Strama
STEP 3 - EFE, CPM, and IFE
External Factor Evaluation (EFE)
Prepare the following:
1) Conduct external audit 2) List key external factors as identified in the external-audit process. Include a total of 10-20 factors from both the opportunities and threats. 3) Assign to each factor a weight from .0 (not important) to 1.0 (very important). These weights show the relative importance. The total of all weights should equal 1.0. 4) Assign a 1-4 rating to each factor to indicate how effectively the firm’s current response strategy: 1=the response is poor, 2=the response is average, 3=the response is above average, and 4=the response is superior. 5) Multiply each factor’s weight by its rating to get a weighted score. 6) Sum the weighted scores for each variable to determine the total weighted score for the organization. (Prepare an EFE matrix table) 7) Discuss in narrative the selected indicator the significant importance and relevance as far as the opportunities and threats are concerned. 8) Identify and discuss strategic external issues.
Industry analysis:
Prepare the following:
1) Prepare Michael Porter’s framework 2) Discuss in narrative the level of relationship of each variable. 3) Identify each variable the level of relationship whether it is HIGH, MODERATE, or LOW.
Competitive Profile Matrix (CPM)
Prepare the following:
1) List critical success factors identified in the internal and external analysis. 2) Assign to each factor a weight from .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 describe the factor: 1=major weakness, 2=minor weakness, 3=minor strength, and 4=major strength. 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
External Factor Evaluation (EFE)
Prepare the following:
1) Conduct external audit 2) List key external factors as identified in the external-audit process. Include a total of 10-20 factors from both the opportunities and threats. 3) Assign to each factor a weight from .0 (not important) to 1.0 (very important). These weights show the relative importance. The total of all weights should equal 1.0. 4) Assign a 1-4 rating to each factor to indicate how effectively the firm’s current response strategy: 1=the response is poor, 2=the response is average, 3=the response is above average, and 4=the response is superior. 5) Multiply each factor’s weight by its rating to get a weighted score. 6) Sum the weighted scores for each variable to determine the total weighted score for the organization. (Prepare an EFE matrix table) 7) Discuss in narrative the selected indicator the significant importance and relevance as far as the opportunities and threats are concerned. 8) Identify and discuss strategic external issues.
Industry analysis:
Prepare the following:
1) Prepare Michael Porter’s framework 2) Discuss in narrative the level of relationship of each variable. 3) Identify each variable the level of relationship whether it is HIGH, MODERATE, or LOW.
Competitive Profile Matrix (CPM)
Prepare the following:
1) List critical success factors identified in the internal and external analysis. 2) Assign to each factor a weight from .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 describe the factor: 1=major weakness, 2=minor weakness, 3=minor strength, and 4=major strength. 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