Pasalo, Rem Edcel E.

4-AAC

Internal Factor Evaluation (IFE) Matrix

Key Internal

Weight

Rating

Weighted Score

0.09

0.18

0.08

0.24

0.09

0.27

0.06

0.18

0.05

0.2

0.07

0.14

0.05
0.05

4
4

0.2
0.2

Factors
Strengths
1.Current ratio
increased by 3%
2. Inventory
turnover
increased from
50.98 to 73.58
3. Days sales in
inventory
improved from
7.16 days to 4.96
days
4. Acquisition of
new equipment
for operations
5. Morale of
employees are
pleasant
6. Companys
cash increased by
60.88%
7. Availability of
alternative
payments
increase customer
attractions
8. Branch
manager position

requires a MBA
degree
Weaknesses
9.Debt Ratio (debt
to asset ratio)
increased from
89.65% to 91.07%
10. Unable to

0.09

0.27

0.08

0.24

0.05

0.2

0.04

0.08

0.07

0.21

0.05

0.1

0.08
1

0.24
2.95

meet the current

demands of the
creditors
11. Store is only
available in
selected spots
12. Branch stores
need to be more
spacious
13. Net income
decreased by
67.49%
14. Figaro has
troublesome in
online services
15. Operating
expenses
increased by
4.37%
Total

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 companys 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 companys viewpoint, their strengths are the
morale of employees, availability of alternative payments, and branch
managers 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 companys 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.