QPractice question
In the GE's portfolio in the 1970s example, GE's portfolio in the 1970s primarily demonstrates which concept?
  1. A.Porter's Five Forces
  2. B.VRIO Framework
  3. C.GE-McKinsey Matrix ✓
  4. D.Porter's Generic Strategies
Why this answer:

GE's portfolio in the 1970s is the textbook illustration of GE-McKinsey Matrix. The detailed walkthrough is in the concept guide. The other options are valid concepts but do not match the specific mechanics in this example.

How to think about questions like this

Application questions test whether you can connect a real-world example to the right framework. The trick is to ignore the surface details (industry, company name) and focus on the underlying mechanic the example illustrates.

For GE-McKinsey Matrix specifically, look for the signal: Captures more nuance than BCG's 2x2. That signal is what distinguishes the right answer from plausible-sounding alternatives.

Editor's note Want a deeper walkthrough? Our editors recommend pairing this with GE-McKinsey Matrix for a worked example you can adapt to your assignment.

Underlying concept

Concept · Strategic Frameworks GE-McKinsey Matrix

More practice in Strategic Frameworks

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