EFE - External Factor Evaluation Matrix - Example

 

Factor

Weight

Rating

Extended

Opportunities      
  High-end in-home entertainment sales are growing nationally

0.15

4

0.60

  Forecast for continued growth of expensive housing in Dade & Broward counties

0.16

4

0.64

  Wealthy foreigners buy expensive entertainment equipment for their homes in South Florida

0.07

3

0.21

  Current customers refer new prospects with little prompting

0.12

3

0.36

  Direct mailing lists are available by household income

0.06

3

0.18

Threats      
  Large chains could expand upward into their niche

0.13

1

0.13

  New technologies such as satellite broadcast compete with current technologies

0.10

1

0.10

  Declining incomes in South Florida versus the U.S.

0.08

2

0.16

  South Florida highly dependent on trade with Latin America

0.07

1

0.07

  Economy depends on air transport, a volatile industry

0.06

2

0.12

         
Total

1.00

 

2.57

- R. S. Kulzick - 05/10/2002 -

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Copyright 2002 Raymond S. Kulzick - Last modified: April 23, 2003