Sum the weighted scores for each variable to determine the total weighted score for the organization.

Multiply each factor’s weight by its rating to determine a weighted score for each variable.Ratings are thus company €‘based, whereas the weights in Step 2 are industry €‘based. Note that strengths must receive a 4 or 3 rating and weaknesses must receive a 1 or 2 rating. Assign a 1 to 4 rating to each factor to indicate whether that factor represents a major weakness (rating = 1), a minor weakness (rating = 2), a minor strength (rating = 3), or a major strength (rating = 4).Regardless of whether a key factor is an internal strength or weakness, factors considered to have the greatest effect on organizational performance should be assigned the highest weights. The weight assigned to a given factor indicates the relative importance of the factor to being successful in the firm’s industry. Assign a weight that ranges from 0.0 (not important) to 1.0 (all €‘important) to each factor.

Be as specific as possible, using percentages, ratios, and comparative numbers. List strengths first and then weaknesses. Use a total of from ten to twenty internal factors, including both strengths and weaknesses.

List key internal factors as identified in the internal €‘audit process.

A thorough understanding of the factors included is more important than the actual numbers.Īn Internal Factor Evaluation (IFE) Matrix can be developed in five steps: Intuitive judgments are required in developing an IFE Matrix, so the appearance of a scientific approach should not be interpreted to mean this is an all €‘powerful technique. An Internal Factor Evaluation (IFE) Matrix is a strategy formulation tool that summarizes and evaluates the major strengths and weaknesses in the functional areas of a business, and it also provides a basis for identifying and evaluating relationships among those areas.

The bcg matrix is a means of evaluating