2.

ENVIRONMENT ANALYSIS
D. EXTERNAL FACTOR EVALUATION MATRIX
E. INTERNAL FACTOR EVALUATION MATRIX
F. COMPETITIVE PROFILE MATRIX
External Factor Evaluation (EFE) Matrix

KEY EXTERNAL FACTORS WEIGHT RATING WEIGHTED SCORE RATING VALUES

OPPORTUNITIES: (4) – superior response

1. Increase in computer literacy in (3) – above average
third world countries and global 0.15 3 0.45 response
trend in new markets (2) – ave. response
2. Global trend in (1) – poor response
telecomuunicating and at-home- 0.07 4 0.28
business.
3. Mobile, telephony, video 0.05 3 0.15
convergence.
4. Development and expansion of 0.07 3 0.21
wireless technology.
5. Continue to maintain
dominance in ICT development; be 0.15 3 0.45
a leader for new technological
advancement
THREATS: Overall Rating:
1. targeting competition; >2.5 – high response
specifically trying to compete 0.15 4 0.6 2.5 – medium response
against google <2.5 – low response
2. ‘Click’ fraud 0.5 3 0.15
3. Government regulations
restricting various operations 0.1 2 0.2
processes; privacy and censorship
4. Security; virus OR Technology 0.11 3 0.33
sabotage
5. Adaptation to new teachnology 0.1 2 0.2
 TOTAL WEIGHTED SCORE 1.00 - (Overall Rating)
_____3.02_____

Internal Factor Evaluation (IFE) Matrix

KEY INTERNAL FACTORS WEIGHT RATING WEIGHTED SCORE RATING VALUES

STRENGTHS: (4) - major strength

1. Strong brand recognition and 0.10 3 0.30 (3) - minor strength
recall (2) – minor weakness
2. Brand equity 0.07 3 0.21 (1) - major weakness
3. Talented employee base 0.05 3 0.15
4. Access to Google available to 0.10 4 0.40
anyone with Internet Access
5. Good cash reserves 0.03 2 0.06
6. Strong revenues 0.06 3 0.18
7. Strong profit 0.09 4 0.36
8. Culture of innovation and 0.08 4 0.32
accountability
9. Products based on solving 0.07 3 0.21
consumer needs.

WEAKNESSES: Overall Rating:

1. Coporate governance minimizes 0.07 2 0.14 >2.5 - strong internal position
power of no employee 2.5 – average internal position
shareholders <2.5 - weak internal position
2. Lack of independence on board 0.07 2 0.14
 of directors
3. Fast growth may be 0.03 3 0.09
unmanageable and unsustainable
4. Net Profit margin is weak 0.08 2 0.16
compared to Yahoo
5. Little physical presence in Asia 0.04 2 0.08
and none in South America or
Africa
6. Vision for company may be 0.02 3 0.06
unclear
7. Company is smaller and less 0.04 3 0.12
profitable compared to its
competitors
TOTAL WEIGHTED SCORE 1.00 - (Overall Rating)
3.01

Competitive Profile Matrix

CRITICAL SUCCESS FACTORS WEIGHT Google Yahoo Microsoft

 Rating Weighted Score Rating Weighted Rating Weighted
Score Score

1. Strong Brand Recognition 0.15 4 0.60 4 0.60 4 0.60

2. Talented Employee Base 0.10 4 0.40 3 0.30 3 0.30

3. Culture of innovation/Accountability 0.10 4 0.40 2 0.20 4 0.40

4. Advertising 0.15 4 0.60 3 0.45 3 0.45

5. International markets 0.20 2 0.40 4 0.80 3 0.60

6. Powerful Business Relationships 0.05 3 0.15 3 0.15 4 0.20
7. Customer Loyalty 0.15 4 0.60 4 0.60 3 0.45
8. Market Share 0.10 4 0.40 3 0.30 2 0.20
OVERALL SCORE 1.00 - 3.55 - 3.40 - 3.20

Rating Values: 4 = major strength, 3 = minor strength 2 = minor weakness, 1 = major weakness