STRATEGIC MANAGEMENT

Assignment No. 4

Submitted By:
Name: Gourab Roy,
ID: 19PMHS010 Dept. of MHSS,
MBA, 3rd Semester NIT Agartala
Internal Factor Evaluation (IFE) Matrix

Key Internal Factors Weight Rating Weighted

Score
Strengths      

1. Increase in revenue from 2007 to 2008 by 3.4 percent to 0.07 2 0.14

$7.2 billion
2. Yahoo is the second leading global Internet brand 0.1 4 0.4

3. Other than offering advertising and online properties, the 0.07 4 0.28
company offers Internet access through third-party
entities
4. Other than advertising fees, Yahoo generates additional 0.09 3 0.27
revenue by charging fees for a range of premium services
5. With additional lay-offs, the company anticipating to have 0.06 4 0.24
a better profitability for the next few years
6. Within Internet base service, Yahoo! has several revenue 0.08 4 0.32
generated segments such as Search, Display Related,
Classified, Referrals / Lead Generation and Email.
7. Company's quick ratio is 2.78, above industry average 0.1 4 0.4

Weaknesses  

1. The net income decreased by 35.7 percent to $424 million. 0.08 2 0.16

2. Overall advertising revenue dropped by 13 percent in the 0.1 2 0.2

2nd quarter of 2009 compare to the prior year
3. Yahoo! closed several of its video properties and is 0.08 2 0.16
planning to close twenty video services including its social
network site Yahoo! 360 and its Web hosting service
GeoCities
4. Company's capital lease and other long-term liabilities 0.08 2 0.16
increased by over $48 million
5. Microsoft has tried to acquire Yahoo! twice for the last 0.09 2 0.18
three years
Total 1.00   2.91