Environment-Performance Matrix

The Environment-Performance Matrix is a tool used to assess the performance of a business in relation to its environment. It is a 2x2 matrix that divides the environment into two categories: external and internal, and the performance into two categories: high and low.

At a very high level, the Environment-Performance Matrix is used in the context of business, marketing, finance.

Environment-Performance Matrix quadrant descriptions, including examples
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What is the Environment-Performance Matrix?

A visual explanation is shown in the image above. The Environment-Performance Matrix can be described as a matrix with the following quadrants:

  1. High Performance, External Environment: This quadrant represents businesses that have a high performance in an external environment with low competition, such as a business with a strong market position.
  2. Low Performance, External Environment: This quadrant represents businesses that have a low performance in an external environment with high competition, such as a business with a weak market position.
  3. High Performance, Internal Environment: This quadrant represents businesses that have a high performance in an internal environment with strong resources, such as a business with a well-developed organizational culture.
  4. Low Performance, Internal Environment: This quadrant represents businesses that have a low performance in an internal environment with limited resources, such as a business with a poorly developed organizational culture.

What is the purpose of the Environment-Performance Matrix?

The Environment-Performance Matrix is a tool used to assess the performance of a business in relation to its environment. It is a 2x2 matrix that divides the environment into two categories: external and internal, and the performance into two categories: high and low. The external environment includes factors such as the economy, competition, and regulations, while the internal environment includes factors such as organizational culture, resources, and capabilities. The matrix can be used to identify areas of strength and weakness, and to develop strategies for improving performance.

For example, a business may have a high performance in an external environment with low competition, but may have a low performance in an internal environment with limited resources. The Environment-Performance Matrix can be used to identify the areas where the business needs to focus its efforts in order to improve its performance. It can also be used to identify opportunities for growth and expansion.


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What templates are related to Environment-Performance Matrix?

The following templates can also be categorized as business, marketing, finance and are therefore related to Environment-Performance Matrix: Effort Impact Matrix, Gap Analysis Matrix, Growth Share Matrix, Kraljic Matrix, Outsourcing Matrix, Quadrant Analysis, Risk Analysis Matrix, Risk Value Matrix. You can browse them using the menu above.

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