General Electric (GE) is a prime example of a company that has successfully used the GE/McKinsey matrix for their investment decisions. The matrix was actually developed by McKinsey for GE in the 1970s. At that time, GE had many unrelated products and was not achieving the desired returns from its investments. They consulted McKinsey, and the resulting directional policy matrix was created. This matrix evaluates opportunities based on industry attractiveness and competitive capability, helping GE to make more informed and strategic investment decisions.
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