EXTERNAL FACTOR EVALUATION (EFE) MATRIX

KEY EXTERNAL FACTORS WEIGHT RATING WEIGHTED

SCORE

OPPORTUNITIES

O1 - Expansion in developing markets. 0.1 3 0.3

O2 - Business diversification and Products 0.1 3 0.3

Specifications.

O3 - Introducing new products. 0.15 4 0.6

O4 - Partnerships or alliances with other 0.05 2 0.1

firms.

O5 - Gender Neutral Restrooms. 0.05 4 0.2

THREATS

T1 - Competition with low-cost coffee sellers. 0.05 3 0.15

T2 - Competition with big outlets. 0.1 4 0.4

T3 – Imitation. 0.05 3 0.15

T4 - Independent coffeehouse movements. 0.05 2 0.1

T5 - Controversy on California warning rule. 0.03 3 0.09

T6 - Philadelphia arrests. 0.02 3 0.06

 T7 – Coronavirus. 0.25 3 0.75
TOTAL SCORES 1.00 3.20

INTERPRETATION: Starbucks received a total score of 3.20, above average.

Meaning the company’s strategies are effective in exploiting opportunities and
defending against threats. The company should still improve its strategy and
focus more on how to take advantage of its competitors.
 INTERNAL FACTOR EVALUATION (IFE) MATRIX

KEY INTERNAL FACTORS WEIGHT RATING WEIGHTED

SCORE

STRENGHTS

S1 – Strong Brand Image. 0.2 4 0.8

S2 - Premium Quality. 0.15 4 0.6

S3 - Excellent Customer Service. 0.1 3 0.3

S4 - Competitive advantage of providing 0.15 4 0.6

innovative products more quickly.

S5 – Store Ambiance. 0.1 4 0.4

S6 – Ethics. 0.05 3 0.15

WEAKNESSES

W1 - High priced products. 0.1 2 0.2

W2 - Imitation by others. 0.1 1 0.1

W3 - Generalized standards for most 0.05 1 0.05

products.
TOTAL SCORES 1.00 3.20