External Factor Evaluation Matrix

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TITLE : External Factor Evaluation (EFE) Matrix
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RUNNING HEAD: EXTERNAL FACTOR EVALUATION 2
Abstract
For organizations to remain competitive and profitable, the management requires to evaluate the prevailing business conditions so as to properly reposition their operations. The business and marketing efforts also referred to as the marketplace of an organization are influenced by a variety of factors. Different strategic-management tools are employed in order to help the management to recognize and prioritize the opportunities and threats the organization could be facing. Such a strategic-management is the External Factor Evaluation (EFE) Matrix. The EFE matrix deals strictly with external factors. Internal Factor Evaluation (IFE) Matrix addresses the internal factors. EFE matrix evaluates factors that are subject to the social, political, business trends and economic will among other external forces.
There are five steps that act as a guide in creating the EFE matrix. These steps are; the first step is the listing of the factors both the opportunities and the threats. The second step is assigning weights, value, or significance to each of the factor. Step three involves rating the factors to i...