Pasalo, Rem Edcel E. 4-AAC

Internal Factor Evaluation (IFE) Matrix

Key Internal

Factors

Weight Rating Weighted Score

Strengths

1.Current ratio

increased by 3% 0.09 2 0.18

2. Inventory

turnover

increased from

50.98 to 73.58 0.08 3 0.24

3. Days sales in

inventory

improved from

7.16 days to 4.96

days 0.09 3 0.27

4. Acquisition of

new equipment

for operations 0.06 3 0.18

5. Morale of

employees are

pleasant 0.05 4 0.2

6. Company’s

cash increased by

60.88% 0.07 2 0.14

7. Availability of

alternative

payments

increase customer

0.05 4 0.2

attractions

8. Branch

manager position

requires a MBA

degree 0.05 4 0.2

Weaknesses

9.Debt Ratio (debt

to asset ratio)

increased from

89.65% to 91.07% 0.09 3 0.27

10. Unable to

meet the current

demands of the

creditors 0.08 3 0.24

11. Store is only

available in

selected spots 0.05 4 0.2

12. Branch stores

need to be more

spacious 0.04 2 0.08

13. Net income

decreased by

67.49% 0.07 3 0.21

14. Figaro has

troublesome in

online services 0.05 2 0.1

15. Operating

expenses

increased by

4.37% 0.08 3 0.24

Total 1 2.95

The table above represents the matrix for evaluation of internal

controls and operations of the Figaro Coffee Company. Information was

gathered through an internal personnel working under Figaro Coffee

Company in which they answered questions in relation to management,

marketing, product/operations, research and development, and management

information systems audit. In terms of financial/accounting audit, the

researcher analyses the company’s financial statements so as to present

transparency among the quantitative data gathered.

Like the External Factor Evaluation (EFE), IFE includes weight, rating,

and weighted score but it now relates to the internal factors affecting the

company. Factors having an important degree in having success in the

industry are the “current ratio increased”, “days sales in inventory”, and

“debt ratio”. When it comes to company’s viewpoint, their strengths are the

“morale of employees”, “availability of alternative payments”, and “branch

manager’s MBA requirement” but on the other hand, the only major

weakness from the company is the “selected spot location” and a minor

weakness from “unable to meet the current demands of the creditors”. This

only means that through the company’s strategy to provide excellent service

by the employees and expanding the alternative options, the company will

have an increase cash inflow thru sales so as to meet the demands of the

current creditors as well as the long-term creditors. Factors having the

highest weighted score are the “days sales” and “debt ratio” – both of which

garnering the 0.27 score. The total score Figaro Coffee Company received is

2.95 out of 4 indicating an above-average operation internally though some

improvements may be of help to further furnish the problems especially on

paying debts and expansion of more stores where competitors might be.