Month: July 2012

EFE Matrix of Burger King

Burger King is a global fast food chain founded 1953 and operating in fast food industry. Its headquarter is located in Miami-Dade County, Florida,United States. Burger Kings primary menu food items consists of Hamburgers,chicken,French fries,soft drinks,milkshakes,salads,desserts and breakfast. EFE Matrix External factor evaluation (EFE) matrix is a well known strategic tool has been used for the evaluation of external environment of a firm. External environment mainly consist of political,legal,economical,social and technological factors. A firm should determine the external factors and segregate them into opportunities and threats. The opportunities are the options available for a firm to further strengthen its position in a industry only if a firm exploit each offered opportunity. On the other hand, threats are considered as negative factors for a firm which may harm its position in a industry however, impact of threat could be minimized or eliminated if a firm respond to each threat in a timely manner. Here is an example of EFE matrix made for Burger King. Steps in Developing the EFE Matrix 1.Identify a list of KEY external factors (critical success factors). 2.Assign a weight to each factor, 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 firm’s current strategies respond to the factor. (1 = response is poor, 4 = response is extremely good) 4.Multiply each factor’s...

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McDonald’s EFE Matrix

McDonald’s is an American largest fast food chain founded 1940 and operating in fast food industry. Its headquarter is located in Oak Brook, Illinois,United States. Its is serving customers in more than 119 countries. MacDonald’s primary menu food items are hamburgers, cheeseburgers, chicken, French fries, breakfast items, soft drinks, milkshakes and desserts. EFE Matrix External factor evaluation (EFE) matrix is a well known strategic tool has been used for the evaluation of external environment of a firm. External environment mainly consist of political,legal,economical,social and technological factors. A firm should determine the external factors and segregate them into opportunities and threats. The opportunities are the options available for a firm to further strengthen its position in a industry only if a firm exploit each offered opportunity. On the other hand, threats are considered as negative factors for a firm which may harm its position in a industry however, impact of threat could be minimized or eliminated if a firm respond to each threat in a timely manner. Here is an example of EFE matrix made for McDonald’s Stores. Steps in Developing the EFE Matrix 1.Identify a list of KEY external factors (critical success factors). 2.Assign a weight to each factor, 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 firm’s current strategies respond to the factor....

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EFE Matrix of Kraft Foods

Kraft foods is an American company founded in1903 and operating in food processing industry. Its headquarter is located in Northfield, Illinois, United States. The company products are available in more than 170 countries almost serving worldwide. EFE Matrix External factor evaluation (EFE) matrix is a well known strategic tool has been used for the evaluation of external environment of a firm. External environment mainly consist of political,legal,economical,social and technological factors. A firm should determine the external factors and segregate them into opportunities and threats. The opportunities are the options available for a firm to further strengthen its position in a industry only if a firm exploit each offered opportunity. On the other hand, threats are considered as negative factors for a firm which may harm its position in a industry however, impact of threat could be minimized or eliminated if a firm respond to each threat in a timely manner. Here is an example of EFE matrix made for Wal-Mart Stores. Steps in Developing the EFE Matrix 1.Identify a list of KEY external factors (critical success factors). 2.Assign a weight to each factor, 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 firm’s current strategies respond to the factor. (1 = response is poor, 4 = response is extremely good) 4.Multiply each factor’s weight by...

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EFE Matrix of Wal-Mart

External factor evaluation (EFE) matrix is a well known strategic tool has been used for the evaluation of external environment of a firm. External environment mainly consist of political,legal,economical,social and technological factors. A firm should determine the external factors and segregate them into opportunities and threats. The opportunities are the options available for a firm to further strengthen its position in a industry only if a firm exploit each offered opportunity. On the other hand, threats are considered as negative factors for a firm which may harm its position in a industry however, impact of threat could be minimized or eliminated if a firm respond to each threat in a timely manner. Here is an example of EFE matrix made for Wal-Mart Stores. Steps in Developing the EFE Matrix 1.Identify a list of KEY external factors (critical success factors). 2.Assign a weight to each factor, 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 firm’s current strategies respond to the factor. (1 = response is poor, 4 = response is extremely good) 4.Multiply each factor’s weight by its rating to determine a weighted score. 5.Sum the weighted scores. EFE Matrix of Wal-Mart Opportunities Weight Rating Weighted Score Exploit untapped markets of Asia and Europe 0.25 (25%) 4 1.0 Market penetration in USA market 0.05 (5%)...

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EFE Matrix of Walt Disney

The Walt Disney Company is an American Multinational Company with diversified industry of mass media. The company was founded by the Walt and Roy Disney in 1923. The company is headquartered in Burbank, California, United States. The company is owned and executed by the Chairman and Chief Executive Officer Bob Lger. The company is serving its product and services all over the world. The products produced by the company are publishing, movies, theme parks, radio, internet and publishing. The company is one of the best and recognized studios in the Hollywood. The services provided by the company to its customers are licensed. Walt Disney External Factor Evaluation External Strategic Factor Weight Rating Weighted Score Comments OPPORTUNITIES         Opportunity to expand and enhance 0.13 4 0.52 The company has the opportunity to expand and enhance its services by moving it into different segments in the respective markets. Proper and appropriate inventory or stock management 0.07 2 0.14 The operating cost of the company can be reduced by the proper and appropriate inventory or stock management and hence profitability be improved. Development of market in the under development countries is the great opportunity. 0.03 3 0.09 The development of the market by the company in the under development countries is the great opportunity and also with the establishment of the online websites can make the company to success....

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EFE Matrix of Dell Corporation

The company was founded in 1984 at Austin, Texas, United States. The company is based on the industry of computer hardware, software, IT consulting and services. The Michel Dell was the founder of the Dell Company and he is also the Chairman and CEO of the company. The products and services manufactured and produced by the company are desktops, net books, servers, printers, smart phones, scanners and storage etc.  The company has good name in supply chain management and electronic commerce. It is one of the second largest non oil company in the world and first largest in Austin Texas. Dell Corporation External Factor Evaluation Matrix External Strategic Factor Weight Rating Weighted Score Comments OPPORTUNITIES The company is maintaining its very strong position in the market 0.13 4 0.52 The company is maintaining its very strong position in the market as many of the issues and problems are faced by the founder of the company. The company is introducing new enticing goods and services 0.08 4 0.32 The company is introducing new enticing goods and services in the market for its customers and a very wide and diversified product portfolio involving the peripheral devices like the printers and toners. opportunity to broaden its scopes in the developed countries like India, Europe and China. 0.03 4 0.12 The company has the opportunity to broaden its scopes in the developed countries...

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EFE Matrix of Coca Cola Company

The coca cola company was founded in 1886 and it is based on the industry of soft drinks. The company was first started or the origin of the company was United States. The production of the concentrate is sold by the company which is further sold by the company through the licensed bottles of the coca cola. The company has the very strong diversified product portfolio which attracts the interest of the customers. The different flavors of the product are produced by the company like cola lemon, cola lemon lime, cola raspberry, cola lime, cola green tea and cola orange etc. Coca Cola External Factor Evaluation Matrix (EFE Matrix) External Strategic Factor Weight Rating Weighted Score Comments OPPORTUNITIES Strong and diversified product 0.13 4 0.52 Due to the strong and diversified product portfolio the company is not affected by the any new invention in the market. Packaging 0.08 4 0.32 The arrangements made by the company relating to the cola packaging are most advantageous for the company for enhancement in the whole world. The acceptance of the new projects in the company 0.03 4 0.12 The acceptance of the new projects in the company has been stared in the industrial level that increases the demand for the company’s product. New technology 0.14 4 0.56 New technology should be introduced by the company in order to improve the performance and...

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EFE Matrix of Avon

The Avon products company was founded in 1886 by the David H. McConnell. The company is based on the industry of personal care and it is headquartered in New York City, New York, United States. The functions of the company are owned, control and executed by the Chairman Andrea Jung and the CEO Sherliyn S. McCoy. The services of the company are performed all over the world. The product line of the company includes the cosmetics, toys, perfume and clothing. The company is the multi level marketing company and is considered as to be fifth largest beauty company and selling venture across the world. Avon External Factor Evaluation Matrix External Strategic Factor Weight Rating Weighted Score Comments OPPORTUNITIES         Emerging and expanding it through the small firms and businesses. 0.13 3 0.39 There is an opportunity for the company to enhance its business by emerging and expanding it through the small firms and businesses. customer driven demands 0.05 4 0.2 To adopt the various sorts of strategies like of the customer driven demands in order to have the rebranding of the products. restructuring of the initiatives 0.03 2 0.06 The steps should be taken by the company in order to restructure the initiatives so that to have better effectiveness results within the organization. The huge demand of the innovative products especially like the green products, 0.1...

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EFE Matrix of Apple Inc

The Apple Corporation was founded in 1976 by Steve Wazaik, Steve Jobs and Ronald Wayne. The company is based on the industry of computer hardware, software, consumer electronics and digital distribution. Headquarter of the company is in Cupertino, California, United States. The company has very wide range of its product line as well as the services and is serving all over the world. The company is controlled and executed by Chief Executive Officer Tim Cook, Chairman Arthur D. Levinson etc. The Apple Corporation is the one of the largest publically trading company in world. Apple Inc. External Factor Evaluation (EFE) Matrix External Strategic Factor Weight Rating Weighted Score Comments OPPORTUNITIES         Short term investments 0.13 4 0.52 The Apple Corporation can do well in the stabilizing the financial position by availing about US $ 20 billion in liquid form and short term investments. Open retail stores with the assurance of profitability 0.08 4 0.32 There is an opportunity for Apple Company to open retail stores with the assurance of profitability and Apple Company can negotiate more favorably with its customers. The price level of the company is more appropriate 0.03 4 0.12 The price level of the company is more appropriate and their comes no need for lowering the prices as the customer is thinking it as better investment. Many stores are opened by the company...

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EFE Matrix Template

External factor evaluation matrix is a strategic tool used for the external evaluation of a firm. External factors consist of opportunities and threats which needs to be identified and should be responded in order to utilize the available opportunities and eliminate or reduce the impact of threats. The EFE matrix template could be used to find out how a firm has been responding to the external factors. Click here to download the sample EFE...

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