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Assignment 2 - Internal and External Factor Evaluation Matrix

The document summarizes an external factor evaluation matrix (EFEM) for Exide Battery. Some key opportunities include new trade agreements, new suppliers, and expanding into new territories. Threats include new startups, strong competition, new regulations, and technological risks. The EFEM rates these opportunities and threats on a scale of 1 to 4 and calculates weighted averages. The total weighted average for opportunities is 2.77 and threats is 2.77. The internal factor evaluation matrix (IFEM) evaluates Exide's strengths like its strong brand equity and market share. Weaknesses include questionable dealer loyalty and declining net cash flow. Strengths and weaknesses are also rated on a scale of 1 to 4 and weighted averages are

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Rehan Mansoor
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281 views2 pages

Assignment 2 - Internal and External Factor Evaluation Matrix

The document summarizes an external factor evaluation matrix (EFEM) for Exide Battery. Some key opportunities include new trade agreements, new suppliers, and expanding into new territories. Threats include new startups, strong competition, new regulations, and technological risks. The EFEM rates these opportunities and threats on a scale of 1 to 4 and calculates weighted averages. The total weighted average for opportunities is 2.77 and threats is 2.77. The internal factor evaluation matrix (IFEM) evaluates Exide's strengths like its strong brand equity and market share. Weaknesses include questionable dealer loyalty and declining net cash flow. Strengths and weaknesses are also rated on a scale of 1 to 4 and weighted averages are

Uploaded by

Rehan Mansoor
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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External Factor Evaluation Matrix (Excide Battery)

RATIN WEIGHTED
S. No OPPORTUNITIES WEIGHT
G AVERAGE
1 New Trade Agreement 0.1 4 0.4
2 New Suppliers 0.09 2 0.18
3 Growing demand for product/services 0.07 3 0.21
Quality, productivity, cost control and after
4 0.1 2 0.2
Sales service to improve its competitiveness.
5 Expansion into new territories and global expansion 0.09 3 0.27
6 New entrants of car variants in the market 0.04 3 0.12
7 Use of E-commerce 0.06 3 0.18
THREATS 
1 Threat from new start ups 0.05 3 0.15
Strong competition from competitors like Atlas
2 0.05 2 0.1
batteries
3 New law and regulations from government 0.06 3 0.18
4 Technological risk 0.04 3 0.12
5 Currency risk 0.06 3 0.18
6 High Inflation and Purchasing Power 0.05 3 0.15
7 Hybrid and Electrical cars 0.05 3 0.15
8 High taxation economy 0.09 2 0.18
TOTAL   1   2.77
Internal Factor Evaluation Matrix (Excide Battery)

S. No STRENGHTS WEIGHT RATING WEIGHTED


AVERAGE
1 Strong brand equity 0.12 4 0.48
2 Excide enjoys 40% share of the total industry’s installed 0.1 3 0.3
capitalization
3 Offers batteries for every kind of vehicle. 0.06 3 0.18
4 Huge dealer network even in rural areas. 0.05 3 0.15
5 ISO 9001 and ISO 22000 certified 0.08 4 0.32
6 Strong supply chain management 0.06 3 0.18
7 Exide is the first company to acquire the ISO 9002 Certificate. 0.11 3 0.33
This helps to enhance the brand image of their batteries.
WEAKNESSES
1 Loyalty of dealers is questionable. 0.09 1 0.09
2 Unnecessary intermediary costs, since the company itself is 0.06 2 0.12
undertaking an aggressive marketing strategy
3 Declining Net Cash Flow 0.1 1 0.1
4 Inefficient use of capital to generate profits 0.06 3 0.18
5 Weak presence in social media 0.06 3 0.18
6 Weak CSR 0.05 3 0.15
TOTAL   1   2.76

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