Situational Analysis of Heavy Industry management in Ethiopia ACase study of Mesfin Industrial Angering PlC MIE)
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Date
2005-07
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A.A.U
Abstract
This project was perfonned to assess the Political, Economic, Social and Technological
environment in Ethiopia with regard to heavy industry establishment and management based
on a case study ofMesfin Industrial Engineering PLC. It reviewed the strengths, weaknesses,
opportunities and threats ofMIE as a large scale manufacturing industry. The techniques of
PEST analysis of the external environment, Porter's Five Forces Analysis of the competitive
environment and SWOT analysis of the operational and financial perfonnance evaluation was
done to find out the opportunities and threats in the environment and the Strengths and
weaknesses of the company. It was perceived that the political and legal environment of the
country is stable assuming recent developments will have temporary effect, however; the
agricultural led economic policy doesn't seem to create an encouraging environment.
Moreover, lack of competitive infrastructure is found to be one of the impediments with the
low economic and technological development of the country for effective and efficient
industry management and growth. On the other hand, Porter's five forces analysis pointed
out that the general portrait ofthe industry's competitive environment is stable with moderate
to low competitive rivalry. On the other hand, the internal environment analysis demonstrated
the company's major strengths to be availability of adequate working area, flexible
manufacturing system with relatively low switching cost, large market share, the recent
application of QMS and ownership of in-company welders training center and most pounced
weaknesses to be lack of proper planning and scheduling, very low capacity utilization,
frequent machine breakdowns, low gender diversity, high turnover, lack of competitive
remuneration, lack of cheap and dependable suppliers, time consuming clearing process, late
delivery and wrong position of Marketing and Sales Department. The overall result of the
project indicates that there is unfavorable industrial environment with little competitive
rivalry but very low operational perfonnance.
Description
A Project Paper In Partial Fulfillment Of the Requirement
For The (Completion Of MBA Program)
Keywords
Analysis of Heavy Industry management