BM4407 STRATEGIC MANAGEMENT
TUTORIAL 6
QUESTION:
Assume you are the owner of coffee-house that operating in Nilai area. You just start-up your business
around one year ago. There are few coffee-houses operating nearby your shop and they are doing
pretty well in their business. Due to highly competitive environment, you need to conduct External
Factor Evaluation (EFE) Matrix for your business. Based on your EFE Matrix, what are the conclusions
that you may consider.
Key External factors
Weight
Rating
Weighted score
Opportunities
Demand for Coffee
growing 10%
0.2
2
0.4
Unemployment rate
declined 2.0%
0.1
3
0.3
Signing contract with
new supplier
0.05
4
0.2
Market grow by 15%
0.05
2
0.1
Building customers
relationship
0.1
3
0.3
Threat
High competitive
power for the
competitors
0.05
3
0.15
New tax imposed by
government
0.05
3
0.15
Economic Crisis
0.2
2
0.4
New Entrants
0.1
4
0.4
Lower price products
from the competitors
0.1
3
0.3
Total
1.00
2.7