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.

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A Project Paper In Partial Fulfillment Of the Requirement For The (Completion Of MBA Program)

Keywords

Analysis of Heavy Industry management

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