Example of assignment strategic management on EEFM

The External Environmental Factor Matrix (EEFM)

Nisasharmeen Sdn. Bhd.

External Environmental Factors	Weights	Rating	Weighted Score
Opportunities
1. Government as a major client.	0.07	5	0.35
2. Government as a policy maker.	0.07	4	0.28
3. Sources of finance from financial institution in Malaysia.	0.05	4	0.2
4. Organisation has strong capital and experience more than 30 years in construction industry.	0.05	5	0.25
5. Good reputation among clients.	0.04	3	0.12
6. Desire of modern living lifestyles	0.03	3	0.09
7. High level of education	0.03	3	0.09
8. Government policies in construction development.	0.06	4	0.24
9. Government support and incentives.	0.06	4	0.24
10. Political stability	0.06	4	0.24
11. New technology and Hi-tech Equipment in construction industry	0.03	3	0.09
12. Hi-tech equipments of Information Technology	0.02	4	0.08
13. Eco-friendly to environment.	0.03	3	0.09
Threats
1. Material price fluctuations	0.03	3	0.09
2. Low skill workers	0.02	3	0.06
3. High market competitions for the projects.	0.05	4	0.2
4. Possible negative publicity	0.03	2	0.06
5. Environmental issues such as Water and air pollution.	0.03	2	0.06
6. Cultural differences	0.02	2	0.04
7. Natural phenomenon such as floods and landslides.	0.02	3	0.06
8. Objections from community on development.	0.04	3	0.12
9. Objections from local lobby group	0.05	2	0.1
10. Safety in construction site or workplace.	0.05	4	0.2
11. Emergence of new technologies	0.03	2	0.06
12. High cost material due to high cost of technology used.	0.03	2	0.06
Total	1.00		3.47

The results show that the organisation’s performance is average at 3.47. The company has major opportunities as the Malaysian government is very keen of development, in Malaysia budget 2010 many schools and hospitals will be build throughout the country. Furthermore, as an establish organisation with good reputation of 30 years in construction industry, sources of finance like ‘Long term loan’ and ‘bank overdraft’ for new projects are easy to get.