Mcdonalds Efe Matrix

Assurance Exercise 3A:

DEVELOPING AN EFE MATRIX FOR MCDONALD’S CORPORATION

PURPOSE:

This exercise will provide practice developing an EFE Matrix. An EFE Matrix summarizes the results of an external audit. This is an important tool widely used by strategists.

NOTES:

Five Steps for Developing an EFE Matrix:

1) List external factors.

2) Assign a weight from 0-1 with 0 being not important and 1 being very important. The total weights assigned must equal 1.

3) Assign a 1-4 rating to each external factor based on effectiveness of current strategy. 1 = Poor, 2 = Average, 3 = Above average, and 4 = Superior.

4) Calculate weight * rating.

5) Sum. The highest score is 4 while the lowest is 1. The average is 2.5.

|OPPORTUNITIES |Weight |Rating |Weighted Score |

|O1: Anticipated 4% growth rate in QSR industry. |0.06 |3 |0.18 |

|O2: Low fat, low calorie, healthy hamburger – first on market. |0.07 |1 |0.07 |

|O3: Many restaurants have outdated appearance. |0.06 |3 |0.18 |

|O4: Respond to social changes by healthy food innovations. |0.04 |3 |0.12 |

|O5: Increased beverage options (Gourmet coffees). |0.06 |3 |0.18 |

|O6: Breakfast not available at 25% of locations. |0.06 |3 |0.18 |

|O7: Joint ventures with retailers can place new locations in high traffic areas at |0.03 |4 |0.12 |

|lower capital cost....