Efas Analysis How-to
Synthesis of External Factors—EFAS
After strategic managers have scanned the societal and task environments and identified a number of likely external factors for their particular corporation, they may want to refine their analysis of these factors using a form such as that given in Table 3.4. The EFAS Table (External Factors Analysis 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 particular company’s management (rating) is responding to these specific factors in light of the perceived importance (weight) of these factors to the company. To generate an EFAS Table for the company being analyzed, complete the following steps:
In Column 1 (External Factors), list the eight to ten most important opportunities and threats facing the company.
In Column 2 (Weight), assign a weight to each factor from 1.0 (Most Important) to 0.0 (Not Important) based on that factor’s probable impact on a particular company’s 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 company’s current response to that particular factor. Each rating is a judgment regarding how well the company is currently dealing with each external factor.
5 4 3 2 1
¦_________________¦_____________¦_______________¦_______________¦
Out- Above Average Below Poor standing Average Average
In Column 4 (Weighted Score), multiply the weight in Column 2 for each factor times its rating in Column 3 to obtain that factor’s weighted score. This results in a
After strategic managers have scanned the societal and task environments and identified a number of likely external factors for their particular corporation, they may want to refine their analysis of these factors using a form such as that given in Table 3.4. The EFAS Table (External Factors Analysis 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 particular company’s management (rating) is responding to these specific factors in light of the perceived importance (weight) of these factors to the company. To generate an EFAS Table for the company being analyzed, complete the following steps:
In Column 1 (External Factors), list the eight to ten most important opportunities and threats facing the company.
In Column 2 (Weight), assign a weight to each factor from 1.0 (Most Important) to 0.0 (Not Important) based on that factor’s probable impact on a particular company’s 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 company’s current response to that particular factor. Each rating is a judgment regarding how well the company is currently dealing with each external factor.
5 4 3 2 1
¦_________________¦_____________¦_______________¦_______________¦
Out- Above Average Below Poor standing Average Average
In Column 4 (Weighted Score), multiply the weight in Column 2 for each factor times its rating in Column 3 to obtain that factor’s weighted score. This results in a