Kevin Browning
1/25/13
Business Policy (online)
Assignment #3- EFE Matrix
An EFE matrix is an external Factor Evaluation which allows strategists to summarize
and evaluate economic, social, cultural, demographic, environment, political, governmental,
legal, technological, and competitive information. With this matrix, strategists can determine if
the particular organization or company is performing above or below average. The average is 2.5
for the total weighted score. There are five steps for developing an EFE matrix which include:
1) List key external factors including both opportunities and threats.
2) For each factor, assign a weight which indicates the relative importance for the
success of the organization or company. The sum of all weights should be equal to
1.00
3) Assign a rating for each factor that ranks 1 through 4 to suggest how well the
company performs in that area.
4) Multiply each factors weight by its rating to determine the weighted score
5) Sum the weighted scores for each factor to find the total weighted score for the
organization.
EFE Matrix for Savannah State University
Key External Factors
Opportunities
1. Attract more minority students
2.Student population is growing
3.Savannah jobs are increasing
4.SSU is highly recognized by Savannah locals
5.Developments in the city and SSU’s involvement
Threats
1.Other area universities are growing in size
2.Crime in the city of Savannah
3.After hours student life on/off campus
4.Governmental aid for SSU
5.Resources available to allow for growth
Total
Weight
Rating
Weighted
Score
.10
.09
.07
.13
.09
3
4
1
2
3
.30
.36
.07
.26
.27
.11
.09
.09
.13
.10
1.00
3
2
2
4
3
.33
.18
.18
.52
.30
2.77
Savannah State University works above average based on the EFE matrix provided above.