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Strategic Management - MCB EFE Matrix

The EFE matrix analyzes external factors and opportunities for a bank. It assigns weights and ratings to opportunities like microfinancing and threats like foreign banks. The total weighted score is 2.6, indicating the bank has a better than average response to external factors. While the bank's external position is good, it could improve by taking advantage of more opportunities. The matrix is a tool to evaluate a bank's external environment.

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Haris Khan
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95 views

Strategic Management - MCB EFE Matrix

The EFE matrix analyzes external factors and opportunities for a bank. It assigns weights and ratings to opportunities like microfinancing and threats like foreign banks. The total weighted score is 2.6, indicating the bank has a better than average response to external factors. While the bank's external position is good, it could improve by taking advantage of more opportunities. The matrix is a tool to evaluate a bank's external environment.

Uploaded by

Haris Khan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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EFE Matrix (External Factor Evaluation Matrix:

Opportunities Weights (0-1) Rating (1-4) Weighted Score


Micro Financing 0.2 4 0.8
Islamic Banking 0.1 3 0.3
Car Leasing 0.05 4 0.2
Make Personal Loans 0.1 3 0.3
Reduce Transaction 0.05 3 0.15
Charges
Threats
Direct Competitors 0.1 2 0.2
Financial Recession 0.1 1 0.1
Foreign Banks 0.2 2 0.4
Downfall Of Economy 0.05 2 0.1
High Interest Rate 0.05 1 0.05
Total: 1 2.6

Interpretation of EFE Matrix:

The EFE shows that the company has more than average response of 2.5. The company has2.6 total
weighted score which shows that the company is showing good response to external opportunities and
threats so external position of the company is good enough but the chances are always there for the
company to improve itself by availing appropriate opportunities.

https://www.studocu.com/row/document/institute-of-business-administration/corporate-strategy/
strategic-management-mcb-bank/5826714

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