General Electric's "strategic planning grid":
A) focuses on market share and market growth rate.
B) requires subjective judgments about business strengths and industry attractiveness.
C) requires that all opportunities be judged either "High" or "Low."
D) substitutes quantitative estimates for management judgment.
E) All of these alternatives about GE's strategic planning grid are true.

Question

Quizplus · Accepted Answer

GE's strategic planning grid is based on subjective judgments about business strengths and industry attractiveness. It is a tool used for portfolio analysis, where different business units are evaluated based on their relative market share and market growth rate. The grid divides businesses into four categories: "Stars" (high market share and high market growth rate), "Cash Cows" (high market share and low market growth rate), "Question Marks" (low market share and high market growth rate), and "Dogs" (low market share and low market growth rate). This allows GE to make informed decisions about which businesses to invest in or divest from. However, this process relies heavily on subjective judgment and may not provide accurate quantitative estimates.

General Electric's "Strategic Planning Grid