When Using External Factor Evaluation (EFE) Matrix, What Is Done

question 81

Multiple Choice

When using External Factor Evaluation (EFE) Matrix, what is done after multiplying each factor's weight by its rating to determine a weighted score?

• A) Identifying key external factors
• B) Summing the weighted score for each competitor
• C) Summing the weighted scores for each variable to determine the total weighted score for the organization
• D) Drawing the horizontal and vertical lines for the matrix
• E) Determining the preferred strategic factors

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Definitions:

Inventory Cost

The total expense associated with purchasing and maintaining a business's inventory, including procurement, storage, and management costs.

Supply Chain Revenues

The total income generated from the sale of goods and services throughout the entire supply chain.

Optimal Level

The most favorable point or condition that yields the best outcome for a specific objective, such as profit maximization or cost minimization.

Maximize Profits

The process of increasing the financial gain from business activities to the highest possible level.