Question

IFE and EFE for bank of america

Answer 1

IFE : Internal Factor Evaluation (IFE) Matrix.

Internal factor evaluation is a strategy used to analyse organizational internal environment and to understand its strengths and weaknesses. Strengths and weaknesses are used as the key internal factors in the IFE evaluation.

Strenghths:

• What you have achieved in the last /current year? What is the plan this year to sustain and improve the performance?
• What you do exceptionally well than have your competitors have

Weakness:

• What didn't went well this year?
• What your failure or challenges or focus this year ?
• What areas your competitors scoring good than you? What is your plan to beat the competition?

EFE : External Factor Evaluation (EFE) Matrix.

External factor evaluation is a strategy applied to examine company's external environment and to figure out the available opportunities and threats.

The financial services industry is diverse and complex. The opportunities and threats of SWOT analysis are the keyfactors evaluated in an EFE.  

The External Factors Evaluation (EFE) In Bank of America, the sum of the weighted scores is the EFE score. Effectiveness of firms current statergy is analysed by assigning a 1-4 rating to each critical success factor (1 = response is poor, 4 = response is extremely good) by multiplying each factor's weightage by its rating to determine a weighted score. The analysis includes mulitple assessments of the several levels of the company's strategy, and also recommendations for changes in the company's strategic focus.

Advantages of both the methods:

• Quick and easy to implement
• Easy to understand
• Covers the internal and external factors

Steps to calculate the analysis:

The following step-by-step can be helpful to guide the rating process of the EFE and IFE matrices:

Step 1:

First, the most important external and internal factors must be identified.

Step 2:

Weightings and ratings must be subjectively assigned. The weightings are assigned based on opinions and knowledge of the sector.

Step 3:

Multiply the weightings and ratings of each factors, a weighted total score is calculated. Both the EFE and IFE analyses must be combined, and this can lead to new strategies. They can be used for building an advanced SWOT analysis.

This method is used in Bank of America to benchmark their performance as well.

Note: I have provided all the necessary information in short and simple format. Since there is no preference mentioned about lines and paragraph I have provided reasonable amount of detail to understand the concept.

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