Question

In an EFE Matrix, should the weights for opportunities be designed to roughly equal the weights for threats? Why?

Answer 1

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In the EFE matrix, we Identify the most critical external opportunities and threats that may or may not affect business when using the EFE matrix. The EFE matrix is ​​an analytical technique related to SWOT analysis. Thus, it is an abbreviation for evaluating external factors. The EFE matrix assesses an organization's external location or strategic objectives.

Opportunities:- opportunities are options for the external environment. It greatly adjusts whether the company is willing to take advantage of opportunities due to a lack of resources.

Threat:-Threats are not good for the company, and the external environment can open many doors to the company. Numerous risks reduce the company's power.

External matrix calculations indicate how the company's current strategy responds to opportunities and threats. The number range is 4 to 1, and 4 means better answer, 3-average answer, 2-average answer, and 1-weak answer. Value, weight, and subjectivity are related to each factor.

The response to the firm's options is relatively weak, with only one option being 3 points and the rest being 1 point. The company is ready to respond to threats.

Pest analysis information shows what the company might have in the future. At this point, the factors can be opportunities or threats, and the next challenge is to classify them into one category.