EFE MATRIX

 Stands for External Factor Evaluation Matrix

 Used to summarize the information gained from company’s external environment
analyses i.e. simply by analyzing the external environment with the tools like PESTELL
analysis, Porters Five Forces
 The summarized information is evaluated and used for further purposes, such as to build
SWOT analysis.

EFE MATRIX
EXTERNAL FACTORS WEIGHT RATING WEIGHTED SCORE
OPPORTUNITIES
Growing global demands 0.15 5 0.75
Greater productivity 0.10 3 0.30
Export potential 0.05 4 0.20
Robust economy growth 0.10 3 0.30
Supply chain 0.10 4 0.40
management
Threats
Competitors 0.15 4 0.60
Environmental costs 0.15 3 0.45
Milk vendors 0.05 3 0.15
Adulteration 0.05 1 0.50
Lower cattle yield 0.10 2 0.20
Total scores 1.00 3.85