Ge Matrix Essay

4245 Words Sep 6th, 2010 17 Pages
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General Electric screen matrix (the General Electric (GE) business screen)
The GE screen matrix is essentially a derivation of the Boston Consulting Group’s Boston growth matrix. It was developed by McKinsey and Co. for General Electric as it had been recognized that the Boston Consulting Group matrix was not flexible enough to take broader issues into account. The GE matrix cross-references market attractiveness and business position using three criteria for each – high, medium and low. The market attractiveness considers variables relating to the market itself, including the rate of market growth, market size, potential barriers to entering the market, the number and size of competitors, the actual profit margins currently enjoyed,
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Global learning can take the following routes:

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Key Concepts in Strategic Management

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from the home country to an overseas division or subsidiary; from an overseas division or subsidiary to another overseas division or subsidiary; from an overseas division or subsidiary to the home country.

Global matrix structure
A global matrix structure is essentially a horizontal differentiation along product divisions and geographical divisions. In other words, to visualize the organization structure, product groups are placed on a vertical axis and the foreign divisions are placed on a horizontal axis. It allows businesses to reduce costs by increasing efficiency, and to differentiate their activities with innovation and responsiveness. The feature of the global matrix structure is that there is dual decisionmaking responsibility, as there is both a divisional and an area hierarchy. The system is not without its problems, as many organizations consider this form of structure to be rather clumsy and bureaucratic. There is also the question of slow decision making and a lack of flexibility. Several

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