Develop Divisional Michelin EFE Matrices

Purpose

Michelin has five major geographic divisions: Europe, North America, Asia, South America, and Africa/India/Middle-East. The company faces fierce but different competitors in each segment. The external opportunities and threats that Michelin faces are different in each geographic segment, so each segment prepares its own list of key external success factors. This external analysis is critically important in strategic planning because a firm needs to exploit opportunities and avoid or, at least, mitigate threats. The purpose of this exercise is to develop divisional EFE matrices that Michelin could use in developing an overall corporate EFE Matrix.

Instructions

Step 1 Go to the http://www.michelinman.com/US/en/homepage.html website. Review the company’s most recent Annual Report.

Step 2 Determine and review Michelin’s major geographic segments.

Step 3 Conduct research to determine what you believe are the four major threats and the four major opportunities critical to strategic planning within Michelin’s geographic segments. Review the relevant Standard and Poor’s Industry Survey documents for each segment.

Step 4 Develop divisional EFE Matrices for Michelin. Work within a team of students if your instructor so requests but you will need an EFE Matrix for each segment.

Step 5 Prioritize the 20 threats and the 20 opportunities developed in the prior step so that corporate Michelin top executives can better develop a corporate EFE Matrix.

Step 6 Let’s say Michelin has their operations segmented by domestic versus global. Based on your research, prepare an EFE Matrix for Michelin’s domestic operations and another EFE Matrix for Michelin’s global Operations. Let Europe be domestic and all other regions be global.