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In order to perform the internal audit of any firm we use the Internal Factor Evaluation (IFE) Matrix as it is one of the best strategic tools and is used for internal analysis of different areas which are in business function like finance, IT, operations, marketing, accounts, human resource and other fields which are dependent on the nature of the business and its size.Internal Factor Evaluation (IFE) Matrix Assignment Help gives us the information that Internal Factor Evaluation (IFE) Matrix is a tool of strategic management which is commonly used for auditing and evaluating major strengths and weaknesses in mostly the functional areas of a business or organization. Internal Factor Evaluation (IFE) Matrix has been proved to be providing a basis for identifying and evaluating relationships among those functional areas of business.
We can also say that the Internal Factor Evaluation (IFE) Matrix is somewhat similar to External Factor Evaluation (EFE) Matrix. Internal Factor Evaluation (IFE) Matrix Assignment Help tells us the major difference between Internal Factor Evaluation Matrix and External Factor Evaluation Matrix i.e. the factors included in the models of both IFE Matrix and EFE Matrix are different. In case of IFE Matrix, the factors used are internal while in case of EFE Matrix, the factors used are solely restricted to external factors.
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Steps to create the Internal Factor Evaluation (IFE) Matrix
Internal Factor Evaluation (IFE) Matrix Assignment Help gives us the knowledge on the steps required to create an Internal Factor Evaluation (IFE) Matrix.
These steps are
• List Factors- The audit should be conducted and the strengths and weaknesses of the business areas should be identified and the internal factors should be listed. The more the internal factors, the better it is for the Internal Factor Matrix.
• Assign Weights- After having identified the strengths and weaknesses, the next step is to assign weights which ranges from 0.00 to 1.00 where 0.00 means the factors are not important whereas 1.00 indicates that the factor is very important. This clearly indicates that the assignment gives the relative importance of the factors.
• Rate Factors- After having assigned weights to the factors, one has to assign rates to the factors ranging from 1 to 4, where 1 represents major weakness and 4 represents major strength. Here, the weights are industry – based, whereas the rates are company – based.
• Multiplication of weights by rating- Now the factor’s weight is to be multiplied by their corresponding ratings which will give the weighted score of each factor.
• Totaling of all the weighted scores – Lastly, each factor has to be added up to get the total weighted score of the business or organization.
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