Efe Matrix
External Factor Evaluation Matrix (EFEM) FOR PAKISTAN STATE OIL:-
External Factor Evaluation (EFE) matrix method is a strategic-management tool often used for assessment of current business conditions. The EFE matrix is a good tool to visualize and prioritize the opportunities and threats that a business is facing.
Table 1: EFE Matrix for Pakistan State Oil S.No | KEY EXTERNAL FACTORS | WEIGHT | RATING | WS | OPPORTUNITIES: | 1. | Operating in largest CNG consuming country in the world | 0.10 | 4 | 0.40 | 2. | Increase in the energy demands in the country | 0.10 | 3 | 0.30 | 3. | Deregulation of Oil Industry | 0.08 | 2 | 0.16 | 4. | Chevron is liquidating its aviation business | 0.02 | 2 | 0.04 | 5. | Search for alternate energy sources | 0.05 | 3 | 0.15 | THREATS: | 1. | Constantly growing circular debt | 0.15 | 2 | 0.30 | 2. | Unreliable sources of supply (Refineries) | 0.05 | 2 | 0.10 | 3. | Devaluation of Pakistani Rupee | 0.05 | 3 | 0.15 | 4. | Decline in consumption of White Oil Products | 0.10 | 3 | 0.30 | 5. | Fluctuation of oil prices in international markets | 0.05 | 2 | 0.10 | 6. | New alternatives to the industrial energy requirements such as solar energy | 0.05 | 3 | 0.15 | 7. | Deregulation of the mechanism of setting fuel prices in Pakistan | 0.05 | 3 | 0.15 | 8. | Scarcity of CNG in the country | 0.05 | 2 | 0.10 | 9. | Forward integration of oil refining companies (suppliers) | 0.10 | 2 | 0.20 | TOTAL | 1.00 | | 2.60 |
The External Factor Evaluation Matrix score for Pakistan State Oil is 2.60. It represents that PSO’s response to the external environment is above
External Factor Evaluation (EFE) matrix method is a strategic-management tool often used for assessment of current business conditions. The EFE matrix is a good tool to visualize and prioritize the opportunities and threats that a business is facing.
Table 1: EFE Matrix for Pakistan State Oil S.No | KEY EXTERNAL FACTORS | WEIGHT | RATING | WS | OPPORTUNITIES: | 1. | Operating in largest CNG consuming country in the world | 0.10 | 4 | 0.40 | 2. | Increase in the energy demands in the country | 0.10 | 3 | 0.30 | 3. | Deregulation of Oil Industry | 0.08 | 2 | 0.16 | 4. | Chevron is liquidating its aviation business | 0.02 | 2 | 0.04 | 5. | Search for alternate energy sources | 0.05 | 3 | 0.15 | THREATS: | 1. | Constantly growing circular debt | 0.15 | 2 | 0.30 | 2. | Unreliable sources of supply (Refineries) | 0.05 | 2 | 0.10 | 3. | Devaluation of Pakistani Rupee | 0.05 | 3 | 0.15 | 4. | Decline in consumption of White Oil Products | 0.10 | 3 | 0.30 | 5. | Fluctuation of oil prices in international markets | 0.05 | 2 | 0.10 | 6. | New alternatives to the industrial energy requirements such as solar energy | 0.05 | 3 | 0.15 | 7. | Deregulation of the mechanism of setting fuel prices in Pakistan | 0.05 | 3 | 0.15 | 8. | Scarcity of CNG in the country | 0.05 | 2 | 0.10 | 9. | Forward integration of oil refining companies (suppliers) | 0.10 | 2 | 0.20 | TOTAL | 1.00 | | 2.60 |
The External Factor Evaluation Matrix score for Pakistan State Oil is 2.60. It represents that PSO’s response to the external environment is above