Global Business Environment 1. 2. 3. 4. 5. 6. Introduction & History Changed by the revolution SWOT Vision Strategy & Implementation Reasons of success Success of the communication strategy The smart and innovative strategies 7. Recommendation Introduction ? An Egyptian coffee shop company based in Cairo. ? First modern-culture coffee shop in Egypt. History 1999 2000 Two young Egyptian entrepreneurs begin to think about the idea of Cilantro Cafe. Establishment of Delicious Inc. with “Cilantro” as a trade name. Launch of the first Cilantro Cafe. Within 4 years, the company opened 8 shops in Egypt.
Rise of competition. 2004 2005 2008 January, 25th of 2011 End of 2011 El-Sewedy, an Egyptian local group, won the bid against Starbucks chain to make the acquisition of Cilantro. Beginning of the internationalization of the company with the opening of the first outlet abroad in London, UK. Beginning of a popular uprising which became the Egyptian revolution. The company owns around 70 outlets in Egypt. Changed by the revolution ? Breaking away from the government ? Self Concepts ? Belonging to Egypt ? Cilantro Cafe provided values for customer ? Knowledge ? Health Consciousness
Transition from local to Global process 1 2 Choice of country for franchise Selection criteria for franchisee Contract negotiation 3 4 5 6 Operational preparations Outlet Opening Continuous monitoring & feedback SWOT analysis – Internal Strengths ? Creation of the concept of a modern-culture coffee shop ? Diversified customers ? Value of knowledge and value of health-consciousness. ? Communication strategy: differentiation while creating add ? Value added services. ? Good marketing team ? Maintenance of the company’s key performance indicators SWOT analysis – Internal Weakness Hardly to control the franchise. ? Time consuming for the transition from local to Global process SWOT analysis – External Opportunities ? Domestic development ? A lot of potential prospects ? Egypt revolution with the merge of Egypt 2. 0 whom new values clearly fitted with cilantro’s ones. SWOT analysis – External Threats ? Rising competition and global competitors. ? The country-of-origin effects and cultural symbolism for an in ternational brand are critical ? Adaptability to globalization Vision Delicious Inc. ? To build new and creative food service concepts ?
Maintain & up-grade uniqueness in the products ? Positioning of the brands Strategy ? Increase the brand recognition ? Defend its home market by constantly up-grading what is offered to customers ? Adhering high quality standards and a unique Cilantro Spirit. ? Become an important contributing member of its community. Strategy ? Offer a positive environment for its internal family while ensuring the long-term business goals. ? Provide the “Cilantro Experience”. Implementation ? Decorations and layouts of the outlets can provide cozy, modern and fresh atmosphere ? Offering a reading corner and Online red book Providing healthy, fresh and tasty choices The smart and innovative strategy ? I & U Models ? I-Model ? Makes use of the export / sales ratio of a firm, which is said to reflect the dependence of the firm on international markets ? More suitable for SMEs The smart and innovative strategic ? I & U Models ? U-Model It assumes that a firm gradually increases its Internationalization operations in stages, at first starting small and low risk, building up experience incrementally to take on larger international roles ? PESTEL ? Political, Economic, Social, Technological, Environmental and Legal.
Success of the communication strategy ? Franchising department stays in continuous contact with the franchisee brand manager and conducts monthly regular audit for each of its outlets Main Reason of Success ? Drastic change in the Egyptian coffee house concept ? Introduced a new category of leisure in Egypt ? Post-revolution ? Strategy of differentiation -Provide a unique Cilantro spirit Further capitalize ? International Bank ? Issue Stocks ? Venture capital Recommendation ? A mix between I and U model is the most valuable strategy be cause it would provide multi-dimensionality. The End.