External Factor Evaluation (EFE) Matrix Assignment Help

Posted on July 6, 2017

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The strategic management tool which allows the strategists to examine the economic, cultural, social, political, demographic, legal and competitive information is called as External Factor Evaluation (EFE) Matrix. External Factor Evaluation indicates whether a firm is able to take advantage effectively of the existing opportunities including minimizing the external threats which is given in External Factor Evaluation (EFE) Matrix Assignment Help. On the basis of existing niche of the company, External Factor Evaluation (EFE) matrix helps the strategists to develop new strategies and policies. It can also be used for assessing the current business conditions. The External Factor Evaluation (EFE) Matrix is important to prioritize and visualize the opportunities and threats that a business might face in future or is facing in the present. Somewhere, we can say that the External Factor Evaluation (EFE) Matrix is similar to Internal Factor Evaluation (IFE) Matrix. External Factor Evaluation (EFE) Matrix Assignment Help tells us the major difference between External Factor Evaluation Matrix and Internal Factor Evaluation Matrix i.e. the factors included in the models of both EFE Matrix and IFE Matrix are different. In case of IFE Matrix, the factors used are internal while in case of EFE Matrix, the factors used are solely restricted to external factors. External factors include social, political, legal, economic and other external f

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Steps to create the External Factor Evaluation (EFE) Matrix

 

External Factor Evaluation (EFE) Matrix Assignment Help gives us the knowledge on the steps required to create an External Factor Evaluation (EFE) Matrix.
These steps are
• List Factors – This is the very first step of creating the External Factor Evaluation Matrix. Here a list of external factors are gathered and are divided into two groups i.e. opportunities and threats.
• Assign Weights- The second step is concerned with the assignment of weights to the external factors which should be between 0 to 10 or 10 to 100 if 10 to 100 scales is being used where 0 means the factor has no importance and 200 means that the factor is most critical one. It can be studied in External Factor Evaluation (EFE) Matrix Assignment Help.
• Rate Factors- Here a rate is being assigned to each external factor where the rating should be 1 to 4. Here 1 indicates that the response is poor whereas 4 indicate that the response is very superior. Here weights are industry – specific whereas ratings are company – specific.
• Multiplication of weights by rating – Each factor weight should be multiplied with its rating to obtain the weighted score for each factor.
• Totaling of all the weighted scores- All the weighted score obtained by the multiplication is added together to obtain the total weighted score for the company.

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• Highly educated professionals have shared their knowledge in this article.
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