McKinsey Matrix


Definition: the McKinsey Matrix is a strategic portfolio management tool created by consulting firm McKinsey at GE. It works predominantly at the level of Corporate Strategy.
The MM places strategic business units on 2 axes:
- Market attractiveness
- Business unit strength
Using the MM, a corporation can achieve the folowing:
- Analyze its current business portfolio and decide which SBU's should receive more or less investment.
- Develop growth strategies for adding new products and businesses to the portfolio.
- Decide which businesses or products should no longer be retained.
Is also called GE Matrix or Business Assessment Array.



More on the mckinsey matrix. More on corporate strategy: ADL Matrix, BCG Matrix, Congruent Strategy, Core Competence, Corporate Mission, more...


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