Don’t Forget

it is not a template
but rather tools & concepts collection

References
1. A Competitive Advantage Approach, Concepts & Cases, 15th Edition, ISBN 978-0-13-344479-7 by Fred r. David and Forest r. David,
published by Pearson Education © 2015.
2. Strategic Management and Business Policy: Globalization, Innovation, and Sustainability, 15th Edition, ISBN 978-0-13-452205-0 by
Thomas L. Wheelen, J. David Hunger, Alan N. Hoffman, and Charles E. Bamford, published by Pearson Education © 2018.
3. Principles of Marketing, 15th Edition, ISBN 978-0-13-325541-6 by Philip Kotler and Gary Armstrong, published by Pearson
Education © 2014.
Dr. Amr Youssef - 2018
Environmental scanning

is the monitoring, evaluating, and

disseminating of information from the
external and internal environments to key
people within the corporation.

Its purpose is to identify strategic factors—

those external and internal elements
that will assist in the analysis of the strategic
decisions of the corporation.
 Strategic Audit of a Corporation
Current Performance Strategic Posture
How did the corporation perform in the past year What are the corporation’s current:
overall in terms of: (Financial Statements & Data) 1. Mission
Current Situation
1. Return on investment 2. Objectives
2. Market share 3. Strategies
3. Profitability 4. Policies

Corporate Governance
1. Board of Directors
2. Top Management

Business Models Customer solutions: IBM - Profit pyramid: General Motors

Who it serves - What it provides - How it makes money
How it differentiates and sustains competitive advantage
How it provides its product/service.
Multicomponent system/installed base: Gillette – HP
Advertising: newspaper industry - commercial radio and television - Many web-based firms
Switchboard: eBay and Amazon.com. - Time model: Google
Efficiency model: Spirit Airlines, KIA Motors, and Vanguard.
Blockbuster: pharmaceuticals and motion picture studios
Profit multiplier: Walt Disney - Entrepreneurial: AB InBev and MillerCoors.
De facto industry standard: LinkedIn - TurboTax

Basic Organizational Structures

1. Simple
2. Functional
3. Divisional
4. Strategic business units (SBUs)
5. Matrix
6. Network
 Strategic Audit of a Corporation
External Environment: Opportunities and Threats (SWOT) The Industrial Organization (I/O) View

PESTEL
STEEPL

Sociocultural trends
1. Increasing environmental awareness
2. Growing health consciousness
3. Expanding seniors market
4. Impact of millennials
5. Declining mass market
6. Changing pace and location of life
7. Changing household composition
8. Increasing diversity of workforce and markets
Ecological trends Technological breakthroughs
1. Regulatory Risk 1. Portable information devices and electronic networking
2. Supply Chain Risk 2. Alternative energy sources
3. Product and Technology Risk 3. Precision farming
4. Litigation Risk 4. Virtual personal assistants
5. Reputational Risk 5. Genetically altered organisms
6. Physical Risk 6. Smart, mobile robots
 Strategic Audit of a Corporation
Task Environment
Rate each force as high, medium, or low. Porter 5 Forces

Threat of
Substitute
Threat of New Entrants Rivalry among Existing Firms Bargaining Power of Buyers Bargaining Power of Suppliers
Products or
Services
1. purchases a large proportion of the seller’s
intense rivalry is related to: product or service 1. The supplier industry is dominated by a
1. Number of competitors 2. has the potential to integrate backward by few companies, but it sells to many
Entry barriers 2. Rate of industry growth producing the product itself 2. Its product or service is unique and/or
1. Economies of scale 3. Product or service characteristics 3. Alternative suppliers are plentiful because
it has built up switching costs
2. Product differentiation 4. Amount of fixed costs the product is standard or undifferentiated
A substitute product is 3. Substitutes are not readily available Relative
3. Capital requirements 5. Capacity 4. Changing suppliers costs very little
a product that appears 4. Suppliers are able to integrate Power of
4. Switching costs 6. Height of exit barriers: exit barriers 5. The purchased product represents a high
to be different but can Other
5. Access to distribution 7. Diversity of rivals percentage of a buyer’s costs, thus providing forward and compete directly with Stakeholde
channels 8. Barriers to entering the market are
satisfy the same need an incentive to shop around for a lower price
as another product. their present customers rs
6. Cost disadvantages low 6. earns low profits and is thus very sensitive to
5. A purchasing industry buys only a
independent of size 9. Consumer demand is falling costs and service differences
7. Government policy 10. Rivals have excess inventory 7. The purchased product is unimportant to the small portion of the supplier group’s
11. Rivals sell similar products/services final quality or price of a buyer’s products or goods and services and is thus
12. Mergers are common in the industry services and thus can be easily substituted unimportant to the supplier
without affecting the final

CSF - KSF
Competitive Profile Matrix Advertising - Product quality
Price competitiveness - Management
CPM Financial position - Customer loyalty
Global expansion - Market share
Organization Structure - Customer Service
 Strategic Audit of a Corporation
Industry Benchmark
 Strategic Audit of a Corporation
Internal Environment: Strengths and Weaknesses (SWOT) The Resource-based View
information about the firm’s: Production and operations audit checklist
Questions such as the following should be examined:
1. Management 1. Are supplies of raw materials, parts, and subassemblies reliable and
2. Marketing reasonable?
3. Finance and accounting, 2. Are facilities, equipment, machinery, and offices in good condition?
3. Are inventory-control policies and procedures effective?
4. Production and operations 4. Are quality-control policies and procedures effective?
5. R&D 5. Are facilities, resources, and markets strategically located?
6. MIS operations 6. Does the firm have technological competencies?

Marketing audit checklist of questions

The following questions about marketing must be
examined in strategic planning:
1. Are markets segmented effectively?
2. Is the organization positioned well among
competitors?
3. Has the firm’s market share been increasing?
4. Are present channels of distribution reliable and cost
effective?
5. Does the firm have an effective sales organization?
6. Does the firm conduct market research?
7. Are product quality and customer service good?
8. Are the firm’s products and services priced
appropriately?
9. Does the firm have an effective promotion,
advertising, and publicity strategy?
10. Are marketing, planning, and budgeting effective?
11. Do the firm’s marketing managers have adequate
experience and training?
12. Is the firm’s internet presence excellent as
compared to rivals?
 Strategic Audit of a Corporation
Internal Environment: Strengths and Weaknesses (SWOT)
information about the firm’s:
1. Management
2. Marketing
3. Finance and accounting,
4. Production and operations
5. R&D
6. MIS operations
Finance and accounting audit checklist
The following finance and accounting questions, like the similar questions about marketing and
Management previously, should be examined:
1. Where is the firm financially strong and weak as indicated by financial ratio analyses?
2. Can the firm raise needed short-term capital?
3. Can the firm raise needed long-term capital through debt or equity?
4. Does the firm have sufficient working capital?
5. Are capital budgeting procedures effective?
6. Are dividend payout policies reasonable?
7. Does the firm have good relations with its investors and stockholders?
8. Are the firm’s financial managers experienced and well trained?
9. Is the firm’s debt situation excellent?
Mission Mission Components Examples

1. Customers—Who are the firm’s customers?

2. Products or services—What are the firm’s major products or services?
3. Markets—geographically, where does the firm compete?
4. Technology—is the firm technologically current?
5. Concern for survival, growth, and profitability—is the firm committed to growth
and financial soundness?
6. Philosophy—What are the basic beliefs, values, aspirations, and ethical priorities of
the firm?
7. Self-concept—What is the firm’s distinctive competence or major competitive
advantage?
8. Concern for public image—is the firm responsive to social, community, and
environmental concerns?
9. Concern for employees—are employees a valuable asset of the firm?
Mission Examples
Fleetwood Enterprises will lead the recreational vehicle and manufactured housing industries (2, 7) in providing quality products, with a passion for customer-driven
innovation (1). We will emphasize training, embrace diversity and provide growth opportunities for our associates and our dealers (9). We will lead our industries in the
application of appropriate technologies (4). We will operate at the highest levels of ethics and compliance with a focus on exemplary corporate governance (6). We will deliver
value to our shareholders, positive operating results and industry-leading earnings (5).
(Author comment: Statement lacks two components: Markets and Concern for Public Image)

We aspire to make PepsiCo the world’s (3) premier consumer products company, focused on convenient foods and beverages (2) We seek to produce healthy financial rewards
for investors (5) as we provide opportunities for growth and enrichment to our employees, (9) our business partners and the communities (8) in which we operate. and in
everything we do, we strive to act with honesty, openness, fairness and integrity (6).
(Author comment: Statement lacks three components: Customers, Technology, and Self-Concept)

We are loyal to Royal Caribbean and Celebrity and strive for continuous improvement in everything we do. We always provide service with a friendly greeting and a smile
(7). We anticipate the needs of our customers and make all efforts to exceed our customers’ expectations (1). We take ownership of any problem that is brought to our
attention. We engage in conduct that enhances our corporate reputation and employee morale (9). We are committed to act in the highest ethical manner and respect the rights
and dignity of others. (6).
(Author comment: Statement lacks five components: Products/Services, Markets, Technology, Concern for Survival/Growth/Profits, Concern for Public Image)

Dell’s mission is to be the most successful computer company (2) in the world (3) at delivering the best customer experience in markets we serve (1). in doing so, Dell will
meet customer expectations of highest quality; leading technology (4); competitive pricing; individual and company accountability (6); best-in-class service and support (7);
flexible customization capability (7); superior corporate citizenship (8); financial stability (5).
(Author comment: Statement lacks only one component: Concern for Employees)

Procter & Gamble will provide branded products and services of superior quality and value (7) that improve the lives of the world’s (3) consumers. as a result, consumers (1)
will reward us with industry leadership in sales, profit (5), and value creation, allowing our people (9), our shareholders, and the communities (8) in which we live and work to
prosper.
(Author comment: Statement lacks three components: Products/Services, Technology, and Philosophy)

at L’Oreal, we believe that lasting business success is built upon ethical (6) standards which guide growth and on a genuine sense of responsibility to our employees (9), our
consumers, our environment and to the communities in which we operate (8).
(Author comment: Statement lacks six components: Customers, Products/Services, Markets, Technology, Concern for Survival/Growth/Profits, Concern for Public Image)
Goals & Objectives (SMART)

Some of the areas in which a corporation might establish its goals and objectives are:
1. Profitability (net profits)
2. Efficiency (low costs, etc.)
3. Growth (increase in total assets, sales, etc.)
4. Shareholder wealth (dividends plus stock price appreciation)
5. Utilization of resources (Return on Equity (ROE) or Return on Investment (ROI))
6. Reputation (being considered a “top” firm)
7. Contributions to employees (employment security, wages, diversity)
8. Contributions to society (taxes paid, participation in charities, providing a needed product or service)
9. Market leadership (market share)
10. Technological leadership (innovations, creativity)
11. Survival (avoiding bankruptcy)
12. Personal needs of top management (using the firm for personal purposes, such as providing jobs for relatives)
Hierarchy of strategy
a grouping of strategy types by level in the organization. Hierarchy of strategy is a nesting of one strategy within another so
that they complement and support one another.
a stimulus for a change in strategy = triggering event
1. New CEO
2. External intervention
3. Threat of a change in ownership
4. Performance gap
5. Strategic inflection point
Mintzberg’s Modes of Strategic Decision Making
Entrepreneurial mode:
Strategy is made by one powerful individual.
The focus is on opportunities; problems are secondary.
Strategy is guided by the founder’s own vision of direction and is exemplified by large, bold decisions.
The dominant goal is growth of the corporation.
Amazon.com, is an example

Adaptive mode: Planning mode: Logical incrementalism:

reactive solutions to existing problems, rather than a
proactive search for new opportunities.
Much bargaining goes on concerning the priority of
objectives.
Strategy is fragmented and is developed to move a
corporation forward incrementally.
This mode is typical of most universities, many large
hospitals, a large number of governmental agencies,
and a surprising number of large corporations.
Encyclopedia Britannica Inc.
This decision-making mode involves the
systematic gathering of appropriate information
for situation analysis, the generation of feasible
alternative strategies, and the rational selection
of the most appropriate strategy.
It includes both the proactive search for new
opportunities and the reactive solution of
existing problems.
IBM
a synthesis of the planning, adaptive, and, to a lesser
extent, the entrepreneurial modes.
it chooses to use “an interactive process in which the
organization probes the future, and learns from a
series of partial (incremental) commitments rather
than through global formulations of total strategies.”
when the environment is changing rapidly and it is
important to build consensus and develop needed
resources before committing an entire corporation to
a specific strategy.
Hierarchy of strategy
Just as corporate strategy asks what industry(ies) the company should be in, business strategy asks how the company or its
units should compete or cooperate in each industry.
A corporation’s directional strategy is composed of three
general orientations (sometimes called grand strategies):
• Growth strategies expand the company’s activities.
• Stability strategies make no change to the company’s current
activities.
• Retrenchment strategies reduce the company’s level of
activities.
Functional strategy is the approach a functional area takes to
achieve corporate and business unit objectives and strategies by
maximizing resource productivity. It is concerned with developing
and nurturing a distinctive competence to provide a company or
business unit with a competitive advantage.
Research and development (R&D) functional strategies:
technological followership (imitation of the products of other companies)
technological leadership (pioneering an innovation).
marketing functional strategies:
marketing “pull”—the process of spending huge amounts on advertising in order to
create customer demand
Business strategy focuses on improving the competitive position of a
company’s or business unit’s products or services within the specific
industry or market segment that the company or business unit serves.
Business strategy is extremely important because research shows that
business unit effects have double the impact on overall company
performance than do either corporate or industry effects.
Business strategy can be competitive (battling against all competitors
for advantage) and/or cooperative (working with one or more
companies to gain advantage against other competitors).
Michael Porter proposed three “generic” competitive strategies for outperforming
other organizations in a particular industry: overall cost leadership,
differentiation, and focus. These strategies are called generic because they can be
pursued by any type or size of business firm, even by not-for-profit organizations:
• Cost leadership is the ability of a company or a business unit to design,
produce, and market a comparable product or service more efficiently than
its competitors.
• Differentiation is the ability of a company to provide unique and superior
value to the buyer. This may include areas such as product quality, special
features, or after sale service.
• Focus is the ability of a company to provide unique and superior value to a
particular buyer group, segment of the market line, or geographic market.
Matching for Strategy-Formulation
Comprehensive Strategy-Formulation analytical Framework

5- Combination
1- Integration

2- Intensive International Entry

1. Exporting
2. Licensing
3. Franchising
4. Joint ventures
5. Acquisitions
6. Green-field development
7. Production sharing (outsourcing)
8. BOT (Build, Operate, Transfer) concept
3- Diversification 9. Management contracts

Means for achieving Strategies

1. Cooperation Among Competitors
4- Defensive 2. Joint Venture and Partnering
3. Merger/Acquisition
4. Private-Equity Acquisitions
5. First Mover Advantages
6. Outsourcing and Reshoring
Comprehensive Strategy-Formulation analytical Framework
Integration
Strategy Guidelines
1. When an organization’s present distributors are especially expensive, unreliable, or incapable of meeting the firm’s distribution needs.
2. When the availability of quality distributors is so limited as to offer a competitive advantage to those firms that integrate forward.
3. When an organization competes in an industry that is growing and is expected to continue to grow markedly; this is a factor because forward integration reduces an
organization’s ability to diversify if its basic industry falters.
Forward
4. When an organization has both the capital and human resources needed to manage the new business of distributing its own products.
Integration 5. When the advantages of stable production are particularly high; this is a consideration because an organization can increase the predictability of the demand for its
output through forward integration.
6. When present distributors or retailers have high profit margins; this situation suggests that a company could profitably distribute its own products and price them more
competitively by integrating forward.
1. When an organization’s present suppliers are especially expensive, unreliable, or incapable of meeting the firm’s needs for parts, components, assemblies, or raw
materials.
2. When the number of suppliers is small and the number of competitors is large.
3. When an organization competes in an industry that is growing rapidly; this is a factor because integrative-type strategies (forward, backward, and horizontal) reduce
Backward an organization’s ability to diversify in a declining industry.
Integration 4. When an organization has both capital and human resources to manage the new business of supplying its own raw materials.
5. When the advantages of stable prices are particularly important; this is a factor because an organization can stabilize the cost of its raw materials and the associated
price of its product(s) through backward integration.
6. When present suppliers have high profit margins, which suggests that the business of supplying products or services in the given industry is a worthwhile venture.
7. When an organization needs to quickly acquire a needed resource.
1. When an organization can gain monopolistic characteristics in a particular area or region without being challenged by the federal government for “tending
substantially” to reduce competition.
2. When an organization competes in a growing industry.
Horizontal
3. When increased economies of scale provide major competitive advantages.
integration 4. When an organization has both the capital and human talent needed to successfully manage an expanded organization.
5. When competitors are faltering as a result of a lack of managerial expertise or a need for particular resources that an organization possesses; note that horizontal
integration would not be appropriate if competitors are doing poorly because in that case overall industry sales are declining.
Comprehensive Strategy-Formulation analytical Framework
Intensive
Strategy Guidelines
1. When current markets are not saturated with a particular product or service.
2. When the usage rate of present customers could be increased significantly.
Market
3. When the market shares of major competitors have been declining while total industry sales have been increasing.
Penetration 4. When the correlation between dollar sales and dollar marketing expenditures historically has been high.
5. When increased economies of scale provide major competitive advantages.
1. When new channels of distribution are available that are reliable, inexpensive, and of good quality.
2. When an organization is successful at what it does.
Market 3. When new untapped or unsaturated markets exist.
Development 4. When an organization has the needed capital and human resources to manage expanded operations.
5. When an organization has excess production capacity.
6. When an organization’s basic industry is rapidly becoming global in scope.
1. When an organization has successful products that are in the maturity stage of the product life cycle; the idea here is to attract satisfied
customers to try new (improved) products as a result of their positive experience with the organization’s present products or services.
Product 2. When an organization competes in an industry that is characterized by rapid technological developments.
Development 3. When major competitors offer better-quality products at comparable prices.
4. When an organization competes in a high-growth industry.
5. When an organization has especially strong research and development capabilities.
Comprehensive Strategy-Formulation analytical Framework
Diversification
Strategy Guidelines
1. When an organization competes in a no-growth or a slow-growth industry.
2. When adding new, but related, products would significantly enhance the sales of current products.
Related 3. When new, but related, products could be offered at highly competitive prices.
Diversification 4. When new, but related, products have seasonal sales levels that counterbalance an organization’s existing peaks and valleys.
5. When an organization’s products are currently in the declining stage of the product’s life cycle.
6. When an organization has a strong management team.
1. When revenues derived from an organization’s current products or services would increase significantly by adding the new, unrelated
products.
2. When an organization competes in a highly competitive or a no-growth industry, as indicated by low industry profit margins and returns.
3. When an organization’s present channels of distribution can be used to market the new products to current customers.
4. When the new products have countercyclical sales patterns compared to an organization’s present products.
5. When an organization’s basic industry is experiencing declining annual sales and profits.
Unrelated
6. When an organization has the capital and managerial talent needed to compete successfully in a new industry.
Diversification 7. When an organization has the opportunity to purchase an unrelated business that is an attractive investment opportunity.
8. When there exists financial synergy between the acquired and acquiring firm. (note that a key difference between related and unrelated
diversification is that the former should be based on some commonality in markets, products, or technology, whereas the latter is based
more on profit considerations.)
9. When existing markets for an organization’s present products are saturated.
10.When antitrust action could be charged against an organization that historically has concentrated on a single industry.
Comprehensive Strategy-Formulation analytical Framework
Defensive
Strategy Guidelines
1. When an organization has a clearly distinctive competence but has failed consistently to meet its objectives and goals over time.
2. When an organization is one of the weaker competitors in a given industry.
3. When an organization is plagued by inefficiency, low profitability, poor employee morale, and pressure from stockholders to improve performance.
Retrenchment 4. When an organization has failed to capitalize on external opportunities, minimize external threats, take advantage of internal strengths, and overcome internal
weaknesses over time; that is, when the organization’s strategic managers have failed (and possibly will be replaced by more competent individuals).
5. When an organization has grown so large so quickly that major internal reorganization is needed.
1. When an organization has pursued a retrenchment strategy and failed to accomplish needed improvements.
2. When a division needs more resources to be competitive than the company can provide.
3. When a division is responsible for an organization’s overall poor performance.
Divestiture 4. When a division is a misfit with the rest of an organization; this can result from radically different markets, customers, managers, employees, values, or needs.
5. When a large amount of cash is needed quickly and cannot be obtained reasonably from other sources.
6. When government antitrust action threatens an organization.
1. When an organization has pursued both a retrenchment strategy and a divestiture strategy, and neither has been successful.
2. When an organization’s only alternative is bankruptcy. Liquidation represents an orderly and planned means of obtaining the greatest possible cash for an
Liquidation organization’s assets. a company can legally declare bankruptcy first and then liquidate various divisions to raise needed capital.
3. When the stockholders of a firm can minimize their losses by selling the organization’s assets.
Comprehensive Strategy-Formulation analytical Framework Business Strategy

a type 1 or type 2 cost leadership strategy can be a type 3 differentiation strategy can be especially effective
especially effective under the following conditions: under the following conditions:
1. When price competition among rival sellers is 1. When there are many ways to differentiate the product
especially vigorous. or service and many buyers perceive these differences
2. When the products of rival sellers are essentially as having value.
identical and supplies are readily available from 2. When buyer needs and uses are diverse.
any of several eager sellers. 3. When few rival firms are following a similar
3. When there are few ways to achieve product differentiation approach.
differentiation that have value to buyers. 4. When technological change is fast paced and
4. When most buyers use the product in the same competition revolves around rapidly evolving product
ways. features.
5. When buyers incur low costs in switching their
purchases from one seller to another.
6. When buyers are large and have significant
power to bargain down prices.
7. When industry newcomers use introductory low
prices to attract buyers and build a customer
base.

a low-cost (type 4) or best-value (type 5) focus strategy can be especially attractive under
the following conditions:
1. When the target market niche is large, profitable, and growing.
2. When industry leaders do not consider the niche to be crucial to their own success.
3. When industry leaders consider it too costly or difficult to meet the specialized needs of the target market niche while taking care of their
mainstream customers.
4. When the industry has many different niches and segments, thereby allowing a focuser to pick a competitively attractive niche suited to its
own resources.
5. When few, if any, other rivals are attempting to specialize in the same target segment.
Comprehensive Marketing Strategy Evaluation Framework
Comprehensive Marketing Strategy Evaluation Framework
Comprehensive Human Resource Strategy Evaluation Framework
Human resource management is one of the most important key success factors in organization, and its improvement will greatly improve the organization
performance
A. Human Resource Objectives
The human resource objective reflects the intention of the
senior management (strategy) with a balance to the related
topics such as HR functions, society, governing rules, etc.
There are four major HRM objectives:
1. Organizational objectives: to achieve the required
organization effectiveness and objectives and ensure that
the organization always has people with the right abilities
available to do the right work
2. Functional Objectives: maintain the department’s
contribution at a level appropriate to the org. needs
3. Societal Objective: respond ethically and socially to
the challenges of the environment while minimizing the
negative impact of such demands on the organizations
4. Personal objectives: to assist retain and motivate the
employees for achieving their personal goals and guide
them to better achievement (most important)
B. Human Resource Strategy
The human resource Strategy addresses the issue of
whether to recruit a low skill, low paid, high turnover
employees or higher a high skill, high paid, low turnover
employees.
The organization policy to go international must be a
highly paid high skill, low turnover employees to improve
creativity of the employees and the turnover must be kept
at its minimum levels.
C. Human Resource Policies and Programs
• Preparation and selection: Review of the employees' job description, job specification and job performance standard to
match the change of the organization.
• Succession Planning: the preparation of the company succession plan will enable the organization to stand any future
challenges.
• Career Path and development: the preparation of the career path for the employees will help the stability and minimize
the turnover of the employees.
• Recruitment: designing a good recruitment process (Selection, interviews) with a high level of orientation to ensure the
compatibility of the new recruited employees with the existing culture to achieve organizational objectives.
• Training and development: on-the- job” training, Off-the-Job training and Provide career planning
assistance for employees.
• Incentive system will ensure the motivation of the employees to better performance (linking incentive to
production)
• Compensation Policies and protection: What employees get in exchange for their contribution to the
organization”, maintain, retain productive workforce, achieve the org. objectives
• Testing: Will ensure the qualification of the candidates and their fit in the organization culture.
• Managing workforce diversity (if the organization is going internationally)
• Enhance employee participation: in implementing our strategy, all employees from different
organizational levels must make a meaningful contribution in decision-making. this will increase
employee's involvement and enhance their working life balance.
• Enhance employee organizational commitment: by increasing job involvement, which results in lower
levels of absenteeism and turnover.
• Implementing employee recognition programs: starting with personal attention and ending with
appreciation for a job well done.
• Develop effective staffing plans supporting the organizational strategies by allowing to fill job openings
proactively (in terms of number and the quality of the workforce for the short and long term) VIP in case
of international operations. (if the company is multinational)
Egypt – Business Culture (Page: 87)

Egyptians prefer to do business with those they know and respect, so expect to spend time cultivating a personal
relationship before business is conducted. Who you know is more important than what you know in Egypt, so network
and cultivate a number of contracts.
Hierarchy and rank are important. Unlike in Germany, Egyptian business people do have an open-door policy, even when
they are in a meeting, so you may experience frequent interruptions as others wander into the room and start a different
discussion. it is best that you not try to bring the topic back to the original discussion until the new person leaves.
Business meetings generally start after prolonged inquiries about health, family, and such.
Egyptians must know and like you to conduct business. Personal relationships are necessary for long-term business. the
highest-ranking person makes decisions, after obtaining group consensus. Decisions are reached after great deliberation.
in Egypt, business moves at a slow pace and society is extremely bureaucratic—even in the post-Hosni Mubarak era.
Egyptians respect age and experience and engage in a fair amount of haggling. they are tough negotiators and do not like
confrontation or having to say no.