What is General Electric model of analyzing business portfolio?
What is General Electric model of analyzing business portfolio?
Jeeba Mar. 16, 2018
It is a tool to analyse the business portfolio. In other words, it is a tool by which management identifies and evaluates the various businesses. In portfolio analyses top management views its product lines and business units as a series of investments from which it expects returns. The General Electric Model uses two factors in a matrix / grid situation as shown below:
Business Position
High Medium Low
Market
Attractiveness
High Invest Invest Protect
Medium Invest Protect Harvest
Low Protect Harvest Divest
