US Airways EFE Matrix

External Factor Evaluation Matrix For US Airways
Key External Factors

Weight

Rating

Weighted score

Opportunities
1. Point to point flight patterns

0.20

1

0.20

2. Guarenteed money after bankruptcy

0.06

3

0.18

3. Partnership

0.07

4

0.28

4. Governmental aid

0.10

4

0.40

5. Increase consumer confidence

0.02

3

0.06

6. Stronger economy

0.02

3

0.06

7. Increase in bond rates

0.03

1

0.03

8. Decrease in interest rates

0.03

1

0.03

9. New technology

0.02

2

0.04

10. Selling assets

0.12

2

0.24

11. New government regulations

0.02

2

0.04

Threats
1. Economy

0.05

4

0.20

2. Demand for air travel

0.02

1

0.02

3. Web conferencing

0.02

2

0.04

4. International threats

0.02

1

0.02

5. War

0.01

2

0.02

6. Oil/fuel costs

0.06

3

0.18

7. Labor

0.03

2

0.06

8. Union strikes

0.03

2

0.06

9. ALPA cap flights

0.02

2

0.04

10. Government

0.02

2

0.04

11. Competition

0.05

2

0.10

TOTAL

1.00

2.34


“An EFE Matrix allows strategists to summarize and evaluate economic, social, cultural, demographic, environmental, political, governmental, legal, technological, and competitive information” (D 110). To create this matrix, the first step is to list the key external factors, or opportunities and threats. Each of which must be specific. After these are listed, they must be given “…a weight that ranges from 0.0 (not important) to 1.0 (very important)” (D 110). This weight is used to determine its importance to the company. When comparing opportunities and threats, opportunities are usually given a higher weight, except when threats can be devastating to the company. The sum of the weights must equal 1.0.

After assigning the weights, the factors then must be given a rating between 1 and 4. “4 = the response is superior, 3 = the response is above average, 2 = the response is average and 1 = the response is poor” (D 110-111). These are based on the company and how effective it is at dealing with the factors. To determine the weighted score, multiply the weight by the rating. The weighted scores tell how effective the company is working. “The average total weighted score is 2.5” (D 111).

The EFE matrix is a valuable way to look at how effective the company is working with its external factors. A matrix for US Airways, listed above, includes each of the threats and opportunities from both the SWOT analysis and the TOWS diagram. The most heavily weighted factors were: point-to-point flight patterns, governmental aid, and selling assets. Each of these is vital for to company.

There were very few that were given a 4. The three that did receive a four were, partnership, governmental aid, and the economy. After giving the weight and the rating of the factors, the weighted score displayed that US Airways evaluation of its key external factors was an average of 2.34.


  1. Executive Summary
  2. SWOT Analysis
  3. TOWS Diagram
  4. IFE Matrix
  5. EFE Matrix
  6. SPACE Matrix
  7. Critical Issues
  8. Courses of Action
  9. Financial Analysis

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