What is the primary use of the GE McKinsey Matrix?

The GE McKinsey Matrix is primarily used for portfolio analysis, which helps businesses evaluate their product lines or business units. This analytical tool allows organizations to assess their individual units based on two critical dimensions: the attractiveness of the market and the competitive strength of the business unit. By plotting these factors on a grid, companies can identify which areas to invest in, develop, or divest.

The matrix's design aids in visualizing how different business units or products are performing relative to market opportunities, making it easier for management to make informed strategic decisions regarding resource allocation. This systematic approach to analyzing a portfolio helps in determining where to focus efforts to maximize profitability and growth potential.

In contrast, monitoring economic trends, assessing employee performance, and planning marketing campaigns serve different purposes that do not align with the primary function of the GE McKinsey Matrix, making them less relevant in this context.