IKEA in Egypt I. Country Specific Research 1. General Business Egypt, Arab Rep. is ranked 18 overall for Starting a Business (cia. gov), 2. Institutions Egypt is facing a transformational economic reform due to its last political revolutions that took place last March. It is facing a large labor movement, From revolution to institutions(3), Centre of Trade Union and Workers Services (CTUWS) formed as independent entities serving the labour movement: The organization provides legal support, financial resources, and training to labour organizers nationwide.
They have no political affiliations, though their demands — the end of the Mubarak regime and a legitimate shift towards democracy — are inherently political. “The regime hasn’t changed,” was the consensus. One organizer elaborated: “The regime is much more than man. We still have a lot of work to do. ” 3. Business Norms http://www. carnegieendowment. org/publications/index. cfm? fa=view&id=19660 a. Egypt has failed to create a healthy and competitive environment for business development b. Economic reform lacks popular support in Egypt c.
The majority of the private sector and civil society is excluded from the debate over Egypt’s economic reform strategy 4. Industry Specfic Business 5. Value Chain: Distribution Channels, Marketing, HR, Operations, Raw Materials, Existing Facilities 6. Competitors (i. e. is Ikea 1st or 2nd mover? ) ?? 7. Partners (Alliances, Acquistion, JV? ) Alliance (Alfuttem) http://www. gulfbase. com/site/interface/arabic/NewsArchiveDetails. aspx? cntr=0&n=118510 http://www. ameinfo. com/260141. html 8. Consumers 9. Holfstedt: Differences in cultures 10.
Culture/Religion/Norms/Languages in Detail 11. Muslim (mostly Sunni) 90%, Coptic 9%, other Christian 1% Language: Arabic (official), English and French widely understood by educated classes Norms: Reform stage? 12. Regional differences 13. Social classes, different incomes etc.. Hofstad : 1. Appearance Foreigners are expected to abide by local standards of modesty however, do not adopt native clothing. A jacket and tie are usually required for men at business meetings. Men should wear long pants and a shirt. Women should always wear modest clothing in public. Behavior
Space relationships among members of the same sex will be much closer than North Americans and Europeans are comfortable with. Egyptians will tend to stand close and moving away may be seen as a sign of aloofness. On the other hand, men and women stand farther apart from each other than is the custom in United States and Europe. Try not to sit with your legs crossed. Showing the sole of your shoe is considered an insult to another person. It is common to smoke in public. Be considerate to others present and offer your cigarettes. Communications Names are often confusing.
It’s best to get the names (in English) of those you will meet, speak to, or correspond with ahead of time so that you can find out both their full names and how they are to be addressed in person. Arabic is read from right to left and books or magazines start at what would be the last page in the U. S. and Europe. Printed literature are preferred to have an impressive back cover, even if printed in English. Nearly all Egyptians speak Arabic. Most international business people will speak English, French or both. Frequently appointments may be interrupted by phone calls and/or visits.
If locating in Egypt, business cards should be printed in English on one side and Arabic on the other. http://www. cyborlink. com/besite/egypt. htm 14. Recommendations (think about, but do later) 15. IIR 16. How can Ikea apply resources and capabilities 17. Market Entry Mode 18. Concepts from chapter 6 and 10 Al Futtaim Group http://www. ameinfo. com/260141. html References: 19. https://www. cia. gov/library/publications/the-world-factbook/geos/eg. html 20. http://www. doingbusiness. org/data/exploreeconomies/egypt 21. http://thereboot. org/blog/2011/03/18/institutional-overview-the-labour-movement