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The IE MatrixStrategy-Formulation FrameworkSWOT MatrixSPACE MatrixBCG MatrixIE MatrixGrand Strategy MatrixStage 2:The Matching Stage2The Internal-External MatrixPositions an organizations various divisions in a nine-cell displaySimilar to the BCG Matrix in that both tools involve plotting organization divisions in a schematic diagram; portfolio matrices.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.Similar to BCG Matrix except the IE Matrix:Requires more information about the divisionsStrategic implications of each matrix are different3The IE MatrixBased on two key dimensionsThe IFE total weighted scores on the x-axisThe EFE total weighted scores on the y-axis

4X-AxisIFE Total Weighted Score1.0 1.99 = weak internal position2.0 2.99 = average internal position3.0 4.0 = strong internal positionY-AxisEFE Total Weighted Score1.0 1.99 = weak external position2.0 2.99 = average external position3.0 4.0 = strong external positionThe IE MatrixHold and maintain Cells III, V, or VIIMarket PenetrationProduct Development

Harvest or divest Cells VI, VIII, or IXRetrenchmentDivestitureGrow and build Cells I, II, or IVBackward, Forward, or Horizontal IntegrationMarket PenetrationMarket DevelopmentProduct Development

7APPLE

The Internal-External (IE) Matrix of Apple

1.0 to 1.99IXVIIIVIILow2.0 to 2.99VIVIVMedium3.0 to 3.99IIIIIIHigh1.0 to 1.992.0 to 2.993.0 to 4.0WeakAverageStrongGrow and BuildSegmentsRevenueProfitEFEIFEDomestic54%52%3.52.6International46%48%3.03.0Backward, Forward, or Horizontal Integration

Market Penetration

Market Development

Product Development

2nd largest beverage company in the world.Presence in 200 countriesKey International markets include Argentina, Brazil, China, India, Mexico, Saudi Arabia, Spain, Thailand and U.K.

PepsiCo.

snack chip industry, Pure, fresh fruit juice in easy to handle package, isotonic sports drink, Wide range of healthy food

12Divisions of PepsiCo: 1. Frito-Lay North America (FLNA) 2. Quaker Foods North America (QFNA) 3. Latin American food and snack businesses (LAF) 4. PepsiCo Americas Beverages (PAB) 5. Middle East Asia and Africa (MEAA). 6. United Kingdom & Europe (UKEU)

PepsiCo. IE Matrix

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