Valuation: Measuring and Managing the Value of Companies. Please feel free to use with the usual caveats The Journal of Marketing, Define the aspects that determine the competitive power of the organizations.
Step 5. Identifies the strategic steps the company needs to take to improve the performance of its business portfolio. The GE McKinsey Matrix provides a structured means to help organizations understand where to make strategic investments.
Evaluate and discuss. Certain weight factors can be assigned to certain aspects.
This means that the companies should invest into these business units just enough to keep them operating and collect all the cash generated by it. Identify the future direction of each SBU The matrix as created above only provides a snapshot of where each business is right now.