The Directional Policy Matrix (DPM), at times known as the “GE/McKinsey matrix”, is a tool for portfolio analysis that helps determine what are the preferred segments for an organization.
It is a framework for classifying an organisation’s business activities in terms of its strengths, capabilities or market position, and the way it perceives markets to be attractive.
GET INSTANT HELP FROM EXPERTS!
- Looking for any kind of help on your academic work (essay, assignment, project)?
- Want us to review, proofread or tidy up your work?
- Want a helping hand so that you can focus on the more important tasks?
Hire us as project guide/assistant. Contact us for more information
Directional Policy Matrix (DPM): Example
Invest (High Market Attractiveness, High Business Strengths):
Explain any product of the company (data from a particular year)
- a)Market share
- b)Innovation + R&D
- c)Strong capital + cash flows
- d)Economies of scale
- e) Profit margins
Grow (High Market Attractiveness, Low Business Strengths):
Explain any product of the company (data from a particular year)
- a) Market share
- b) Innovation + R&D
- c) Weak capital + cash flows
- d) low Economies of scale
- e) Poor Profit margins
Harvest (High business Strengths, Low Market Attractiveness):
Explain any product of the company (data from a particular year)
- a) Strong R&D
- b) Strong human Capital
- c) Strong Cash flow
- d) Low market growth
- e) High cost to market entry
Divest (Low Market Attractiveness, Low Business Strengths):
Explain any product of the company (data from a particular year)
Leave a Reply