MODULE 4B

INTERNAL -
EXTERNAL MATRIX
 INTERNAL
EXTERNAL
MATRIX
What is it?
A strategic management tool used to analyze working conditions and strategic
position of a business.

Continuation Suggestive Model 2-Criteria Model

This is based on analysis of Based on the:

It is essentially a internal and external • Score from the EFE
continuation of the EFE and business factor combines matrix ( y-axis)
IFE matrix. into one suggetsive model. • Score from IFE matrix
(x-axis)
KEY DIMENSIONS

• IFE total weighted score on the x-axis

• EFE total weighted score on the y-axis

• Recommended strategies at intersection point

⚬ Grow and Build

⚬ Hold and Maintain

⚬ Harvest and Digest/ Harvest or exit

 INTERNAL-EXTERNAL MATRIX

• Grow and Build (cell I, II, IV) - intensive, integrative

• Hold and Maintain (cell III, V, VII) - market penetration, product development
• Harvest and Digest (cell VI, VIII, IX) - retrenchment, divestiture
 WHAT DOES THE IE MATRIX TELL?

Intersection 3 Regions
Follow a strategy The matrix can be
depending on which divided into 3 major
cell the lines intersect. regions that differ in
strategy.

Cells I, II, IV Cells III, V, VII Cells VI, VIII, IX

Grow and Build Hold and Maintain Harvest and Digest/Exit

Strategy Strategy Strategy
GROW AND
BUILD
STRATEGY
Means intensive and aggressive tactical
strategies.
• Strategies should focus on market
penetration, market development, and
product development.

• From the operational perspective, a

backward/ forward/ and horizontal
integration should also be considered.
 Tactical focus

Market penetration

HOLD AND
MAINTAIN
STRATEGY
Tactical Focus

Product Development
HARVEST AND
DIGEST/EXIT
STRATEGY
• If costs for rejuvenating or saving the business are low,

revitalizing tactics should be attempted.

• Otherwise, aggressive cost management or even

exiting would be more appropriate.

Example

The IE matrix shows that the company should grow and build its position/ pursue
grow and build strategies.
PREPARE
PROFORMA
TABLE
KEY
PEOPLE

Managing Directors Key consultants

To create your own, To create your own,

choose a topic that choose a topic that
interests you. interests you.

The owner(s) Departments/Teams

To create your own, To create your own,

choose a topic that choose a topic that
interests you. interests you.
RECAP
THANK
YOU