Gg
General Electric screen matrix (the General Electric (GE) business screen)
The GE screen matrix is essentially a derivation of the Boston Consulting Group’s Boston growth matrix. It was developed by McKinsey and Co. for General Electric as it had been recognized that the Boston Consulting Group matrix was not flexible enough to take broader issues into account. The GE matrix cross-references market attractiveness and business position using three criteria for each – high, medium and low. The market attractiveness considers variables relating to the market itself, including the rate of market growth, market size, potential barriers to entering the market, the number and size of competitors, the actual profit margins currently enjoyed, and the technological implications of involvement in the market. The business position criteria look at the business’s strengths and weaknesses in a variety of fields. These include its position in relation to its competitors, and the business’s ability to handle product research, development and ultimate production. It also considers how well placed the management is to deploy these resources. The matrix differs in its complexity compared with the Boston Consulting Group matrix. Superimposed on the basic diagram are a number of circles. These circles are of variable size (see Figure 22). The size of each represents the size of each market. Within each circle is a clearly defined segment which represents the business’s market share within that market. The larger the circle, the larger the market, and the larger the segment, the larger the market share.

General environment
The term ‘general environment’ refers to the broad macro-environment in which a business operates. Broadly speaking, it can be identified as having four key elements, as outlined in Table 10.

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Key Concepts in Strategic Management
Business position