For this assessment, an External Factor Evaluation (EFE) and Internal Factor Evaluation (IFE) matrix is developed for the Pacific Loft company. The EFE matrix provides a summary of the results of an external factor audit by listing the opportunities and threats for an organization and weighting each factor’s impact and rating to produce a total weighted score. The IFE matrix provides a summary of the results of an internal factor audit by listing the strengths and weaknesses of an organization and weighting each factor’s impact and rating to produce a total weighted score.
EFE Matrix
External Strategic Factors Weight
0.0 - 1.0 Rating
(1 - Poor, 4 Good) Weighted Score
(1 - Poor, 4 Good) Comments
Opportunities:
Adopt Mobile-first Strategy 0.2 1 0.2 Company …show more content…
Pros and Cons
On the positive side, the EFE matrix is easy to understand, and the inputs to the EFE matrix are meaningful, even to outsiders. The EFE matrix is also easy to use, is not resource intensive, does not require advanced knowledge, and does not take a long time to build. Furthermore, the EFE only focuses on factors that affect the company or its strategy. Finally, the EFE Matrix is compatible with other tools, including the SWOT analysis, the IE matrix, and the GE-McKinsey matrix for benchmarking (Jurevicius, 2014).
On the downside, the EFE rated factors are often too broad, lack specificity, and are easily confused with each other. The elements of the EFE Matrix are subjective and lack objective data points (Jurevicius, 2014).
Application
Strategists use the EFE Matrix as a tool to evaluate social, cultural, economic, demographic, political, governmental, legal, environmental, competitive, and technical information. It empowers workers and managers to identify, forecast, monitor, and evaluate external forces that may threaten the future existence of the organization. IFE …show more content…
First, are staffing and the lack of proper leadership. Staff turnover is high, and therefore, the company is unable to build strong expertise in key business areas. Existing leaders are not addressing retention issues appropriately, and as a result, the staffing issues are increasing. Second, stakeholders struggle with aging IT technology, which leads to limited application functionality, and unstable and slow performing systems. This is a tremendous concern for stakeholders, in particular for stakeholders in customer-facing jobs, because the aging systems directly affect their ability to serve customers. The aging IT systems also affect the Merchandising and Marketing stakeholders since it limits their ability to run effective marketing campaigns. Finally, stakeholders in the fulfillment area lack visibility to product fulfillment information and are in dire need for systems that provide them with better product tracking
EFE Matrix
External Strategic Factors Weight
0.0 - 1.0 Rating
(1 - Poor, 4 Good) Weighted Score
(1 - Poor, 4 Good) Comments
Opportunities:
Adopt Mobile-first Strategy 0.2 1 0.2 Company …show more content…
Pros and Cons
On the positive side, the EFE matrix is easy to understand, and the inputs to the EFE matrix are meaningful, even to outsiders. The EFE matrix is also easy to use, is not resource intensive, does not require advanced knowledge, and does not take a long time to build. Furthermore, the EFE only focuses on factors that affect the company or its strategy. Finally, the EFE Matrix is compatible with other tools, including the SWOT analysis, the IE matrix, and the GE-McKinsey matrix for benchmarking (Jurevicius, 2014).
On the downside, the EFE rated factors are often too broad, lack specificity, and are easily confused with each other. The elements of the EFE Matrix are subjective and lack objective data points (Jurevicius, 2014).
Application
Strategists use the EFE Matrix as a tool to evaluate social, cultural, economic, demographic, political, governmental, legal, environmental, competitive, and technical information. It empowers workers and managers to identify, forecast, monitor, and evaluate external forces that may threaten the future existence of the organization. IFE …show more content…
First, are staffing and the lack of proper leadership. Staff turnover is high, and therefore, the company is unable to build strong expertise in key business areas. Existing leaders are not addressing retention issues appropriately, and as a result, the staffing issues are increasing. Second, stakeholders struggle with aging IT technology, which leads to limited application functionality, and unstable and slow performing systems. This is a tremendous concern for stakeholders, in particular for stakeholders in customer-facing jobs, because the aging systems directly affect their ability to serve customers. The aging IT systems also affect the Merchandising and Marketing stakeholders since it limits their ability to run effective marketing campaigns. Finally, stakeholders in the fulfillment area lack visibility to product fulfillment information and are in dire need for systems that provide them with better product tracking