Ife And Efe For Reebok

STAGE ONE ANALYSIS

Internal Factor Evaluation (IFE)

- Summary step in conducting an internal strategic management audit.

- Strategy formulation tool that summarizes and evaluate the major strength and weakness in the functional areas of the business.

- It also provides a basis of identifying and evaluating relationships among those areas.

KEY INTERNAL FACTORS

STRENGHTS WEIGHT RATING WEIGHTED SCORE

Worldwide designer, marketer and distributor of sports, 0.11 3 0.33

fitness and casual footwear and apparel - 3rd in the

World

Pump Ð'® Technology 0.11 4 0.44

Innovative technology in footwear and apparel - 0.14 4 0.56

committed to R&D spending, state-of-the-art product

development technology

Use of broadband to advertise - reducing reliance on 0.06 3 0.18

Television ads

Focus on children and youths as target markets. 0.06 3 0.18

Diverse product lines 0.09 4 0.36

Efficient manufacturing practices 0.04 3 0.12

Strong advertising campaigns and use of celebrities 0.14 4 0.56

User - friendly website - availability of online Ð'- shopping 0.03 3 0.09

WEAKNESS WEIGHT RATING WEIGHTED SCORE

All men in top management 0.02 2 0.04

Low gross margin 0.03 2 0.06

Logo not recognized like rival Nike 0.05 2 0.1

Highly debt leveraged 0.04 2 0.08

Image detrimentally affected by labor rights 0.08 2 0.16

Campaigners

Total 1.00 3.26

Legend:-

1- Major weakness

2- Minor weakness

3- Minor strength

4- Major strength

External Factor Evaluation (EFE)

- EFE summarizes and evaluate economic, social, cultural, demographic, environmental, political, governmental, legal, technological and competitive information.

KEY ETERNAL FACTORS

OPPORTUNITIES WEIGHT RATING WEIGHTED SCORE

Very large teenage population who buy apparel and footwear. 0.16 4 0.64

Online shopping. 0.04 2 0.08

High paid endorsers are selling products. 0.05 2 0.10

Street wear footwear is in high demand. 0.16 3 0.48

Potential sales from Professional League Endorsements. 0.03 4 0.12

THREATS WEIGHT RATING WEIGHTED SCORE