 Domestic and world economies were more

stable in years past

 Product life cycles were longer
 Product development cycles were longer
 Change occurred less frequently
 Fewer competitors
 Increasing difficulty of predicting the future
with accuracy
 Increase in the number of both domestic and
world events affecting organizations
 Consistency
Strategy should not present inconsistent
goals and policies
 Consonance
Responses to external and internal factors
 Feasibility
It can be reached within physical, human,
and financial resources of the enterprise
 Advantage ; must create and/or
maintenance of a competitive advantage
in the selected area of activity
 Prepare revised IFE prepare revised EFE
Compare revised to existing IFE compare revised to existing
EFE

ye
Do significant differences occur
s

no

Compare planned to actual Take

corrective
action
ye
Do significant differences occur
s

no

Continue present course

Revised EFE Matrix should indicate how effective a firm’s
strategies have been in response to key opportunities and
threats

competitors
How have competitors react to our strategies
How major competitors’ strengths and weaknesses changed
Why are competitors’ making certain strategic changes
Why are some competitors’ strategies more successful than others

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 Are out internal strength still strength
 Have we added other internal strengths
 Are our internal weakness still weakness
 Do we now have other internal weakness
 Are our external threats still threats
 Are there now other external threat
 Are there now other external opportunity

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 It is a measurement system
 Communication tools
 Ensure the consistency of objectives

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 It should place an organization in a better
position to capitalize upon internal strength;
to take advantage of key external
opportunities; to avoid, reduce external
threats; and to improve internal
weaknesses

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 Strategy evaluation activities must be
economical; too much information can be
just as a bad as too little information
 Meaningful ; related to firm’s objectives
 Provide timely information
 Provide truly picture of what is happening
 simple
 Fortune publish
In its march issue each year, fortune publishes its strategy evaluation
”research in an article entitled ” America's most admired companies
Nine criteria
3.Quality of management
4.Innovativeness
5.Quality of products or services
6.Long term investment vale
7.Financial soundness
8.Community and environmental responsibility
9.Ability to attract
10.Develop and keep talents people
11.Use of corporate assets