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EFE EVALUATION:

For better results from the External Factor Evaluation, we listed down all the major factors
which were affecting the company and the industry, both positively and negatively, and then
conducted analysis separately on individual factors based on Porters Five Forces Model. We
evaluated whether the individual factor supported in favor of the industry or went against it
based on which we identified them as either opportunity or threat to the industry. We also
focused on the macro environment factors and carried out the PEST analysis on these factors.
The list is as follows:

Changing trend towards packed food due to busy life style of people.
Lax government regulations on unpopular brand companys processes.
Falsified law suit against company processes.
Imitation products in the rural market.
Changing trend towards healthy food due to awareness of health issues.
Boom of modern trade.
Stringent International food standards.
Stringent waste water treatment policy imposed by government of Pakistan.
Acceptance of Pakistani food in International market.
High immigration rate of Asian People to other parts of the world.
Natural Disasters ruining the key supplies.
Devaluation of Pakistani currency effecting key chemicals import.
Growing food restaurant chain in Pakistan.
Potential profitable market in Karachi.
Unpredictable law and order situation in the country.

EXTERNAL FACTOR EVALUATION MATRIX (EFE)


OPPORTUNITIES
WEIGHT
1
2
3
4

Changing trend towards packed food due to


busy life style
Changing trend towards healthy food due
to awareness of health issues
Acceptance of Pakistani food in
international market
High immigration rate of Asian peoples to
other parts of the world

RATING

0.09

WEIGHTED
SCORE
0.27

0.05

0.15

0.09

0.18

0.06

0.12

5
6
7

Growing food restaurant chains in Pakistan


Boom of modern trade
Potential profitable market in Karachi.
THREATS

0.07
0.08
0.09
WEIGHT

4
3
4
RATING

Lax government regulations on unpopular


companys process
Imitation products in market
Falsified law suits
Stringent international food standards
Stringent Waste water treatment policy
Natural Disasters effecting supplies
Devaluation of currency (effecting
chemicals import)
Unpredictable law and order situation
TOTAL

0.06

0.28
0.24
0.36
WEIGHTED
SCORE
0.12

0.07
0.05
0.06
0.09
0.03
0.06

4
3
3
2
3
1

0.28
0.15
0.18
0.18
0.09
0.06

0.05
1.00

0.10
2.76

2
3
4
5
6
7
8

EFE EVALUATION:
The weighted score of EFE assessment grid turns out to be 2.76 which demonstrates the
evidence that National Foods ltd. tends to endeavor the opportunities accessible in the
business environment and turn these in a productive manner to overcome the threats in the
environment. In our assessment we see that the opportunity factor that gets the best weighted
score is Potential profitable market in Karachi, which in our proposal ought to be desirously
watched by NFL. Then again in the threats the component of stringent waste water treatment
approach gets the highest weight and is still less followed by the organization.
Based on our observation we can find that the most elevated weights are given to
circumstances, for example, Changing patterns of individuals around Pakistan towards
packaged foods because of the cause that the lives of a normal Pakistani is getting to be more
occupied step by step, this impact is restricted to Pakistan as well as, without much of a stretch,
can be seen around the globe. Since modern day activities are constraining even ladies to do
the 9 to 5, it is getting harder for them to take after the customary method for making and
cooking food for the family. Acknowledgement of Pakistani food in worldwide market, for
example, Middle East America, UK and Canada is getting to be more of a typical thing as a more
noteworthy number of Pakistani and south Asian individuals are moving to these territories of
the world, henceforth it has been given a higher weightage in our investigation and considered
a fabulous opportunity. An alternate component that is potential potential market in Karachi is

given the higher weightage in light of the fact that Karachi is the greatest Cosmopolitan City in
Pakistan and a large number of packed food consumers reside here. Our greatest rival has the
business initiative in this locale, so we see it as an extraordinary opportunity and by picking a
forceful system NFL can snatch a greater piece of the overall industry, however NFL has
endeavored and fizzled this methodology in the later past by offering Karachi Special range of
Recipe mix Masalas, yet it is ideal for NFL to make another attempt on this. The most elevated
weightage given in threats part is to the stringent waste water treatment strategy set out by
the administration, since NFL does not have a waste water treatment plant at present, it needs
to arrange the water appropriately by filling the tank lorries and dumping into the far away
filthy water channels (Naalas). This strategy is excessive and lengthy, which is signifying the
production costs.
Different components that get overwhelming weightage are boom of modern trade, growing
food restaurant chains and imitation products. Nowadays, exchange is booming in Pakistan as
apparent from the development of this part, so NFL ought to be anticipating it and get some
inventory network procedure to endeavor this opportunity. Likewise restaurant networks are
open here and there almost every day, it is kept as an opportunity in our examination as a
result of the way that these restaurant networks secure plain flavors from the packaged food
industry keeping in mind the end goal to comply to the quality standards of their own industry,
so this is seen as an opportunity for NFL to create some suitable methodology to monitor this
opportunity. Imitation products are a huge threat to the organization, as in far flung provincial
zones, where there is an absence of vigilance, imitators become possibly the most important
factor and dispatch false items with the comparable names, bundling and logos as of National
Foods Ltd. These represent a genuine danger to the brand character in those territories;
fundamental measures ought to be embraced to eradicate this issue.

STRATEGIES DRIVEN OUT OF EFE:


From the external factor evaluation we evaluated the following strategies for NFL:

Revive the Karachi Special range via completing Research and development, redesign
the product backed by intense market research, come up with a new positioning and
strike back to the market of Karachi with greater force.
Use its internal strengths and competitive advantages to develop the global business
sector.
Develop a new product range for catering to the high life of cosmopolitan cities.
Install waste water treatment plant to comply with the stringent governmental policies.