UGC NET COMMERCE July 2018 Q81
0. The G.E. Business Model is explained on which one of the following parameters?
- Option : A
- Explanation : GE Variant: the General Electric Business Screen: The General Electric Corporation with the management consulting company McKinsey & Co has developed another portfolio type planning model, Davidson (1997), for example, suggests that the GE matrices overcome some of the disadvantages of the BCG model by incorporating a broader range of measures. The GE business screens can be used to classify SBUs or major products based upon two key factors: market attractiveness and business position.
Market Attractiveness: This includes market share (as with the BCG model), market size, the degree of difficulty in entering the market, the competitors (number, type, size, current and potential future ones), technological requirements (and speed of technological change), external environmental factors, and profit margins.
Business Position: This includes market share (as with the BCG model), the size of the SBU, the strength of differential advantage, research and development capabilities, production and operational capacity, quality of financial management (cost control), core competencies and expertise within the organization.
