The External Factor Evaluation (EFE) Matrix

Key External Factors Opportunities 1. U.S. sales of organic food and beverage have increased from $1 billion (1990) to $26.7 billion (2009) 2. "ood man#fact#rers have e$%erienced an increase in sales d#e to a higher n#mber of %eo%le dining o#t . &omen are becoming more common in #%%er management (11.2' in 199( to 16.!' in 200() !. )a*ed goods %rices increased 10.7' com%ared to 2008 (. +ncreased trends of flavor enhancer for bottled ,ater 6. -ro,ing environmental consens#s 7. +ncreased demand for %ac*aged and %rocessed foods aro#nd the ,orld d#e to change in lifest.les Threats 1. +ncreasing obesit. rates in /orth 0merica 2. 1#e to a ,ea* econom. and increased com%etition2 the food %rocessing ind#str. sa, a ,or* force red#ction on average of 7.(' in 2009 . 3ising costs of %etrole#m ca#se an increase in cost for food com%anies !. 1iffic#lt to differentiate %rod#ct %ricing bet,een com%etitors in the food %rocessing ind#str. (. 4#stomers s,itching to generic brands 6. +ncreased intensit. bet,een com%etitors in 5#ro%ean as ,ell as other mar*ets 7. /orth 0merican com%etition is no, %rimaril. foc#sed on the food ind#str. 8. 1eclining val#e of the dollar ,ith an increasing val#e of the 5#ro Total +ncrease trend to ta*e meal o#t of home 5arn more %rofit as the %o%#lation gro,s Urbani6ation Strategic 7ocation 8%en ne, branches Weig ht Ratin g Weighted Score

0.08 0.10 0.06 0.0 0.1 0.06 0.07 ! ! 1 !

0.2! 0.! 0.2! 0.0 0.(2 0.18 0.21

0.0

0.06

0.0! 0.0( 0.0! 0.09 0.07 0.1 0.02 1 !!

1 2 2

0.0! 0.1 0.08 0.27 0.21

! 2

0.(2 0.0! .1!

0vailabilit. of ra, material

9hreats +ntensive com%etition /e, entrants /at#ral disasters :ealth conscio#s eating habits