portfolio management

[dj.divya]

hi ppl,
i need some help,
can anyone tell me how to go about the application of GE model.
w r t ,any one organisation and plotting of sbu's n analysis.

dj

[kartik]

GE Matrix/Directional Policy Model

a multifactor approach, as developed by McKinsey, Shell and General Electric. These models use more sophisticated measures for the axes, based on several factors, which you can customise to suit your own particular situation and the data you have available. The vertical axis usually includes market growth rate, together with other important factors such as profitability, competitive structure, market size etc..
Similarly the horizontal axis measures many aspects of company strength, weighted according to importance.
With Portfolio Plus you can easily customise the model to suit your company. You can set-up your own factors and weights for Market Attractiveness and Competitive Position. For each market, you then score each of the factors, using scales which you can adapt as required. The built in benchmarking feature provides the option to score yourself relative to competition.
You can also customise the axes, the scaling, display format etc etc...



Further read Portfolio Management (http://www.strategic-dynamics.com/portfoli.htm)
http://pages.stern.nyu.edu/~adamodar/New_Home_Page/invphillectures/port.html
http://seekingalpha.com/article/43453-portfolio-management-in-increasingly-volatile-markets