Strategic Management
The External Factor Evaluation Matrix or EFE matrix is an important strategic tool used by management and other stakeholders to evaluate an organization’s existing strategies. EFE Matrix is basically a strategic management tools used to evaluate the macro or external environment of a firm by looking at aspects such as social, economic, government, legal, political, technological, and competitive information (Hill, Jones, & Schilling, 2014). External factors are broadly divided into two main categories that is opportunities (chances that are available for an organization in the external environment) and threats (factors that poses challenge to the organization). EFE matrix uses rating to as a response towards the organization opportunities and threats (Hitt, Ireland, & Hoskisson, 2012). The higher the rating implies that an organization has a better response to exploit existing opportunities and mitigate any threats that the organization might face. This paper essentially presents Saint Leo University’s EFE Matrix.
EFE Matrix for Saint Leo University
St. Leo University is a Christian liberal arts university founded in 1889. It offers 41 plus academic programs that meet academic, professional, and spiritual goals to approximately 14,000 on-campus and online students. St Leo enrolls more than 16,000 students across their education centers, traditional Florida campus, and online degree programs (St. Leo, 2016). For more than a century, St Leo University has been able to provide education to diverse people by exploiting new opportunities to provide better education to all students. The following is the EFE Matrix for St Leo University.
| External Factor Evaluation Matrix | ||||
| Weight | Rating | Weighted Score | ||
| Opportunities | ||||
| Powerful online learning platform that brings students from all over the world to attend classes without being at the university physically | 0.2 | 3 | 0.6 | |
| Expansion of Florida campus: St. Leo opened a $15 million student community center in the year 2015. On the same note, the university is constructing a new building for its school of business. The university is also seeking to add new satellite offices and classrooms to existing sites. | 0.1 | 3 | 0.3 | |
| Strong organization partners including military organizations, and scientific organization. | 0.11 | 2 | 0.22 | |
| Large student body from different cultures, ethnic backgrounds, and nationality. | 0.12 | 1 | 0.12 | |
| Expanded education opportunities for all St. Leo students and thousands serving in the military. | 0.2 | 2 | 0.4 | |
| Opportunities to expand globally and offer courses to other unexplored market. Like establishing their presence in Caribbean, and South Africa | 0.1 | 1 | 0.1 | |
| Threats | ||||
| Competition from other international universities.
| 0.14 | 3 | 0.42 | |
| Security issues within the physical infrastructures and cybercrimes within the online education system offered by Saint Leo University | 0.03 | 1 | 0.03 | |
| TOTAL | 1 | – | 2.19 | |
From the external factor evaluation matrix, it is evident that St. Leo University has more opportunities with higher weights as compared to threats. The organization weighted score indicates that the university has a better response to exploit existing opportunities and mitigate any threats that the organization might face. Therefore, the organization is in a better position to strategically improve and gain more organizational sustainability. The organization should capitalize in exploring the opportunities that are presented by the external environment and at the same time mitigate any threats presented by the environment (Mellahi & Frynas, 2015). Organization strategies to improve the organization position should be developed based on the weighted score of the external factor evaluation matrix results.
References
Hill, C. W., Jones, G. R., & Schilling, M. A. (2014). Strategic management: theory: an integrated approach (11th ed.). Mason: Cengage Learning.
Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2012). Strategic management cases: competitiveness and globalization. Mason: Cengage Learning
Mellahi, K., & Frynas, G. (2015). Global strategic management. Oxford: Oxford University Press.
Saint Leo.edu (2016). Student Population Statistics and Outcomes. Saint Leo University. Retrieved from http://www.saintleo.edu/consumer-disclosures/student-population-statistics-and-outcomes.aspx
