Answer to Question #283807 in Marketing for zoya

Question

 Construct an EFE Matrix for IU’s business school using the five steps as follows:

1. List key external factors as identified in the external-audit process. Include a total of 20 factors from both the opportunities and threats.

2. Assign to each factor a weight from 0.0 (not important) to 1.0 (very important). These weights show the relative importance. The total of all the weights should equal 1.0.

3. Assign a 1-4 rating to each factor to indicate how effective the firm’s current response strategy is: 1= the response is poor, 2 = the response is average, 3 = the response is above average, and 4 = the response is superior.

4. Multiply each factor’s weight by its rating to get a weighted score.

5. Sum the weighted scores for each variable to determine the total weighted score for the organization.

Answer 1

Answer

External Factor Evaluation (EFE) matrix method is a strategic-management mechanism often used for examination of current business conditions. Key external factors can be summarized after analysing the external environment with the tools like PEST analysis, Porter’s Five Forces or Competitive Profile Matrix.