The McKinsey Portfolio (also market attractiveness Portfolio) is a Portfolio for the strategic management of enterprises and by the management consultation McKinsey in co-operation with General Electric was developed.

Since there is a multiplicity of views for the interpretation of the McKinsey matrix, the special advantage of this model is in its variability and versatility. In the reason it concerns an advancement of the BCG matrix. Contrary to this the McKinsey Portfolio considers both quantitative and qualitative factors. In addition more than only two success factors can be regarded in this Portfolio.

Structure of the Portfolios

The McKinsey Portfolio consists of nine fields, with which more precise statements can be met, as with the classical four-field matrix. <divstyle= " position: relative; float: right; background: White; margin left: 1em; LINE height: 1.3em; boron that: 1px solvently Grey; padding: 0.3em; min width: 60px; width: 22em; OVERFLOW: visible; "></div>

The dimensions are formed by the market attractiveness (ordinate, the enterprise surrounding field) and the relative competition advantage (abscissa, the enterprise). They can be designated however also differently.

The market attractiveness can be represented with the help of the following main criteria:

• Market growth and market size
• Market quality
• Supply of energy and raw materials
• Environmental situation
• Market entrance barriers

In order to determine the relative competition advantage with reference to the strongest competitor, one regards the e.g. following main criteria:

• Relative market position/market share
• Relative Produktionspotenzial
• Relative F&E Potenzial
• Relative qualification of the high-level personnel and coworker
• Financial situation.

For the allocation of the Portfolios dividing lines must be found. They are to be set with {1 \ more over 3} as well as {2 \ more over 3}.

Standard strategies

The products or ranges of an enterprise are assigned to one of the nine fields now on the basis their coordinates. Each field embodies thereby a standard strategy in such a way specified. It is to give a recommendation regarding the further procedure.

The matrix is divided into three areas:

• Expand (zone of the commitment of funds, here green): Here the strategic divisions are determined by a middle to high market attractiveness and by middle to high competition advantages. An investment and a growth strategy are recommended.
• For business fields within the middle range of the matrix must be weighed out and selected (here dark-blue). Here into three different selective strategies one divides: Offensive strategies, defensive strategies and transition strategies. For which strategy one decides, it depends on the fact whether a position improvement of the different strategic departments can be realized or not.
• Tax away (zone of the central release, here grey-blue): These are strategic business fields with low and/or middle market attractiveness and small to middle competition advantages. Strategy recommendation: Absorption and the investment.

Criticism

On the one hand the aggregation of the different indicators and on the other hand the one-sided view of the degrees of completion with with difficulty estimatable relative relative and from this formulations of goal which can be derived badly.

See also

• List of the Controllinginstrumente

Literature

• Heinz George tree, Adolf G. Coenenberg, Thomas Strategic Controlling. 3. Edition. Poeschel publishing house, Stuttgart 2004, ISBN 3-7910-2114-1 (explanation of different Portfolios with examples)
• Dietram cutter: Management and strategic Controlling - superior instruments and methods, 4. Aufl., Hanser publishing house, Munich 2005, ISBN 3-446-40428-7

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