01 Jan Microsoft Internet

Internal Factor Analysis Summary Guidelines

Here are some guidelines for completing an IFAS:

Internal Factors (Column 1):

Select five strategic strengths and weaknesses that are facing your company of choice.
List each of these factors as either strengths or weaknesses.
Give a short description of each factor.
Weight (Column 2):

The total weight for all of the factors should be 1.00.
Decide how strategic each of the ten factors is in comparison to each other. As an example, a factor that might have a high strategic significance to the firm may have a weight ranging from .15 to .20. On the other hand, a factor that may have little in the way of strategic significance, when compared to the other nine factors, might have a weight of .05.
Rating (Column 3):

In this column you are to rate how effective the firm has been in meeting the opportunities and threats, with 5.0 being the top score for any factor. As an example, if you feel a firm is doing a super job of moving into Asia then give a rating of 5.0.
Weighted Score (Column 4):

Now multiple the scores you have in Columns 2 and 3 for each factor.
This will produce a weighted score for each factor.
Comments (Column 5):

Give a short description that reflects why you gave the rating (Column 3) you did to each factor.
Total Scores:

At the bottom of the matrix you are to record the totals of each Column- Weight (Column 2), Rating (Column 3), and Weighted Score (Column 4).
The Total Weighted Score should indicate how effective your firm has been in handling its strengths and weaknesses.

INTERNAL FACTOR ANALYSIS SUMMARY (IFAS)

FACTORS

WEIGHT

RATING

WGTD

SCORE

COMMENTS

STRENGHTS

S1

S2

S3

S4

S5

WEAKNESSES

W1

W2

W3

W4

W5

TOTAL SCORES

FACTORS

WEIGHT

RATING

WGTD

SCORE

COMMENTS

STRENGHTS

S1

Windows and Windows Live

.15

4.5

.675

Windows & Windows Live Division offerings consist of the Windows 7 and Windows 8 operating system, software and services through Windows Live, and PC hardware products. Windows operating system has been bedrock of Microsoft corporations, and has consistently fended off and serious competition from the industry and has been clear leader for personal computing sector.

S2

Enterprise Server and Tools

.15

5

.75

Enterprise Server and Tools product and service offerings include Windows Server, Windows Azure, Microsoft SQL Server, Windows Embedded device platforms, and Enterprise Services. Enterprise Services comprise Premier product support services and Microsoft Consulting Services. And like Windows operating system for personal computing, Microsoft has dominated enterprise computing via its Windows server and SQL server platforms.

S3

Gaming and Entertainment (Xbox and Xbox live)

.10

4.5

.45

Microsoft’s gaming and entertainment offerings include the Xbox 360 entertainment platform, including Kinect for Xbox 360. Microsoft also offersXbox LIVE service, which enables online gaming, social networking, and access to a wide range of video, gaming, and entertainment content. Kinect in particular has provided Microsoft much needed edge over its competitors in the gaming sector.

S4

Diverse and global talent

.05

4.5

.225

Success of any company is highly dependent on their ability to attract and retain qualified employees, Microsoft has done relatively well to attract technical workforce from across the globe and created an environment to nurture and foster that talent to new heights. The diversity of their workforce in terms of technical breadth as well as the geographical spread provides Microsoft completive edge with the research and development of wide range product and services.

S5

Brand Image

.05

3.5

.175

Over last 38 years since its inception in 1975, Microsoft had clearly developed a brand image and reputation for itself. Even though it has faced fierce challenge and attacks from its competitors, Microsoft still is popular global brand. Bill Gates’ vision for Microsoft “A personal computer in every home running Microsoft software” has become close to reality and, Microsoft has become a true household name across the world.

WEAKNESSES

W1

Innovation

.15

2.5

.375

Over last decade or so Microsoft seems to be losing the battle of innovation over it competitors. More often than not, Microsoft seems to be following its competitors’ innovation that leading the pack. For Microsoft to retain its global leadership, it really need to re-vigor the innovative powerhouse that Microsoft once was.

W2

Lack of clear direction

.10

2.5

.25

The recent change in Microsoft’s business model from being primarily a software company to that of software, services and devices company has created lack of direction for the ranks and files, particularly because every division is targeted to handle all three aspect of business. To be successful Microsoft really need to re-organize itself across the new business model, and in recent days they have started initiative in that direction.

W3

Windows Phone and Tablet

.10

2

.2

Microsoft launched itself in the smartphone sector in 2010 with its Widows 7 phone, and Surface was Microsoft’s attempt to get into the tablet business. They haven’t performed very well in either of these two; Window 8 phone has performed relatively better than its predecessor but overall has not come even close to the competition.

W4

Search Engine sector

.10

3

.3

Microsoft has been trying to compete in the search engine sector for long time. Microsoft’s original search engine MSN Search never really got any traction and they launched their current search engine BING in 2009. BING has done relatively better than MSN Search and has taken over the 2nd place from Yahoo, but still way behind than Google.

W5

Web browser (Internet Explorer)

.05

2.5

.125

Microsoft Internet Explorer (IE) was the leading web browser until it was ousted by Google Chrome just over a year ago. For now IE is maintaining 2ndplace ahead of Firebox. Even though IE by itself is not a major revenue source but it can certainly help steer customers towards other Microsoft products and services.

TOTAL SCORES

1.00

3.525