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GE-McKinsey Matrix

Strategic Planning and Performance Management Frameworks

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The GE-McKinsey matrix, also called the GE nine-box matrix, is a strategic planning tool developed jointly by General Electric and the consulting firm McKinsey & Company in the early 1970s to help GE evaluate its diverse portfolio of businesses. It plots business units on a nine-cell grid according to two composite dimensions, industry attractiveness and competitive strength, each assessed from multiple weighted factors rather than the single measures used in simpler portfolio tools such as the BCG matrix. The framework is generally presented as a more detailed successor to the growth-share matrix, allowing for a more nuanced set of investment, hold, and divest recommendations across a company's business units.

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