The IFE Matrix should be constructed in what manner for multidivisional firms?

The IFE (Internal Factor Evaluation) Matrix is a strategic management tool used to assess the internal strengths and weaknesses of an organization. For multidivisional firms, constructing the IFE Matrix for each autonomous division is particularly effective. This approach allows for a more granular analysis of each division's unique internal factors, which may vary significantly due to different market conditions, operational capabilities, or strategic focuses.

By assessing each division independently, the firm gains insights into specific strengths that can be leveraged and weaknesses that need to be addressed within each distinct operational area. This tailored evaluation leads to more informed strategic planning and resource allocation decisions that take into account the diverse characteristics of each division.

In contrast, constructing the IFE Matrix for only the major divisions or creating an all-inclusive matrix may overlook critical details. Major divisions may not capture the performance and internal dynamics of smaller divisions that are also important to the overall success of the firm. Similarly, a comprehensive view might dilute the specific insights that could be derived from focusing on individual divisions. Revising the matrix monthly is typically impractical and may not provide additional value given the time and resources required for such frequent updates.

Overall, constructing the IFE Matrix for each autonomous division provides the most contextually relevant and actionable insights, enhancing