Question

The GE strategic planning grid model is based on:  ​

Answer 1

Answer:

The GE / McKinsey matrix is a model used to assess the strength of a strategic business unit (SBU) of a corporation. ... The GE Matrix is plotted in a two-dimensional, 3 x 3 grid. The Y-axis measures market attractiveness based on a high, medium, or low score

Answer 2

Answer:

BCG matrix

Explanation:

GE-McKinsey Matrix

• The GE-McKinsey Matrix, often known as the General Electric Matrix or the Nine-Box Matrix, is a portfolio analysis tool that is employed in corporate planning to evaluate strategic business units or product lines.
• In this matrix, the competitive strength of a business unit and the industry attractiveness are combined.
• A company might accordingly manage its business units. After that, it can decide where to invest, keep a position, harvest, or sell.

Dimensions of GE-McKinsey Matrix-

Contrary to the BCG Matrix The BCG Matrix has drawn a lot of criticism for using just one dimension for analysis, whereas the GE-McKinsey Matrix uses a number of criteria to determine the two dimensions:

• Competitiveness
• Industry attractiveness

Implications-

There are nine potential strategic postures for a corporation based on the three degrees of industry attractiveness and competitive strength (High, Medium, and Low). The options for strategic actions are as follows:

• Invest and grow approach

• Harvest/Divest approach,
• Selectivity/Earnings strategy

Hence, we can conclude that, the GE strategic planning grid model is based on BCG matrix  but with two dimensions -Industry attractiveness, and Competitive strength.

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