McKinsey portfolio
The McKinsey portfolio (also market attractiveness-competitive strength portfolio or nine-field portfolio ) is a portfolio for the strategic management of companies and was developed by the management consultancy McKinsey in cooperation with General Electric .
Since there are a large number of considerations for the interpretation of the McKinsey matrix, the particular advantage of this model lies in its variability and versatility. Basically, it is a further development of the BCG matrix . In contrast to this, the McKinsey portfolio takes into account both quantitative and qualitative factors. In addition, more than just two success factors can be considered in this portfolio .
Building the portfolio
The McKinsey portfolio consists of nine fields, with which more precise statements can be made than with the classic four-field matrix (see BCG matrix ).
The dimensions are formed by the attractiveness of the market ( ordinate , the company environment ) and the relative competitive advantage ( abscissa , the company). However, they can also be named differently.
The market attractiveness can be represented with the help of the following main criteria:
- Market growth and size
- Market quality (profitability, number and strength of competitors)
- Supply of energy and raw materials
- Environmental situation (economy, legislation, public)
- Barriers to market entry
To determine the relative competitive advantage with respect to the strongest competitor, consider e.g. B. the following main criteria:
- Relative market position / market share / relative financial strength
- Relative production potential
- Relative R&D potential
- Relative qualifications of managers and employees
- Financial situation.
Dividing lines must be found to divide the portfolio. You are to be put at as well .
Norm strategies
The products or areas of a company are now assigned to one of the nine fields based on their coordinates. Each field embodies a so-called standard strategy. It should give a recommendation on how to proceed.
The matrix is divided into nine areas:
- Expand (zone of the commitment of funds, here green): Here the strategic business areas are determined by medium to high market attractiveness and medium to high competitive advantages. An investment and growth strategy is recommended.
- For business areas in the middle area of the matrix, you have to weigh and select (here dark blue). It is divided into three different selective strategies: offensive strategies , defensive strategies and transition strategies . Which strategy you choose depends on whether or not the position of the various strategic business units can be improved.
- Skimming (zone of release of funds, here gray-blue): These are strategic business areas with low or medium market attractiveness and small to medium competitive advantages. Strategy recommendation: skimming and disinvestment.
In addition to the standard strategies for individual strategic business units (SBUs), the company's entire portfolio must also be considered. This means in particular that the high capital requirements of SBUs can be financed with the standard strategy "Expand" by SBUs in the "Skimming" area. If this is not possible, the company is dependent on external capital and could quickly get into financial difficulties if an SBU failed.
criticism
On the one hand, the aggregation of the various indicators and, on the other hand, the one-sided consideration of the degree of fulfillment with relative relationships that are difficult to assess and target formulations that are difficult to derive from them can be viewed as critical. The subjective selection and evaluation of the qualitative factors and the presence of a medium level of characteristics, which are not useful in a scoring process, are also to be viewed critically. In addition, there are no homogeneous and mutually heterogeneous strategic business units . In addition, new competitors and constant technological developments are not taken into account.
See also
literature
- Heinz-Georg Baum, Adolf G. Coenenberg , Thomas Günther: Strategic Controlling . 4th edition. Schäffer-Poeschel Verlag, Stuttgart 2006, ISBN 3-7910-2545-7 (explanation of various portfolios with examples)
- Dietram Schneider: Corporate management and strategic controlling - superior instruments and methods, 4th edition, Hanser Verlag, Munich 2005, ISBN 3-446-40428-7