External Factor Analysis Summary Guidelines
Here are the guidelines for completing the EFAS table.
External Factors (Column 1)
• Select five strategic opportunities and five strategic threats facing your selected strategic audit company.
• List each of these factors as either opportunities or threats in the appropriate column in the EFAS table.
• Provide a detailed description of each factor.
• If outside information is used in the comments section, then it must be cited and referenced correctly in APA format.
Weight (Column 2)
• The total weight for all of the factors should be 1.00.
• Decide how strategic each of the ten factors is in comparison to each other. As an example, a factor might have a high strategic significance for your company with a weight ranging from .15 to .20. On the other hand, a factor may have little in the way of strategic significance, when compared to the other nine factors, and might have a weight of .05.
Rating (Column 3)
• In this column you are to rate how effective the firm has been in meeting the opportunities and threats, with 5 being the top score for any factor. As an example, if you feel a firm is doing a super job of moving into Asia then give a rating of 5.0.
Weighted Score (Column 4)
• Now multiple the scores you have in Columns 2 and 3 for each factor.
• This will produce a weighted score for each factor.
Comments (Column 5)
• Provide a detailed description reflecting why you gave the rating for each factor.
• If outside information is used in the comments section, then it must be cited and referenced correctly in APA format.
Total Scores
• At the bottom of the matrix record the totals of the Weight Score (Column 2), and Weighted Score (Column 4).
• The Total Weighted Score should indicate how effective your firm has been in handling its opportunities and threats.
