that has a large market share in a mature, slow growing industry. Cash cows require little investment and generate cash that can be used to invest in other business

Need essay sample on "McKinsey matrix"? We will write a custom essay sample specifically for you for only $ 13.90/page

units. Star – a business unit that has a large market share in a fast growing industry. Stars may generate cash, but because the market is growing rapidly they require investment to maintain their lead. Question Mark (or Problem Child) – a business unit that has a small market share in a high growth market. These business units require resources to grow market share, but whether they will succeed and become stars is unknown. Dog – a business unit that has a small market share in a mature industry. A dog may not require substantial cash, but it ties up capital that could better be deployed elsewhere. Unless a dog has some other strategic purpose, it should be liquidated if there is little prospect for it to gain market share.

Michael Porter’s “Five Forces
Porters model of competitive forces assumes that there are five competitive forces that identifies the competitive power in a business situation. These five competitive forces identified by the Michael Porter are: Threat of substitute products

Threat of new entrants
Intense rivalry among existing players
Bargaining power of suppliers
Bargaining power of Buyers

ABC analysis is another form of Pareto (80:20) rule. It is defined as a method of classifying clients, events, inventory, items or activities according to their relative significance and deciding upon this fact that on the extent of importance, consideration and control one should put on this analysis under such classifications. One should use it for selection of a restricted number of tasks or clients because it produces significant overall result or profit. It basically uses the idea that by doing 20% of effort, 80% of the gain of doing the entire work can be generated. For many events, about 80% of the things come from 20% of the causes.

http://homes.ieu.edu.tr/~ykazancoglu/BA437/ABC_Analysis_Excel_new2.pdf http://powerbranding.ru/metodiki-v-marketinge/matrica-bkg-primer-postroeniya-i-analiza/

Can’t wait to take that assignment burden offyour shoulders?

Let us know what it is and we will show you how it can be done!
Sorry, but copying text is forbidden on this website. If you need this or any other sample, please register

Already on Businessays? Login here

No, thanks. I prefer suffering on my own
Sorry, but copying text is forbidden on this website. If you need this or any other sample register now and get a free access to all papers, carefully proofread and edited by our experts.
Sign in / Sign up
No, thanks. I prefer suffering on my own
Not quite the topic you need?
We would be happy to write it
Join and witness the magic
Service Open At All Times
Complete Buyer Protection
Plagiarism-Free Writing

Emily from Businessays

Hi there, would you like to get such a paper? How about receiving a customized one? Check it out https://goo.gl/chNgQy

We use cookies to give you the best experience possible. By continuing we’ll assume you’re on board with our cookie policy