Environmental Analysis Matrix

The Environmental Analysis Matrix is a tool used to analyze the external environment of a business. It helps to identify opportunities and threats that may affect the business.

At a very high level, the Environmental Analysis Matrix is used in the context of business, marketing, finance.

Environmental Analysis Matrix quadrant descriptions, including examples
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What is the Environmental Analysis Matrix?

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

  1. Political: Political opportunities and threats include changes in government regulations, taxes, and political stability.
  2. Economic: Economic opportunities and threats include changes in the economy, such as inflation, interest rates, and exchange rates.
  3. Social: Social opportunities and threats include changes in consumer preferences, trends, and demographics.
  4. Technological: Technological opportunities and threats include changes in technology, such as new products, services, and processes.

What is the purpose of the Environmental Analysis Matrix?

The Environmental Analysis Matrix (EAM) is a tool used to analyze the external environment of a business. It helps to identify opportunities and threats that may affect the business. The EAM is a 2x2 matrix that divides the external environment into four quadrants: Political, Economic, Social, and Technological (PEST). Each quadrant is further divided into two categories: Opportunities and Threats.

The EAM is used to identify the external factors that may affect the business. It is important to analyze the external environment in order to understand the potential impact of external factors on the business. By analyzing the external environment, the business can identify potential opportunities and threats and develop strategies to address them.

The EAM is a useful tool for businesses of all sizes. It can be used to identify potential opportunities and threats, and to develop strategies to address them. It can also be used to identify potential risks and develop strategies to mitigate them.


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What templates are related to Environmental Analysis Matrix?

The following templates can also be categorized as business, marketing, finance and are therefore related to Environmental Analysis Matrix: AIDA Marketing Matrix, Affiliate Marketing Matrix, Agile Capability-Value Alignment Matrix, Agile Scaling Matrix, Ansoff Matrix, Asset Allocation Matrix, BCG Matrix, Brand Affinity Matrix. You can browse them using the menu above.

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