This study is concerned with improving both managerial and organizational effectiveness of industrial public enterprises in Egypt. More specifically, the essence of this two-fold dissertation is, first, to analyse and evaluate through constructed models, the impact that the external environment has on managerial effectiveness, and secondly, evaluate organizational effectiveness in two selected industrial enterprises. Both cases are in relation to Egypt. The study is, therefore, descriptive and analytical in nature. As a basis for investigation, a theoretical framework was first presented along with a background foundation about Egypt. The research methodology was then introduced and its application in both areas of investigation was explained. . Once this had been established, the work proceeds with a detailed study and analysis of the different external constraints with regard to their impact on managerial effectiveness. In so doing, the Delphi technique was applied in tapping the experience of a group of selected experts through a series of intensive questionnaires interspersed with controlled information and opinion feedback. In the light of the above analysis, the different constraints were ranked according to their impact on management. The educational constraint was found to be the highest, while the"government managerial philosophy" constraint constituted the main critical barrier. Proceeding in the second area of investigating the impact of the relative criteria on organizational effectiveness in selected industries, the result turned out to identify "flexibility" in both organizations as the main criterion impeding their effectiveness. At the end of the study, the findings are summarized and recommendations are made. The importance of this study stems from its contribution and the consequences that can result from its main research findings. First, from the methodological point of view, it is suggested that it contributes to the literature by establishing a general profile for external environment analysis may be applicable not only to Egypt but to other developing countries, and capable of empirical verification for both internal situations and external comparative studies. Secondly, from the practical application point of view, on the basis of the findings and developed recommendations, managerial and organization effectiveness can be improved with the consequent improvement of firm efficiency and finally, to a certain degree, aggregate economic efficiency. Such findings also constitute the diagnosis or guide lines that should be considered both locally, by all institutions responsible for planning and organizing for public enterprises in Egypt, and externally for foreign groups planning to establish manufacturing facilities in Egypt. For such foreign groups the findings of this study would enable them to plan ahead to cope with the relevant environmental difficulties that they would have to encounter.