Placement of business units within the matrix provides an analytic map for managing them. Rather than rely on each business unit's projections of its future prospects, the company can judge a unit by two factors that will determine whether it's going to do well in the future: the attractiveness of the relevant industry and the unit’s competitive strength within that industry. The nine-box matrix offers a systematic approach for the decentralized corporation to determine where best to invest its cash. One that arose in the early 1970s was the GE–McKinsey nine-box framework, following on the heels of the Boston Consulting Group’s well-known growth share matrix. In response, management thinkers developed frameworks to address this new complexity. With the rise of multibusiness enterprises in the 20th century, companies began to struggle with managing a number of business units profitably.
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