External (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. Internal-External IE matrix work? The IE matrix belongs to the group of strategic portfolio management tools.
In a similar manner like the BCG matrix, the IE matrix positions an organization into a nine cell matrix. The IE matrix is based on the following two criteria: 1. Score from the EFE matrix — this score is plotted on the y-axis 2. Score from the IFE matrix — plotted on the x-axis The IE matrix works in a way that you plot the total weighted score from the EFE matrix on the y axis and draw a horizontal line across the plane. Then you take the score calculated in the IFE matrix, plot it on the x axis, and draw a vertical line across the plane.
The point where your horizontal line meets your vertical line is the determinant of your strategy. This point shows the strategy that your company should follow. On the x axis of the IE Matrix, an IFE total weighted score of 1. 0 to 1. 99 represents a weak internal position. A score of 2. 0 to 2. 99 is considered average. A score of 3. 0 to 4. 0 is strong. On the y axis, an EFE total weighted score of 1. 0 to 1. 99 is considered low. A score of 2. 0 to 2. 99 is medium. A score of 3. 0 to 4. 0 is high. What does the IE matrix tell me?
The Essay on External/Internal Factors Paper
Factors Paper Ms. Della Bond, Jessica Shurtleff, Julie Legette, Katharine White, Veronica Briggins MGT-230 May,20,2013 Instructor Dillhyon External/Internal Factors Paper The following paper will demonstrate how internal and external factors affect the four functions of management (planning, organizing, leading, and controlling) within the McDonald’s corporation. Additionally, this paper will also ...
Your horizontal and vertical lines meet in one of the nine cells in the IE matrix. You should follow a strategy depending on in which cell those lines intersect. The IE matrix can be divided into three major regions that have different strategy implications. Cells I, II, and III suggest the grow and build strategy. This means intensive and aggressive tactical strategies. Your strategies should focus on market penetration, market development, and product development. From the operational perspective, a backward integration, forward integration, and horizontal integration should also be onsidered. Cells IV, V, and VI suggest the hold and maintain strategy. In this case, your tactical strategies should focus on market penetration and product development. Cells VII, VIII, and IX are characterized with the harvest or exit strategy. If costs for rejuvenating the business are low, then it should be attempted to revitalize the business. In other cases, aggressive cost management is a way to play the end game. What is the difference between the IE matrix and BCG matrix? First, the IE matrix measures different values on its axes.
The BCG matrix measures market growth and market share. The IE matrix measures a calculated value that captures a group of external and internal factors. This means that the IE matrix requires more information about the business than the BCG matrix. While values for each axis in the BCG matrix are single-factor, values for each axis in the IE matrix are multi-factor figures. Because the IE matrix is broader in its definition, strategists often develop both the BCG Matrix and the IE Matrix when assessing their conditions and formulating strategies.
