EFE MatrixKey External FactorsWeightRatingWeighted Score

Opportunities

1. Booming industry of Business Process Outsourcing (BPO).7.00%20.14

2. Annual domestic consumption of green bean coffee is increasing at the rate of approximately three percent (3%) per year.7.00%20.14

3. World consumption continues to grow one to two percent per annum.7.00%30.21

4. Potential big export production of Robusta coffee in international market.7.00%20.14

5. 2015 ASEAN integration causes expansion of market to foreigners.6.00%30.18

6. Unemployment rate in Philippines decreased to 6% in the fourth quarter of 2014 from 6.70% in the third quarter of 2014.5.00%20.1

7. Expansion of market globally through access of business website.5.00%40.2

8. Variety of flavors and ingredient options available to market keeps sales high over the forecast period.5.00%40.2

9. The Department of Agriculture (DA) supports the mocha trend with a P192 million budget for coffee and the implementation of Cacao Agribusiness Zones Development (CAZD), both aiming to boost coffee and cocoa production.8.00%30.24

Threats

10. Availability of coffee beverages in milktea shops offers variety of choices than coffee shops do.7.00%30.21

11. Coffee farming is shifting slowly to Mindanao, pushed by the rising cost of land in traditional coffee-producing provinces like Cavite.6.00%30.18

12. Threat of health consensus about the negative health effects of coffee than other beverages.5.00%10.05

13. Low supply production at 25,000 tons of coffee annually in meeting increase in demand for about 3% to 5% population rate in Philippines.8.00%40.32

14. Growing establishments of foreign coffee shops competing with the local-based coffee shops.5.00%10.05

15. Trend in consumption in instant coffee with cheaper prices than coffee made coffee beans.5.00%20.1

16. Unproductive coffee trees and poor technology utilization.7.00%20.14

Total100.00%2.60

Presented above is the external factor evaluation matrix for Figaro Coffee Shop which will indicate how well the Figaro responds to its existing opportunities and threats in its industry. Key opportunities and threats were identified in accordance to its economic, social, cultural, demographic, environmental, political, governmental, legal, technological, and competitive factors affecting the company and its industry. This will allow strategists to summarize and evaluate external information.As what is shown in the matrix, note that the most important factor to being successful in the firms industry are The Department of Agriculture (DA) supports the mocha trend with a P192 million budget for coffee and the implementation of Cacao Agribusiness Zones Development (CAZD), both aiming to boost coffee and cocoa production and Low supply production at 25,000 tons of coffee annually in meeting increase in demand for about 3% to 5% population rate in Philippines both of which have 0.08 weight. Key external factors which are doing excellent are The Department of Agriculture supports and Low supply production which has 0.24 and 0.32, respectively. Results showed that Figaro is responding outstandingly with the opportunity about the increase in production of coffee and cocoa and perhaps they actively taking advantage of the boost coffee-cocoa production in contrast to the threat of low supply in meeting increase in demand. On the other side, weighted score shows 2.60 which is above the average score of 2.50 that may indicate the firm is performing well in the industry as well as taking advantage of the opportunities and avoiding external threats. Though at the rating of 1, Threat of health consensus and establishments of foreign coffee shops should be observed and avoid these threats in order for improvement of the firm.