PRESENTATION TOPIC:

INTERNAL FACTOR EVALUATION (IFE)

MATRIX:

Organization (Unilever)
Presented by
(025-MBA-17)
IFE (matrix):

 The process to create the IFE matrix closely

parallel to the process to create the EFE matrix but
the difference is that IFE matrix includes the Firm’s
Strengths and weakness and we have to determine
it.

 The internal factor evaluation Matrix helps to

gather and assimilate information about the firm’s
operations like: management, marketing,
finance/accounting, production/operations,
research and development (R&D), and
management information systems.
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 The process of performing an internal audit provides
more opportunity for participants to understand how their
jobs, departments, and divisions, fit into the whole
organization. This gives a great benefit because
managers and employees perform better when they
understand how their work affects other areas and
activities of the firm.

 For example, when marketing and manufacturing

managers jointly discuss issues related to internal
strengths and weaknesses, they gain a better
appreciation of the issues, problems, concerns, and needs
of all the functional areas. Performing an internal audit
thus is an excellent vehicle or forum for improving the
process of communication in the organization.
IFE Matrix can be developed in 5
steps:
1: List key Internal factors, including both strengths and weaknesses that affect the firm and its
industry.
• Include a total 15 to 20 factors, List the Strength first and then the weaknesses.

2:  Assign to each factor a weight that ranges from 0.0 (not important) to 1.0 (very important).

3. Assign a rating between 1 and 4 to each key internal factor to indicate how effectively the firm’s
current strategies respond to the factor.

• Where 4 indicates that the response is superior, 3 indicates that the response is above average, 2
indicates that the response is average and 1 indicates that the response is poor.

• Ratings are based on effectiveness of the firm’s strategies.

• Ratings are thus company-based, whereas the weights in step 2 are industry-based.

4: Multiply each factor’s weight by its rating to determine a weighted score.

5. Sum the weighted scores for each variable to determine the total weighted score for the
organization.
 Unilever Internal Factor Evaluation Matrix:

Key internal Strengths Weight rating Weighted

score
Larger number of producer 0.1 4 0.4
Advance technology 0.05 4 0.2
Supply Chain Management 0.05 3 0.15
Financial Backing 0.2 4 0.8
Experience top Management 0.2 3 0.6
Key internal Weaknesses
Tall organization Structure 0.1 2 0.2
Operating expenses are high 0.05 2 0.1
Production cost is high 0.05 2 0.1
Long term strategies 0.1 2 0.2
Emphasize on only few 0.1 1 0.1
products
TOTAL 1.00 2.85
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Unilever’s internal structure is strong

because
their weighted score is 2.85 which is
above
average score (2.5)