Competitive Profile Matrix (CPM)

* The Competitive Profile Matrix (CPM) identifies a firms major competitors and its

Particular strengths and weaknesses in relation to a sample firms strategic position.

The weights and total weighted scores in both a CPM and an EFE have the same meaning. However, critical success factors in a CPM include both internal and external issues; therefore, the ratings refer to strengths and weaknesses, where 4 = major strength, 3 = minor strength, 2 = minor weakness, and 1 = major weakness. The critical success factors in a CPM are not grouped into opportunities and threats as they are in an EFE. In a CPM, the ratings and total weighted scores for rival firms can be compared to the sample firm. This comparative analysis provides important internal strategic information.

CPM Example:

Company 1 Company 2 Company 3 Critical Success Factors Weight Rating Score Rating Score Rating Score Advertising 0.20 l 0.20 4 ().80 3 0.60 Product Quality 0.10 4 0.40 3 0.30 2 0.20 Price Competitiveness 0.10 3 0.30 2 ().20 4 0.40 Management 0.10 4 0.40 3 0).20 3 0.30 Financial Position 0.15 4 0.60 2 0.30 3 0.45 Customer Loyalty 0.10 4 0.40 3 ().30 2 0.20 Global Expansion 0.20 4 0.80 | 0).20 2 0.40 Market Share 0.05 l 0.05 4 0.20 3 0.15 Total 1.00 3.15 2.50 2.70

Note: (1) The ratings values are as follows: | = major weakness, 2 = minor weakness, 3 = minor strength, 4 = major strength. (2) As indicated by the total weighted score of 2.50, Competitor 2 is weakest. (3) Only eight critical success factors are included for simplicity; this is too few in actuality.

Sir S.M Riaz Ul Haque

EFE MATRIX EXERCISE:

Assurance of Learning Exercise 3C

Developing an EFE Matrix for My University

Purpose

More colleges and universities are embarking on the strategic-management process. Institutions are consciously and systematically identifying and evaluating external opportunities and threats facing higher education in your state, the nation, and the world.

Instructions

Step | Join with two other individuals in class and jointly prepare an EFE Matrix for your institu- ton.