Which of the following is true about The GE Multifactor Portfolio Matrix?
A) Businesses falling in the cells that form a diagonal from lower left to upper right in the matrix are strong businesses that should be invested in regularly.
B) Businesses in the cells below and to the right of the diagonal are medium-strength businesses that should be invested in only selectively.
C) The GE Multifactor Portfolio Matrix does not consider factors such as various types of risk associated with product development.
D) In the matrix, businesses above and to the left of the diagonal are the weakest and serious candidates for divesture.
E) This tool helps managers develop organizational strategy that is based primarily on market attractiveness and business strengths.

Question

Quizplus · Accepted Answer

The GE Multifactor Portfolio Matrix is a tool that helps managers develop organizational strategy based on market attractiveness and business strengths. It does not consider factors such as various types of risk associated with product development. It categorizes businesses into four quadrants, with the strongest businesses falling in the cells above and to the right of the diagonal, and the weakest businesses falling below and to the left of the diagonal. Businesses in the cells below and to the right of the diagonal are medium-strength businesses that should be invested in only selectively, while businesses in the cells that form a diagonal from lower left to upper right in the matrix are strong businesses that should be invested in regularly.

Which of the Following Is True About the GE Multifactor