[go: up one dir, main page]
Scribd
Upload
157 views2 pages

Internal External Matrix

The Internal-External (IE) matrix is used to evaluate organizational divisions based on internal and external factors. It plots divisions on a nine-cell grid using scores from internal factor evaluation on the x-axis and external factor evaluation on the y-axis. Divisions falling in certain cells would be candidates for strategies like "grow and build", "hold and maintain", or "harvest and divest". The IE matrix provides a different perspective than the BCG matrix and requires more information about each division to evaluate strategic implications.

Uploaded by

DEBALINA SEN
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
157 views2 pages

Internal External Matrix

The Internal-External (IE) matrix is used to evaluate organizational divisions based on internal and external factors. It plots divisions on a nine-cell grid using scores from internal factor evaluation on the x-axis and external factor evaluation on the y-axis. Divisions falling in certain cells would be candidates for strategies like "grow and build", "hold and maintain", or "harvest and divest". The IE matrix provides a different perspective than the BCG matrix and requires more information about each division to evaluate strategic implications.

Uploaded by

DEBALINA SEN
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 2

Internal External Matrix

The Internal-External(IE)matrix
This matrix positions an organization’s various divisions in a nine-cell display. The matrix is
similar to the BCG matrix in several respects. First, both tools involve plotting organizational
divisions in a schematic diagram, this is why they are both called portfolio matrixes. Second,
the size of each circle represents the percentage sales contribution of each division. Finally,
the pie slices reveal the percentage profit contribution of each division.

There are also some differences between both i.e. the axes are different, the IE matrix
requires more information about the division and the strategic implications of both are
different. For these reasons strategies in multidivisional companies often develop both the
BCG and IE matrices in the strategy-generation process.

The IE matrix is based on tow key dimensions (I) IFE i.e. internal factor evaluation total
weighted score on the X-axis and (2) EFE i.e. external factor evaluation weighted score on the
Y-axis. Each division of a firm should construct the IFE&EFE matrices, which help in the
construction of a corporate level IE matrix.

On the X-axis of the IE matrix, an IFE total weighted score of 1.00 to 1.99 represents a weak
internal position, 2.00 to 2.99 us considered average and a score of 3.0 to 4.0 is strong.
Similarly, on the Y-axis, and EFE total weighted score of 1.00 to 1.99 is considered low, 2.00
to 2.99 is considered medium and a score of 3.0 to 4.0 is high.

The IE matrix can be divided into 3 major regions that have different strategy implications.
First, the prescription for divisions that fall into cells I, II or IV can be “grow & build” intensive
(market penetration, market development, and product development) or integrative
(backward, forward and horizontal integration) strategies can be most appropriate for these
divisions. The second division that falls into cells III, V or VII can be best be managed with
“hold and maintain strategies” (market penetration and product development) third, a
common prescription for divisions that fall into cell VI, VIII or IX is “harvest and divest”.
Successful organizations can achieve a portfolio of businesses that are positioned in or
around cell I in the IE matrix.

IE matrix example

The IFE total weighed score

Find latest hospitality resources at hmhub

|1
Internal External Matrix

Strong(3.0-4.0) 3.0 Average(2.0-2.99) 2.0 Weak (1.0-1.99)

I II III
IV V VI
VII VIII IX

Find latest hospitality resources at hmhub

|2

You might also like