This project was perfonned to assess the Political, Economic, Social and Technologicalrnenvironment in Ethiopia with regard to heavy industry establishment and management basedrnon a case study ofMesfin Industrial Engineering PLC. It reviewed the strengths, weaknesses,rnopportunities and threats ofMIE as a large scale manufacturing industry. The techniques ofrnPEST analysis of the external environment, Porter's Five Forces Analysis of the competitivernenvironment and SWOT analysis of the operational and financial perfonnance evaluation wasrndone to find out the opportunities and threats in the environment and the Strengths andrnweaknesses of the company. It was perceived that the political and legal environment of therncountry is stable assuming recent developments will have temporary effect, however; thernagricultural led economic policy doesn't seem to create an encouraging environment.rnMoreover, lack of competitive infrastructure is found to be one of the impediments with thernlow economic and technological development of the country for effective and efficientrnindustry management and growth. On the other hand, Porter's five forces analysis pointedrnout that the general portrait ofthe industry's competitive environment is stable with moderaternto low competitive rivalry. On the other hand, the internal environment analysis demonstratedrnthe company's major strengths to be availability of adequate working area, flexiblernmanufacturing system with relatively low switching cost, large market share, the recentrnapplication of QMS and ownership of in-company welders training center and most pouncedrnweaknesses to be lack of proper planning and scheduling, very low capacity utilization,rnfrequent machine breakdowns, low gender diversity, high turnover, lack of competitivernremuneration, lack of cheap and dependable suppliers, time consuming clearing process, laterndelivery and wrong position of Marketing and Sales Department. The overall result of thernproject indicates that there is unfavorable industrial environment with little competitivernrivalry but very low operational perfonnance.