Which of the following is true about the GE Multifactor Portfolio Matrix?
A) Businesses falling in the cells that form a diagonal from lower left to upper right in the matrix are strong businesses that should be invested in regularly.
B) Businesses in the cells below and to the right of the diagonal are medium-strength businesses that should be invested in only selectively.
C) The GE Multifactor Portfolio Matrix does not consider factors such as various types of risk associated with product development.
D) In the matrix, businesses above and to the left of the diagonal are the weakest and serious candidates for divesture.
E) This tool helps managers develop organizational strategy that is based primarily on market attractiveness and business strengths.

Question

Quizplus · Accepted Answer

The GE Multifactor Portfolio Matrix is a strategic management tool used to develop an organization's strategy based primarily on market attractiveness and business strengths. It classifies businesses into categories based on market attractiveness and business strength, and provides guidance for resource allocation and portfolio management. Option A, B, and D are not true statements about the matrix, and option C is partially correct but does not completely describe the matrix's scope.

Which of the Following Is True About the GE Multifactor