External Factor Evaluation Matrix Harrah’s

By adding the weighted score of various opportunities and threats of Harrah’s Entertainment , we get the total weighted score of 3.06. 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.

In the case of Harrah’s Entertainment, the total weighted score is above average, which means that the Harrah’s strategies are effective and the company is taking advantage of existing opportunities along with minimizing the potential adverse effects of external threats.