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<div align="justify">In the first column, list down all the opportunities and threats. EFE matrix should include 10 to 20 key external factors. </div>
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<div align="justify">In the second column assign weights to each factor that ranges from 0.0 (not important) to 1 (most important). The total weights must sum to 1.00 (It should be noted that the importance of weights depend upon the probable impact of factors on the strategic position of the company). </div>
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<div align="justify">In the column three, rate each factor (ranging from 1 to 4) on the basis of company&#8217;s response to that factor.&#160; (Here, 1 shows poor response, 2 shows average response, 3 shows above average response and 4 shows superior response)</div>
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<div align="justify">In the column four, calculate the weighted score by multiplying the each factor&#8217;s weight by its rating. </div>
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<div align="justify">Find the total weighted score by adding the weighted score for each variable. </div>
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<div align="justify">In the fifth column, provide rationale used for each factor.&#160; </div>
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<p align="justify">&#160;</p>
<p align="justify"><a href="http://mba-lectures.com/wp-content/uploads/2010/10/image3.png"><img style="border-right-width: 0px; display: block; float: none; border-top-width: 0px; border-bottom-width: 0px; margin-left: auto; border-left-width: 0px; margin-right: auto" title="image" border="0" src="http://mba-lectures.com/wp-content/uploads/2010/10/image_thumb3.png" width="500" height="446" /></a> </p>
<p align="justify">&#160;</p>
<p align="justify">By adding the weighted score of various opportunities and threats of Perrigo Company, we get the total weighted score of 3.40. Here it should be noted that the highest possible total weighted score of a firm is 4 whereas the lowest possible total weighted score is 1. The total weighted score remains in the limit of 1 to 4 regardless of the total number of opportunities and threats. Similarly, the average total weighted score is 2.5. If the total weighted score of a company is 4, it means that the company is effectively taking advantage of existing opportunities and is also able to minimize the risk. On the other hand, the total weighted score of 1 shows that firm is not able to take advantage of current opportunities or avoid external threats. </p>
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In the case of Perrigo Company, the total weighted score is above average, which means that the Perrigo strategies are effective and the company is taking advantage of existing opportunities along with minimizing the potential adverse effects of external threats. 
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View Comments
great work done .. cheers
Thanks for your effort , u made it simple and clear
great work and thanks for your effort. there should be table for more clarification.
Thank you very much for your effort