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.
External
Factor Analysis Summary (IFAS)
The strategy supported by this chart would
be to continue with their substantial growth while expanding into new markets such Asia and Latin America etc. The slow market gain presents a
problem but to counteract that Perrigo will introduce new product lines and
continue to produce sound products. They definitely need to go overseas to
protect it and gain more market share.
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