When assessing a market situation utilizing the GE Strategic Planning Grid, which of the following is NOT considered when looking at business strengths?
A. How long a company has been in business
B. If the firm has people with the right talents for implementation
C. Whether the plan is consistent with the firm's profit objectives
D. Whether the plan is consistent with the firm's image
E. Whether the plan could establish a profitable market share given its technical capability, costs, and size
Answer: (A) The General Electric Planning Grid helps managers make three-part judgments (high, medium, or low) about business strengths and industry attractiveness of proposed or existing product market plans. How long a company has been in business is not a primary factor when utilizing the GE Grid to assess business strengths. (B) is a factor. If the company doesn't have the people with talents, such as technical knowledge, marketing skills, etc., the weakness hinders the probability of success for the plan. (C) is a factor. If the product does not fit into the overall profit objectives, then it may not be a good fit for the company. (D) is also a factor utilized in business strength analysis. A firm works hard and spends a lot of time and money developing a particular image. Any product development or introduction assessment utilizing the GE Grid would have to pay heed to the firm's image, and not introduce a product that may conflict with such an image. (E) is also a factor. The firm must consider its abilities and size, as well as the cost of the proposed plan to introduce a product. If a situation arises that is not profitable, or if there are not enough resources and/or capabilities available to the firm to create a positive and profitable market share situation, the market opportunity should not be used.