Explain why it is appropriate for ratings in an EFE Matrix to be 4, 3, 2, or 1 for any opportunity or threat.
The purpose of this assignment is to summarize and evaluate PESTEL external forces and competitive information. An External Factors Evaluation (EFE) Matrix provides an empirical assessment of how well a firm is handling external factors overall, including the firm’s effectiveness at capitalizing on opportunities and minimizing threats.
Review “The External Factor Evaluation Matrix” on pp. 80–82 of Strategic Management.
Familiarize yourself with the example provided in Table 3-8 “EFE Matrix for a Local 10-Theater Cinema Complex.”
Create an External Factor Evaluation (EFE) Matrix for any Fortune 500 company. The EFE should include 10 opportunities and 10 threats.
Write a 350- to 525-word summary outlining the importance of including a balance of 10 opportunities and 10 threats. Include the following in your summary:
Explain why it is appropriate for ratings in an EFE Matrix to be 4, 3, 2, or 1 for any opportunity or threat.
Explain how the external audit affects other components of the strategic management process.
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