EFE Matrix of Burger King

Burger King is a global fast food chain founded 1953 and operating in fast food industry. Its headquarter is located in Miami-Dade County, Florida,United States. Burger Kings primary menu food items consists of Hamburgers,chicken,French fries,soft drinks,milkshakes,salads,desserts and breakfast.

EFE Matrix

External factor evaluation (EFE) matrix is a well known strategic tool has been used for the evaluation of external environment of a firm. External environment mainly consist of political,legal,economical,social and technological factors. A firm should determine the external factors and segregate them into opportunities and threats. The opportunities are the options available for a firm to further strengthen its position in a industry only if a firm exploit each offered opportunity. On the other hand, threats are considered as negative factors for a firm which may harm its position in a industry however, impact of threat could be minimized or eliminated if a firm respond to each threat in a timely manner.

Here is an example of EFE matrix made for Burger King.

Steps in Developing the EFE Matrix

1.Identify a list of KEY external factors (critical success factors).

2.Assign a weight to each factor, ranging from 0 (not important) to 1.0 (very important).

3.Assign a 1-4 rating to each critical success factor to indicate how effectively the firm’s current strategies respond to the factor. (1 = response is poor, 4 = response is extremely good)

4.Multiply each factor’s weight by its rating to determine a weighted score.