Rating Scale: 1 = Weak ; 10 = Strong GE Nine-Cell Matrix Industry Attractiveness Relative Costs Profit Margins Fit with KSFs Market Size Growth Rate Profit Margin Intensity of Competition Seasonality Cyclicality Resource Requirements Social Impact Regulation Environment Opportunities & Threats 10.0 Strong 6.7 Average 3.3 Weak 1.0 High 6.7 Medium 3.3 Relative Market Share Reputation/ Image Bargaining Leverage Ability to Match Quality/Service Low 1.0 Rating Scale: 1 = Weak ; 10 = Strong

Strategy Implications of Attractiveness / Strength Matrix Businesses in upper left corner Accorded top investment priority Strategic prescription is grow and build Businesses in three diagonal cells Given medium investment priority Invest to maintain position Businesses in lower right corner Candidates for harvesting or divestiture May be candidates for an overhaul and re-position strategy

The Attractiveness / Strength Matrix Allows for intermediate rankings between high and low and between strong and weak Incorporates a wide variety of strategically relevant variables Stresses allocating corporate resources to businesses with greatest potential for Competitive advantage and Superior performance

Decide Resource Allocation Priorities and Strategic Direction 2 3 5 6 4 Objective: “Get the biggest bang for the buck” in allocating corporate resources Procedure: Rank each business from highest to lowest priority for corporate resource support and new investment (steer resources to high opportunity areas and limit support to low opportunity areas) Develop a general strategic direction for each business