BUSINESS ADMINISTRATION
STRATEGIC MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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take advantage of opportunity and avoid threat
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take advantage of opportunity but can’t avoid threat
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can’t take advantage of opportunity but can avoid threat
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can’t take advantage of opportunity nor avoid threats
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Detailed explanation-1: -External Factor Evaluation (EFE) Matrix is a strategy tool used to examine company’s external environment and to identify the available opportunities and threats.
Detailed explanation-2: -The letters EFE are an acronym for External Factor Evaluations, which shows how effectively the company’s current strategy responds to external opportunities and threats.
Detailed explanation-3: -Opportunities and threats are external-things that are going on outside your company, in the larger market. You can take advantage of opportunities and protect against threats, but you can’t change them. Examples include competitors, prices of raw materials, and customer shopping trends.
Detailed explanation-4: -We use the word “opportunity” to describe an upside risk with positive impacts, and “threat” is used for downside risks with negative consequences.