Buying aircraft, equipment, training of flight and ground crew, setting up marketing strategies, and buying space at airports can be very costly. This makes the barriers of entry very high for someone to enter into the aviation community. Each quarter this firm obtains market research for the past quarter.
When using the EFE matrix we identify the key external opportunities and threats that are affecting or might affect a company. Where do we get these factors from? Strengths and weaknesses are used as the key internal factors in the evaluation. When looking for the strengths, ask what do you do better or have more valuable than your competitors have?
In case of the weaknesses, ask which areas of your company you could improve and at least catch up with your competitors? The general rule is to identify key external factors and additional key internal factors, but you should identify as many factors as possible.
Weights Each key factor should be assigned a weight ranging from 0. The number indicates how important the factor is if a company wants to succeed in an industry. If there were no Jetblue airways ifas efas assigned, all the factors would be equally important, which is an impossible scenario in the real world.
The sum of all the weights must equal 1. Separate factors should not be given too much emphasis assigning a weight of 0. Weights have the same meaning in both matrices. The numbers range from 4 to 1, where 4 means a superior response, 3 — above average response, 2 — average response and 1 — poor response.
Ratings, as well as weights, are assigned subjectively to each factor. The company is better prepared to meet the threats, especially the first threat. The ratings in internal matrix refer to how strong or weak each factor is in a firm.
The numbers range from 4 to 1, where 4 means a major strength, 3 — minor strength, 2 — minor weakness and 1 — major weakness.
The process of assigning ratings in IFE matrix can be done easier using benchmarking tool. Each key factor must receive a score. Total weighted score is simply the sum of all individual weighted scores.
The firm can receive the same total score from 1 to 4 in both matrices. The total score of 2. In internal evaluation a low score indicates that the company is weak against its competitors.
SFAS Framework Analysis () on the Global Top 5 Commercial Aircraft OEMs: Boeing, Airbus, Bombardier, Embraer, ATR - ashio-midori.com This condenses the factors generated in the EFAS and IFAS Tables into the most important (strategic) factors facing the company. § JetBlue Airlines' Success He is coauthor with Thomas L. Wheelen of Strategic Management and Business Policy and Essentials of Strategic Management plus Concepts in Strategic Management and. to Strategic Management and Business Policy 1 CHAPTER 1 Basic Concepts of Strategic Management 2 The Study of Strategic Management 5 Phases of Strategic Management 5 Benefits of Strategic Management. to Strategic Management and Business Policy 1 CHAPTER.
In our example, the company has received total score 2. The company should improve its strategy and focus more on how take advantage of the opportunities. Benefits Both matrices have the following benefits: The input factors have a clear meaning to everyone inside or outside the company.
The matrices do not require extensive expertise, many personnel or lots of time to build.
Focuses on the key internal and external factors. Unlike some other analyses e. Both analyses only identify and evaluate the factors but do not help the company directly in determining the next strategic move or the best strategy. Other strategy tools have to be used for that.
SWOT matrix has the same limitation and it means that some factors that are not specific enough can be confused with each other. Some strengths can be weaknesses as well, e. The same situation is with opportunities and threats. Therefore, each factor has to be as specific as possible to avoid confusion over where the factor should be assigned.
Using the tool Step 1. Do the PEST analysis first. The information from the PEST analysis reveals which factors currently affect or may affect the company in the future. At this point, the factors can be either opportunities or threats and your next task is to sort them into one or the other category.
Try to look at which factors could benefit the company and which ones would harm it. This way you would know what competitors are doing right and what their strategies lack.
In case you have done a SWOT analysis already, you can gather some of the factors from there.to Strategic Management and Business Policy 1 CHAPTER 1 Basic Concepts of Strategic Management 2 The Study of Strategic Management 5 Phases of Strategic Management 5 Benefits of Strategic Management.
to Strategic Management and Business Policy 1 CHAPTER. Completing the Internal Factor Analysis Summary (IFAS) Form 1. List strengths and weaknesses that your farm has (6 items) in the Internal Factors column. These are things over which you as a manager have control. 2. Weight each factor from (Most Important) to (Not Important) in the.
Threat of New Entrants High: Switching costs are low for customers that want to switch airlines. Bargaining Power-Buyers High: Other means of transportation are cheaper. Threat of Substitutes Competition is fierce. Rivalry EFAS Internal Analysis Culture & HR JetBlue is a low cost airline.
The IFAS and TOWS Matrix are due on March 15th. I'd really appreciate it if someone can help me asap. Also, please give me a quote on the whole assignment including the strategic audit and one quote on just the EFAS, IFAS and TOWS Matrix.
Interesante modelo para la preparación del diagnóstico estratégico. The tables are to be submitted in one Excel file (one sheet for the EFAS and one sheet for the IFAS), separate from your assignment that will be written in MS Word.
You will be graded on your knowledge of the software and math in building the MS Excel tables, and on your ability to communicate in writing and present your arguments.