Categories: Strategy

EFE Matrix of Avon

Macroeconomic pressure 0.06 3 0.18 The macroeconomic pressure faced by the company all over the world is the threat in case of declining in its sales. Overdependence of company over suppliers

0.09 3 0.27 The over dependence of the company on the suppliers of the third party occurs some of the fraudulent factors. Rejection I internet selling 0.07 4 0.28 The rejection of the company in order to sell the products by the sales representatives through the internet. More innovation required 0.05 3 0.15 The factors of the innovative and new product development due to the global economical change and sustainability programs. Inflation rate 0.12 4 0.48 The inflation rate may cause the decline in the demand of the com pay’s products and also the increasing costs of the products and commodities during manufacturing decreases the growth. High priced product 0.08 2 0.16 The selling of the products with the high and branded prices but the inferior quality in the multilevel companies. The replacement of the Avon products with the other brands 0.06 3 0.18 The replacement of the Avon products with the other brands which attracts the women who are attracted by the innovative and extensive product line. The decline in the earning opportunities 0.02 4 0.08 The decline in the earning opportunities is the threat for the company to maintain its position in the market. Total Weighted Score 1 2.81

Conclusion

Based on the above calculations it has been concluded that the company’s Total Weighted Score is 2.81 which shows that somehow company has been successful in utilizing its opportunities and minimizing the threats around it.