GE/McKINSEY MATRICES REVISITED: A MIXED MODE TOOL FOR MULTI-CRITERIA DECISION ANALYSIS

Abstract

Multi-criteria decision analysis is an umbrella term describing the collection of formal approaches that take explicit account of multiple criteria in order to explore alternative decisions. Multi-criteria analysis has evolved from its operations research origins to address situations where the criteria are not so easily quantified and where the data is often fuzzy. In this context, GE/McKinsey matrices, a classic tool of the business portfolio analysis, have emerged as a mixed-mode tool to cover modern problems with fuzzy data and simultaneous use of quantitative and qualitative variables. By grouping the variables into a small number of classes, GE/McKinsey matrices provide an effective way to reduce the effect of noise in the data and to identify only major trends thus strengthening the conclusions of the corresponding decision analysis.