efe evaluation

8/10/2019 Efe Evaluation

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EFE EVALUATION:

For better results from the External Factor Evaluation, we listed down all the major factors

which were affecting the company and the industry, both positively and negatively, and then

conducted analysis separately on individual factors based on Porters Five Forces Model. We

evaluated whether the individual factor supported in favor of the industry or went against it

based on which we identified them as either opportunity or threat to the industry. We also

focused on the macro environment factors and carried out the PEST analysis on these factors.

The list is as follows:-

Changing trend towards packed food due to busy life style of people.

Lax government regulations on unpopular brand companys processes.

Falsified law suit against company processes.

Imitation products in the rural market.

Changing trend towards healthy food due to awareness of health issues.

Boom of modern trade.

Stringent International food standards.

Stringent waste water treatment policy imposed by government of Pakistan.

Acceptance of Pakistani food in International market.

High immigration rate of Asian People to other parts of the world.

Natural Disasters ruining the key supplies.

Devaluation of Pakistani currency effecting key chemicals import.

Growing food restaurant chain in Pakistan.

Potential profitable market in Karachi.

Unpredictable law and order situation in the country.

EXTERNAL FACTOR EVALUATION MATRIX (EFE)

OPPORTUNITIES WEIGHT RATING WEIGHTED

SCORE

1 Changing trend towards packed food due to

busy life style

0.09 3 0.27

2 Changing trend towards healthy food due

to awareness of health issues

0.05 3 0.15

3 Acceptance of Pakistani food in

international market

0.09 2 0.18

4 High immigration rate of Asian peoples to

other parts of the world

0.06 2 0.12


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5 Growing food restaurant chains in Pakistan 0.07 4 0.28

6 Boom of modern trade 0.08 3 0.24

7 Potential profitable market in Karachi. 0.09 4 0.36

THREATS WEIGHT RATING WEIGHTED

SCORE1 Lax government regulations on unpopular

companys process

0.06 2 0.12

2 Imitation products in market 0.07 4 0.28

3 Falsified law suits 0.05 3 0.15

4 Stringent international food standards 0.06 3 0.18

5 Stringent Waste water treatment policy 0.09 2 0.18

6 Natural Disasters effecting supplies 0.03 3 0.09

7 Devaluation of currency (effecting

chemicals import)

0.06 1 0.06

8 Unpredictable law and order situation 0.05 2 0.10

TOTAL 1.00 2.76

EFE EVALUATION:

The weighted score of EFE assessment grid turns out to be 2.76 which demonstrates the

evidence that National Foods ltd. tends to endeavor the opportunities accessible in the

business environment and turn these in a productive manner to overcome the threats in the

environment. In our assessment we see that the opportunity factor that gets the best weighted

score is Potential profitable market in Karachi, which in our proposal ought to be desirously

watched by NFL. Then again in the threats the component of stringent waste water treatment

approach gets the highest weight and is still less followed by the organization.

Based on our observation we can find that the most elevated weights are given to

circumstances, for example, Changing patterns of individuals around Pakistan towards

packaged foods because of the cause that the lives of a normal Pakistani is getting to be more

occupied step by step, this impact is restricted to Pakistan as well as, without much of a stretch,

can be seen around the globe. Since modern day activities are constraining even ladies to do

the 9 to 5, it is getting harder for them to take after the customary method for making and

cooking food for the family. Acknowledgement of Pakistani food in worldwide market, for

example, Middle East America, UK and Canada is getting to be more of a typical thing as a more

noteworthy number of Pakistani and south Asian individuals are moving to these territories of

the world, henceforth it has been given a higher weightage in our investigation and considered

a fabulous opportunity. An alternate component that is potential potential market in Karachi is


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given the higher weightage in light of the fact that Karachi is the greatest Cosmopolitan City in

Pakistan and a large number of packed food consumers reside here. Our greatest rival has the

business initiative in this locale, so we see it as an extraordinary opportunity and by picking a

forceful system NFL can snatch a greater piece of the overall industry, however NFL has

endeavored and fizzled this methodology in the later past by offering Karachi Special range ofRecipe mix Masalas, yet it is ideal for NFL to make another attempt on this. The most elevated

weightage given in threats part is to the stringent waste water treatment strategy set out by

the administration, since NFL does not have a waste water treatment plant at present, it needs

to arrange the water appropriately by filling the tank lorries and dumping into the far away

filthy water channels (Naalas). This strategy is excessive and lengthy, which is signifying the

production costs.

Different components that get overwhelming weightage are boom of modern trade, growing

food restaurant chains and imitation products. Nowadays, exchange is booming in Pakistan as

apparent from the development of this part, so NFL ought to be anticipating it and get some

inventory network procedure to endeavor this opportunity. Likewise restaurant networks are

open here and there almost every day, it is kept as an opportunity in our examination as a

result of the way that these restaurant networks secure plain flavors from the packaged food

industry keeping in mind the end goal to comply to the quality standards of their own industry,

so this is seen as an opportunity for NFL to create some suitable methodology to monitor this

opportunity. Imitation products are a huge threat to the organization, as in far flung provincial

zones, where there is an absence of vigilance, imitators become possibly the most important

factor and dispatch false items with the comparable names, bundling and logos as of National

Foods Ltd. These represent a genuine danger to the brand character in those territories;

fundamental measures ought to be embraced to eradicate this issue.

STRATEGIES DRIVEN OUT OF EFE:

From the external factor evaluation we evaluated the following strategies for NFL:-

Revive the Karachi Special range via completing Research and development, redesign

the product backed by intense market research, come up with a new positioning andstrike back to the market of Karachi with greater force.

Use its internal strengths and competitive advantages to develop the global business

sector.

Develop a new product range for catering to the high life of cosmopolitan cities.

Install waste water treatment plant to comply with the stringent governmental policies.

efe evaluation

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