Professional Documents
Culture Documents
External Audit
Developing a
Strategic Vision Setting Evaluate & Implementing &
Evaluating
& Business Objective Select Executing the
Performance
Mission Strategies Strategy
Internal Audit
A vision statements reflect what the future course and path of development
should be like (Thompson)
Mission is basic purposes of the organization and show out the reason
why and organization exist (Rue)
☼ Industry Environment
Five Forces Model
Operating Environment
-Creditor
-Labor Union
-Government
Business Firm
Potential New
entrants
Substitute Products
CA IS
Defensive Competitive
ES
The IE matrix helps to make more sense out of the EFE and IFE
matrixes. The IE matrix is based on two criteria the score from the EFE
for its y-axis and the score from the IFE for its x-axis. After you plot the
point, the IE then provides a strategy for the company to follow.
The Internal-External (IE) Matrix positions an organization's
various divisions in a nine cell display illustrated in Next Figure. The IE
Matrix is similar to the BCG Matrix in that both tools involve plotting
organization divisions in a schematic diagram; this is why they are both
called portfolio matrices. Also, the size of each circle represents the
percentage sales contribution of each division, and pie slices reveal the
percentage profit contribution of each division in both the BCG and IE
Matrix.
External Score
Quadrant I
Quadrant II
1. Market Development
1. Market Development
2. Market Penetration
2. Market Penetration
3. Product Development
3. Product Development
4. Forward Integration
4. Horizontal Integration
5. Backward Integration
5. Divestiture
6. Horizontal Integration
Weak 6. Liquidation Strong
7. Concentric Diversification
Competitive Competitive
Position Position
Quadrant III Quadrant IV
1. Retrenchment 1. Horizontal Diversification
2. Horizontal Diversification 2. Concentric Diversification
3. Concentric Diversification 3. Conglomerate Diversification
4. Conglomerate Diversification 4. Joint Ventures
5. Divestiture
6. Liquidation
Slow
Market
Growth
Dr. Werner R. Murhadi
Join LinkedIn: Garments Blog Page https://www.linkedin.com/company/garmentsblog
Dr. Werner R. Murhadi
Join LinkedIn: Garments Blog Page https://www.linkedin.com/company/garmentsblog
Quantitative Strategic Planning Matrix (QSPM)
3. Each key external and internal factor should have some weight
in the overall scheme. You can take these weights from the IFE and
EFE matrices again. You can find these numbers in our example in
the column following the column with factors.