Smith and Wesson Internal Factor Evaluation Matrix and Summary

Smith and Wesson IFE (Internal Factor Evaluation) Matrix and Summary

Founded in 1852, Smith and Wesson regards itself a market leader as far as innovation is considered in the manufacture of firearms. During its 165 years in the firearm manufacturing industry, the company has developed a wide range of pistols, starting with the volcanic pistol in 1852 to the M&P M2.0 pistol in 2017, with the latter being regarded a masterpiece as far as “grip, frame, and finish” is concerned (Smith and Wesson, 2017).

Table 1.0: IFE Matrix of Smith & Wesson

Strengths

Weight

Rating

Weighted Score

Excellent production quality

Significant market share

Brand image

Innovation

Strong and consistent growth in revenues

Well-founded R&D

Strong managerial team

Weaknesses

High manufacturing cost

Large portion of revenues drawn from U.S. market

Dependence on a single revenue stream i.e. firearm manufacture only

Total Weight Score

Summary

The IFE matrix, in the words of Lodato (2014), “is a tool to help in evaluating the internal environment of the business by visualizing and evaluating major strengths and weaknesses in functional areas of a business” (p. 99). The IFE Matrix of Smith and Wesson came in handy as I sought to evaluate the internal environment of the firearms maker with an aim of revealing both its strengths and weaknesses. In essence, this analysis demonstrates that as far as the assessment of an entity’s strengths and weaknesses is concerned, IFE matrix remains a key tool in strategic management. From the assessment above it is easy to draw associations between various factors.

According to Lodato (2014), 2.5 is regarded to be the average weighted score – effectively meaning that an entity with a total weighted score in excess of 2.5 is seen as being in a better position as far as its internal strength is concerned. On the other hand, an entity reporting a score lower than 2.5 is considered to be in a worse position with regard to internal strength. In that regard, therefore, with a total weight score of 3.04, Smith & Wesson cannot be regarded weak internally.

On the basis of this exercise, it should be noted that in the final analysis, the relevance of IFE matrix when it comes to the formulation of strategy cannot be overstated. However, it is important to note that on its own, the IFE matrix lacks significant value as far as the sound formulation of strategy is concerned. In that regard, therefore, it ought to be combined with other strategic management and assessment tools including, but not limited to, the EFE (external factors evaluation) matrix and the SWOT (strengths, weaknesses, opportunities, threats) analysis.