BUS480 Developing an Internal Factor Analysis for Delta Airlines Paper
selected company:TargetCorporation
HELPFUL NOTES
Helpful Hint #1: internal factors are those the firm as control over. I will be doing reality checks when reading your work, asking, “Does the firm control this activity?”
Helpful Hint #2: your explanation/comments column can make all the difference (as it did in the EFAS) in my answer to the question above.
Helpful Hint #3: yes, a generically named factor can be listed on both the EFAS and IFAS so long as the comments made the difference clear between the two. But a wiser student would modify the names so this situation didn’t arise.
In Column 1 (Internal Factors), list the 8 to 10 most important strengths and weaknesses facing the company.
In Column 2 (Weight), assign a weight to each factor from 1.0 (Most Important) to 0.0 (Not Important) based on that factor’s probable impact on a particular company’s current strategic position. The higher the weight, the more important is this factor to the current and future success of the company. All weights must sum to 1.0 regardless of the number of factors.
In Column 3 (Rating), assign a rating to each factor from 5.0 (Outstanding) to 1.0 (Poor) based on management’s specific response to that particular factor. Each rating is a judgment regarding how well the company’s management is currently dealing with each specific internal factor.
In Column 4 (Weighted Score), multiply the weight in Column 2 for each factor times its rating in Column 3 to obtain that factor’s weighted score.
In Column 5 (Comments), note why a particular factor was selected and/or how its weight and rating were estimated.
Finally, add the weighted scores for all the internal factors in Column 4 to determine the total weighted score for that particular company. The total weighted score indicates how well a particular company is responding to current and expected factors in its internal environment. The score can be used to compare that firm to other firms in its industry. Check to ensure that the total weighted score truly reflects the company’s current performance in terms of profitability and market share. The total weighted score for an average firm in an industry is always 3.0
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