BUSINESS ADMINISTRATION
STRATEGIC MANAGEMENT
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
CPM includes both internal and external issues
|
|
|
CPM is only used in small firms
|
|
|
the weight and total weighted score mean opposite
|
|
|
CPM ratings range from 1 to 10
|
Detailed explanation-1: -The weights and total weighted scores in both a CPM and an EFE have the same meaning. However, critical success factors in a CPM include both internal and external issues; therefore, the ratings refer to strengths and weaknesses, where 4 = major strength, 3 = minor strength, 2 = minor weakness, and 1 = major weakness.
Detailed explanation-2: -D) CPM is performed only for the company, whereas EFE is performed for both the company and its competitors.
Detailed explanation-3: -The Competitive Profile Matrix (CPM) identifies a firm’s major competitors and their particular strengths and weaknesses in relation to a sample firm’s strategic position. The Competitive Profile Matrix resembles an External Factor Evaluation (EFE) Matrix with a comparison to other organizations and/or companies.
Detailed explanation-4: -The answer is C) 1 to 4. The range for a firm’s total weighted score in an External Factor Evaluation Matrix is C) 1 to 4.. The external factor evaluation matrix expands the SWOT analysis of opportunities and threats.
Detailed explanation-5: -The EFE matrix is very similar to the IFE matrix. The major difference between the EFE matrix and the IFE matrix is the type of factors that are included in the model. While the IFE matrix deals with internal factors, the EFE matrix is concerned solely with external factors.