External Factor Evaluation (EFE) matrix method is a strategic-management tool often used for assessment of current business conditions. The EFE matrix is a good tool to visualize and prioritize the opportunities and threats that a business is facing. The EFE matrix is very similar to the IFE matrix. The major difference between the EFE matrix and the IFE matrix is the type of factors that are included in the model. While the IFE matrix deals with internal factors, the EFE matrix is concerned solely with external factors. External factors assessed in the EFE matrix are the ones that are subjected to the will of social, economic, political, legal, and other external forces.

Based on the notes given, please prepare one EFE matrix for one organization in aviation industry. You may choose one organization from the airline, airport, ground handler, MRO or catering.

For example, let say you choose airline, i.e, Air Asia. So in preparing EFE matrix for Air Asia, you have to find out what are the external factors (threats and opportunity) that could affect Air Asia business performance. The selection of variable / factors are based on your assumptions and discussion. Be specific on the factor that you chose. For example let say you choose demographic factor as one of the external factor, be specific whether that factor is a salary or lifestyle or passenger age etc.