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190 PART 2 • STRATEGY FORMULATION

FIGURE 6-10
An Example IE Matrix
THE IFE TOTAL WEIGHTED SCORES
Strong Average Weak
3.0 to 4.0 2.0 to 2.99 1.0 to 1.99
3.0 2.0 1.0
4.0
1 2
High 25%
3.0 to 4.0 50%
3.0
THE
EFE Medium
TOTAL 2.0 to 2.99 3 4 5%
WEIGHTED 20%
SCORES 2.0
Low
1.0 to 1.99
1.0
Division Sales Percent Sales Profits Percent Profits IFE Scores EFE Scores

1 $100 25.0 10 50 3.6 3.2
2 200 50.0 5 25 2.1 3.5
3 50 12.5 4 20 3.1 2.1
4 50 12.5 1 5 1.8 2.5
Total 400 100.0 20 100

FIGURE 6-11

The IE Matrix
THE IFE TOTAL WEIGHTED SCORES
Strong Average Weak
3.0 to 4.0 2.0 to 2.99 1.0 to 1.99
4.0 3.0 2.0 1.0
I II III
High
3.0 to 4.0
16% 5
3.0 4%
THE IV V VI
EFE Medium 3 4
TOTAL 2.0 to 2.99 59% 2%
WEIGHTED 1 2
SCORES 2.0
VII VIII 19% IX
Low
1.0 to 1.99
1.0
Grow and Build
Segments $ Revenue % Revenue $ Profit % Profit EFE Scores IFE Scores

1. $7,868 71.5% $3,000 59% 2.5 3
2. 1,241 11.3% 1,000 19% 2 2
3. 1,578 14.3% 800 16% 3 3
4. 90 0.8% 100 2% 2.5 2.5
5. 223 2.1% 200 4% 3 2
Total $11,000 100% $5,100 100% — —