Question

What is the different between factors listed in an EFE Matrix versus critical success factors listed in a CPM? In which matrix is it particularly important to include specific, actionable factors? Why?

Answer 1

The EFE or External Factor Evaluation talks about all te external determinants or factors that plays a major role in evaluating, compiling and assessing all the key external forces of the organisation. All the external factors include the opportunities and threats arising out from the economy, governmental powers, legal powers, society or the cultural or environmental impact that a organisation would have surviving in this dynamic market. Weights are allocated to each of the factor determining how responsive is the organisation towards that factor. Both threats and opportunities are taken major role in it.

On the other hand, the CPM or Competitive Profile Matrix helps in assessing, identifying and evaluating the company's competitiors which are the external factors along which the internal factors are also taken into play like the company's strengths and weaknesses which would determine how strong we stand in the industry as compared to our competitiors. CPM's critical success is majorly measured by the factors of internal issues or competencies of the companies and external issues acting on the company. Again, rankings are given to determine which company's strength is in major role or which is in minor role. Specific and actionable factors are included in this matrix as it would determine the strengths, core competencies and the actions to be able to withstand against the competitors.