Roadmap For The Presentation

ROADMAP STRATEGIC PLANNING BCG & GE MATRIX ABOUT GE CLASSIFICATION STRATEGIES BCG v/s GE CASE STUDY

Strategic Planning 
It is the management task concerned with the growth and future of business enterprise.  It provides the route map for the firm and helps to take decision in the future with a greater awareness

BCG & GE Matrix Relative Position (Market Share) Market Attractiveness Business Strength Market Growth .

 GE is rated in terms of µMarket Attractiveness & Business Strength¶  It is an Enlarged & Sophisticated version of BCG.  GE is a model to perform business portfolio analysis on the SBU¶s. .About GE Matrix  Developed by McKinsey & Company in 1970¶s.

00 .33 1.00 3.00 Market Attractiveness 3.33 Low 5.67 2.Classification Business Strength Strong High Medium Weak 5.67 Medium 2.

Market Attractiveness         Annual market growth rate Overall market size Historical profit margin Current size of market Market structure Market rivalry Demand variability Global opportunities .

Business Strength Current market share Brand image Brand equity Production capacity Corporate image Profit margins relative to competitors  R & D performance  Managerial personal  Promotional effectiveness       .

Strategies  Protect Position ‡ Invest to grow ‡ Effort on maintaining strength  Invest to Build ‡ Challenge for leadership ‡ Build selectively on strength  Build Selectively ‡ Invest in most attractive segment ‡ Build up ability to counter competition ‡ Emphasize profitability by raising productivity .

Strategies  Protect & Refocus ‡ Manage for current earning ‡ Defend strength  Selectivity for Earning ‡ Protect existing program ‡ Investments in profitable segments  Build Selectively ‡ Specialize around limited strength ‡ Seek ways to overcome weaknesses ‡ Withdraw if indication of sustainable growth are lacking .

Strategies  Limited Expansion for Harvest ‡ Look for ways to expand without high risk  Manage for Earnings ‡ Protect position in profitable segment ‡ Upgrade product line ‡ Minimize investment  Harvest ‡ Sell at time that will maximize cash value ‡ Cut fixed costs and avoid investment meanwhile .

45 0.5 2.5 2.20 1.15 0.6 0.Factors Underlying Market Attractiveness Factors Resource availability Overall market size Annual Market growth rate Profitability Competitive intensity Technological requirements Total Weight 0.5 0.75 .45 0.20 0.15 0.10 0.25 0.5 3 3 3 2.20 0.0 Rating (1 ±5) 2.5 Value = (Weight * Rating) 0.

45 3.5 4.15 0.10 0.45 0.40 0.45 0.10 0.15 0.0 .5 4 3 3 4.75 Market share New product development Brand Image Sales force Pricing Distribution capacity Product quality R&D Performance Total 0.10 0.45 0.Factors Underlying Market Strength Factors Weight Rating (1 ±5) 5 3.35 0.10 0.45 0.15 0.75 0.5 3 Value = (Weight * Rating) 0.15 1.

67 2.00 Market Attractiveness 3.Classification Business Strength Strong High Medium Weak 5.00 .67 Medium 2.33 1.33 Low 5.00 3.

Case Study .

Overview High High Business Strengths Low Market Attractiveness Attractive Moderate Attractive Unattractive Low .

West Sides etc . ‡Textiles : Tata Fabrics. Titan etc.Case Study of TATA  TATA ‡ IT (Information Technology) : TCS ‡ Consumer Durable : Automobiles.

GE Matrix For TATA High High Business Strengths IT Consumer Durables Low Market Attractiveness Low Textiles .

BCG v/s GE BCG Market Growth Market share 4 cell Multi Products Primary tools GE Market Attractiveness Market strength 9 cell Multi Business Units Secondary tools .

Philip Kotler  Strategic Planning .Bibliography  Corporate Strategies .Bani Banerjee  Marketing Management .V S Ramaswamy .