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EFAS & IFAS: Are there weaknesses in the classification system?

Describe the EFAS and the IFAS. What is the purpose of each tool? Are there any weaknesses in the EFAS/IFAS classification system?


Conduct various environmental analyses as they relate to an organization
Provide references and cite in-text where required.

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The factors those influence a firm's activities are known as internal and external factors of the organization. The controllable factors by the organization are known as internal factors such as management, manpower, machine and material etc (Orcullo, 2007). In contrast, external factors are those factors which are uncontrollable by the organization (Grant, 2005). Internal factors are related to internal environment of the organization whereas external factors are beyond the boundaries or external environment of the organization. In internal factors analysis, organization's strengths and weaknesses are considered. In contrast to this, external factor analysis covers organization's threats and opportunities (Daft & Marcic, 2008). With the help of effective analysis of both factors, an organization can sustain competitive advantage through its proactive nature towards internal and external business environment.

In internal factor analysis (IFAS), organizational strategy, policy & system, organizational culture and internal resources such as management, employees, finance, machine etc are analyzed for the organization success (Davenport, Leibold & Voelpel, 2006). Contrary to this, in external factor analysis (EFAS), economical, socio-cultural, technological, environmental and legal factors are analyzed (Shelly, Cashman & Rosenblatt, 2007). It covers suppliers, customers, investors, competitors, government, community, public, law & regulations, infrastructure factors, industry, ethical ...

Solution Summary

The weaknesses in the classification systems are examined.