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B. 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.
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