Internal Factor Evaluation

Internal Factor Evaluation (IFE) matrix is a strategic management tool

for auditing or evaluating major strengths and weaknesses in functional
areas of a business. IFE matrix also provides a basis for identifying
and evaluating relationships among those areas.
IFE of TCS is Given Below:

Strenghts
Large no of branches 0.11 4 0.44
60% shares in sentiments express 0.13 3 0.39
Transportation Fleet 0.14 3 0.42
More than 200 Countries 0.13 4 0.52
Research & Development Dpt 0.11 4 0.44
Financial Stability 0.12 3 0.36

Weaknesses
No Formal Contracts 0.08 2 0.16
IT System 0.11 2 0.22
Overseas Partners 0.07 1 0.07
Total 1 3.02

Result: According to internal factor evaluation the score is greater than

2.5 so the company is internally strong.

1
 External Factor Evaluation
External Factor Evaluation (EFE) matrix method is a strategic-
management tool often used for assessment of current business
conditions. The EFE matrix is a good tool to visualize and prioritize the
opportunities and threats that a business is facing,
EFE of TCS is Given Below:

Factors Weight Rate Score

Opportunities
Growing Market 0.12 4 0.48
KSE 0.14 3 0.42
Price War 0.13 4 0.52
Own Terminals on Ports 0.09 3 0.27

Threats
Competitors with new technology 0.15 3 0.45
Govt Policies 0.1 1 0.1
Corruption 0.13 3 0.39
PIA Started Courrier Service 0.14 2 0.28
Total 1 2.91

Result: According to External factor evaluation the score is greater than

2.5 so the company is Externally strong.

2
 Competitive Profile Matrix
The Competitive Profile Matrix (CPM) is a strategic analysis that allows you to
compare your company to your competitors, in such a way as to reveal your
relative strengths and weaknesses.
CPM of TCS with Leopards and OCS is given below:

Key Success Factor Weighting TCS Leopards OCS

Rating Score Rating Score Rating Score
Financial Position 0.1 4 0.4 3 0.3 3 0.3
Management 0.1 3 0.3 2 0.2 2 0.2
Local Offices 0.11 3 0.33 4 0.44 3 0.33
Customer Loyalty 0.11 4 0.44 3 0.33 2 0.22
Employees 0.1 2 0.2 2 0.2 3 0.3
Technology 0.1 3 0.3 4 0.4 3 0.3
Advertisement 0.1 2 0.2 4 0.4 2 0.2
Product & Price 0.1 4 0.4 2 0.2 3 0.3
Market Shares 0.11 4 0.44 3 0.33 2 0.22
Investments 0.07 3 0.21 3 0.21 3 0.21

Total 1 3.22 3.01 2.58

Result:
According to CPM TCS and Leopards is in a good competition,
but OCS is not performing well to compete.

3
 Space Matrix

FP
Conservative Aggressive
+6
+5
+4
+3
+2
+1

CP SP
-6 -5 -4 -3 -2 -1 -1 +1 +2 +3 +4 +5 +6

-2
-3

-4

Defensive -5 Competitive
-6
IP

Y-axis = SP=FP, -6+5.5 = -0.5

X-axis = CP=IP, -5+5.5 = 0.5