Two commonly used micromechanical methods, namely the method of cells and Mori-Tanaka averaging scheme are compared through the respective strain concentration factors that are governed by these models. The anisotropic damage model is incorporated into one of these averaging schemes in order to predict the inelastic behavior of the composite material. A coupled computational algorithm for plasticity and damage is presented. In order to show the reliability of the damage model and the algorithms the laminated composite system of (90)((8s)) and (0/90)((4s)) is analyzed through the use of the Mori-Tanaka averaging scheme. Published by Elsevier Ltd.