External Factor Analysis Summary (EFAS Table)

 External Factors Weight Rating Weighted Comments

Score
Opportunities
O1
O2
O3
O4
O5
Threats
T1
T2
T3
T4
T5
Total Scores
Notes:

1. List eight to ten most important opportunities and threats facing the company in
Column 1. Weight each factor from 0.0 (not important) to 1.0 (most important) based on
that factor probable impact on the company’s strategic position.  The sum of all weights
must be 1.

2. Rate each factor from 1.0 (Poor) to 5.0 (outstanding) based on the firm’s response to
each factor.

3. Multiply the two  previous  columns (Weight *Rating)

4. Explain the rationale used for each factor.

5. Add the individual weighted scores to obtain the total weighted score for the company
in Column 4.  This tells how well the company is responding to the factors in its external
environment.

Examples:

1.  Natural Environment.  What forces from the natural physical environment are
currently affecting the corporation and the industries in which it competes?

Ø Consider climate (global temperature, sea level, fresh water availability)

Ø Weather-related events (severe storms, floods, droughts)

Ø Solar phenomena (sunspot and solar wind) when relevant to your company of focus

2.  Societal Environment.  What general environmental forces are currently affecting the
corporation and the industries  in which it competes?  Consider aspects such as the:

Ø Economy

Ø Technology

Ø Politics

Ø Laws

Ø Sociocultural factors

3.  Task Environment.  What forces drive industry competition?  Are these forces the
same globally or do they vary from country to country?  Consider key factors such as:

Ø Customers

Ø Competitors

Ø Suppliers

Ø Creditors

Ø Labor Unions

Ø Governments

Ø Trade Associations

Ø Local Communities

Ø Shareholders

Following the format in conducting and

presenting Corporate Audit in Module 1, please
submit your Written Report PART 1 of your
company's corporate audit.  This will serve as
your Midterm Examination