The Input Stage

Stage 1: Input Stage

The input stage covers the industry analysis (external in nature). These are
embodied in the External Factor Evaluation (EFE), Internal Factor Evaluation
(IFE) and the Competitive Profile Matrix (CPM).

I. External Factor Evaluation (EFE) - matrix which summarizes and

evaluates the PESTLE and its competitive information.

II. Internal Factor Evaluation is a summary step in conducting an internal

strategic management audit. It summarizes and evaluates the major strength
and weaknesses in the functional areas of business. It also provides a basis for
identifying and evaluating relation ships among tje functional areas of the
firm.

III. Competitive Profile Matrix (CPM) - identifies a firm’s major

competitors and it’s particular strength and weaknesses in relation to a
sample firm’s strategic position. The CPM factors includes:

a. Breadth of product line (scope)

b. Effectiveness of sales distribution
c. Patent Advantage
d. Location of facilities / business structure
e. Production capacity
f. Union relations
g. Technological advantage
h. E-commerce facilities
i. Market share experience
j. Global expansion
k. Inventory system
l. Financial position
m. Management
n. Customer loyalty
o. Product quality
p. Price Competitiveness
q. Customer service