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IFE of Cafe Darbar: Strengths

The document analyzes the external factors of Cafe Darbar using an external factor evaluation (EFE) matrix. It assigns weights and ratings to various strengths and weaknesses and calculates an overall weighted average of 3.20. Since this is higher than the standard value of 2.5, it indicates that Cafe Darbar is in a good strategic position externally. Recommendations include following food trends, emphasizing quality service, and being more active on social media platforms.
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0% found this document useful (0 votes)
367 views2 pages

IFE of Cafe Darbar: Strengths

The document analyzes the external factors of Cafe Darbar using an external factor evaluation (EFE) matrix. It assigns weights and ratings to various strengths and weaknesses and calculates an overall weighted average of 3.20. Since this is higher than the standard value of 2.5, it indicates that Cafe Darbar is in a good strategic position externally. Recommendations include following food trends, emphasizing quality service, and being more active on social media platforms.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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IFE of Cafe Darbar

External factor evaluation is a strategy tool used to examine company’s external environment
and to identify the available opportunities and threats.
Key External Factors Weights Rating Weighted Average
Strengths
1.Good Customer Service 0.10 4 0.40
2. Relaxing Environment 0.08 3 0.24
3.Favorable ambiance 0.07 4 0.28
4.Linked to food delivery apps 0.05 4 0.20
5.Good location 0.05 3 0.15
6. Quality Food 0.08 2 0.16
7. Varieties in menu 0.10 2 0.20
Weaknesses
1. Lack of Marketing 0.08 4 0.32
2. No social media exposure 0.06 2 0.12
3. Single Location 0.08 3 0.24
4. Less decorative servings 0.05 3 0.15
5. Congested 0.08 4 0.33
6. Lack of development 0.05 4 0.20
7. Never introduce offers 0.07 3 0.21
Total = 1.00 = 3.20

As we know that,
Efficient = 4
Above average = 3
Average = 2
Poor = 1
Standard value of IFE = (Efficient + poor) ÷ 2
= (4+1) ÷2
= 2.5
As per our calculation the external factor Evaluation Matrix (EFE) shows a result of 3.20 which
is more than the standard value 2.5. So we can say that the Cafe Darbar is in a pretty good place.
Recommendation:
The firm should follow the strategic response
Trend analysis: The restaurant should follow the recent trends and consumers preference in
menu.
Quality Service: To compete with increasing competition the restaurant should emphasize more
on consumer’s satisfaction and the service quality.
Active Social Platform: Active social platform helps the restaurant attract more audience.

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