Question

Explain the concept of portfolio matrix. Highlight the relationship between internal and external component of environment ​

Answer 1

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Answer 2

The concept of portfolio matrix.

Explanation:

• We can say portfolio matrix is a way in which we describes our product which can make profits to the company .

• After placing the product in the matrix we can evaluate it's market share in the industry for it's future growth.
• Creating the matrix we have to draw a diagram with 4 squares.
• Vertical axis  is growth in the industry.
• Horizontal axis is prepared for it's market share.

Relationship between internal and external component of environment ​

Internal environment

• It includes the factors which have direct effect on the organization.

External Environment

• Includes all the factor that have the capability to affect the performance ,functions,profit of the organization.

So we can conclude by saying that both internal and external environment is related to  the factors that can affect the working of an organization.