Notes #1 - Competitive Profile Matrix External Factor...

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Competitive Profile Matrix External Factor Evaluation Used to evaluate the external, macro environment of the firm External factors are divided into two categories: opportunities and threats Opportunities are the chances in the environment that the firm is willing to exploit based on resources Threats are negative and will limit the exploitation of opportunities available to the firm based on the amount of threats How to complete an External Factors Evaluation 1. In Column 1 (external factors), list 10-20 of the most important opportunities and threats facing the firm. 2. In Column 2 (weight), assign a weight to each factor based on that factor’s probable impact on a company’s current strategic position.. (
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Unformatted text preview: . ( Note: all weights must sum 1.0 regardless of the number of factors ). 3. In Column 3 (rating), assign a rating to each factor based on the company’s specific response to that particular factor, judging how well the company is currently dealing with each external factor. 4. 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. 5. Finally, add the weighted scores for all the external factors in Column 4 to determine the total weight indicating how the company is responding to current and expected factors in its external environment....
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