External Factors

Weight

Rating

Weighted Score

Comments

Opportunities

5.0-1.0

Threats

Total

1.0

It is important to remember that whenever working with weighted averages, the weight column should always total 1.0, or 100%, regardless of how many factors are included in the EFAS analysis. It is up to the analyst to decide how much weight each individual external factor is assigned. An important factor may have a weight of 0.5 (50%) while a less important factor may have a weight of .05 (5%). When all is finished, however, all factor weights should total 1.0 or 100%. Please also note that the total weighted score for an average firm in an industry is always 3.0. When the EFAS analysis is complete, the subject company weighted score is evaluated against the industry average score of 3.0 to determine how well it is doing. A weighted total score greater than 3.0 indicates the subject company is doing better than the average industry firm. A weighted average score less than 3.0 indicates that the subject company is doing worse than the average industry firm.

In this section, add your commentary about if the company is doing better or worse than others in the same industry. At the end of this section, add any references you may have used for the assignment.

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