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    The EFE matrix evaluates 16 key external opportunities and threats for Figaro Coffee Shop based on weighted scores. The two most important factors are the Philippine government supporting increased coffee and cocoa production, and low domestic coffee supply relative to rising demand. Figaro responds strongly to opportunities around increased production, but faces threats from low supply. The overall weighted score of 2.60 indicates Figaro is performing well by capitalizing on opportunities and avoiding threats in a dynamic industry environment. Areas for improvement include addressing perceived health issues with coffee and competition from foreign coffee shops.

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    Efe

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    The EFE matrix evaluates 16 key external opportunities and threats for Figaro Coffee Shop based on weighted scores. The two most important factors are the Philippine government supporting increased coffee and cocoa production, and low domestic coffee supply relative to rising demand. Figaro responds strongly to opportunities around increased production, but faces threats from low supply. The overall weighted score of 2.60 indicates Figaro is performing well by capitalizing on opportunities and avoiding threats in a dynamic industry environment. Areas for improvement include addressing perceived health issues with coffee and competition from foreign coffee shops.

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    External Factor Evaluation Sample

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    The EFE matrix evaluates 16 key external opportunities and threats for Figaro Coffee Shop based on weighted scores. The two most important factors are the Philippine government supporting increased coffee and cocoa production, and low domestic coffee supply relative to rising demand. Figaro responds strongly to opportunities around increased production, but faces threats from low supply. The overall weighted score of 2.60 indicates Figaro is performing well by capitalizing on opportunities and avoiding threats in a dynamic industry environment. Areas for improvement include addressing perceived health issues with coffee and competition from foreign coffee shops.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    716 views4 pages

    Efe

    Uploaded by

    Rem
    The EFE matrix evaluates 16 key external opportunities and threats for Figaro Coffee Shop based on weighted scores. The two most important factors are the Philippine government supporting increased coffee and cocoa production, and low domestic coffee supply relative to rising demand. Figaro responds strongly to opportunities around increased production, but faces threats from low supply. The overall weighted score of 2.60 indicates Figaro is performing well by capitalizing on opportunities and avoiding threats in a dynamic industry environment. Areas for improvement include addressing perceived health issues with coffee and competition from foreign coffee shops.

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    EFE Matrix

    Key External Factors

    Weight

    Rating

    Weighted
    Score

    Opportunities
    1. Booming industry of Business
    Process Outsourcing (BPO).
    2. Annual domestic

    7.00%

    0.14

    7.00%

    0.14

    7.00%

    0.21

    7.00%

    0.14

    6.00%

    0.18

    5.00%

    0.1

    5.00%
    5.00%

    4
    4

    0.2
    0.2

    consumption of green bean


    coffee is increasing at the
    rate of approximately three
    percent (3%) per year.
    3. World consumption continues
    to grow one to two percent
    per annum.
    4. Potential big export
    production of Robusta coffee
    in international market.
    5. 2015 ASEAN integration
    causes expansion of market
    to foreigners.
    6. Unemployment rate in
    Philippines decreased to 6%
    in the fourth quarter of 2014
    from 6.70% in the third
    quarter of 2014.
    7. Expansion of market globally
    through access of business
    website.
    8. Variety of flavors and
    ingredient options available
    to market keeps sales high

    over the forecast period.


    9. The Department of
    Agriculture (DA) supports the
    mocha trend with a P192
    million budget for coffee and
    the implementation of Cacao
    Agribusiness Zones
    Development (CAZD), both
    aiming to boost coffee and
    cocoa production.
    Threats
    10.
    Availability of coffee

    8.00%

    0.24

    7.00%

    0.21

    6.00%

    0.18

    5.00%

    0.05

    8.00%

    0.32

    beverages in milktea shops


    offers variety of choices than
    coffee shops do.
    11.
    Coffee farming is
    shifting slowly to Mindanao,
    pushed by the rising cost of
    land in traditional coffeeproducing provinces like
    Cavite.
    12.
    Threat of health
    consensus about the negative
    health effects of coffee than
    other beverages.
    13.
    Low supply production
    at 25,000 tons of coffee
    annually in meeting increase
    in demand for about 3% to
    5% population rate in
    Philippines.

    14.

    Growing establishments

    of foreign coffee shops


    competing with the localbased coffee shops.
    15.
    Trend in consumption in

    5.00%

    0.05

    5.00%

    0.1

    7.00%
    100.00%

    0.14
    2.60

    instant coffee with cheaper


    prices than coffee made
    coffee beans.
    16.
    Unproductive coffee
    trees and poor technology
    utilization.
    Total

    Presented above is the external factor evaluation matrix for Figaro


    Coffee Shop which will indicate how well the Figaro responds to its existing
    opportunities and threats in its industry. Key opportunities and threats were
    identified in accordance to its economic, social, cultural, demographic,
    environmental, political, governmental, legal, technological, and competitive
    factors affecting the company and its industry. This will allow strategists to
    summarize and evaluate external information.
    As what is shown in the matrix, note that the most important factor to
    being successful in the firms industry are The Department of Agriculture
    (DA) supports the mocha trend with a P192 million budget for coffee and
    the implementation of Cacao Agribusiness Zones Development (CAZD), both
    aiming to boost coffee and cocoa production and Low supply production at
    25,000 tons of coffee annually in meeting increase in demand for about 3%
    to 5% population rate in Philippines both of which have 0.08 weight. Key
    external factors which are doing excellent are The Department of
    Agriculture supports and Low supply production which has 0.24 and
    0.32, respectively. Results showed that Figaro is responding outstandingly
    with the opportunity about the increase in production of coffee and cocoa

    and perhaps they actively taking advantage of the boost coffee-cocoa


    production in contrast to the threat of low supply in meeting increase in
    demand. On the other side, weighted score shows 2.60 which is above the
    average score of 2.50 that may indicate the firm is performing well in the
    industry as well as taking advantage of the opportunities and avoiding
    external threats. Though at the rating of 1, Threat of health consensus and
    establishments of foreign coffee shops should be observed and avoid these
    threats in order for improvement of the firm.

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