1 Rating Scale: 1 = Weak ; 10 = Strong GE Nine-Cell MatrixIndustryAttractivenessRelative CostsProfit MarginsFit with KSFsMarket SizeGrowth RateProfit MarginIntensity of CompetitionSeasonalityCyclicalityResource RequirementsSocial ImpactRegulationEnvironmentOpportunities & Threats10.0Strong6.7Average3.3Weak1.0High6.7Medium3.3Relative Market ShareReputation/ ImageBargaining LeverageAbility to Match Quality/ServiceLow1.0Rating Scale: 1 = Weak ; 10 = Strong
2 Strategy Implications of Attractiveness / Strength Matrix Businesses in upper left cornerAccorded top investment priorityStrategic prescription is grow and buildBusinesses in three diagonal cellsGiven medium investment priorityInvest to maintain positionBusinesses in lower right cornerCandidates for harvesting or divestitureMay be candidates for an overhaul and re-position strategy
3 The Attractiveness / Strength Matrix Allows for intermediate rankings between high and low and between strong and weakIncorporates a wide variety of strategically relevant variablesStresses allocating corporate resources to businesses with greatest potential forCompetitive advantage andSuperior performance
4 Decide Resource Allocation Priorities and Strategic Direction 23564Objective:“Get the biggest bang for the buck” in allocating corporate resourcesProcedure:Rank each business from highest to lowest priority for corporate resource support and new investment (steer resources to high opportunity areas and limit support to low opportunity areas)Develop a general strategic direction for each business
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