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INTERNAL FACTOR EVALUATION (IFE)

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kipling
10 diapositives · 1.5K Views · Jul 29, 2014

INTERNAL FACTOR EVALUATION (IFE). This is very similar to the EFE, in fact, many of the procedures are identical . Note Table 4-9 on page 123 of your text.

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INTERNAL FACTOR EVALUATION (IFE)
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  1. INTERNAL FACTOR EVALUATION (IFE) • This is very similar to the EFE, in fact, many of the procedures are identical. • Note Table 4-9 on page 123 of your text. • Notice that there are three categories (Weight, Rating, and Weighted Score) and four categories if you count the Strengths and Weaknesses. • List Strengths and Weaknesses (Be specific)

  2. INTERNAL FACTOR EVALUATION (IFE) • The Weight category represents the importance of that factor to being successful in that industry. • This is different from the EFE. • You want to issue a weight to each of the Strengths and Weaknesses as it relates to being successful n the industry

  3. INTERNAL FACTOR EVALUATION (IFE) • 0.00 meaning this factor is very unimportant to the organization being successful in the industry. • 1.00 meaning this factor is very important to the organization being successful in the industry • In other words, the rating can be 0.00, 001, 0.02, ….1.00 • Please note that when distributing weights, all the weights combined MUST not exceed 1.00

  4. INTERNAL FACTOR EVALUATION (IFE) • The Rating category represents whether the factor is a Strength or Weakness. It is rated from 1 – 4. • 1 meaning the firm has a major weakness regarding this factor 2 meaning the firm has a minor weakness regarding this factor.

  5. INTERNAL FACTOR EVALUATION (IFE) • 3 meaning the firm has a minor strength regarding this factor • 4 meaning the firm has a major strength regarding this factor. • VERY IMPORTANT; Strengths must receive 3 or 4 and Weaknesses must receive 1 or 2. • Also, Strengths go first followed by Weaknesses

  6. INTERNAL FACTOR EVALUATION (IFE) • The Weighted Score is simply multiplying the Weight by the Rating. • Weight X Rating = Weighted Score • The provides a number that is the part of a much larger total that is yet to come.

  7. INTERNAL FACTOR EVALUATION (IFE) • Now, here is a re-cap, plus a little more in-depth knowledge of the procedure. • Five easy steps in creating an EFE • Note Table 4-9 on page 123 of your text. • Note there are three categories (Weight, Rating, and Weighted Score) and four categories if you count the Strengths and Weaknesses.

  8. INTERNAL FACTOR EVALUATION (IFE) • Step one – • List your Strengths and Weaknesses • Be specific as possible

  9. INTERNAL FACTOR EVALUATION (IFE) • Step Two – Weight Factors from 0.00 to 1.00 (0.00 unimportant – 1.00 very important) • Step Three – Rating – 1 & 2 represent weaknesses in the organization – 3 & 4 represents strengths to the organization. • Step Four - Weight X Rating = Weighted Score • Step Five – Sum the totals in the Weighted Score Category

  10. INTERNAL FACTOR EVALUATION (IFE) • The lowest score is 0.00 and the highest score is 4.0 • Scores totally less than 2.5 indicates the organization is somewhat weakness internally in regards to being successful in the industry. Scores totally more than 2.5 indicates the organization is somewhat strong internally in regards to being successful in the industry.