Global Strategic Management
Unit 2-Discussion Board
In business we must consider planning activities about the organizations future. The focus of strategic planning is not to predict the future but instead on making better decisions here and now in order to reach a desired future. There is no known certainty about the future and business managers must make assumptions about what the future will hold. In a previous discussion, we talked about strategic management planning and its aspects, the four basic elements were environmental scanning, strategy formulation, strategy implementation and evaluation and control (Hunger and Wheelen, 2007). This week’s assignment, we will describe the EFAS and the IFAS. Explain the purpose of each tool? We will also explain if there are any weaknesses in the EFAS/IFAS classification system? External Factors Analysis Summary (EFAS)- Is a tool that business strategists use to organize the external factors into the generally accepted categories of opportunities and threats as well as to analyze how well a particular company’s management (rating) is responding to these specific factors in light of perceived importance (weight) of these factors to the company. Which has five columns, the first column lists the opportunities and threats, the second column list the weight assigned to the factor that is mentioned where the total weights adds up to 1.0, the third column list the rating given to each factor from 5 outstanding to 1 poor, the fourth column list the weighted score which is the rating multiplied by the weight and the fifth column list the comments for that column giving us a composite score that range from 1 to 5 about how well the company is responding to external factors (Hunger and Wheelen, 2007). The purpose of this tool is a business must scan its external environment for opportunities and threats, this scanning is the monitoring, evaluating and disseminating of information...