Question

4-9. Describe two ways how a firm can determine from a list of 50 to 100 internal factors the 20 most important factors to include in an IFE Matrix

Answer 1

Two ways by which a firm can determine from a list of 50 to 100 internal factors the 20 most important factors to include in an IFE Matrix are:

1. Prioritizing strengths and weaknesses: Prioritizing the relative importance of strengths and weaknesses in an Internal Factor Evaluation (IFE) Matrix helps in targeting the most important factors which need to be included in IFE Matrix. By prioritization of these strengths and weaknesses, a better result shall be obtained and analysis also gets more accurate. Targeting important strengths and weaknesses and focussing on them helps in evaluation of these which ultimately results in increasing functional department productivity and streamlining of processes and systems within that functional department.

2. Analysis and shortlisting of individual factors: Another way to reduce the number of factors and select the important ones is to go through each and every factor and select the ones which seem important from the analysis point of view and target key improvement areas in the functional department. This leads to better improvement and evaluation of factors and improve organizational efficiency and effectiveness.