| Internal Factor Evaluation Matrix for US Airways | |||
| Key Internal Factors |
Weight |
Rating |
Weighted Score |
| Internal Strengths | |||
| 1. Variety of planes / excessive assets |
0.11 |
4 |
0.44 |
| 2. East Coast dominance |
0.04 |
3 |
0.12 |
| 3. Financial recognition of instability |
0.01 |
3 |
0.03 |
| 4. Customer satisfaction |
0.07 |
4 |
0.28 |
| 5. Competition |
0.04 |
3 |
0.12 |
| 6. New C.E.O. |
0.05 |
3 |
0.15 |
| Internal Weaknesses | |||
| 1. Excessive assets |
0.10 |
1 |
0.10 |
| 2. High overhead |
0.13 |
1 |
0.13 |
| 3. Unprofitable Flights |
0.06 |
1 |
0.06 |
| 4. Grew too fast |
0.00 |
2 |
0.00 |
| 5. Location of hubs |
0.04 |
2 |
0.08 |
| 6. Resignation of C.E.O. |
0.01 |
2 |
0.02 |
| 7. Poor employee morale |
0.02 |
2 |
0.04 |
| 8. Bankruptcy |
0.05 |
1 |
0.05 |
| 9. Poor customer service |
0.04 |
2 |
0.08 |
| 10. Non aggressive competition |
0.03 |
2 |
0.06 |
| 11. Breakdown of merger with United |
0.06 |
1 |
0.06 |
| 12. No vision or contingency plan |
0.08 |
1 |
0.08 |
| 13. Plane crashes |
0.06 |
1 |
0.06 |
| TOTAL |
1.00 |
1.96 |
|
This Internal Factor Evaluation Matrix (IFE) is used to summarize and evaluate the major strengths and weaknesses of US Airways by assigning numerical importance (D 149). Each factor has been given a weight to indicate the relative importance to US Airways’ success in the airline industry, ranging from 0.0 (not important) to 1.0 (all important) (D 149-150). Each factor has also been assigned a rating of one to four, which represents a major weakness, 1, minor weakness, 2, minor strength, 3, or major strength, 4 (D 150). The weighted score is the product of each factor’s weight and rating. The total weighted score can range from 1.0 to 4.0, with an average of 2.5 (D150). Weighted scores below 2.5 indicate that an organization is internally weak (D 150).
The IFE of US Airways results in a total weighted score of 1.96. This represents internal weakness, which is accurate based on the current internal struggles US Airways faces. According to the IFE matrix, the greatest internal weaknesses US Airways must resolve are high overhead and excessive assets.