Question

In the IFE, weights apply to the ________, in the EFE, weights apply to the ________. Weaknesses and threats both have to add up to ________.

1) company, industry, 1.0
2) industry, company, 1.0
3) industry, industry, 0.5
4) company, company, 0.5

Answer 1

In the IFE, weights apply to the company and in the EFE, weights apply to the industry. The total for all weights, including for weaknesses and threats, must equal 1.0 to maintain a balanced assessment in these evaluations.

Step-by-step explanation:

In the Internal Factor Evaluation (IFE), weights apply to the company whereas in the External Factor Evaluation (EFE), weights apply to the industry. The total sum of the weights for all factors, including weaknesses and threats, must add up to 1.0. This ensures that the evaluation process is balanced, and that all factors, whether internal or external, positive or negative, are given their fair share of consideration when assessing the overall position of a company in its competitive environment.