strategic-management

190 PART 2 • STRATEGY FORMULATION
FIGURE 6-10
An Example IE Matrix
THE
EFE
TOTAL
WEIGHTED
SCORES
FIGURE 6-11
The IE Matrix
THE
EFE
TOTAL
WEIGHTED
SCORES
High
3.0 to 4.0
Medium
2.0 to 2.99
Low
1.0 to 1.99
High
3.0 to 4.0
Medium
2.0 to 2.99
Low
1.0 to 1.99
4.0
3.0
2.0
1.0
4.0
3.0
2.0
1.0
Division
1
2
3
4
Total
Strong
3.0 to 4.0
Sales
$100
200
50
50
400
Percent Sales Profits
Average
2.0 to 2.99
3.0
1 2
50%
Grow and Build
Segments
1.
2.
3.
4.
5.
Total
Strong
3.0 to 4.0
3
THE IFE TOTAL WEIGHTED SCORES
25.0
50.0
12.5
12.5
100.0
20%
10
5
4
1
20
Average
2.0 to 2.99
3.0
I II
Percent Profits
50
25
20
5
100
4
Weak
1.0 to 1.99
2.0 1.0
25%
THE IFE TOTAL WEIGHTED SCORES
16%
5%
IFE Scores
3.6
2.1
3.1
1.8
Weak
1.0 to 1.99
IV 3 V
4
VI
59%
2%
1
2
VII VIII 19% IX
EFE Scores
3.2
3.5
2.1
2.5
$ Revenue % Revenue $ Profit % Profit EFE Scores IFE Scores
$7,868
1,241
1,578
90
223
$11,000
71.5%
11.3%
14.3%
0.8%
2.1%
100%
$3,000
1,000
800
100
200
$5,100
5
2.0 1.0
4%
59%
19%
16%
2%
4%
100%
III
2.5
2
3
2.5
3
—
3
2
3
2.5
2
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