Virtual microstructures having a systematic variation of amount, mean size, standard deviation of size, and spatial arrangement of intermetallics have been synthesized, and their deformation behavior in uniaxial tension has been evaluated using finite element analysis. Four spatial arrangements of intermetallics have been considered in this work, namely: random, clustered, and two-ordered structures. Various mathematical quantities have been developed to quantify the severity of deformation including plastic work density distribution (PWDD), percentile work-density volume criterion (PWC), and percentile stress volume criterion (PSC). This approach eliminates the need for an external trigger in FEA to achieve localization. The method developed has led to a better understanding of the effect of different microstructural attributes on the process of deformation. This has resulted in guidelines for optimizing the microstructure to minimize material damage and thereby maximize ductility.