About the GE Matrix template and using it with students
The nine-box model for the GE-McKinsey matrix is an effective tool for students to understand the relationship between business strengths and market opportunities.
This is essentially what we do when we combine strengths with opportunities in a SWOT analysis as well. It helps that firms should concentrate on business opportunities where they have an advantage, rather than pursuing all opportunities.
The template is designed with the beginner Excel user in mind, and is simple to use. However, students will need to build their own scoring model for the matrix by either using the preset options for business strengths and market attractiveness, or even adding in a few of their own rating factors.
This will mean that the actual design and construction of the overall scoring model will take some time in class and will hopefully generate debate and discussion around the construction of the rating factors as well.
Ideas for in-class activities
Ideally you should select a company that is commonly known to your students that has multiple strategic business units, which can be researched by students who then can construct a suitable scoring model for their GE-McKinsey matrix.
Alternatively, it could be used as a gauge of competitiveness, by plotting various direct competitors within an industry – again the should be well-known to your students.
And as a third option, you could construct some hypothetical SBUs with some associated data, which the students can plot onto the matrix. However, this is a relatively mechanical exercise which does not challenge the students to build their own approach to the GE matrix.
There is also opportunities for discussion after the production of the various GE matrixes, if different student groups have developed their own approaches. This should result in variations of the GE matrix, which can then can form a review and discussion class session.
If your students do not have access to Excel, then you could print off the rating factors from the template and get them to score it manually on paper.
And finally, the GE matrix is a very effective tool – far more effective than the BCG matrix – for students to include in their marketing plans and other related assignments.
Downloading the Free GE-McKinsey Excel template
The template is available for free download here… free_download_attractiveness_strength_matrix_2020
Here is a link to the Marketing Study Guide which discusses the Excel template in a little bit more detail. However, here is a sample of the output of the GE matrix template maker, as well as images of the two input steps for designing the matrix.
Video instructions on how to use the GE matrix template