External Factor Evaluation (EFE) matrix is a strategic tool to evaluate an organization’s existing strategies in relation to the external or macro environment like socio, economic, political factors or even the competing forces. This tool is related to SWOT analysis however the EFE matrix concentrates only on the external factors affecting the company.
Three opportunities-
Product expansion- The bank has announced that they are going to expand their support operations in more than 100 markets. The bank has sought acquisitions as the best strategy to expand their bank.
Promotional activities- The bank has sponsored boat races for promoting its brand. This increases the stakeholder’s involvement and provides transparency to their clients.
Global presence- The bank has strong global presence which provides more opportunities for gaining the market share via mergers and acquisitions.
Three threats-
1. Pricing- The bank was involved in controversies that it provided high price to their clients and this yielded more returns for the bank. The bank also ended up paying settlement amount in relation to the lawsuits for such allegations.
2. Fluctuating share prices- The bank’s income come mainly from investment management and just a few percentage from foreign exchange. Due to the business sectors are less, there is a risk involved in investing in the bank.
3. Lower returns for shareholders- The bank’s dividend yield is less for shareholders. This would make the shareholders shift their point of investment to other banks or sectors.
“Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!”
What Students Are Saying About Us
.......... Customer ID: 12*** | Rating: ⭐⭐⭐⭐⭐"Honestly, I was afraid to send my paper to you, but splendidwritings.com proved they are a trustworthy service. My essay was done in less than a day, and I received a brilliant piece. I didn’t even believe it was my essay at first 🙂 Great job, thank you!"
.......... Customer ID: 14***| Rating: ⭐⭐⭐⭐⭐
"The company has some nice prices and good content. I ordered a term paper here and got a very good one. I'll keep ordering from this website."
