Page 20 - PowerPoint Presentation
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STRATEGY AND GOVERNANCE
Analytical tools for assessing the feasibility of
strategies
General Electric Corporation (GEC) Model
• This model provides decentralised entities, with
multiple business units, with a systematic approach to
determine the best manner in which to invest their
cash.
• Instead of relying on the projections of each business
unit manager, the future performance of the business
unit can be assessed based on two key factors i.e.
industry attractiveness and competitive strength. The
model is depicted graphically as follows:
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