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Efe&Ife Revised

This document contains an external factor evaluation matrix (EFE) and internal factor evaluation matrix (IFE) for Avon Company. The EFE weighted score is 2.67, indicating the company has been somewhat successful in utilizing opportunities and minimizing threats. The IFE weighted score is 2.35, showing Avon's internal functions and roles are weak. Key opportunities include increasing makeup trends, green products, and online markets. Key threats include intense competition, changing consumer preferences, and customers switching to low price products. Key strengths include a recognized global brand and highly skilled workforce. Key weaknesses include low market share, decreasing revenue, and poor brand loyalty.

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167 views

Efe&Ife Revised

This document contains an external factor evaluation matrix (EFE) and internal factor evaluation matrix (IFE) for Avon Company. The EFE weighted score is 2.67, indicating the company has been somewhat successful in utilizing opportunities and minimizing threats. The IFE weighted score is 2.35, showing Avon's internal functions and roles are weak. Key opportunities include increasing makeup trends, green products, and online markets. Key threats include intense competition, changing consumer preferences, and customers switching to low price products. Key strengths include a recognized global brand and highly skilled workforce. Key weaknesses include low market share, decreasing revenue, and poor brand loyalty.

Uploaded by

alyssa
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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External Factor Evaluation Matrix (EFE)

Opportunities Weight Rating Weighted


Score
1. Increasing trend of make-up 0.08 3 0.24
2. Growing trend of “green” products 0.05 2 0.10
3. Emergence of fashion Industry 0.08 2 0.16
4. Online markets becoming increasingly popular 0.07 3 0.21
5. Expand and venture 0.04 2 0.08

6. Urban trendsetters market 0.04 3 0.12

7. Moving to low cost countries to get location 0.03 4 0.12


economies
8. Technological advancement 0.04 3 0.12
9. Aveda cosmetics found 68% of consumers will be 0.04 4 0.16
loyal to a company that has a social and
environmental commitment
10. Unemployment rate for female declined 0.03 3 0.09

Threats Weight Rating Weighted


Score
1. Intense Competition 0.07 3 0.21
2. Change in consumer preferences abruptly 0.08 3 0.24
3. Products are easily substituted 0.05 2 0.10
4. New technologies developed by the competitor 0.03 2 0.06
5. Advertising strategies through social media sites 0.04 3 0.12
6. Majority of Avon's competitors distribute their 0.04 1 0.04
products to resellers such as department stores,
drugstores, or cosmetic stores

7. Customers Switching towards low price products 0.07 3 0.21


8. Large market to operate in 0.05 3 0.15
9. Exchange Rate risk 0.03 2 0.06
10. Increase in commodity Prices 0.04 2 0.08
TOTALS 1.00 2.67

Analysis of EFE Matrix


As the result shows that the Avon Company’s Total Weighted Score is 2.67 which show that
somehow company has been successful in utilizing its opportunities and minimizing the threats
around it.
Internal Factor Evaluation (IFE)

Strengths Weight Rating Weighted


Score
1. Recognized Global brand 0.07 3 0.21
2. World’s largest direct seller 0.05 3 0.15
3. Highly skilled workforce 0.04 4 0.16

4. Highly responsive to CSR 0.08 3 0.24


5. Strong Brand Portfolio 0.07 3 0.21

6. Successful advertising campaigns 0.05 3 0.15


7. The Largest Women Foundation 0.05 4 0.20
8. Differentiated products 0.04 4 0.16

9. Has a great adaptation to diverse culture 0.02 3 0.06


10. Avon own its major manufacturing and distribution 0.03 4 0.12
centers
Weaknesses Weight Rating Weighted
Score
1. Low market share compared to competitors 0.07 1 0.07

2. Decreasing revenue 0.06 1 0.06


3. Poor brand loyalty 0.04 1 0.04
4. Increase in long term debt 0.04 2 0.08
5. High advertising costs 0.03 1 0.03

6. Increased in prices of products 0.05 1 0.05


7. Lack of control over representatives 0.03 1 0.03
8. Company's global challenges is generating buzz 0.10 2 0.20
9. Poor technological advancements 0.05 2 0.10
10. Home Segment experiencing loss 0.03 1 0.03
TOTALS 1.00 2.35

Analysis of IFE Matrix


As the result shows that the Avon Company’s Total Weighted Score is 2.35 which indicated that
the internal functions and roles are weak.

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