Use the GE-McKinsey Matrix to Analyze and Set Your Strategy


By Omodiaogbe Samuel


By the end of this guided project, you will be able to use the GE-McKinsey Matrix to analyze and formulate your corporate strategy. The Matrix is a nine-box strategy tool that help multi-business corporations to evaluate their business portfolios and systematically prioritize their investments. The matrix combines two dimensions: industry attractiveness and the competitive strength of a business unit into a matrix. The general strategic principle promoted by the Matrix is to increase the number of resources allocated by businesses in attractive industries. While on the other hand, reduce the resources allocated to the business unit where the organization doesn’t have a competitive advantage.

For us to practically demonstrate the application of the GE-McKinsey matrix, we will use a spreadsheet to analyze an Energy Services company that has five Strategic Business Units. Example of the case study would empower you to use the model to analyze your company or any other company of your choice. The project is for business leaders who want formulate their corporate strategy with the goal of effective resource allocation. Also, for strategist who are interested in helping organization in making informed strategic decisions. At the end of the project, you will be able to use the Matrix for your corporate strategic planning, and effective resource allocation

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