Internal
Factor Evaluation Matrix generally known as IFE matrix; is one of the strategic
management tool for analyzing and evaluating important internal weaknesses and
strengths in functional parts of a company. This matrix is exercised in
strategy formulation and also grants stage for identifying and auditing
relationship among those parts.
Internal
Factor Evaluation jointly with External Factor Evaluation matrix is used to
formulate strategies for a business in considering internal weaknesses and
strengths. The Internal Factor Evaluation matrix consists of factors such as
(weaknesses and strengths), weight from (0.0 to 1.0), and rating (0.0 to 4.00)
and in conclusion the weighted score after multiplying weight with rating. Here
is the example of Whirlpool Company.
It
is observed that Perrigo Company has a strong competitive position in the
market with rapid growth. It needs to use its internal strengths to develop a
market penetration and market development strategy. Other possible strategies
include product development, integration with other companies and also
concentric diversification.
One
of the strategies is market development.
As Perrigo is largest company and has three subsidiaries. However, Perrigo is
not located in every area of USA. Therefore, it should try to expand their branches into new geographical
areas or markets. Besides, Perrigo should also aggressively find ways to grow its business overseas such as UK,
Europe and middle-east. This objective can be attained through mergers and
acquisitions (M&A). Besides, Perrigo should carry out the market penetration strategy. The
management of Perrigo can think out the best way to sustain and compete in
exist market as well as new market.
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