EFE Matrix

Key External Factors

Weight

Rating

Weighted
Score

Opportunities
1. Booming industry of Business
Process Outsourcing (BPO).
2. Annual domestic

7.00%

0.14

7.00%

0.14

7.00%

0.21

7.00%

0.14

6.00%

0.18

5.00%

0.1

5.00%
5.00%

4
4

0.2
0.2

consumption of green bean

coffee is increasing at the
rate of approximately three
percent (3%) per year.
3. World consumption continues
to grow one to two percent
per annum.
4. Potential big export
production of Robusta coffee
in international market.
5. 2015 ASEAN integration
causes expansion of market
to foreigners.
6. Unemployment rate in
Philippines decreased to 6%
in the fourth quarter of 2014
from 6.70% in the third
quarter of 2014.
7. Expansion of market globally
through access of business
website.
8. Variety of flavors and
ingredient options available
to market keeps sales high

over the forecast period.

9. The Department of
Agriculture (DA) supports the
mocha trend with a P192
million budget for coffee and
the implementation of Cacao
Agribusiness Zones
Development (CAZD), both
aiming to boost coffee and
cocoa production.
Threats
10.
Availability of coffee

8.00%

0.24

7.00%

0.21

6.00%

0.18

5.00%

0.05

8.00%

0.32

beverages in milktea shops

offers variety of choices than
coffee shops do.
11.
Coffee farming is
shifting slowly to Mindanao,
pushed by the rising cost of
land in traditional coffeeproducing provinces like
Cavite.
12.
Threat of health
consensus about the negative
health effects of coffee than
other beverages.
13.
Low supply production
at 25,000 tons of coffee
annually in meeting increase
in demand for about 3% to
5% population rate in
Philippines.

14.

Growing establishments

of foreign coffee shops

competing with the localbased coffee shops.
15.
Trend in consumption in

5.00%

0.05

5.00%

0.1

7.00%
100.00%

0.14
2.60

instant coffee with cheaper

prices than coffee made
coffee beans.
16.
Unproductive coffee
trees and poor technology
utilization.
Total

Presented above is the external factor evaluation matrix for Figaro

Coffee Shop which will indicate how well the Figaro responds to its existing
opportunities and threats in its industry. Key opportunities and threats were
identified in accordance to its economic, social, cultural, demographic,
environmental, political, governmental, legal, technological, and competitive
factors affecting the company and its industry. This will allow strategists to
summarize and evaluate external information.
As what is shown in the matrix, note that the most important factor to
being successful in the firms industry are The Department of Agriculture
(DA) supports the mocha trend with a P192 million budget for coffee and
the implementation of Cacao Agribusiness Zones Development (CAZD), both
aiming to boost coffee and cocoa production and Low supply production at
25,000 tons of coffee annually in meeting increase in demand for about 3%
to 5% population rate in Philippines both of which have 0.08 weight. Key
external factors which are doing excellent are The Department of
Agriculture supports and Low supply production which has 0.24 and
0.32, respectively. Results showed that Figaro is responding outstandingly
with the opportunity about the increase in production of coffee and cocoa

and perhaps they actively taking advantage of the boost coffee-cocoa

production in contrast to the threat of low supply in meeting increase in
demand. On the other side, weighted score shows 2.60 which is above the
average score of 2.50 that may indicate the firm is performing well in the
industry as well as taking advantage of the opportunities and avoiding
external threats. Though at the rating of 1, Threat of health consensus and
establishments of foreign coffee shops should be observed and avoid these
threats in order for improvement of the firm.