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CHAPTER 3

The External Assessment

CHAPTER OBJECTIVES

After studying this chapter, you should be able to do the following:

1. Describe how to conduct an external 6. Explain how to develop an EFE
strategic-management audit. Matrix.
2. Discuss 10 major external forces that 7. Explain how to develop a Competitive
affect organizations: economic, social, Profile Matrix.
cultural, demographic, environmental,
political, governmental, legal, 8. Discuss the importance of gathering
technological, and competitive. competitive intelligence.
9. Describe the trend toward cooperation
3. Describe key sources of external
information, including the Internet. among competitors.
10. Discuss market commonality and
4. Discuss important forecasting tools used
in strategic management. resource similarity in relation
to competitive analysis.
5. Discuss the importance of monitoring
external trends and events.

Assurance of Learning Assurance of Learning Assurance of Learning Assurance of Learning
Exercise 3A Exercise 3B Exercise 3C Exercise 3D
Developing an EFE Matrix The External Assessment Developing an EFE Matrix for Developing a Competitive
for McDonald’s Corporation My University Profile Matrix for McDonald’s
Corporation