Final answer:
An External/Internal Strategy Matrix is a tool used in strategic management to analyze and evaluate a company's position in the market. It helps in making strategic choices by providing a framework to assess the external opportunities and threats along with the internal strengths and weaknesses of the organization.
Step-by-step explanation:
An External/Internal Strategy Matrix is a tool used in strategic management to analyze and evaluate a company's position in the market. It helps in making strategic choices by providing a framework to assess the external opportunities and threats along with the internal strengths and weaknesses of the organization.
The matrix consists of four quadrants: external opportunities, external threats, internal strengths, and internal weaknesses. The goal is to identify strategic options that leverage the strengths and opportunities, while mitigating the weaknesses and threats.
For example, if a company identifies an external opportunity in a growing market segment and has internal strengths in terms of a strong brand and efficient supply chain, this can be a basis for choosing a strategy to expand its market share in that segment.