You are on page 1of 5

External Factors Evaluation Matrix

Key External Factors


Opportunities
1 Philippine population is growing 1.89% per year
2 Country's broiler industry is projected to expand by 4% this year
3 Opening of Asian export market in2015
4 Stop operations of backyard broiler farms across the country
5 Philippines remains to be Bird Flu virus free
6 Chicken meat is cheaper than other meat
Threats
7 Possible entry of Bird Flu disease in the country
8 Competition for local market versus smuggled chicken
9 High cost of feed and feed ingredients (input cost)
10 Threat of foreign competition as Asian market will be opened
11 Typhoons and other natural calamities in the country
12 Incidence of diseases increased

Weight

Rating

Weighted
Score

0.08
0.12
0.07
0.11
0.07
0.05

3
4
2
3
2
1

0.24
0.48
0.14
0.33
0.14
0.05

0.09
0.08
0.10
0.12
0.06
0.05

3
2
3
4
2
1

0.27
0.16
0.30
0.48
0.12
0.05

1.00

2.76

1 Philippine population is growing 1.89% per year


2 Chicken broiler production is one of the most progressive sectors in the country
Demand for chicken meat for household consumption and institutional buyers like fast-food chains continue to grow
Average annual growth rate of poultry sector is 3.4%

INDUSTRY: Chicken
Case analysis of Bounty Fresh Chicken
Name: Jose Romeo A. Dongallo
External Factor Evaluation (EFE) Matrix
KEY EXTERNAL FACTORS
Weight
Opportunities
1
Philippine population is growing 1.89% per year
0.08
2
Demands for chicken meat continue to grow
0.12
3
Average annual growth rate of poultry sector is 3.4%
0.08
4
Opening of Asian export market in2015
0.03
5
Stop operations of backyard broiler farms across the country
0.08
6
Philippines remains to be Bird Flu virus free
0.03
7
Chicken meat is cheaper than other meat
0.05
8
Chicken broiler production is one of the most progressive sectors in the country
0.05
Threats
9
Possible entry of Bird Flu disease in the country
0.08
10
Competition for local market versus smuggled chicken
0.08
11
High cost of feed and feed ingredients (input cost)
0.11
12
Threat of foreign competition as Asian market will be opened
0.08
13
Typhoons and other natural calamities in the country
0.08
14
Incidence of diseases increased
0.05
1.00

Rating
3
4
3
1
3
1
2
2
3
3
4
3
3
2

Weighted
Score
0.24
0.48
0.24
0.03
0.24
0.03
0.10
0.10
0.24
0.24
0.44
0.24
0.24
0.10
2.96

External Factors Evaluation (EFE) Matrix for Magnolia Chicken


Key External Factors
OPPORTUNITIES
1 Philippine population is growing steadilyby 1.89% yearly
2 Fast expansion of fast food chains nationwide
3 Increase number of supermarkets nationwide
4 Increase number of lechon manok and fried chicken stores
5 Chicken meat importation is increasing
6 Opening of chicken meat export market
7 Stop operations of backyard broiler farm across the country
8 Bird Flu free status of the Philippines
9 Chicken meat is cheaper than other meat
THREATS
10 Possible entry of Bird Flu disease in the country
11 Competition for local market versus smuggled chciken
12 High cost of feed and feed ingredients (input cost)
13 Threat of foreign competition as ASEAN market will be opened
14 Typhoons and other natural calamities in the country
15 Increased incidence of chicken diseases
TOTAL

Weight

Rating

Weighted
Score

0.05
0.10
0.10
0.10
0.06
0.07
0.05
0.05
0.07

3
4
4
4
3
3
2
3
3

0.15
0.40
0.40
0.40
0.18
0.21
0.10
0.15
0.21

0.04
0.07
0.10
0.07
0.04
0.03
1.00

3
3
4
3
2
2

0.12
0.21
0.40
0.21
0.08
0.06
3.28

eighted

ghted

Competitive Profile Matrix


Critical Success Factors
Industry leadership
Brand reputation
Product quality
Food safety
Technological excellence
Financial position
Advertising, marketing
Price
Global expansion
Diversity of products
Management experience
Innovative culture
Customer satisfaction
Total

Weight
0.10
0.10
0.09
0.08
0.07
0.09
0.08
0.06
0.06
0.06
0.08
0.06
0.07
1.00

Magnolia
Rating
4
4
4
4
3
4
4
3
4
3
4
3
4

Wt. Score
0.40
0.40
0.36
0.32
0.21
0.36
0.32
0.18
0.24
0.18
0.32
0.18
0.28

Weight
0.07
0.08
0.10
0.10
0.09
0.05
0.05
0.10
0.03
0.10
0.06
0.07
0.10

3.75

1.00

Bounty Fresh
Rating
Wt. Score
3
0.21
3
0.24
4
0.40
4
0.40
4
0.36
3
0.15
2
0.10
4
0.40
2
0.06
4
0.40
3
0.18
4
0.28
4
0.40
3.58

You might also like