Sample Essay
The Internal Factor Evaluation Matrix based on the internal strengths and weaknesses of the Estee Lauder Companies is depicted below.
|
IFE Matrix |
|||
|
Internal Strengths |
Weight |
Rating |
Weighted Score |
| Brand loyalty |
15% |
4 |
0.6 |
| Brand value and representation |
7% |
4 |
0.28 |
| Wide international presence |
7% |
3 |
0.21 |
| Strong brand and product portfolio |
10% |
3 |
0.3 |
| Strong R&D function |
10% |
4 |
0.4 |
| Good liquidity position |
5% |
3 |
0.15 |
| Efficient use of resources |
10% |
4 |
0.4 |
| CSR Initiatives (Corporate Social Responsibility) |
5% |
3 |
0.15 |
|
Internal Weaknesses |
|
0 |
|
| Decreasing income from hair care business |
5% |
2 |
0.1 |
| Decreasing income fromAmericassegment |
10% |
1 |
0.1 |
| Company reliance on few customers (loyal customers) |
6% |
2 |
0.12 |
| Slow declining market share |
10% |
1 |
0.1 |
|
100% |
2.91 |
||
The weighted score of 2.91 on theIFEmatrix depicts Estee Lauder has relatively above average internal position.
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Essay: Internal Factor Evaluation Matrix; Estee Lauder