Efas Analysis How-to

Synthesis of External FactorsEFAS After strategic managers have scanned the societal and task environments and identified a number of likely external factors for their fussy(a) corporation, they may want to refine their analysis of these factors using a fashion such as that given in Table 3. 4.The EFAS Table (External Factors analytic thinking Summary) is one way to organize the external factors into the generally accepted categories of opportunities and threats as well as to analyze how well a cross fellowships management (rating) is responding to these specific factors in light of the perceived grandeur ( lading) of these factors to the company. To generate an EFAS Table for the company being analyzed, complete the following stairs In newspaper column 1 (External Factors), list the eight to ten some in-chief(postnominal) opportunities and threats facing the company.In tug 2 (Weight), delimitate a weight to individually factor from 1. 0 (Most Important) to 0. 0 (Not Im portant) found on that factors probable impact on a special(a) companys current strategic position. The higher the weight, the more important is this factor to the current and future success of the company. (All weights must sum to 1. 0 regardless of the number of strategic factors. ) In Column 3 (Rating), assign a rating to each factor from 5 (Outstanding) to 1 (Poor) based on that particular companys current response to that particular factor.Each rating is a judgment regarding how well the company is presently dealing with each external factor. 5 43 2 1 ____________________________________________________________ Out- Above Average BelowPoor standing Average Average In Column 4(Weighted Score), multiply the weight in Column 2 for each factor times its rating in Column 3 to harbour that factors burthen take a crap. This results in a weighted score for each factor ranging from 5. 0 (Outstanding) to 1. (Poor) with 3. 0 as average. In Column 5(Comments), note why a particular f actor was selected and how its weight and rating were estimated. Finally, add the weighted scores for all the external factors in Column 4 to determine the total weighted score for that particular company. The total weighted score indicates how well a particular company is responding to current and expected factors in its external environment. The score can be used to compare that firm to other firms in its industry.The total weighted score for an average firm in an industry is always 3. 0. As an example of this procedure, Table 3. 4 includes a number of external factors for Maytag friendship with corresponding weights, ratings, and weighted scores provided. This table is appropriate for 1995 before Maytag change its European and Australian operations. Note that Maytags total weight is 3. 15, gist that the corporation is slightly above average in the major category appliance industry.