Answer - Explanation of IFE matrix IFE (Internal Factor Evaluation) Matrix is th
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Question
Answer - Explanation of IFE matrix
IFE (Internal Factor Evaluation) Matrix is the best strategic management tool which helps to assess position of the organization by carrying out the internal audit at the organization. The internal audit at the organization uses the IFE matrix to assess the condition (strong/weak) of all the key internal factors whether they falls under strong category or weak category. Internal factors are the factors which are key contributor in achieving the performance of the organization.
Strength – The strong areas of the organization comes under the strength category in the IFE matrix.
Weakness – The weak areas of the organization comes under the weak category in the IFE matrix.
Weak and strong factors can be identified based on the rating associated to each internal factor. The factor having rating 1 or 2 comes under weak category. The internal factors with rating 3 or 4 come under strong factor category.
Weight – Weight means the weighted given to each individual internal factor out of the 1.0 score. It means 1.0 score is divided into all the internal factors with their respective importance. The sum of all the weighted of all individual factors needs to be 1.0 score. If it is not 1.0 than it will not help in analysis.
Rating – Rating to each individual factor is given in the scale of 1 to 5 with 1 being the least and 5 being the most important.
Weighted Score – Weighted score is the score obtained by multiplying the individual rating with their individual weighted. The sum of weighted score should be within 1.0 to 4.0 score.
Criteria of strength / weakness based on weighted score .
Strong Organization - Total weighted score is from 2.5 to 4.0 score
Weak Organization – Total weighted score is less than 2.5 to 1.0 score
Question - Why the IFE score is not better ?
Answer - The total weighted score of the given IFE matrix 2.69. The score of the matrix if it comes better than 2.5 to 4.0, then it shows the strong position of the organization. And all the key internal factors are strong enough for achieving the business results. If the total weighted score is less than 2.5 . then it shows that the organization falls under weak category.
In the given case, the total weighted score is 2.69, which means the score is just greater than 2.5 or close to 2.5 score, this means the achieved score is the gate crossing score for the organization into strong category. But actually this score is not far away from this 2.5 score. So we can say the organization is just entered into the strong category, but it is not very strong, that with limited issues, it will remain in the strong category for long time. If the score comes close to 4.0 then it will be the great achievement for the organization.
Explanation / Answer
****Do not copy and paste previous answers. ----
Below is an IFE matrix I created for the Bill and Melinda Gates Foundation.
I have to explain why:the IFE score is not better.
How do I explain the IFE matrix?
How do I explain why the score is not better?
Internal Factor Evaluation Matrix for Bill & Melinda Gates Foundation
Key Internal Factors
Weight
Rating
Weighted Score
Strengths
1.
When researching grant requests the Foundation uses exhaustive methods of analyzing requests to capture total cost of the project and the final results.
0.10
4
0.40
2.
The Foundation is two entities, the Gates Foundation and the Gates Foundation Trust, managed by Warren Buffett and Bill and Melinda Gates. This arrangement protects the funding for the foundation by having the financials held separately.
0.07
4
0.28
3.
The Foundation has ongoing dialogue with their grantees and partners and a professional team of executives leading each division of the organization.
0.05
3
0.15
4.
They work with partner organizations worldwide to tackle critical problems in four program areas: Global Development Division, Global Health Division, United States Division, and Global Policy & Advocacy Division.
0.05
3
0.15
5.
They have a $40.3 Billion endowment and a secondary organization called the Gates Philanthropy Partnership that accepts private donations.
0.10
4
0.40
6.
Four phase approach to developing investment strategies, concept development, pre proposal, investment development, management and close.
0.05
3
0.15
7.
A strong information sharing approach provides transparency to partners and investors and is a strong part of their culture.
0.05
4
0.20
8.
Strong political influence on a global scale.
0.06
3
0.18
9.
Leverages the newest technologies to expand their aid programs.
0.05
3
0.15
10.
As a Foundation they have more flexibility when accounting for indirect and direct costs. This gives them a financial advantage over governments when issuing grants.
0.04
3
0.12
Weakness
1.
High staff turnover. People moving to new positions within the foundation or leaving the foundation due to limited career development. Contributes to the communication issues.
0.15
1
0.15
2.
They are a multinational organization working with people in different time zones and cultures that may impact overall communications.
0.05
2
0.10
3.
Public transparency and communicating with others needs to be improved with grantees and other partners.
0.05
1
0.05
4.
Financial losses of vaccines from Taliban violence against polio workers in Pakistan.
0.04
1
0.04
5.
Aid workers encounter violence from Taliban when rendering aid in places like Pakistan.
0.03
1
0.03
6.
Emphasis to use technology for solutions even when it does not make sense.
0.03
2
0.06
7.
Public opinion that aid in foreign countries is going to the wealthy and creating a greater gap and more health issues for the poor.
0.01
2
0.02
8.
Using the Foundations influence to help its target markets. Push back from governments on vaccine use, or education reform.
0.02
2
0.06
9.
No existing system that would help to track and show progress on the education impact of students for the foundation to support this goal.
0.01
2
0.02
Total
1.00
2.69
Key Internal Factors
Weight
Rating
Weighted Score
Strengths
1.
When researching grant requests the Foundation uses exhaustive methods of analyzing requests to capture total cost of the project and the final results.
0.10
4
0.40
2.
The Foundation is two entities, the Gates Foundation and the Gates Foundation Trust, managed by Warren Buffett and Bill and Melinda Gates. This arrangement protects the funding for the foundation by having the financials held separately.
0.07
4
0.28
3.
The Foundation has ongoing dialogue with their grantees and partners and a professional team of executives leading each division of the organization.
0.05
3
0.15
4.
They work with partner organizations worldwide to tackle critical problems in four program areas: Global Development Division, Global Health Division, United States Division, and Global Policy & Advocacy Division.
0.05
3
0.15
5.
They have a $40.3 Billion endowment and a secondary organization called the Gates Philanthropy Partnership that accepts private donations.
0.10
4
0.40
6.
Four phase approach to developing investment strategies, concept development, pre proposal, investment development, management and close.
0.05
3
0.15
7.
A strong information sharing approach provides transparency to partners and investors and is a strong part of their culture.
0.05
4
0.20
8.
Strong political influence on a global scale.
0.06
3
0.18
9.
Leverages the newest technologies to expand their aid programs.
0.05
3
0.15
10.
As a Foundation they have more flexibility when accounting for indirect and direct costs. This gives them a financial advantage over governments when issuing grants.
0.04
3
0.12
Weakness
1.
High staff turnover. People moving to new positions within the foundation or leaving the foundation due to limited career development. Contributes to the communication issues.
0.15
1
0.15
2.
They are a multinational organization working with people in different time zones and cultures that may impact overall communications.
0.05
2
0.10
3.
Public transparency and communicating with others needs to be improved with grantees and other partners.
0.05
1
0.05
4.
Financial losses of vaccines from Taliban violence against polio workers in Pakistan.
0.04
1
0.04
5.
Aid workers encounter violence from Taliban when rendering aid in places like Pakistan.
0.03
1
0.03
6.
Emphasis to use technology for solutions even when it does not make sense.
0.03
2
0.06
7.
Public opinion that aid in foreign countries is going to the wealthy and creating a greater gap and more health issues for the poor.
0.01
2
0.02
8.
Using the Foundations influence to help its target markets. Push back from governments on vaccine use, or education reform.
0.02
2
0.06
9.
No existing system that would help to track and show progress on the education impact of students for the foundation to support this goal.
0.01
2
0.02
Total
1.00
2.69