Internal factors facing a firm
INSTRUCTIONS:
1. Internal factors are those the firm has control over. I will be doing reality checks when reading your work, asking, “Does the firm control this activity?”
2. Your explanation/comments column can make all the difference (as it did in the EFAS) in my answer to the question above. Use short names for the factors, but flesh them out in the explanations/comments so they make sense when you look at them later. Comments are expected to be at least 3-5 sentences in length and depth and offer a clear explanation of the strategic factor: why it is a strategic factor; how you assigned the weight; and how you assigned the rating. Clearly identify your Core Competencies and Distinctive Competencies in the IFAS.
a. Why it is a strategic factor: explain why you selected this SF and what is the potential impact on the firm. Estimate the potential impact on the firm in a quantitative manner (% and/or $) using some metric: sales, revenues, costs, market share, profits, logistics pipeline, CSI, etc. Use a positive analysis (quantitative) rather than a normative analysis (feelings, desires). Focus on what is the potential gain from your SF strengths or the potential loss from your SF weakness, rather than giving a history lesson. You should estimate and predict the impact. Be creative. This is the same kind of analysis and estimation you will use to construct your Strategic Alternative Scenarios. Don’t develop future actions or alternatives here in the IFAS about how a firm will take action on a particular SF. The brainstorming development of those alternative actions comes with the TOWS Analysis. Clearly identify your Core Competencies and Distinctive Competencies in the Comments block.
b.How you assigned the weight: explain the importance of the SF to the firm’s survival. Is the SF of vital importance or low importance on a scale of 1 to 0? What SF has the biggest impact? Which one(s) are the Big Dogs? Make a logical explanation of why the weight you have assigned is what it is.
c. How you assigned the rating: provide an explanation of how well, or how badly, the firm is handling each specific internal SF. Use the scale of 1 – 5, poor to outstanding; comparing the firm’s performance against the industry standard rating of 3. Give a logical explanation of why the rating is what it is. Do they handle it well (strength) or are they lost (weakness)?
3. A generically named factor can be listed on both the EFAS and IFAS so long as the comments made the difference clear between the two. But a wiser student would modify the names so this situation didn’t arise.
4. Use the Template IFAS as the template for your work. Ensure that your format displays correctly and is readable. Again, the Template is provided for you to make it easy for you to construct the chart….DO NOT copy the text. Use your own critical analysis and critical thinking skills to develop your own Strengths and Weaknesses and Comments for paragraph 2 above. The template gives you a good idea of the appropriate comments to discuss your analysis, weights and ratings.
5. Follow the guidance in the Live Sessions. Remember to keep your decision making at the strategic level – the Big Picture level. You are acting as the CEO/SVP. But you are also acting at the lower levels to brainstorm, generate alternatives, perform critical analysis, and make recommendations to the CEO/SVP levels. The decision maker CEO/SVP decides on the most important strategic factors.
