Page 93 - DMGT522_SERVICES MANAGEMENT

Services Management

Notes The business screen uses two factors – market attractiveness and business position/SBU
strength – to classify SBUs or products in its portfolio. Both the factors seem to be subjective but
have various criteria which help the SBUs/products get rated:

Market Attractiveness

Market size
Market growth rate
Market entry barriers
Competition – number and type of competitors

Technological requirements
Profit margins, etc.
SBU Strength/Business Position

SBU size
Market share

Research and development capabilities
Power or strength of differential advantage(s)
Cost controls
Production capabilities and capacities
Management expertise and depth, etc.
Figure 4.2: General Electric Business Screen

SBU Strength/Business Position

HIGH MEDIUM LOW

PROTECT

INVEST INVEST
HIGH (Selectively
invest)

Market
Attractiveness PROTECT
INVEST (Selectively HARVEST
invest)

MEDIUM

PROTECT
(Selectively HARVEST DIVEST
LOW invest)
The ratings of the SBUs are arrived at quite systematically:
Criteria are assigned weights
Each SBU/product is rated with respect to all criteria
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