IFE of Cafe Darbar

External factor evaluation is a strategy tool used to examine company’s external environment
and to identify the available opportunities and threats.
Key External Factors Weights Rating Weighted Average
Strengths
1.Good Customer Service 0.10 4 0.40
2. Relaxing Environment 0.08 3 0.24
3.Favorable ambiance 0.07 4 0.28
4.Linked to food delivery apps 0.05 4 0.20
5.Good location 0.05 3 0.15
6. Quality Food 0.08 2 0.16
7. Varieties in menu 0.10 2 0.20
Weaknesses
1. Lack of Marketing 0.08 4 0.32
2. No social media exposure 0.06 2 0.12
3. Single Location 0.08 3 0.24
4. Less decorative servings 0.05 3 0.15
5. Congested 0.08 4 0.33
6. Lack of development 0.05 4 0.20
7. Never introduce offers 0.07 3 0.21
Total = 1.00 = 3.20

As we know that,
Efficient = 4
Above average = 3
Average = 2
Poor = 1
Standard value of IFE = (Efficient + poor) ÷ 2
= (4+1) ÷2
= 2.5
As per our calculation the external factor Evaluation Matrix (EFE) shows a result of 3.20 which
is more than the standard value 2.5. So we can say that the Cafe Darbar is in a pretty good place.
Recommendation:
The firm should follow the strategic response
Trend analysis: The restaurant should follow the recent trends and consumers preference in
menu.
Quality Service: To compete with increasing competition the restaurant should emphasize more
on consumer’s satisfaction and the service quality.
Active Social Platform: Active social platform helps the restaurant attract more audience.