Business Assessment Array - Meaning & Definition

Published by MBA Skool Team, Last Updated: April 24, 2012

What is Business Assessment Array?

Business Assessment Array is another name for McKinsey’s GE matrix used to assess business portfolio analysis for Strategic Business Units (SBU’s) of a corporation. It is a3*3 matrix having “Market attractiveness” and “Competitive strength” as its axis.

Business Analysis Array

Market/Industry Attractiveness

It is a function of the industry’s growth rate, size, profitability, opportunities.etc. Each of these factors is given a weightage as per the industry norms and the combined industry’s attractiveness is then determined as-

= factor1 * its weightage +
factor 2 * weightage + ……………… etc.

Competitive Strength

The competitive strength of each SBU is determined and plotted on the matrix. It is a function of the SBU’s market share, growth in the market share, production capacity, its equity and its margins vis-à-vis its competitors. This metric is also the sum of the weighted average of its individual factors.

The location of a particular SBU on the matrix indicates what should be its recommended strategy as shown. the entire matrix forms the portfolio of the corporation and shows the health of the corporation as a whole.

This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

Browse the definition and meaning of more similar terms. The Management Dictionary covers over 2000 business concepts from 5 categories.

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