Infolinks2

Infolinks2

Wednesday 21 March 2012

External Factor Evaluation Matrix of Maytag Company


External Factor Evaluation Matrix generally known as EFE matrix; is one of the strategic management tool for analyzing and evaluating important external opportunities and threats in functional parts of a company. This matrix is exercised in strategy formulation and also grants stage for identifying and auditing relationship among those parts.
 
External Factor Evaluation jointly with internal Factor Evaluation matrix is used to formulate strategies for a business in considering external opportunities and threats. Weighting from (0.0 to 1.0), and rating (1 to 4) and in conclusion the weighted score after multiplying weight with rating.  Rating is company-specific and Weight is industry-specific. Rating point out how effectual the company’s current strategies react to the factors. 1 = the response is poor. 2 = below average. 3 = response is above average. 4 = superior.
                                                  


The strategy supported by this chart would be to continue with Amana and their substantial growth while expanding into Eastern Europe, Asia, and Latin America. The slow market gain presents a problem but to counteract that Maytag will launch new product lines and continue to produce sound products. They definitely need to go overseas to protect it and gain more market share as Haier tries to embark in their market.

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