Strategic Management Paper Chapter 6 Revised
CHAPTER 6
STRATEGY FORMULATION
A) External Factor Evaluation (EFE) Matrix
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.
Key External Factors
Weight
Rating
Weighted Score
OPPORTUNITIES
O1. The stable rise of gross domestic product will affect the disposable income of consumers by which Jollibee can aggressively address to boost sales.
.09
4
.36
O2. Jollibee is part of the Filipino lifestyle because of the Filipino-taste it has in its products making it preferable over other competitors.
.09
3
.27
O3. Product alternatives that consumer choose are also branded product with quality and value given to its consumer.
.09
3
.27
O4. Since Jollibee is an established brand, it has loyal customers willing to continue patronizing the company.
.08
4
.32
O5. Jollibee enjoys security against the entry of new competitors in the fast food industry.
.08
3
.24
O6. There is an opportunity for competitors to agree upon a price ceiling to be able to maintain their customers.
.09
2
.18
THREATS
T1. Such rise in disposable income only means that consumer may look for other fast-food products to satisfy their wants in terms of food service.
.09
3
.27
T2. Varying consumption patterns may lead consumers to find alternative food products other than that which Jollibee may offer.
.06
3
.18
T3. With more international franchise store entering the Philippines, consumers have a lot option to decide where to go sizeable exposure to multinational fast food chains, high-end dining.
.07
2
.14
T4. Jollibee faces a huge market competition due to the fact that these two chains are internationally-based and is rapidly expanding and are already established within the country.
.09
4
.36
T5. Lack of new entrants to the industry results to higher competition among existing and established
STRATEGY FORMULATION
A) External Factor Evaluation (EFE) Matrix
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.
Key External Factors
Weight
Rating
Weighted Score
OPPORTUNITIES
O1. The stable rise of gross domestic product will affect the disposable income of consumers by which Jollibee can aggressively address to boost sales.
.09
4
.36
O2. Jollibee is part of the Filipino lifestyle because of the Filipino-taste it has in its products making it preferable over other competitors.
.09
3
.27
O3. Product alternatives that consumer choose are also branded product with quality and value given to its consumer.
.09
3
.27
O4. Since Jollibee is an established brand, it has loyal customers willing to continue patronizing the company.
.08
4
.32
O5. Jollibee enjoys security against the entry of new competitors in the fast food industry.
.08
3
.24
O6. There is an opportunity for competitors to agree upon a price ceiling to be able to maintain their customers.
.09
2
.18
THREATS
T1. Such rise in disposable income only means that consumer may look for other fast-food products to satisfy their wants in terms of food service.
.09
3
.27
T2. Varying consumption patterns may lead consumers to find alternative food products other than that which Jollibee may offer.
.06
3
.18
T3. With more international franchise store entering the Philippines, consumers have a lot option to decide where to go sizeable exposure to multinational fast food chains, high-end dining.
.07
2
.14
T4. Jollibee faces a huge market competition due to the fact that these two chains are internationally-based and is rapidly expanding and are already established within the country.
.09
4
.36
T5. Lack of new entrants to the industry results to higher competition among existing and established