EXTERNAL FACTOR EVALUATION MATRIX (EFE Matrix PIZZA HUT)

OPPORTUNITIES WEIGHT RATING WEIGHTED

AVERAGE
0.10 4 0.4
1. New Pizzas with different crust sizes and flavors.
2. Venture more into home delivery 0.10 3 0.3
3. Venture into newer markets 0.08 4 0.32
4. Use of social media 0.07 3 0.21
THREATS
5. Rising competition undermines Pizza Hut as consumers go 0.08 4 0.32
for greater convenience
6. Rising cheese costs threaten margins 0.10 4 0.4
7. Competition from DOMINOS 0.08 4 0.32
8. Threat from Mc Donald’s who have tried to introduce a 0.08 3 0.24
new meal that is a Pizza called: McPizza. Marcus Griffiths
9. Other local restaurants can affect their market share 0.07 3 0.21
by providing pizzas with lower price
10. Social factors can affect their image as a Western 0.06 3 0.18
organization
11. Security issues 0.09 2 0.18
12. Protests and strikes 0.09 4 0.36
TOTAL 1.00 3.44
INTERNAL FACTOR EVALUATION MATRIX (IFE Matrix PIZZA HUT)

WEIGHT RATING WEIGHTED

STRENGHTS AVERAGE
1. Part of the largest restaurant chain in the world 0.08 4 0.32
2. Outstanding Reputation. 0.07 3 0.21
3. Over 20,000 franchises around the world 0.09 3 0.27
4. Brand leader in the UK 0.09 3 0.27
5. Innovative range of pizzas under one roof 0.07 4 0.28
6. Good advertising and marketing 0.07 4 0.28
7. Food attracts people of various ranges from young to 0.10 3 0.3
old
8. Sound financial situation and international turnover. 0.07 3 0.21
9. 100% owned by yum! 0.08 4 0.32
10. Pizza Hut sits on top of global full-service restaurant 0.05 3 0.15
tree
11. Hygenic food and quick service 0.06 4 0.24

WEAKNESSES
12. Complex computer systems and internal conflicts 0.02 2 0.04
from franchisees.
13. lack of an organic pizzas, which will limit the target 0.04 2 0.04
market
14. Providing less range of products 0.04 1 0.04
comparatively with high prices
15. More focused on Western taste instead of Eastern 0.05 2 0.10
16. They rely on their quality pizza and good service to 0.02 1 0.02
account for their higher prices.
total 1.00 3.09