Efe Matrix

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External Factor Evaluation Matrix (EFEM) FOR PAKISTAN STATE OIL:- External Factor Evaluation (EFE) matrix method is a strategic-management tool often used for assessment of current business conditions. The EFE matrix is a good tool to visualize and prioritize the opportunities and threats that a business is facing. Table 1: EFE Matrix for Pakistan State Oil

S.No| KEY EXTERNAL FACTORS| WEIGHT| RATING| WS|
OPPORTUNITIES:|
1.| Operating in largest CNG consuming country in the world| 0.10| 4| 0.40| 2.| Increase in the energy demands in the country| 0.10| 3| 0.30| 3.| Deregulation of Oil Industry| 0.08| 2| 0.16|

4.| Chevron is liquidating its aviation business| 0.02| 2| 0.04| 5.| Search for alternate energy sources| 0.05| 3| 0.15| THREATS:|
1.| Constantly growing circular debt| 0.15| 2| 0.30|
2.| Unreliable sources of supply (Refineries)| 0.05| 2| 0.10| 3.| Devaluation of Pakistani Rupee| 0.05| 3| 0.15|
4.| Decline in consumption of White Oil Products| 0.10| 3| 0.30| 5.| Fluctuation of oil prices in international markets| 0.05| 2| 0.10| 6.| New alternatives to the industrial energy requirements such as solar energy| 0.05| 3| 0.15| 7.| Deregulation of the mechanism of setting fuel prices in Pakistan| 0.05| 3| 0.15| 8.| Scarcity of CNG in the country| 0.05| 2| 0.10|

9.| Forward integration of oil refining companies (suppliers)| 0.10| 2| 0.20| TOTAL| 1.00| | 2.60|
The External Factor Evaluation Matrix score for Pakistan State Oil is 2.60. It represents that PSO’s response to the external environment is above average.
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