Numerous studies have demonstrated the influence of elastic and plasti
c strain energies on the martensitic transformation in shape memory al
loys. In recent years the Finite Element Method (FEM) has been applied
to a wide range of elastic and plastic problems, however, few FEM ana
lyses of shape memory phenomena have been reported. In this paper the
FEM method has been used to model the martensitic transformation. The
model assumes a two variant shear transformation in a two dimensional
grain. Plastic deformation accompanying the transformation is accounte
d for using the Estrin-Mecking constitutive model. The spatial distrib
ution of elastic and plastic strain energies developed during the tran
sformation is shown to determine variant structure. Calculations of th
e effect of applied stress on variant structure and the effect of stre
ss and repeated thermal cycling on the transformation temperatures are
presented.