5.Sum the weighted scores.
EFE Matrix of McDonalds’s
Opportunities | Weight | Rating | Weighted Score |
Operates in fast growing industry | 0.05 (5%) | 4 | 0.20 |
Increase in demand of healthy products | 0.07 (7%) | 3 | 0.21 |
Cost competition | 0.06 (6%) | 3 | 0.18 |
Merger and acquisition | 0.03(3%) | 3 | 0.09 |
Going green | 0.04 (4%) | 3 | 0.12 |
Incorporate healthy food in its menu | 0.10 (10%) | 2 | 0.20 |
Globalization | 0.08 (8%) | 3 | 0.24 |
Expand coffee business | 0.09 (9%) | 3 | 0.27 |
Threats | |||
Strong competition especially from burger king. | 0.10 (10%) | 3 | 0.30 |
New entrants in fast food industry | 0.05 (5%) | 3 | 0.15 |
Online sales increasing which will results in increasing competition | 0.10 (10%) | 3 | 0.30 |
Economics recession | 0.05 (5%) | 1 | 0.05 |
Political issues | 0.05 (5%) | 2 | 0.05 |
Increase in obesity rate | 0.07 (7%) | 2 | 0.14 |
Relationship with franchisee and suppliers | 0.05 (5%) | 3 | 0.15 |
Total Weighted Score | 1.0(100%) | 2.65 |
The score of 2.65 is above average which means that the company is performing well but there is still enough of improvement.
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