Question: Michelin and Africa: An External Assessment

Purpose: Michelin is featured in the opening chapter case as a firm that engages in excellent strategic planning. This exercise gives you practice conducting an external strategic management audit to determine if Africa is the new, best place for Michelin to produce and market products and services. For example, considerable underground mining occurs in much of Africa. The new MICHELIN XTXL tire is available in 25-inch for underground mining vehicles. The new tires offer enhanced safety and productivity and are available in sizes 26.5R25 and 29.5R25. Tests indicate that the new tires offer increases of 10 percent in longevity, 20 percent in puncture resistance, and 30 percent in load capacity.

Instructions:

Step 1 Research the business climate in 10 African countries.

Step 2 Prepare an EFE Matrix for Michelin based solely on the opportunities and threats that Michelin will face in doing business in the 10 African countries you have chosen.

Step 3 Based on your research, list the 10 African countries you selected in rank order of attractiveness for Michelin to focus efforts upon. Give a one-sentence rationale for each country's ranking.