Management Dictionary: General Electric/McKinsey Mold

General Electric/McKinsey Mold Concept

General Electric/McKinsey Model or Mold which relates the external surroundings conditions (industry attractiveness) and the organizations’ skills (organizations’ competitive strength), is useful for the planning of business portfolios in organizations that operate in several business areas. For that, the model resorts to the relationship between the industry attractiveness and the organizations’ competitive position. Depending on the organizations’ competitive strength is strong or weak and the industry attractiveness is higher or lower, the option will be to selectively disinvest, careful management of the business or to invest for its growth.

Organizations’ Competitive Strength

Weak

Medium

Strong

Carefully Expand

Specialize by area

Strengthen weaknesses

Exit and not grow

Invest to Grow

Conquer leadership

Concentrate effort

Reinforce good areas

Protect position

Invest to grow

Concentrate efforts

Industry Attractiveness

Medium

Selectively Grow

Expand without risks

Limit investment

Exit and not grow

Manage Return

Protect business

Invest without risk

Reinforce return

Reinforce position

Invest in attractive segments

Beat competition

Weak

Disinvest

Not investing

Cut costs

Exit at the right time

Monetize

Protect segment

Reduce costs

Cut investment

Protect return

Guarantee return

Manage good segments

Defend good areas

Disinvestment

Return management

Growth

Translated from Portuguese by Susana Saraiva, Portuguese-English and English-Portuguese translation specialist. Contact: spams@sapo.pt.