Frequently Used Models in PowerPoint Presentation: GE/ McKinsey Matrix

GE/McKinsey Matrix is another great portfolio analysis tool developed by McKinsey & Company in the 70s.  First-class consultants like McKinsey & Company and CEOs and COOs like to use them to better assess their business units.  Consultants would plot the business units in the chart and decide whether they should grow, hold, or harvest specific product lines.  Please see below for the matrix:

Similar to BCG Matrix, GE/ McKinsey Matrix has the purpose to help evaluate business units within a company portfolio.  Unlike BCG Matrix, GE/McKinsey Matrix has nine cells and uses Business Unit Strengths and Industry Attractiveness as the two dimensions.  Please note that the two dimensions are made up of a list of your own evaluative criteria and weighting percentages.

For Industry Attractiveness, consultants usually take into accounts of market growth rate, market size, demand, industry profitability and industry competitiveness.

For Business Unit Strengths, consultants usually consider market share, internal growth rate, brand loyalty, distribution channel access, production capacity and profit margins.

Here is an example of how you plot your business units in your chart:

1. Circle size is dependence on the market size of the business unit
2. Pie chart & percentage shown is the business unit’s current market share
3. The arrow shows where you perceive your market position in the future.

After you have plotted all your business units into the GE/ McKinsey Matrix, you can decide to do one of the followings:

1. Grow:

   invest extensively to capture additional market shares or maintain leading position.

2. Hold:

   maintain status quo and wait and see.

3. Harvest:

   cut all investments in capital equipment, advertising, R&D and etc.  Possibly sell the business units.

 

I would personally include BCG Matrix or GE/ McKinsey Matrix as one of the PowerPoint slides for any strategic planning presentations.  They give company managements a clear picture of their business units in the company portfolio.

Source and More Reading

http://www.quickmba.com/strategy/matrix/ge-mckinsey/

To build professional-looking presentation, download free powerpoint templates here.

You can now easily make your own Who Wants to be a Millionaire Flash Game. You can put your own questions to the game and show it in your presentation or on your own web site.

• 20 Video Lessons from World Class Presenters
• Brian Tracy's Top 3 Motivational Speeches
• Robin Sharma’s Giant Advice for Success
• Brian Tracy's Sales Millionaire Techniques: The Power of Asking

• Things to Do Right Before a Great Presenter Go on Stage
• Start and End a First-Class Presentation with Inspiring Quotes
• University A++ Presentation Tricks Series: Dual Speakers Presentation
• Killer Animation Slides for PowerPoint
• Porter 5 Forces Analysis
• Frequently Used Model in Presentations: BCG Matrix

• Slide Transition
• Entrance Custom Animation Part I - On-Click Animation
• Entrance Custom Animation Part II - Timed Animation