How to Use The IFE-EFE Matrix for Strategic Analysis

Overview

In this 1-hour long project-based course, you will be able to analyze your organization and identify your competitive advantage with the Internal Factor Evaluation-External Factor Evaluation (IFE-EFE) matrix. IFE-EFE matrix is strategic management tools used for input stage of strategy formulation. The IFE is focused on the internal dimension of the organization by looking at the strengths and weaknesses. While the EFE is concerned with the external factors by focusing on the opportunities and threats the organization is exposed to. The IFE-EFE matrix is created by assigning weight to each of the factors based on their perceived impact. Then the factors are ranked based on the company performance on each. The weighted score is determined by multiplying the weight by the ranks. Finally, the information on the overall scores of the IFE- EFE would reveal if the company meets the threshold to survive the competitiveness of the industry. To demonstrate the application of the IFE-EFE matrix, we will use a spreadsheet to analyze a division of our energy services company together. The example of the case study would empower you to use the model to analyze your company or any other company of your choice. The project is for business leaders and entrepreneurs who want have a deep insight on how their internal and external factors determines their competitiveness. Also, for strategist who are interested in helping organization in making informed strategic decisions. At the end of the project, you will be able to use the IFE-EFE matrix to create a competitive advantage