The External Factor Analysis: Mcdonald's External Factor Evaluation

EFE

The external Factor Evaluation (EFE) Matrix examines a company’s external environment to help identify its opportunities and threats. In this matrix you figure out what your companies, in our case McDonald’s, opportunities and threats, and you give them a weight and rating. The weight for each opportunity and threat can range from 0.0 (low importance) to 1.0 (high importance). The number indicates how important the factor is if a company wants to succeed in an industry. The sum of the weights from the opportunities and threats should equal 1.0. With the ratings you can give that opportunity or threat a rating of 4 to 1. 4 means superior response, 3 means above average response, 2 means average response, and 1 means poor response.

Opportunities

We decided to give this a 0.08 because the mobile industry is huge and it is good for a company to up to date with the latest technology trends. Because of this we felt it was a little important for McDonald’s to get in this industry, but not as important because they are a fast food restaurant. We gave them a rating of 3 because they been following the technology trends and made them a mobile app. On the app you can order online and go pick up your food and you can get deals for using the app. Increasing international trade agreements is also an opportunity for McDonald’s because they can expand their business and enhance global supply chains. We gave this a weight of 0.06 because it is important for a multinational company to keep expanding in other countries to be more known and increase profits. We gave it rating of 3 because we felt they have done a great job of becoming globally known and continuing to expand in more locations in other countries. Another opportunity that McDonald’s has is increasing cultural diversity. It is an opportunity because they can improve its products mix to satisfy a more diverse target market. We decided to give this a 0.05 because it is important for