Internal Factor Evaluation (IFE) matrix is a strategic management instrument for assessing main strengths and weaknesses in useful areas of a company. IFE matrix also gives a foundation for recognizing and assessing associations among those parts. The IFE matrix is utilized in strategy formulation. An example of internal factor evaluation matrix is given for the Coca-Cola Company.


Steps in the Construction of IFE Matrix


  1. In the first column, lists down all the strengths and weaknesses. IFE matrix should include 10 to 20 key internal factors.
  2. In the second column, assign weights to each factor ranging from 0.0 (not important to 1 (most important). Greater weights should be given to those internal factors which have grater influence on the organizational performance.
  3. The sum of all weights must equal 1.
  4. In the third column, rate each factor ranging from 1 to 4. Here, rating 1 represents major weakness, rating 2 shows minor weakness. Similarly, rating 3 indicates minor strength whereas rating 4 shows major strength. It means that weakness must receive 1 or 2 rating while strength must get 3 or 4 rating.
  5. In the fourth column, calculate weighted score by multiplying each factor’s score by its rating.
  6. Find the total weighted score by adding the weighted scores for each variable.


IFE Matrix  of Coca-Cola Company



The total weighted score ranges from 1 to 4 (where 1 is low, 4 is high and 2.5 is average) regardless of the total number of internal factors used in the analysis. If the total weighted score is less than 2.5 it indicates that the organization is weak internally. On the other hand, the scores above 2.5 show strong internal position. An internal factor could be included twice in the IFE Matrix if the factor is both strength and weakness. In case of Coca-Cola Company the total weighted score is above than average, it means that the company is strong internally.

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