INTERNAL FACTOR EVALUATION OF ACER

INTERNAL FACTOR EVALUATION (IFE) MATRIX is a strategic management tool for

auditing or evaluating major strengths and weaknesses in functional areas of a business. IFE matrix also provides a basis for identifying and evaluating relationships among those areas. The Internal Factor Evaluation matrix or short IFE matrix is used in strategy formulation. The IFE Matrix together with the EFE matrix is a strategy-formulation tool that can be utilized to evaluate how a company is performing in regards to identified internal strengths and weaknesses of a company. The IFE matrix method conceptually relates to the Balanced Scorecard method in some aspects.

HOW IFE MATRIX CAN BE CREATED: It can be created by using the following five steps. 1. 2. 3. 4. Key internal factor: list down all strength and weaknesses. Weights: assign weights to each factor. Rating: rate each factor ranging 1 to 4. Multiply: calculate weight score by multiplying each factors score by its rating. 5. Sum: find the total weight score by adding the weight score for each variable. HTC ANALYSISOFIFEMATRIX: the IFE of HTC shows weightage average of 2.79 is above
average which means corporation is able to use is toped resources and focus on strength like updated machinery, new technology used that is increased cost can be control through revenue earned by HTC. However, it has small range of cell phones compared to NOKIA and has very high manufacturing cost as well but still there is a great room for improvement as HTC is competing with the great players of mobile market they need to continue producing new mobile models to cope up with the competition. As entering into new markets like china and INDIA can bring heavy cash inflow to the company but the need is to have heavy spending on advertisement to that will not only give HTC brand recognition but will bring huge profits that can strengthen its financial position and can improve its financial ratios as well.

Reference: http://mba-lectures.com/management/strategic-management/1097/ife-matrix-ofcoca-cola-company.html http://www.slideshare.net/SamreenLodhi/htc-complete-analysis