CASE STUDY: APOLLO

HOSPITALS PVT. LTD

INTERNAL AND EXTERNAL FACTOR
ANALYSIS
Contents
SL.NO PARTICULARS SLIDE NUMBER

1 Brief: Apollo Hospital Pvt. Ltd. 3

2 IFE / EFE Matrix: Introduction 4

3 IFE / EFE Matrix: Steps to Follow 5

4 Apollo Hospital: IFE / EFE Analysis 6-7

Brief: Apollo Hospital Pvt. Ltd.
 Apollo Hospital was established in the year 1983 .

 Mission: “Let everyone can accept a world-class health care services .” Is the price and
quality ,convenient services , is the core of the Apollo Hospital .

 Selection results 2013 Asian Hospital Management Awards in the Asian Management
Conference HMA website : Apollo Hospitals India won several awards , is Asia ‘s only super-
class Asian Hospital .

 Over the past 30 years, India’s Apollo Hospitals has 37 hospitals distributed around the
world.

 Apollo Hospitals has occupy more than 50% market share .They have in recent times
became one of India’s largest integrated healthcare group.

 They are also very much working to promote the success of the revolutionary development
of private hospitals in India .

 It has a license to practice medicine in the United States and Europe

IFE / EFE Matrix
 Internal Factor Evaluation (IFE) Matrix is a strategy tool used to evaluate firm’s internal
environment and to reveal its strengths as well as weaknesses.

 External Factor Evaluation (EFE) Matrix is a strategy tool used to examine company’s
external environment and to identify the available opportunities and threats.

 Both IFE and EFE matrices have been introduced by an American

strategic planning scholar and consultant named Fred R. David in his
book ‘Strategic Management’ in 1997.

 The IFE/EFE matrices consists of following parameters:

1. IFE / EFE factors: The key external / Internal factors related to business Opportunities,
Threats and its Strengths and Weaknesses are extracted and mentioned.

2. Impact ratings: The ratings of the EFE and IFE matrix range from -2 to +2.

3. Weights: Each key factor within the EFE matrix and the IFE matrix is weighted with a
number ranging between 0.0 to 1.0. The sum of all should be equal to 1.0.

4. Weighted Score: (Impact ratings) x (Weights)

IFE / EFE Matrix: Steps to follow
 Steps to guide the rating process of the EFE and IFE matrices:

Step 1: The most important external and internal factors are identified. This clarifies which
factors currently affect the organisation.

This could concern opportunities or threats that could help or harm the organization. Also, the
Strengths and Weaknesses.

Step 2: Now, the weightings and Impact ratings are subjectively assigned. Often, the
weightings are assigned based on opinions and knowledge of the sector.

Step 3: Multiplying the weightings and Impact ratings of each factors, a weighted total score is
calculated.

Step 4: Both the EFE and IFE analyses are then combined, and this can lead to new strategies.
They can be used for building an advanced SWOT analysis, for instance.

The total score rates the organization's internal/external position and the strategic intention.
IFE / EFE Matrix
 External Factor WEIGHTED WEIGHTED Internal Factor
Evaluation (EFE) IMPACT WEIGHTS IMPACT IMPACT WEIGHTS IMPACT Evaluation (IFE)
OPPORTUNITY STRENGTHS
Healthy Developments By
2 0.12 0.24 0.4 0.2 2 50% Market Share
Govt.
Future Growth Potential
of 2 0.1 0.2 0.2 0.1 2 Skilled Doctors
Medical Industry
Annual Growth in Indian 37 Branches all over the
and Foreign Patients 2 0.1 0.2 0.1 0.05 2 world
arrivals
More advance medical
Increased private funding 1 0.05 0.05 0.2 0.1 2 technology
Scope for enhanced 60% license to practice
2 0.2 0.4 0.1 0.05 2
Medical outsourcing abroad

Scope to increase Licensed

practices 1 0.05 0.05 0.2 0.1 2 30 years old company

Neat and Clean hospital

Foreign attraction 1 0.1 0.1 0.1 0.1 1 premises
Freedom of consumer 2 0.01 0.02        
disposable income
THREATS WEAKNESSES
Increasing Competitive High price
-1 0.07 -0.07 -0.1 0.1 -1
environment

Target customers : Upper &

competitive price -2 0.1 --0.2 -0.24 0.12 -2 Middle class

Telemedicine, Ayurvedic Lack in diversify growth in

-2 0.1 -0.2 -0.16 0.08 -2 other treatments
Treatmrnts

Total 1.73 1.80 Total

TOTAL     TOTAL
IFE / EFE Matrix: Apollo Hospital
Note:

 IFE Matrix ratings: Major Strengths (+2), Minor Strengths (+1), Major Weakness (-2), Minor
Weakness (-1).

 EFE Matrix ratings: Major opportunity (+2), Minor Opportunity (+1), Major Threats (-2),
Minor Threat (-1)

 Insights / Points To Note

 Total weighted score well below 1.0 characterize organizations that are weak internally /
externally and vice versa.

 In the case of Apollo Hospital, the IFE weighted score is 1.80 which suggest the
organization has a strong internal position.

 Similarly, the EFE weighted score of 1.73 suggesting the organization is responding
effectively to existing opportunities and minimizing the potential threats in its industry.