international management by sami

8/9/2019 International Management by Sami

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Introduction: Sundays International restaurant is one of the world leading restaurants

among the hospitality industry and currently wants to open its new branch in some

new European countries such as Hungary, Bulgaria, Romania, Turkey and including

one of the top Middle East market such as Egypt. Though the Sundays International

restaurant groups have various choices to open its new branch but the chief executive

officer wants the best country favorable to do new investment by opening its new

branch. The general manager assigned me to a report to determine the approach

(Political, economical, social, cultural, and technological) to those selected countries.

Sundays International restaurant has branch almost every country in the Europe. The

head office of Sundays international restaurant is Located in New York, USA. It is

supreme to provide luxury restaurant experience to its values customers includes

tourist, business travelers with in competitive prices. The Sundays restaurant group

has wide range of employees. The demand of the restaurant high class services

increase gradually due to the offer of the competitive prices. These chain groups of

restaurant generate revenue every year is approximately 20 million pounds and its

increasing day by day.

After having read the various researches the general manager has decided to open its

new branch one of the top tourist destination country and its called Egypt therefore I

am going to research and outline the international managers environment of Egypt in

order to ensure success for new business venture.

Introducing with Egypt and Tourism of Egypt:

Location:North East Africa bordering Palestine (Gaza Strip) 11 km, Israel266 km, Libya

1,115 km, Sudan 1,273 km

Capital:Cairo

Climate:desert; hot, dry summers with moderate winters

Population:76,117,421 (July 2004 EST.)

Ethnic Make-up:Eastern Hamitic stock (Egyptians, Bedouins, and Berbers)

99%, Greek, Nubian,

Armenian, other European (primarily Italian and French) 1%


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National Development.

The constitution establishes Egypt as a "Democratic State", deriving its sovereignty

from the people, and as part of the Arab World.

It proclaims the system of government as a multi-party Semi-presidential system

within the framework of the basic principles and components of the Egyptian society.

The Constitution upholds the concept of separation of powers; hence balances the

powers of the three main authorities (Executive, Parliament, and the Judiciary).

Within this scheme, the Parliament monitors the actions of Executive Authority

through many mechanisms and instruments, and in order to fulfill such monitoring

role, members of the People's Assembly enjoy parliamentary immunity.

The Constitution establishes party plurality as the foundation of the political system

(Article 5) and so allows the formation of different political parties, however political

parties are not allowed to be established based on any discriminatory basis such as

religion, race or sex.

The Constitution also sets out methods for its own amendment by the request of either

the People's Assembly or the President's. Both of which have to be subjected to a

public referendum, after being voted for by at least two-thirds of the Assembly

People's Assembly.

Background of politics: Egypt has been a republic since 18 June 1953. Since the

declaration of the republic, four Egyptians have served as presidents. The first

President to take office was President Mohamed Naguib. The PeoplesAssembly: The People's Assembly is the principal legislative body. Out of the

assemblys 454 deputies, 444 are directly elected while no more than 10 may be

appointed by the President (article 87 of the Constitution). The Constitution

reserves fifty percent of the assembly seats for workers and peasants. The

assembly sits for a five-year term but can be dissolved earlier by the President.

Parliamentary elections : The formation of political parties based on religion is

prohibited by the Constitution. The official opposition and political pressure groups,


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like the Muslim Brotherhood, are active in Egypt and make their views public. They

are represented at various levels in the political system. However, power is

concentrated in the hands of the President of the Republic and the National

Democratic Party which retains a super-majority in the People's Assembly.

Political parties and elections: According to the Egyptian Constitution, political

parties are allowed to exist. Religious political parties are not allowed as it would not

respect the principle of non-interference of religion in politics and that religion has to

remain in the private sphere to respect all beliefs. In addition, political parties

supporting militia formations or having an agenda that is contradictory to the

constitution and its principles, or threatening the country's stability such as national

unity between Muslim Egyptians and Christian Egyptians.

Civil society: Egyptians have been living under emergency law since 1967, except for

an 18-month break in 1980. Emergency laws have been continuously extended every

three years since 1981. These laws sharply circumscribe any non-governmental

political activity: street demonstrations, non-approved political organizations, and un-

registered financial donations are formally banned. Nonetheless, since 2000, these

restrictions have been violated in practice.

Political pressure groups and leaders: The Muslim Brotherhood currently

constitutes Mubarak's most significant political opposition; Mubarak tolerated

limited political activity by the Brotherhood for his first two terms, but has

moved more aggressively in the past six years to block its influence (arguably

leading to its recent rise in public support). Trade unions and professional

associations are officially sanctioned.

Operational risk: The Middle East & North Africa region includes several wealthy oil

Producing nations and is characterized by regional instability and periods of regional

violence.

Transfer risk: With the World Bank forecasting oil prices to remain below their peak

levels for the foreseeable future, there region will continue to face economic

Challenges.

In addition to falling oil prices, the global economic slowdown has

Impacted the region through reduced tourism and tightening credit conditions.


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The Egyptian economy has been evolving from a highly nationalized, government-

controlled platform to a more market driven model.

While the Egyptian economy is relatively large and diversified it is heavily reliant

on world economic conditions due to its large export and tourism sectors.

Ownership control risk: The government has made some progress toward divesting its

ownership of public banks.

The Egyptian Insurance Supervisory Authority (EISA) was formed in 1981 and

supervises the insurance industry.

The Egyptian Legal environment: The Egyptian legal system is built on the

combination of Islamic (Shariah) law and Napoleonic Code, which was first

introduced during Napoleon Bonapartes occupation of Egypt and the subsequent

education and training of Egyptian jurists in France. The Egyptian legal system,

being considered as a civil law system, is based upon a well-established system

of codified laws. Egypts supreme law is its written constitution. Egypt has three

level of power: The Executive Power, The Legislative Power, and The Judicial

Power.

The Executive Power: The President of Egypt is the Head of the State, and he is also,

under the Egyptian Constitution, the Supreme Commander of the Armed Forces and

Head of the Executive Authority (the Egyptian Cabinet).Under the others executive

power are following:

The president

Cabinet

The prime minister

Ministers

The Legislative Power: The Parliament of Egypt is geographically located in Cairo.

As the legislative authority, it has the power to enact laws, approve general policy of

the State, the general plan for economic and social development and the general

budget of the State, supervise the work of the government, ratify international


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conventions, and the power to vote to impeach the President of the Republic or

replace the government and its Prime Minister in a vote of no-confidence.

Legislative powers are following:

Parliament:

People assembly

Jurisdiction

Bodies

Committees

Shura council

Condition and candidature

Term of membership and activities

The Judicial Power: As the third and independent authority of the State, the Egyptian

Judiciary is comprised of secular and religious courts, administrative, non-

administrative courts and a Supreme Constitutional Court, and penal courts, civil and

commercial courts, personal status and family courts, national security courts, labour

courts, military courts, as well as other specialized courts or circuits.

Judicial powers are following:

The supreme constitutional court

Court of cassation

Court of appeal

Court of first instance

Family court

Egyptian state lawsuits authority

Public prosecution

Courts of jurisdiction arbitration

Enforcement of arbitral awards

Primary materials: Political parties, Major parties, minor parties,

governorates.


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The Cultural Environment in Egypt:

Language in Egypt: For almost 13 centuries Arabic has been the written and

spoken language of Egypt. Before the Arab invasion in AD 639, Coptic, the

language descended from ancient Egyptian, was the language of both

religious and everyday life for the mass of the population; by the 12th

century, however, it had been totally replaced by Arabic, continuing only as a

liturgical language for the Coptic Orthodox Church. Arabic has become the

language of both the Egyptian Christian and Muslim. The written form of the

Arabic language, in grammar and syntax, has remained substantially

unchanged since the 7th century. In other ways, however, the written

language has changed the modern forms of style, word sequence, and

phraseology are simpler and more flexible than in classical Arabic and are

often directly derivative of English or French.

Religion status: Islam is practiced by the majority of Egyptians and governs

their personal, political, economic and legal lives. Islam emanated from what is

today Saudi Arabia. The Prophet Muhammad is seen as the last of God's emissaries

(following in the footsteps of Jesus, Moses, Abraham, etc) to bring revelation tomankind. He was distinguished with bringing a message for the whole of mankind,

rather than just to a certain peoples. Among certain obligations for Muslims are to

pray five times a day - at dawn, noon, afternoon, sunset, and evening. The exact time

is listed in the local newspaper each day. Friday is the Muslim holy day. Everything is

closed. Many companies also close on Thursday, making the weekend Thursday and

Friday.

During the holy month of Ramadan all Muslims must fast from dawn to dusk and are

only permitted to work six hours per day. Fasting includes no eating, drinking,

cigarette smoking, or gum chewing. Expatriates are not required to fast; however,

they must not eat, drink, smoke, or chew gum in public. The festivities often continue

well into the night. In general, things happen more slowly during Ramadan. Many

businesses operate on a reduced schedule. Shops may be open and closed at unusual

times.


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Family Values: The family is the most significant unit of Egyptian society.

Kinship plays an important role in all social relations.

The individual is always subordinate to the family, tribe or group.

Nepotism is viewed positively, since it is patronage of one's family.The family consists of both the nuclear and the extended family.

Egyptian Honors: Honor is an important facet of interpersonal relationships.

. Respect and esteem for people is both a right and an obligation.

. An individual's honor is intricately entwined with the reputation and honor of

everyone in their family.

. Honor requires that Egyptians demonstrate hospitality to friends and guests.

. It also dictates that people dress as well as their financial circumstances

allow, and show proper respect and deference to their elders and those in

authority.

Social Class: Social class is very apparent in Egypt since it determines your

access to power and position. The social class an Egyptian is born into dictates

their everyday life and the opportunities they will have. There are three social

classes: upper, middle, and lower. Status is defined more by family

background than by absolute wealth. There is little social mobility.

Etiquette & Customs in Egypt

Meeting Etiquette: Greetings are based on both class and the religion of

the person. Handshakes are the customary greeting among individuals of

the same sex. Handshakes are somewhat limp and prolonged, although they

are always given with a hearty smile and direct eye contact. Once a

relationship has developed, it is common to kiss on one cheek and then the

other while shaking hands, men with men and women with women. In any

greeting between men and women, the woman must extend her hand first. If

she does not, a man should bow his head in greeting.


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Gift Giving Etiquette: If you are invited to an Egyptian's home for dinner,

bring good quality chocolates, sweets or pastries to the hostess. Do not give

flowers, which are usually reserved for weddings or the ill, unless you know

that the hosts would appreciate them. A small gift for the children showsaffection. Always give gifts with the right hand or both hands if the gift is

heavy. Gifts are not opened when received.

Dining Etiquette: If you are invited into an Egyptian's house. You would

normally remove your shoes before entering, dress well and conservatively,

appearances are important to Egyptians, compliment the host on the house.

Table manners: Wait for the host or hostess to tell you where to sit.

. Eat with the right hand only.

. It is considered a sincere compliment to take second helpings.

. Always show appreciation for the meal.

. Salting your food is considered an insult.

. Leave a small amount of food on your plate when you have finished eating.

Otherwise they will keep filling it up for you!

The Economic Environment in Egypt: As Egypt is known for its mixed economic

system, Compared with other emerging markets, Egypt's private sector is tiny. The

public sector still accounts for almost 70 per cent of GDP despite the fact that

hundreds of public enterprises have been wholly or partly privatized during the past

four years. Mixed economic system between Government and private sectors. "There

is concentrated lending in the Egyptian banking sector because there are so few

eligible companies to lend to," says a foreign banker. "This is forcing the larger

companies to look elsewhere for capital. And, with privatization slowing in the past

12 months, the Egyptian Stock Exchange and the country's growing investor base are

hungry for new listings.

Such offerings do not grow on trees, however. A handful of publicly listed stocks

accounts for a large share of the market's turnover despite the fact more than 800

companies are listed. In Egypt, a number of economic factors influence participation,

including unemployment and high cost participation.


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Unemployment: The process of searching for a job and the trials following it to

improve ones income, where incomes are low, is considered one of the main

hindrances to citizen participation in political and social affairs

High Cost of Political Work: The economic circumstances of the country and the

citizen as well as the limited capabilities of many institutions with respect to political

and social work results in a transfer of the financial burden of political work to the

citizen himself. The direct economic cost of participation is therefore a deciding

factor in whether the citizen will participate or not.

The T echnological Environment in Egypt: The Internet child of Tourism, e-

Tourism, is said to be the fastest growing e-commerce sector, E-Tourism currentlydevelops interdisciplinary knowledge to facilitate the flow of tourists and deliver the

tourist to the product in an efficient and cost effective way. The application of the

internet, the World Wide Web, and multimedia information in web pages has

facilitated the tourism process, by making it more efficient and effective financially.

Technological products have transformed the efficiency of operations. The internet

and e-commerce have been adopted extensively by the tourism product. The

combination of internet technologies business principles and tourism can be viewed as

the elements of e-tourism today. The use of web site technologies, communications

technologies (e-mail, telephone, computers, fax, video clips brochures), search

engines, secure electronic payment systems, combined with electronic booking

systems are some examples of the extent of technology penetration in traditional

tourist businesses. In Egypt the e-commerce and providing multimedia tourism

information to the tourist is increasing rapidly now days. Digitalization the tourism

sectors regarding provide information to the customer, online hotel reservation, air

ticket booking etc is large scale of visible in Egypt to facilitate the sectors. All the

hotelier have good website and e-commerce site where Guest can book their

reservation and get travel information such as historical place, climate of Egypt which

can be competitive advantages for the company.

Conclusion: The hotel sector is one of the most major effective sectors in the field of

tourism. Furthermore, it enjoys a model geographical distribution; hotels and tourist

villages extend in Egypts main tourist cities and along its coasts, in addition to the


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floating hotels that cruise the Nile and Nasser Lake behind the Dam, thus enhancing

Nile tourism that enjoys international fame. The hotel sector witnessed a tangible

leap; the number of hotels, tourist villages and floating hotels amounted to 1187 in

2006, and the hotel capacity increased to 170,000 rooms in 2006 so as to match the

huge increase in the number of tourists and tourist nights. According to me Sundays

International restaurant has bright prospects in Egypt, if Sundays International

emerges in the developed tourist market with its hotel service in cheap price.

Recommendation: After analyzing the international managers environment of Egypt

seems to be a good place for hospitality business because the number of tourist and

investment in this sector is increasing. Besides that the entire international managerial

environment are positive towards to the new comers company. On the government

also facilitate this sectored to flourish more. Having read the various researches

presented in this project I strongly believe that Egypt is a great country for to have

hospitality business and Sundays international restaurant would be making more

popularity with competitive advantage.

References:

1. Book- International management written by Marinos Aniftos.

2. Article-Supporting Public Participation in Egypt written by Dr. Ahmaed

Abdel Halim, Member of the Egyptian council for foreign affairs.

3. http://www.cipe.org/pdf/publications/fs/halim.pdf

4. http://en.wikipedia.org/wiki/Egypt

5. http://www.touregypt.net/

6. Book: The Lodging and food service industry written by, Gerald W. Lattin
http://www.cipe.org/pdf/publications/fs/halim.pdfhttp://en.wikipedia.org/wiki/Egypthttp://www.touregypt.net/http://www.cipe.org/pdf/publications/fs/halim.pdfhttp://en.wikipedia.org/wiki/Egypthttp://www.touregypt.net/

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