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Business Policy and Strategy - Accurate Essays

Business Policy and Strategy

Business Policy and Strategy

The BCG matrix and the IE matrix are devices that are used as strategic management tools to evaluate working environment and strategic situation of a business. The IE matrix is established on the scrutiny of interior and exterior business issues, which are joined in building an evocative model. In addition, BCG matrix is frequently used to determine the products inside the company product mix that get more financial support and consideration. Therefore, “the BCG Matrix and the IE Matrix are commonly applied in creating strategies in multidivisional organizations” (Alexander, 1983).

The IE Matrix is similar to the BCG Matrix in that the two matrices use devices that engage maneuverings in the organizational partition in a graphic diagram. In addition, the dimension of every one circle corresponds to the proportion sales involved in each partition. The pie piece discloses the percentage turnover input of every partition in BCG and IE Matrices. Some significant dissimilarity between the IE Matrix and the BCG Matrix include diverse axes. In addition, the IE Matrix entails supplementary information in relation to the partition more than the BCG Matrix does. Hence, this gives them distinct implications of the strategic character of every matrix to be different. “With respect to the varying values of axes, the BCG matrix determines the market expansion and market division” (Van, Williamson & Babson, 2007).

The IE matrix determines the premeditated value that confine a group of exterior and interior features. In other words, the IE matrix necessitate for more information on the subject of the commerce than the BCG matrix. Furthermore, as the IE matrix values are multi-factors, the values for every axis in the BCG are single-factor. Therefore, strategies are generated with the development of BCG and IE matrix because IE is wide in its analytical representation.



Alexander, M. J. (1983). Business strategy and policy. Atlanta: University Publications.

Van, D. C. A., Williamson, S. A., & Babson, H. C. (2007). Business policy and strategy: The art of competition. Boca Raton, FL: Auerbach Publications.


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