Business Assessment Array
This article covers meaning & overview of Business Assessment Array from marketing perspective.
What is Business Assessment Array?
Business Assessment Array is another name for McKinsey’s GE matrix used to assess business portfolio analysis for Strategic Business Units (SBU’s) of a corporation. It is a3*3 matrix having “Market attractiveness” and “Competitive strength” as its axis.
Market/Industry Attractiveness
It is a function of the industry’s growth rate, size, profitability, opportunities.etc. Each of these factors is given a weightage as per the industry norms and the combined industry’s attractiveness is then determined as-
= factor1 * its weightage +
factor 2 * weightage + ……………… etc.
Competitive Strength
The competitive strength of each SBU is determined and plotted on the matrix. It is a function of the SBU’s market share, growth in the market share, production capacity, its equity and its margins vis-à-vis its competitors. This metric is also the sum of the weighted average of its individual factors.
The location of a particular SBU on the matrix indicates what should be its recommended strategy as shown. the entire matrix forms the portfolio of the corporation and shows the health of the corporation as a whole.
Browse the definition and meaning of more similar terms. The Management Dictionary covers over 1800 business concepts from 5 categories.
Continue Reading:
