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Portfolio Analysis: Igniting a long-term spirit in a short-term world (XVI). GE Portfolio Matrix introduction.

No words. Just the melody of “You Raise me up”.

Have a beautiful first week of October.

During our last episode, we closed the publication by sharing the video “You raise me up” in the instrumental classical version interpreted by Tritonia. So far, Josh Groban is the author of the song, and I am sure the cello, the violin, and the piano were singing altogether for you. We selected this song because classical music is amazingly enhancing. It helps us to clean our mindsets, and it provides healing, comfort, and brain stamina inspiration when we work intellectually. Eleonora Escalante Strategy adores working while listening to instrumental jazz music and classical melodies, particularly Mozart, in between other outstanding classic traditional composers.

RICE reality check for corporate strategy frameworks. Since I have been dealing with my fractured right foot for 5 weeks, I have been forced to learn what is good and beneficial to heal it consistently. I have been learning that the RICE therapy: REST-ICE-COMPRESS-ELEVATE is a successful recipe when such a fracture happens. A fifth metatarsal fracture (called avulsion in my personal case) is a break or a thin, hairline crack that happens at the base of the bone. The RICE treatment is recommended after design researchers finish the DBR process. Venture capitalists, private equity investors, PE funds, or financial entities that have supported many businesses models must pass the RICE treatment to each corporate strategy framework coming out of academics or books before it will be finally used in the practice world. Moreover, if we don’t apply RICE therapy to all our inventions from now and then, we will continue causing imbalance to our nature, our businesses, and technologies. RICE heals whatever is fractured.

The RICE treatment should be the last reality check to apply to each corporate strategy framework before it is released to the public or to the practitioners.

Do you think the BCG Matrix passed the RICE test? No. It didn`t. That is why new frameworks of portfolio analysis have appeared after then. The General Electric Portfolio Model, called Industry Attractiveness-Business Strength Matrix, or GE Multidimensional Factor model is one alternative that we will begin to explore today.

Today I will be super brief. I would like you to read the following 12 slides that I have been working on during the week. We will come back next Tuesday to explain them in detail.

If you wish to download it in PDF format click here please:

As we already mentioned, next week we will explain all the latter slides. In detail. In addition, I would like to express that this is the last saga of 2021. In consequence, if we extend the number of episodes, in order to provide all the tools and explanations required, we won´t hesitate to do it. We have enough time to clarify and provide all that you will need. We are also contemplating a new idea that is related to the importance of “truth” in corporate strategy. That will be for the first academic saga of 2022, so expect more from us then.

We will leave you with the song of today’s publication. It is an awesome song from Sting and Sheryl Crow, with a touch of thoughts about what happens when love is in the air, and how amazing is to be always on your side. We adore music with real instruments. For the consulting industry: Please let´s start to RICE our strategy standards for the next generations. It is never too late to do it. Thank you for reading to me. Blessings for October.

Sources of reference utilized today to prepare the slides above:

(1) Hax, A. and Majluf, N. “The use of the Industry Attractiveness-Business Strength Matrix in Strategic Planning”. Interfaces. 1983. Vol 13 NO. 2.

Disclaimer: Illustrations in Watercolor are painted by Eleonora Escalante. Other types of illustrations or videos (which are not mine) are used for educational purposes ONLY. Nevertheless, the majority of the pictures, images, or videos shown on this blog are not mine. I do not own any of the lovely photos or images posted unless otherwise stated.

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