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IE stands for Internal external as the name suggest that its based upon internal and externalfactors of the organization. The IE is an important strategic tool which comes under the portfolio management considered much similar to BCG Matrix. The IE matrix used to plot the organization divisions in nine cell diagram, each cell have some meaning associated which suggest strategies. In summarize way it can be defined as the strategic management tool which is used to analyze the current position of the divisions and suggest the strategies for the future for the better results.
The IE matrix have to important dimensions IFE total weighted score on x-axis and EFE total weighted score on y-axis. The number represent the cells and circle are the divisions plotted on the basis of IFE and EFE scores.
Market Product Backward Forward Horizontal Integration Hold & Maintain Market Product Development Harvest or Divest Retrenchment Divestiture Liquidation
Penetration
Source: David, Fred R. (1999). Strategic Management: Concepts (7th ed.). Upper Saddle River, NJ: Prentice-Hall, Inc., p. 191. Secondly, the divisions which comes under cells 3, 5 or 7 can be properly manages with hold and maintain strategies this position is average for the division market penetration and development strategies are most appropriate strategies. Last, the 6, 8, 9 cells represent harvest or divest which is the weak position for the divisions. What are the information required to plot the Divisions in IE Matrix? The below mentioned information is required to plot the division in the IE matrix cells.