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IE Matrix

The IE matrix is a strategic portfolio management tool that positions organizations into a nine cell matrix based on their scores from an internal factors evaluation (IFE) matrix and external factors evaluation (EFE) matrix. The IFE score is plotted on the x-axis and the EFE score is plotted on the y-axis. The point where the horizontal line from the EFE score intersects the vertical line from the IFE score determines the organization's strategy quadrant in the matrix.

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Asmat Khan
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544 views2 pages

IE Matrix

The IE matrix is a strategic portfolio management tool that positions organizations into a nine cell matrix based on their scores from an internal factors evaluation (IFE) matrix and external factors evaluation (EFE) matrix. The IFE score is plotted on the x-axis and the EFE score is plotted on the y-axis. The point where the horizontal line from the EFE score intersects the vertical line from the IFE score determines the organization's strategy quadrant in the matrix.

Uploaded by

Asmat Khan
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
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How does the 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.

IE matrix example...
Let us take a look at an example. We calculated IFE matrix for an
anonymous company on the IFE matrix page. The total weighted score
calculated on this page is 2.79 which points at a company with an
above-average internal strength.

We also calculated the EFE matrix for the same company on the EFE
matrix page. The total weighted score calculated for the EFE matrix is
2.46 which suggests a slightly less than average ability to respond to
external factors.

Now we plot these values on axes in the IE matrix.


This IE matrix tells us that our company should hold and maintain its
position. The company should pursue strategies focused on increasing
market penetration and product development (more about this below).

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