CORPORATE PORTFOLIO ANALYSIS

GE 9 CELL / McKinsey MATRIX

GE 9 CELL MATRIX is a strategy tool that offers a systematic approach for the
multipurpose enterprise to prioritize their investments among the various
business units.

INDUS
TRY ATTRACTIVENESS: VERTICAL AXIS

Market growth rate

Market size
Demand variability
Industry profitability
Industry rivalry
Global opportunities
Macroeconomic factors ( PEST )

BUSINESS UNIT STRENGTH: HORIZONTAL AXIS

Market share
Growth in market share
Brand equity
Distribution channel
Production capacity
 Profit margin relative to competitors

GREEN = GROW (STRONG BUSINESS UNIT)

YELLOW = HOLD (AVERAGE BUSINESS UNIT)
RED = HARVEST (WEAK BUSINESS UNIT)

BCG MATRIX

Corporate planning tool

Growth share matrix
Boston consulting group
Classifies business portfolio into categories based on industry
attractiveness and competitive position
DOGS: low market share, not worth investing, low or negative
cash returns
STRATEGIC CHOICES: retrenchment, divestment, liquidation

CASH COWS: Most profitable, milk able, cash gain from here should be
invested in stars
STRATEGIC CHOICES: product development, diversification,
retrenchment

STARS: high growth industries & maintain high market share. Cash
generators and users. They will become cash cows
STRATEGIC CHOICES: vertical integration, horizontal integration, market
penetration. Market development, product development
QUESTION MARK: requires much closer consideration. Low market share
in fast growing market, consuming large amount of cash and loss in curers
STRATEGIC CHOICES: Market penetration, market development, product
development, divestment.