1. INDUSTRY ANALYSIS: EFE MATRIX & CPM MATRIX WWW.EPOWERPOINT.COM

2. Ch 3 -2 Industry Analysis: The External Factor Evaluation (EFE) Matrix CompetitivePoliticalCultural TechnologicalEnvironmentalSocial GovernmentalDemographicEconomic Summarize & Evaluate

3. Ch 3 -3 Note: Weighted score = Estimated weight x Corporate response rating

4. Ch 3 -4

5. TOTAL WEIGHTED SCORE OF 4.0 ORGANIZATION RESPONSE IS OUTSTANDING TO THREATS AND WEAKNESSES Ch 3 -5 Industry Analysis EFE Total weighted score of 1.0 Firm’s strategies not capitalizing on opportunities or avoiding threats

6. Ch 3 -6 Industry Analysis EFE Understanding the factors used in the EFE Matrix is more important than the actual weights and ratings assigned. Important --

7. Ch 3 -7 Industry Analysis: Competitive Profile Matrix (CPM) Identifies firm’s major competitors and their strengths & weaknesses in relation to a sample firm’s strategic positions

8. GatewayAppleDell CSF’s WtRatingWt’d Score RatingWt’d Score RatingWt’d Score Market share0.1530.4520.3040.60 Inventory sys0.0820.162 40.32 Fin position0.1020.2030.303 Prod. Quality0.0830.2440.3230.24 Cons. Loyalty0.0230.063 40.08 Sales Distr0.1030.3020.2030.30 Global Exp.0.1530.4520.3040.60 Org. Structure0.0530.153 3 Ch 3 -8

9. GatewayAppleDell CSF’s (cont’d) WtRatingWt’d Score RatingWt’d Score RatingWt’d Score Prod. Capacity0.0430.123 3 E-commerce0.1030.303 3 Customer Serv0.1030.3020.2040.40 Price competitive 0.0240.0810.0230.06 Mgt. experience0.0120.0240.0420.02 Total1.002.832.473.49 Ch 3 -9

10. Ch 3 -10 Industry Analysis CPM Just because one firm receives a 3.2 rating and another receives a 2.8 rating, it does not follow that the first firm is 20 percent better than the second. Important --