Question 1

One difference between a Competitive Profile Matrix (CPM) and an External Factor Evaluation (EFE) is that

Accepted Answer

The answer of One difference between a Competitive Profile Matrix...

Question 2

When using External Factor Evaluation (EFE) Matrix, what is done after multiplying each factor's weight by its rating to determine a weighted score?

Accepted Answer

After calculating the weighted scores for each factor, they are summed to determine the total weighted score for the organization, which reflects how well the organization is responding to external factors.

Question 3

Regardless of the number of key opportunities and threats included in an External Factor Evaluation Matrix, the highest possible total weighted score for an organization is 4.0, and the lowest possible total weighted score is 0.0.

Accepted Answer

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Question 4

The process of performing an external audit needs to include

Accepted Answer

Involving as many managers and employees as possible in an external audit ensures diverse perspectives and comprehensive understanding of the organization's external environment, leading to more effective strategic planning.

Question 5

Discuss the process of performing an external audit.

Accepted Answer

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Question 6

The critical success factors in a Competitive Profile Matrix (CPM) and an External Factor Evaluation (EFE) Matrix include both internal and external issues.

Accepted Answer

The CPM focuses on external factors related to competition, while the EFE Matrix evaluates external opportunities and threats. Internal issues are not included in these matrices.

Question 7

What are the five steps needed to develop an EFE Matrix?

Accepted Answer

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Question 8

The weights and total weighted scores in both a Competitive Profile Matrix (CPM) and an External Factor Evaluation (EFE) Matrix have the same meaning.

Accepted Answer

The weights in both matrices represent the relative importance of each factor, and the total weighted scores represent the overall attractiveness or competitiveness of the organization.

Question 9

The critical success factors in a Competitive Profile Matrix and EFE Matrix include

Accepted Answer

Both the Competitive Profile Matrix (CPM) and the External Factor Evaluation (EFE) Matrix consider internal and external issues to assess a company's competitive position and external opportunities and threats.

Question 10

As many managers and employees as possible should be involved in the process of performing an external audit.

Accepted Answer

Involving many managers and employees in an external audit can provide diverse insights, ensure comprehensive data collection, and foster a sense of ownership and understanding of the audit process.

Question 11

A total weighted score of 1.0 for an EFE Matrix indicates that the firm is responding in an outstanding way to existing opportunities and threats in its industry.

Accepted Answer

A total weighted score of 1.0 in an EFE Matrix indicates that the firm's strategies are not effectively capitalizing on opportunities or avoiding threats, as the average score is 2.5.

Question 12

In an EFE Matrix, opportunities often receive higher weights than threats, but threats too can receive high weights if they are especially severe or threatening.

Accepted Answer

Opportunities and threats are both evaluated in an EFE Matrix, and their weights reflect their potential impact on the organization. Severe threats can receive high weights if they pose significant risks.

Question 13

Describe the Competitive Profile Matrix (CPM) noting similarities to, and differences from, the External Factor Evaluation (EFE) Matrix.

Accepted Answer

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Question 14

What is the range for a firm's total weighted score in a Competitive Profile Matrix (CPM)?

Accepted Answer

The answer of What is the range for a firm's...

Question 15

The weights and total weighted scores in a Competitive Profile Matrix (CPM) have the same meaning as the weights and total weighted scores in a(n)

Accepted Answer

The weights and total weighted scores in a Competitive Profile Matrix (CPM) are similar to those in an External Factor Evaluation (EFE) matrix, as both are used to evaluate external factors affecting a company.

Quiz 3: The External Assessment