Name:
Assessement 4
Internal Factor Evaluation
In this part of activity, I will try to explore the Internal Factor Evaluation (IFE) by
developing a matrix of my chosen company. After the identification of the internal factors, it is
time to evaluate them by comparing it to another company’s IFE matrix.
It is notable that the key internal factors were obtained by observing the circumstances
surrounding the company and also interviewing the employees of the company.
The Internal Factors Evaluation matrix consists of four columns. In the first column,
the internal factors (strengths and weaknesses) of the company are listed. In the second
column, depending on the importance and sensitivity of each factor, the importance coefficient
is assigned between zero and one. The sum of these coefficients should be equal to 1. In the
third column, depending on the regularity of the strengths, they rank 4 or 3, respectively, and 2
or 1 for the weaknesses. Score 1 indicates a basic weakness, a score of 2 indicates of the
weaknesses, a score of 3 indicates a strong point, and a score of 4 indicates of the high
strength.
Multiply each factor's weight by its rating to determine a weighted score for each
variable. Sum the weighted scores for each variable to determine the total weighted score for
the organization.i
Table 1. Internal Factors Evaluation Matrix for Mang Inasal
STRENGTHS WEIGHT Rating Weighted
Score
Market dominance 0.08 4 0.32
Rapid sales growth 0.08 3 0.24
Intensive Marketing 0.07 3 0.21
Unli Rice Promo deals 0.09 4 0.36
The power of the 0.09 3 0.27
brand
Popular to Families 0.06 3 0.18
and Groups
Supply chain 0.06 3 0.18
Diversification 0.07 2 0.14
WEAKNESSES
Small range of 0.07 2 0.14
products
Unhealthy products 0.09 1 0.09
Very expensive 0.09 3 0.27
Difficult in patent 0.07 2 0.14
protection
Anti-brand campaigns 0.08 3 0.24
TOTAL 1.00 2.5
The data of the Internal Factor Evaluation matrix as shown in Table 1 for Mang Inasal
show the overall weighting of 2.5 points, it is worth mentioning that Mang Inasal brand makes
good use of its strengths and possesses sufficient control over its weaknesses. The score 2.5 is
an average score thus the IFE internal factor rating matrix is positive for Mang Inasal.
The other company that I will compare to my chosen company is the Good Taste. Here
we can see the internal factors used for the strengths and weaknesses are 1. Company Name, 2.
Quality of Meals, 3. Product Safety, 4. Work Ethic, and 5. Marketing.
What the other group did here, the weight was no longer placed on the tens value of the
percentage and only 1% and 2% were used. Maybe they did this to make it easier to see the
weight of the factors. Something that will also reflect the weighted score is simple and easy to
compute for the over-all weight.
Table 2. Internal Factors Evaluation Matrix for Good Taste
STRENGTHS WEIGHT Rating Weighted Score
Company Image 0.2 3 0.6
Quality of Meals 0.1 4 0.4
Products safety 0.1 4 0.4
Work ethic 0.1 2 0.2
Marketing 0.2 3 0.6
WEAKNESSES WEIGHT Rating Weighted Score
Small range of products 0.1 2 0.2
Technology 0.1 1 0.1
Location 0.1 1 0.1
TOTAL 1.00 2.5
The data of the IFE internal factor evaluation matrix as described in Table 2 form the
overall weighting of 2.5 points, it is worth mentioning that the Good Taste brand makes good
use of its strengths and possesses sufficient control over its weaknesses. The result 2.5 is an
average score, so the IFE internal factor rating matrix is positive for Good Taste.
The data derived from the results of the IFE matrix showed the evaluation aspects of
internal factors for both company. In distinction to the data of the IFE matrix it appears that
both Mang Inasal and Good Taste have the same total weighting of points 2.5. The result 2.5 is
an average score, so the IFE internal factor rating matrix is positive for both company.
What are the major strengths that the company would capitalize? And, what major
weakness would the company improve upon.
Strengths are internal resources and qualities that distinguish a company from its
competitors. On the other hand, weaknesses are factors that a company lacks where competitors
have a competitive advantage against them.
Based on Table 1, Mang Inasal has the following strengths: 1. Market dominance, 2. Rapid
sales growth, 3. Intensive Marketing, 4. Presence in the Community, 5. The power of the brand,
6. The used of “Unli Rice”, 7. Supply chain, 8. Diversification.
Accordingly, the weight assigned to a given factor in Strengths indicates the relative importance
of the factor. In this case, all strengths are given 2 to 4 weight multiplied to the ranking of three (3) to
four (4) based on the level of importance by Mang Inasal, summing up with a total weighted score of
2.50. With the equally highest ranking of four (4) as strengths are success factors for Mang Inasal’s
business growth.
The strength of Mang Inasal in IFE matrix, both the market dominance and its unli rice promo
deal weight equal to 9%. The five factors with a number 3 rating, in terms of Mang Inasal's strengths,
continue to establish themselves against other food chain competitors is one that it is popular with
families and friends.
With these strengths identified, there are still weakening factors to its business ventures.
From Mang Inasal’s IFE Matrix, the most weakening factors of the company include the
unhealthy products and very expensive prices with both 9% weight. Secondarily, with a weight
of 7% is the small range of products and difficult in patent protection. Because Mang Inasal's
main dish is only chicken and the possibility of imitating of the inasal prcess and their chicken
oil is one of their perceived weaknesses. With a 0.88 total weighted score for its weaknesses, it
is evident that Mang Inasal should come up with solutions to minimize its impact to the
business’ success. Overall, the total weighted score when the Strengths and Weaknesses are
added together in the IFE Matrix is 2.50.
i
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