п»їB. Exterior Factor Evaluation (EFE) Matrix

External Factor Evaluation (EFE) matrix is known as a well-known proper tool has become used for the evaluation of external environment of a company. External environment mainly consist of political, legal, economic, interpersonal and technical factors. A good should identify the exterior factors and segregate them into possibilities and risks. The chances are the options available for a firm to further enhance its position in an industry only if a firm intrusions each provided opportunity. However, threats are considered as unfavorable factors to get a firm which might harm where it stands in an industry however , impact of menace could be reduced or taken away if a company responds to each threat punctually.

Steps in expanding the EFE Matrix:

1 . Identify a directory of KEY exterior factors (critical success factors). 2 . Designate a pounds to each element, ranging from 0 (not important) to 1. 0 (very important). 3. Assign a 1-4 rating to each critical success factor to indicate how effectively the business current approaches respond to the factor. (1 = response is poor, 4 = response is incredibly good) some. Multiply each factor's weight by it is rating to ascertain a measured score. 5. Sum the weighted results.

Burger King's EFE Matrix




Weighted ScoreВ

Are operating in fast growing industry

0. 07 (7%)В


zero. 21

Embrace demand of healthy products

0. '08 (8%)


0. twenty four

Cost competition

0. 09 (9%)


0. 18

Merger and acquisition

zero. 06 (6%)


0. 12

Include healthy food in its menu

zero. 10 (10%)


zero. 30

The positive effect

0. 12 (10%)

three or more

0. 35


Strong competition specifically from Burger King

0. 12 (10%)

three or more

0. 31

New entrants in take out industry

0. 05 (5%)


0. 15

Online sales increasing which will results in increasing competition В 0. twelve (10%)


0. 40

Changing consumer habits

0. 05 (5%)


zero. 10

Personal issues...


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