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Internal-External Matrix (IE) Matrix

The Internal-External (IE) matrix is a strategic management tool that analyzes a business's internal and external factors. It combines the scores from an internal factors evaluation (IFE) matrix and an external factors evaluation (EFE) matrix on its x and y axes to divide strategies into three regions. The first region involves grow and build strategies for businesses with strong internal and external factors. The second region calls for hold and maintain strategies. The third region suggests harvest or divest strategies for businesses with weak internal and external factors. The IE matrix provides strategic recommendations based on a business's positioning in these three regions.

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LEZIEL ASINO
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268 views

Internal-External Matrix (IE) Matrix

The Internal-External (IE) matrix is a strategic management tool that analyzes a business's internal and external factors. It combines the scores from an internal factors evaluation (IFE) matrix and an external factors evaluation (EFE) matrix on its x and y axes to divide strategies into three regions. The first region involves grow and build strategies for businesses with strong internal and external factors. The second region calls for hold and maintain strategies. The third region suggests harvest or divest strategies for businesses with weak internal and external factors. The IE matrix provides strategic recommendations based on a business's positioning in these three regions.

Uploaded by

LEZIEL ASINO
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Internal-External Matrix

(IE) Matrix
The Internal-External (IE) matrix
is another strategic
management tool used to
analyze working conditions and
strategic position of a business.
The Internal External Matrix or short IE
matrix is based on an analysis of internal
and external business factors which are
combined into one suggestive model.

The IE matrix is a continuation of the EFE


matrix and IFE matrix models.
The IE matrix is based on the following two criteria:
The EFE total
weighted scores
on Y-axis

The IFE total


weighted scores
on X-axis
The IE matrix can be divided into three major
regions that have different strategy implications.

First Region Third Region


(Cells I, II, IV) (Cells VI, VIII, IX)
Grow And Build Strategy Harvest Or Divest Strategy

Second Region
(Cells III, V, VII)
Hold And Maintain Strategy
Grow And Build Strategy
It involves strategies that focus on Intensive ( market penetration,
market development, and product development) or integrative
(backward integration, forward integrative, and horizontal
integrative)

Hold And Maintain Strategy


Strategies should focus on market penetration and product
development.

Harvest Or Divest Strategy


Strategies should focus on retrenchment or divestiture.
Starbucks (IE) Matrix
Starbucks is almost on the border
of being in the stronger quadrants,
which gives reason to believe that
they are on the right track and
could use a bit of improvement.
The Differences between BCG and IE
matrix.
✓The axes are different.

✓The IE requires more information about the


division than BCG Matrix

✓Strategic Implications of each matrix is different.


THANK YOU CLASS FOR LISTENING..

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