How to Prepare the Internal External Matrix

The matching stage of strategy formulation includes an important matrix called internal external matrix (IE). It is similar to both internal factor evaluation (IFE) matrix and External Factor Evaluation (EFE) matrix. The outcomes of external & internal position and weighted score are plotted on it. There are nine cells of Internal External Matrix (IE).

Characteristic of  Internal-External Matrix

• The position of various divisions of an organization is categorized in a nine cell display.
• The internal external matrix (IE) is much similar to the Boston Consulting Group matrix but there are certain differences like IE matrix needs much information about the divisions. Another difference is that there are separate implications for every kind of matrix.
• Two basic dimensions are included in internal external matrix. First is that on x-axis total weighted scores of Internal Factor Evaluation Matrix are specified. The second one is that on y-axis the total weighted score of External Factor Evaluation Matrix is specified.

There are three main regions of the IE matrix which are as follow

1. Grow & Build Region which covers the I, II or IV cells
2. Hold & Maintain Region which covers the III, V or VII cells
3. Harvest or Divest Regions which covers VI, VIII or IX cells

Steps to Prepare Internal External Matrix

There are certain steps that should be followed in order to prepare internal external matrix. These steps are described below.

01- There are two key dimensions which provide the basis of the IE matrix. These dimensions are EFE matrix & IFE matrix because all the input data is obtained from these two matrices in order to proceed to the IE matrix.

02- The total weighted score of IFE matrix are plotted on the x-axis while on the y-axis the total weighted score of EFE matrix is plotted.

03- The x-axis portion of the IE matrix includes the total weighted score of IFE matrix. The total weighted score from 1.0 to 1.99 indicates that the internal position of the organization is weaker. The total weighted score of 2.0 to 2.99 represents that the internal position of organization is in average. While the total weighted score of 3.0 to 4.0 indicates that the internal position of the organization is stronger enough.

04- The y-axis portion of IE matrix includes the total weighted score of EFE matrix. The total weighted score of 1.0 to 1.99 is represents the low level. The medium range is represented by the score 2.0 to 2.99. While the total weighted score of 3.0 to 4.0 is regarded as high.

05- There are three main regions of IE matrix and each region indicates different actions to be taken. These three regions are as follow.

1. Grow & Build Region which is specified through I, II & IV cells of the IE matrix
2. Hold & Maintain Region which is covered by the III, V or VII cells of the IF matrix
3. Harvest or divest region which is covered through the VI, VIII or IX cells of the IE matrix