Final answer:
Arranging factors according to importance can be beneficial for a firm in organizing, evaluating, and utilizing external factors in the strategic planning process. However, whether it is essential for the EFEM to be structured in this manner depends on the specific needs and goals of the organization.
Step-by-step explanation:
Arranging factors according to importance can be beneficial for a firm in organizing, evaluating, and utilizing external factors in the strategic planning process. However, whether it is essential for the External Factors Evaluation Matrix (EFEM) to be structured in this manner depends on the specific needs and goals of the organization. Some firms may find it necessary to prioritize certain factors based on their significance, while others may prefer a more balanced approach.
For example, if a company operates in an industry where technological advancements play a critical role, it may prioritize factors related to technological innovation and digital transformation. On the other hand, a company in a highly regulated industry may prioritize factors related to compliance and risk management.
Ultimately, the decision to structure the EFEM according to importance should be based on the unique characteristics and strategic objectives of the firm.