The GE-McKinsey matrix is a portfolio planning tool used to group business units according to their current and potential cash production and cash needs, in order to facilitate budget allocation, diversification and acquisition decisions. According to the McKinsey, firms should invest in business units where they have a competitive advantage and the industry is attractive; divest or "harvest" business units where they lack competitive advantage and the industry is unattractive, and hold businesses on the off-diagonals