In an External Factor Evaluation (EFE) Matrix, a total weighted score of 4.0 indicates that an organization competes in an _________ and has ___________.
A) Attractive industry, severe external threats
B) Unattractive industry, severe external threats
C) Unattractive industry, abundant external opportunities
D) Attractive industry, abundant external opportunities

Question

Quizplus · Accepted Answer

A total weighted score of 4.0 indicates that an organization competes in an attractive industry and has abundant external opportunities, as the score ranges from 4.0 (highly attractive industry with abundant opportunities) to 1.0 (unattractive industry with severe threats). Therefore, option D is the best choice. Option A and B are incorrect because a total weighted score of 4.0 indicates an attractive industry, not an unattractive one, and severe external threats would lead to a lower score. Option C is also incorrect because although the industry may be unattractive, a score of 4.0 implies that there are abundant external opportunities.

In an External Factor Evaluation (EFE) Matrix, a Total Weighted