Question

Construct an External and Internal Factor Evaluation (EFE) Matrix for Hospital

Answer 1

Internal factor evaluation matrix (IFE matrix): It is a strategic management tool to audit and evaluates internal factors like the strengths and weaknesses of a hospital. It provides a basic understanding of the evaluation of the relationship among different operational areas of the hospital. An example of the IFE matrix factor is the SWOT analysis. Five steps are followed to develop an IFE matrix. Steps are as follows:

· Critical internal factors: An internal audit should be conducted to address both the strengths and weaknesses in the hospital; for example, cultural connection with patients, innovative healthcare technology or staffing issues, and vulnerability issues. Two different lists should be made for strengths and weaknesses consisting of around 10-20 factors in each list. All weigh to 0.00 to 1.00.

· Weights: All the factors should be numbered from 0.00 to 1.00 according to their strengths, and weaknesses. The most crucial factor will get 1.0, followed by other factors that will be lesser than 1.0.

· Rating: All the 1.0 rating factors should be numbered again from 1 to 4 according to their weight of strength and weakness.

· Multiplication: Hence, multiplication will be done between rating numbers and weight numbers.

· Sum: The ultimate sum is the EFE matrix score. For example- if the cultural connection with patients gets 4 by multiplying both the numbers, it will be considered the most crucial IFE.

External factor evaluation matrix (EFE matrix): External factor evaluation matrix or EFE matrix is a strategic tool to examine a hospital's external environment to address all the opportunities and threats. Example of an external factor evaluation analysis is PEST analysis, and Porter's five forces analysis. It also has five steps which are as follows:

· Factor listing: External factors should be listed; for example, the social environment of the hospital, political environment of the hospital, availability of technical equipment in the hospital, and market competitiveness in the hospital.

· Weight assigning: Weights should be attributed to each factor according to their importance from 0.00 to 1.00.

· Rating factors: Most weighted factors should be rated from 1 to 4 according to importance and relevance to the hospital ambiance.

· Multiplication: Weighted numbers and ratings should be multiplied.

· Sum: The highest number should be considered as the total weighted score of the hospital; for example, it can be a social factor of the hospital or the technical advancement of the hospital.