Question: Developing an EFE Matrix for Nestlé S.A.

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.

Instructions:

Step 1 Join with two other students in class and prepare an EFE Matrix for Nestlé. Refer back to the Cohesion Case and to Exercise 1B, if necessary, to identify external opportunities and threats. Use the information in the Standard and Poor's Industry Surveys that you copied as part of Assurance of Learning Exercise 1B. Be sure not to include strategies as opportunities, but do include as many monetary amounts, percentages, numbers, and ratios as possible.

Step 2 All three-person teams participating in this exercise should record their EFE total weighted scores on the board. Put your initials after your score to identify it as your teams.

Step 3 Compare the total weighted scores. Which team's score came closest to the instructor's answer? Discuss reasons for variation in the scores reported on the board.

Exercise 1B: Preparing a CPM for Michelin Based on Countries Rather Than Companies

Purpose: Countries are similar to companies in that they compete with each other for investment dollars and economic development.

Instructions:

Step 1 Revisit the research you collected and analyzed in the above exercise.

Step 2 Prepare a CPM that reveals your assessment of three African countries in terms of their relative strengths and weaknesses based on what you deem to be the most critical success factors.