Go over Exhibit 2.3 (image 1), and Exhibit 2.4 (image 2), and briefly discuss how the BCG Matrix and/or  General Electric Model help the organizations to optimize the utilization of its resources to achieve its goals and objectives.

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The top management in the organization needs to find a balance among the SBUs that help achieve the overall organizational growth and profits with an acceptable level of risk. Go over Exhibit 2.3 (image 1), and Exhibit 2.4 (image 2), and briefly discuss how the BCG Matrix and/or  General Electric Model help the organizations to optimize the utilization of its resources to achieve its goals and objectives.

EXHIBIT 2.4 GENERAL ELECTRIC MODEL
CAUTIOUSLY
INVEST/GROW
INVEST/GROW
INVEST
CAUTIOUSLY
HARVEST/DIVEST
INVEST/GROW
INVEST
CAUTIOUSLY
INVEST
HARVEST/DIVEST
HARVEST/DIVEST
Low
Medium
High
Business Position
Market Attractiveness
unipaw
Transcribed Image Text:EXHIBIT 2.4 GENERAL ELECTRIC MODEL CAUTIOUSLY INVEST/GROW INVEST/GROW INVEST CAUTIOUSLY HARVEST/DIVEST INVEST/GROW INVEST CAUTIOUSLY INVEST HARVEST/DIVEST HARVEST/DIVEST Low Medium High Business Position Market Attractiveness unipaw
EXHIBIT 2.3
PORTFOLIO MATRIX FOR A LARGE
COMPUTER MANUFACTURER
Netbooks, handheld
computers, and
tablet PCs (stars)
Integrated phone/palm
device (problem child or
question mark)
High
10
Laptop and personal
computers (cash cows)
Mainframe computer
(dog)
Low
10x
High
1x
Low
0.1x
Market share dominance (share relative to largest competitor)
Market growth rate lin constant dollars)
Transcribed Image Text:EXHIBIT 2.3 PORTFOLIO MATRIX FOR A LARGE COMPUTER MANUFACTURER Netbooks, handheld computers, and tablet PCs (stars) Integrated phone/palm device (problem child or question mark) High 10 Laptop and personal computers (cash cows) Mainframe computer (dog) Low 10x High 1x Low 0.1x Market share dominance (share relative to largest competitor) Market growth rate lin constant dollars)
Expert Solution
Step 1`

BCG Matrix, wherein the abbreviation BCG stands for The Boston Consulting Group growth share matrix which is a planning tool that uses graphical representations of the products and/or the services that the company caters to their consumer base. Like given in the Exhibit 2.3 which is a portfolio matrix for a large computer manufacturer.

General Electric Model which can also be called as The GE-Mckinsey Matrix is basically a structure used to evaluate or gauge the strength of strategic business unit (SBU) of an organization. The Exhibit 2.4 represents the General Electric Model.

Please refer the next step (2nd Step) for further explanation.

 

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