EFE Matrix

7. Identify the firms external opportunities and threats (external audit). Construct an External Factor Evaluation (EFE) Matrix.
The opportunities identified for First Lady Apparels (Malaysia) Sdn Bhd are as follows: Store position Store positions of First Lady are located in the supermarket Tesco. This factor may cause many customers visit the First Lady. It is because we all know that many people would come to Tesco in order to buy some groceries. Practically every day people will buy groceries. So after they finished buying their groceries they can also visit the First Lady as they are in one place or area. Affordable price First Lady is a retailer and wholesaler of modern Islamic apparel in this region which is in Malaysia and Singapore. As compared to other competitors at that place, the price of First Lady is more affordable with excellent quality and current designs of modern Islamic apparel. Greater demand of modern Islamic apparel In 2012, the Muslim population in Malaysia is at 60.4 per cent and Singapore is at 17 per cent. This statistics shows that the demand for Muslim fashion industry now is growing. Nowadays we can see there is so many Muslims product in the market in order to embracing their faith and confidence. This awakening by Muslim consumers has certainly lifted the markets as we have seen an increase in young entrepreneurs catering for this demand like First Lady. Technological We all know that almost all industries including fashion industry using internet shopping which is used as a marketing tool. By using this method, First Lady can focus around the customer by receives friendly site designs, efficient order fulfilment, fast delivery and professional customer response. Research and development The key to success of First Lady is they always doing research and development of modern Islamic apparel. In addition, they also have a deep knowledge of the market which can make them to produce the latest trends of modern Islamic apparel. Besides, they also have a skilled designer which is know-how to anticipate the changing trends of the industry and what customer needs and wants.
The threats identified for First Lady Apparels (Malaysia) Sdn Bhd are as follows: Competition from other store The threat of First Lady is they need to face the competition with other store. Usually consumer will buy their apparels from another competitor if they cannot get a reliable product at a competitive price. This factor can make the consumer becoming more complicated in their choice. So, in order to remain as the apparel business in that area, they must offer a quality product and keep their prices competitive. Increase in online shopping The online shopping has grown rapidly which can change the way people do business. By using this online shopping, consumers now can make purchases without having to leave their home. What they need to do is they have to access the retail outlets online. They can make a purchase after doing the comparison in terms of product quality and price. Increasing in interest rate It will be the threat to all organization if the interest rate is rising because it can increase the cost of borrowing and also can affect their inverse relationship to stock prices. This situation can cause the organization to forego the expense of capital for expansion or implementation of specific strategies.
EXTERNAL FACTOR EVALUATION (EFE) MATRIX FOR FIRST LADY APPARELS (MALAYSIA) SDN BHD Key External Factors Opportunities Store position Affordable price Sales expected to increase Environment conscious consumers and Increased social awareness Greater demand of modern Islamic apparel Internet shopping growing Research and development Threats Competition from other store Competition offers better quality/comfort Consumer becoming more complicated in their choice Increase in online shopping Rising interest rates TOTAL Rating: 1 = Poor Response 2 = Average Response 3 = Above Average Response 4 = Superior Response 0.06 0.3 0.07 0.06 0.09 0.1 0.04 0.05 0.07 0.08 0.05 0.03 1.00 3 4 2 4 2 3 1 4 1 1 3 2 0.18 1.2 0.14 0.24 0.18 0.3 0.04 0.2 0.07 0.08 0.15 0.06 2.84 Weight Rating Weighted score
According to the EFE Matrix of First Lady Apparels (Malaysia) Sdn Bhd, the total weighted score is 2.84 which indicate that the response towards First Lady will give the huge effect in its existing Opportunities and Threats in the Apparel Retail industry. From the table, we can see that the higher weighted score of external factor is affordable price which evaluated in a weight the average of 1.2. Malaysia and Singapore are becoming a good possible market for modern Islamic apparel nowadays since they are becoming aware of the trends with affordable prices. In my opinion, I think that it will be a hit if First Lady can expand their business into the global.

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7. Identify the firms external opportunities and threats (external audit). Construct an External Factor Evaluation (EFE) Matrix.

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