Scribd
Upload
11K views2 pages

Internal Factors Evaluation Matrix of

Internal Factors Evaluation Matrix (IFE) is a tool that analyzes a firm's internal strengths and weaknesses using information from an internal audit. The IFE matrix of an online retail company showed its main strengths are a strong brand name, corporate culture, and sales/post-sales services. However, its major weaknesses are the risks of unrelated diversification and high shipping costs for some products. While the company's weighted score shows an overall strong internal position, there are still issues like high costs from diversifying products and a lack of multiple language website support.

Uploaded by

Tayyaub khalid
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
11K views2 pages

Internal Factors Evaluation Matrix of

Internal Factors Evaluation Matrix (IFE) is a tool that analyzes a firm's internal strengths and weaknesses using information from an internal audit. The IFE matrix of an online retail company showed its main strengths are a strong brand name, corporate culture, and sales/post-sales services. However, its major weaknesses are the risks of unrelated diversification and high shipping costs for some products. While the company's weighted score shows an overall strong internal position, there are still issues like high costs from diversifying products and a lack of multiple language website support.

Uploaded by

Tayyaub khalid
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
You are on page 1/ 2

Internal Factors Evaluation Matrix (IFE) Key Internal Factors Weig Rati hts ng 0.0 to 1 to 1.0 4 0.15 0.

1 0.07 0.1 0.1 0.05 0.08 4 4 3 4 4 3 4 Weight ed Scores

Internal Strengths 1. Strong brand name 2. Corporate Culture 3. High quality management team 4. Customer Support Services 5. Effective post sales services 6. Developed and upgraded technology: Software and Hardware 7. High shipping Quality Internal Weaknesses 8. Gradual decrease in profit from 2004-2006 9. Risk associated with unrelated diversification 10.Certain products that are offered have high shipping costs 11.Company offering free shipping might affect future financial outcome 12.Lack of website with Custom languages

0.6 0.4 0.21 0.4 0.4 0.15 0.32

0.1 0.1 0.05 0.05 0.05

1 2 1 2 2

0.1 0.2 0.05 0.1 0.1

Totals 1 3.03 What Weights mean: 0.0 = least important; 1.0 = most important What Ratings mean: 1 = major weakness; 2 = minor weakness; 3 = minor strength; 4 = major
strength

Internal factors evaluation matrix (IFE) is a tool that uses internal audits report to analyze a firms internal strengths and weaknesses. An IFE matrix gives important information and helps in strategy formulation. The main strengths of online retail market in which Amazon operates is the strong brand names and recognition also corporate culture and sales and post sales services are of relative importance, too. The major weakness of this industry is the risk associated with venturing into retailing of products that are unrelated and high shipping cost related to some products. The weighted score of 3.03 (which is greater than 2.5) shows a strong internal position but there are still issues to be sorted out. As in case of Amazon due to high product diversification and venturing into new product markets costs have been high and though

net sales have increased since 2004 the net income has significantly decreased. Amazons website lacks an important aspect of having different languages for different regions have also a significant impact on their sales as well over the years.

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy