Introduction

“The Alexandria confectionery & chocolate company – Corona was established year 1919 by
Tommy Christo,

To become the first Confectionary & Chocolate Company in the Egyptian market. The company
was nationalized in 1963 & become the icon of the public sector in sweet snacks and soon it
became close to all Egyptian consumers' hearts triggering desire. Throughout the years, Corona
established for itself a solid platform becoming the "Quality Manufacturer since 1919".

Corona then was privatized in 2000, bought by one of the leading private holdings that have
diversity within the Egyptian Market & Beyond.

Now, Corona Company is known with its nostalgic portfolio within many snacking categories with
famous brand names like: Chocolate Rocket, Bimbo, Cocoa, Wafers, Biscuits, Candies, and Toffees
& Gum.”

100 YEARS OF HAPPINESS start with (Royal Choco late) Company that was founded in 1919 in
Ismailia, Egypt. The owner at that time, Tommy Christo (Son of Evangelist Christo (Greek
businessman who used to live in Alexandria)

Christo believed that the chocolate dough was too sensitive and captured the mood of who made
it. So, if you want to create a product that makes other people feels happy you should be happy
when the Greek chocolatier Tommy Christo built his chocolate factory there. It was the first of its
kind not just in Egypt. But in all the near East. The workers were both Greeks and Egyptians.

For more than 100 years, Corona has been committed to providing the Egyptian consumer with a
high-quality range of chocolate, biscuits as well as hard and soft candies.

Throughout CORONA long history of hard work and development, Corona demonstrated a pro-
active, socio-cultural attitude to society by total response to all needs and requirements of the
consumers. CORONA continues to launch innovative products to satisfy their ever-growing
.consumer profile

Globally, CORONA is establishing a strong network of professional distribution aiming to deliver

their products to potential consumers at satisfying quality, price, taste and time.

The origin of the “Corona” Gazelle

In his objective to make his employees happy, Christo decided to build a football pitch for workers
to have recreation breaks. A wild gazelle visited the pitch so regularly that it soon became a friend
to all employees and was generously spoiled by Christo & all the factory workers.

The day the gazelle passed away, Tommy Christo mourned her death and decided to make her
part of the factory brand, identity & logo. He ordered a statue of her to be carved and placed at
the factory entrance, as well as to depict a drawing of the gazelle on all the products’ packaging.

Company overview
In the year 1919 Corona chocolate company was established, and continued to be in the
public sector until 2002. By the beginning of 2002 corona was bought and privatized by
Mr. sami saad group (SONID), A holding company of diversified activities started in 1963.
The group operates in various fields, including: construction (Samcrete Egypt); automotive
(EGA, automotive industry; Natco, automotive sales and service); food and beverages:
(Sonut, beverages; Corona, confectionery; Trade Line, sales and distribution(

Mr. sami saad faced a severe resistance and rejection by the labour union, and his
business plan was depressed until 2007 when his son mr. bassel sami saad decided to
make a revolution and to position corona again in the market.

In 2008, corona made an acquisition on Nadler company in order to diversify its products
by adding a candies product line. And it established in the market in the middle of 2008.
Corona’s products:

Chocolates
Drinks:

Wafers:
Biscuits:

.
Corona factory consists of :

A- Chocolate Plant :

· Chocolate Processing Setup

· Two Molding Lines ( Automated )
· Two Molding Lines ( Manual )
· Extensive Capability of Packaging Machines

B- Biscuits Plant :
· Three Biscuit Lines
· Two Wafer Lines
· Chocolate Coating & Treatment
· Various Packaging Possibilities

C- Cocoa Plant :
· Cocoa Bean Processing Facility
· Cocoa Powder Manufacturing
· Processing and Grinding
· Packaging

D- Candy & Chewing Gum Plant :

· Auxiliaries & Processing

· Various chewing gum lines
· Various lollipop lines
· Jell-O-Plant
· Hard Candy Lines
· Toffee Lines
· Packaging facilities

N.B. ( Total Land : 22,000 sq.m & Buildings : 16,000 sq.m )

 Vision

Bringing Joy to people’s life through high quality offerings across the world.

To become one of the top 5 players in the snacks and beverages market in Egypt through providing high quality
brands & products to delight our consumers and create sustainable value for our people, shareholders and
community.

Comment:

The vision statement Is very poor to be only one of top 5 players in Egypt not even in middle east or Africa. The
vision statement doesn't describe the future vision or dream of the company and to be one of the top players is
accessible in near future it is not difficult.

New vision:

Bringing joy to people's life through high quality productS being one of main players of snacks industry in Africa,
Middle East, Asia and South America.

Mission

Providing consumers with the highly delightful choices in a wide range of household & food categories that fill
their life with joy.

Celebrating the simple things in life through spreading charming treats.

Comment:

The mission statement is very poor doesn't take in consideration the product of company or the geographical
region which is targeted by the company. There was no stating for technology or philosophy.

The competitive edge of the company is ambiguous. And the role of the company towards society and employees
were not clear.
New mission:

Bringing Joy to young and old through a wide range of chocolate, snacks and beverage products. Being one of the
main players in Egypt and MENA region. Using the artificial intelligence and the latest technologies to develop high
quality product. Focusing on sustainability and ensuring our stakeholders welfare.

Core values

R - Responsibility

E - Excellence

S - Speed

P - Passion

E - Efficiency

C - Customer Centric

T - Team Spirit

Comment:

The core values of the company demonstrate the company's commitment to ethical and responsible business
practices, stakeholder engagement and creating a positive and inclusive culture for all employees, partners and
customers.

These values provide a framework for the company's operations and interactions with stakeholders.

The value of excellence means that it is committed to provide products and services of the highest quality to
exceed customer expectation.

Team spirit is essential value guarantee the collaboration with their employees and partners to ensure
improved outcomes.

SWOT ANALYSIS
SWOT analysis is a framework for identifying and analyzing an organization's strengths, weaknesses,
opportunities and threats. The primary goal of SWOT analysis is to increase awareness of the factors that go
into making a business decision or establishing a business strategy.

Strengths Weaknesses
1- Quality system that comply with 1- Poor marketing research and plans
ISO System. Financial problems
2- National Egyptian brand. 2- Poor R&D
3- Competitive prices. 3- Using cheap ingredient in chocolate
manufacturing.
4- Poor Packaging.

Opportunities THREATS
1- Youth population under 15 which 1- Instability and ambiguous
represent 33% investment lows.
2- The trade agreements like COMESA, 2- Increase in energy prices by 30%
AGADIR and TAISEER. 3- Instability of the currency market.
(Exporting).and in importing new Increase in interest rate to control
cocoa from Ivory Coast (Africa). inflation and exchange rate
3- Increasing in tariff on imported 4- Rich and strong competitors with
commodities including chocolate by intensive marketing efforts.
17% Consumers perception about
4- Devaluation of the Egyptian pound
Corona as lower quality
by around 30% last April with a
potential of another 30% by the end
of the year

Comment:
It is clear that CORONA has a lot of strength points regarding applying quality system which is credited
by ISO system. It is a well-respected brand among Egyptians with very competitive prices.

On the other hand the brand suffers from poor R&D with poor packaging and due to problems in its
supply chain channels the ingredients which is used in some products are cheap. Also the company
should improve its marketing and financial plans.

There are a lot of threats the brand should overcome to survive like instability in Egyptian market
regarding currency, increase in interest rate, inflation which threaten any investment in Egyptian market.
Instability and ambiguous situation in Egyptian market also affects the brand to survive.

Increase in energy cost results in increasing the cost of products leading to reduction In profit.

There is also strong competition in chocolate and snacks market mainly from high quality brands.

Although all these threats there is also a lot of opportunities due to huge population in Egypt especially
under 15 years old. Also a lot of trade agreement which can facilitate exporting products to new markets
and regions. The difficulty in exporting chocolate products by putting extra tariffs which will increase the
price of foreign brands against Egyptian ones. Decrease the value of currency which drive a lot of market
segments towards Egyptian brands.

Tows analysis

A TOWS Analysis is an extension of the SWOT Analysis framework that

identifies your Strengths, Weaknesses, Opportunities and Threats but then goes
further in looking to match up the Strengths with Opportunities and the Threats with
Weaknesses. It’s a great next step after completing your SWOT and allows for you to
take action from the analysis.

The main purpose of a TOWS Analysis is to:

 Reduce threats
 Take advantage of opportunities
 Exploit strengths
 Remove weaknesses

Internal strengths: Internal weaknesses:

1- Quality system that 1- Poor marketing research
comply with ISO System. and plans Financial
problems
 2- National Egyptian brand. 2- Poor R&D
3- Competitive prices. 3- Using cheap ingredient in
chocolate manufacturing.
4- Poor Packaging.
External Opportunities: SO Strategies: WO Strategies:
1- Youth population 1-develop multiproduct lines with 1-improve brand ingredients and
under 15 which many options and price classes packaging exploiting the new
represent 33% (O1 S1 S3) trade agreements (W3,4 O2)
2- The trade 2-offering new products to cover 2-improve R&D to produce new
agreements like the high demand of youth. (O1 S1 products to fulfill market needs
COMESA, S3) (W2 O1).
AGADIR, BRICKS. 3-penetrate new markets using 3-develop marketing strategies to
3- Increasing in the opportunity of trade increase its market share. (W1 O1)
tariff on imported agreements (S1 O2).
chocolate . 4-keep competitive prices and
4- Devaluation of solve supply chain problems ( S3
the Egyptian O2 O3)
pound

External Threats: ST Strategies: WT Strategies:

1- Instability and 1-Penetrate new markets to 1-Develop multiproduct lines with
ambiguous exploit low value of Egyptian many options and price classes.
investment lows. currency (S1 S3 t1 t3) (W3 W4 T4)
2- Increase in 2-decrease cost using artificial 2-developing marketing strategies
energy cost by intelligence (S1 T3 T2) to overcome recession effect on
30% 3-create products with Egyptian market (W1 T3).
3- Instability of the competitive prices. (S1 S3 T4) 3-develop financial plans to
currency market. 4-increase product offering. (S3 overcome financial instability in
4- Rich and strong W4) Egyptian market (W1 T1 T3).
competitors. 4-Improve supply chain channels
to reduce products cost and
improve quality (W3 W4 T2).

COMMENT:

Due to different trade agreements CORONA has the opportunity to use market penetration strategy
also supported by reduction in Egyptian currency which will support exporting opportunities.

CORONA needs to apply PRODUCT DEVELOPMENT STRATEGY to improve the quality of its products to
be able to compete with other brands and to reach this goal it is important to improve its R&D and
improve ingredients and packaging exploiting the new trade agreements and BRICKS to improve its
supply chain channels.

To cope with high competition CORONA should apply PRODUCT DIVERSIFICATION STRATEGY to offer
new products to different segments of population in the market.

IFAS (Internal Factor Analysis Summary):

Internal Factor Evaluation (IFE) Matrix is a strategy tool used to evaluate firm's
internal environment and to reveal its strengths as well as weaknesses.
 Internal Factors Weight Rating Weighted score Description
(%)
1-STRENGTHS:
1-Quality system that comply 0.21 4 0.81
with ISO System.
2-National Egyptian brand. 0.18 3 0.64
3-Competitive prices. 0.20 4 0.80

TOTAL STRENGTHS 0.59 11 2.25 68.2%

2-WEAKNESSES:
1-Poor marketing research and
plans Financial problems 0.08 2 0.16
2-Poor R&D 0.10 2 0.20
3-Using cheap ingredient in 0.12 3 0.36
chocolate manufacturing.
4-Poor Packaging. 0.11 3 0.33
TOTAL WEAKNESSES 0.41 10 1.05 31.8%
TOTAL 1 21 3.30 100%
Comment:

As we observe in the internal factors analysis using Fred David rating technique we can find that:
1-the total weighted score is 3.30 points which is above the average of 2.5 points.

2-the strength points contributes to 68.2% which is 2.25 points of the total 3.30 points.

3-the weaknesses points contributes to 31.8% which is 1.05 points of the total 3.30 points

4-this indicates that the internal situational analysis of CORONA is good due to its strengths
which enable the organization to overcome its weaknesses.

VRIO Analysis is an internal analysis tool used by organizations to

categorize their internal resources based on whether they hold certain traits outlined
in the framework. This categorization then allows organizations to identify the
company resources that provide a competitive advantage. The VRIO Analysis is
an Internal Analysis tool.

The VRIO Model:

 ‍ aluable
V
 Rare
 Inimitable
 Organized

These four bricks of VRIO represent the four properties of the resources and
capabilities that lead to sustainable competitive advantage. When the resource or
capability satisfies all the four requirements, the competitive advantage it generates
will be sustainable, whereas, when it meets fewer standards, the competitive
advantage will be temporary.

Moreover, a sustainable competitive advantage comes from core competencies that

arise from resources and capabilities.

CORONA Corporation VRIO Analysis

Core competencies Valuable Rare Inimitable Organized Advantage

Brand Image Yes YES YES YES Sustainable Competitive advantage

Quality vs. prices Yes Yes Yes Yes Sustainable Competitive advantage

Customer
Yes Yes NO NO Competitive parity
experience

Product Range Yes No NO NO Temporary advantage

Market Position Yes No No NO Temporary advantage

HRM Yes No NO NO Temporary advantage

Brand Image:
CORONA brand image is a key capability driving its popularity and success in the
Egyptian market. Apart from driving higher popularity and easier brand recall, and
superior sales, the company’s image also plays a key role in helping the brand’s
global marketing.

Its brand image also differentiates it from other brands in the industry. The company
has always focused on building a strong image. It is known for its customer centricity
Its brand image is a key source of competitive advantage for the brand.

Quality vs. Price

CORONA is well established brand with improved quality and reasonable price
compared with other brands also the change in the value of Egyptian currency open
the doors for the brand to penetrate new markets in Africa and Asia.

Customer experience:
In the 21st century, the focus on customer experience has grown and in nearly all
industries, the success of a company depends on how heavily its focuses on
customer experience. CORONA has focused on customer experience to grow its
market influence and achieve the market leading position it enjoys.

Focusing on customer experience helps companies differentiate their image from

rivals in the market. Superior customer experience leads to higher popularity, higher
sales and growth in customer loyalty. It has helped the company sustain the
competitive edge it enjoys over its rivals.

Product range:
CORONA should exploit the opportunity to diversify its product range which
considered a key source of competitive advantage for the brand. The company is not
dependent on a single product category for its revenue and profits. Instead, it
generates revenue from various products. While it is a main player in chocolate
products, it has also remained a player in snacks, drinks and beverage products.

While there are several benefits of having a highly diversified product portfolio, the
leading benefit is that it does not need to depend on any single product category to
maintain its growth momentum and profitability.

Market position:
The market position of CORONA is also a source of competitive edge for the brand
which it has retained through its focus on product quality. More focusing on
sustainability, and marketing will help CORONA to improve its position . However, the
advantage that comes from the market position is only temporary.

HRM:
People are mostly behind all the sources of competitive advantage that a company
has built. It is why they are among the most critical sources of competitive advantage
for any brand. Their performance affects the profitability of a brand. In the 21st
century especially, the role of human capital in organizational success has grown
more highlighted. Companies are competing to attract highly skilled employees.

CORONA has also grown its focus in this area to attract and retain highly talented
people that can help it improve its offerings and serve its customers better. The
company should develop more employee-friendly policies to attract and retain highly
skilled employees.

VALUE CHAIN ANALYSIS:

Value chain analysis is a strategic process that can increase profit

margins and provide a competitive advantage for companies of all sizes. Within this
analysis, businesses identify areas where the value of specific production and sales
activities can be increased. By discovering opportunities for cost reduction and/or
improved customer value, businesses can decrease production costs and increase
revenue.

Strong value chain strategy is your path to outperforming the competition and
becoming the leading company in your particular field. Just as sales metrics and
analysis indicate trouble spots in your sales process, value chain analysis indicates
the trouble spots in your production process. You can’t fix what you can’t see.

Purpose of value chain analysis

The purpose of value chain analysis is to give your company a clear path to greater
profits. By understanding the value that your company brings to your audience, you
can craft a more strategic sales plan and alter your chain activities to produce
additional revenue.

Value chain analysis also helps your company determine the best strategies within
the current market—not just with your audience. For instance, if you’re looking to offer
new financial management software, your value chain analysis might help you decide
how specific you want your targets to be and how much to charge for your product.
By finding the gaps in the market, you can use price and quality to pinpoint the
perfect niche.

Essentially, value chain analysis gives you a starting point for your entire sales and
marketing approach. From initial ads to sales funnel analysis and lead qualification,
all improvements stem from the value chain.

CORONA VALUE CHAIN ANALYSIS:

1. Primary Activities

2.1 Inbound Logistics

CORONA tasks are all receiving, storing, and disseminating product inputs.
CORONA's responsibilities are receiving, storing, and distributing the product's
inputs. It could impact physical product warehousing, material handling, and the
infrastructure that allows digital media companies to collect and store client data. The
majority of CORONA's inbound logistics is currently outsourced. The majority of
COORNA's inbound logistics is currently outsourced.

1.2 Operations
Activities that aid in the transformation of raw materials into final goods. It can mean
using consumer data to provide adverts to clients based on user behavior, molding
plastic to produce things, and so on.

1.3 Outbound Logistics

CORONA does several tasks to distribute finished goods to channel partners and
final customers. CORONA Capitalism is responsible for a wide range of
responsibilities related to distributing completed goods to channel partners and end-
users. Outbound logistics tasks include distribution networks, scheduling, wholesaler
and retailer order fulfillment, processing, and warehousing.
1.4 Marketing
CORONA engages in these activities to provide a channel for a buyer to purchase
company's products. CORONA Capitalism participates in these actions to set
standards for buyers of a company's products. Advertising and promotion, sales
force management, marketing, channel selection, pricing, and so on are examples
of these activities

1.5 Service
CORONA must give after-sales services so that the product to be used successfully.
CORONA Capitalism must provide after-sales services and attention to ensure the
product's success.
CORONA’s Supply chain Management
The centralized administration of the movement of goods and services is known as
supply chain management (SCM). It encompasses all processes and activities to
transform raw resources into finished goods.
This is the management of the complete production flow, from the essential
component to the final product delivery. To meet customer demand and develop
business economic scales, companies must rethink their supply networks.
CORONA follows a Lean Supply chain through Demand Management
CORONA has an extensive product line, and to maintain the supply process at its
optimum, it majorly segregated its supply process into three major parts.
1. Raw Material Collection from farming
2. Manufacturing & packaging
3. Sales & distribution
Raw Material Collection from Farming
CORONA imports most of its cocoa requirement from Ghana in West Africa; as its
goal to be one of global chocolate manufacturing players, CORONA must keep up
with producing the best quality products and achieving customer satisfaction;
CORONA imports most of its cocoa requirement from Ghana in West Africa, as the
world's most cocoa farming. Farming and harvesting are carried out throughout the
year, with harvesting taking place primarily in the second half. Other raw ingredients,
such as milk, sugar, vegetable fats, and so on, are purchased locally to reduce
shipping costs and bring fresh raw materials to the production line.
Manufacturing & Packaging
As its goal to be one of global chocolate manufacturing players, CORONA must
ensure that demand requirements are met well in advance; to do so; CORONA has
developed manufacturing units that follow the same instructional practices and
production lines to ensure that quality does not suffer.
Sales & Distribution
CORONA's sales and distribution is a massive undertaking in and of itself. The
business must ensure that product distribution is done adequately and effectively to
sustain the supply and demand. CORONA transforms inputs (people and materials)
into outputs to create goods and services that satisfy consumers' needs. You must
have known about the manufacturing process and the actions that lead to the
product. The most significant parts of the manufacturing line, where safety
precautions must be taken to safeguard products from contamination, are hazard
analysis and critical control points (HACCP).

2. Secondary Activities
2.1 Firm Infrastructure
The company has great infrastructure. It has strong accounting, general
management, legal, and administrative capability that has helped it in continuously
sustaining in the ever challenging market. It has great support systems that have
allowed it to effectively manage day to day operational activities. On this aspect, the
company can be given 3.8 out of 5.
2.2 Human Resources
The company has a great area of improvement regarding hiring, training, and
retaining employees at the company. It has elaborate training process that ensures
that employees are trained well for the job they are supposed to do. Moreover, people
like working with the company due to its appreciable and supportive work
environment. The company can be given 3 out of 5 rating on this ground.
2.3 Technology development
The company strives to employ latest technological capabilities to handle its activities
without affecting the cost of its products. It ensures that it stays ahead on the
technical excellence so that great values can be created for its customers. It has
been able to successfully retain and pass on knowledge base and build good market
presence. The company can be considered as a technological company to some
extent due to its involvement of production various technological items. Rating for this
aspect can be 3 out of 5.
2.4 Procurement
The company has separate division that looks after the procurement of raw materials
from local and international suppliers. The division should be improved to ensure that
only the best of the best suppliers are on boarded with the company. The company
has also the challenge to build good relationship with all the suppliers for sustainable
growth. On this aspect, the company can be given 3 out of 5 rating.
3. Conclusion
Overall, it can be said that the company has been doing good on most of the
grounds. It is expected that the future of the company can be positive if it further
improves its ability on all these aspects.
BCG MATRIX:

BCG MATRIX The Boston Consulting group's product portfolio matrix (BCG
matrix) is designed to help with long-term strategic planning, to help a business
consider growth opportunities by reviewing its portfolio of products to decide where to
invest, to discontinue, or develop products.

BCG Classification
STARS:

The chocolate products of CORONA are the leading stars in its product portfolio.
Apart from being in a high growth market, the company is also a market leader in this
sector and owns a reasonable market share. In contrast, many other profitable
product segments of the company experienced a significant decline.

Other major stars in the product portfolio of the company are CORONA cocoa drinks.
While these segments’ growth rate stalled during the pandemic, they will again start
growing once the impact of the pandemic is brought under control. Despite the
pandemic, these two segments experienced significant growth during fiscal 2022. So,
the growth rate of these two segments can be superior after the pandemic, and the
company also has a significant market share in both these sectors.

CASH COWS:

CORONA’s biggest Cash Cow is its BIMBO biscuits. While several of its consumer
biscuits products were also its cash cows, their future seems to be bleak due to the
heavy competition. In fiscal 2022, the sales BIMBO also dropped significantly, but it
remained among the company’s largest sources of revenue. The BIMBO segment of
the company remained its second largest source of revenue.

QUESTION MARKS:

Several of CORONA's wafers cash cows have become question marks in recent
years since their sales have kept dropping steadily due to the growing competition
and heavy supply chain problems. As a result, CORONA’s margins from these
products have also kept shrinking. Its sales of wafers have kept dropping steadily,
and their future has grown bleaker with increasing competition in the industry.

DOGS:

CORONA’s chocolate spread and some candies are experiencing higher competition
from many brands. As a result, their sales have kept falling year on year.

CONCLUSION:

Overall, CORONA’s business is in quite a good shape except for a few products that
seem to be losing their sheen in the face of increased competition. The company has
great opportunity to exploit its cash cows to invest in its stars and to penetrate new
markets.

Divesting dogs is essential to keep resources to be invested in new products and to

increase the quality of its products.

Competitive profile matrix (CPM):

The Competitive Profile Matrix (CPM) is a tool that compares
the firm and its rivals and reveals their relative strengths and weaknesses. In order to
better understand the external environment and the competition in a particular
industry, firms often use CPM. The profile matrix identifies a firm’s key competitors
and compares them using industry’s critical success factors. The analysis also
reveals company’s relative strengths and weaknesses against its competitors. As a
result, a company can easily identify the areas it should improve and the areas it
should protect.
Key success weight CORONA ELSHAMADAN CADBURY
factor Rating Weighted Rating Weighted Rating Weighted
average average average
1-Brand image 0.07 3 0.21 3 0.21 4 0.28
2-Customer 0.1 4 0.40 3 0.30 4 0.40
loyalty
3-Innovation 0.08 3 0.24 3 0.24 4 0.32
4- R&D 0.07 3 0.21 4 0.28 4 0.28
5-Prices 0.05 2 0.10 3 0.15 3 0.15
6-Product quality 0.08 3 0.24 4 0.32 4 0.32
7-Affordability 0.07 3 0.21 3 0.21 3 0.21
8-Advertising 0.06 4 0.24 2 0.12 2 0.12
9-Financial 0.07 3 0.21 3 0.21 4 0.28
position
10-Product 0.08 3 0.24 3 0.24 2 0.16
expansion
11-Mangement 0.05 4 0.20 3 0.15 4 0.20
12-Growth 0.06 4 0.24 3 0.18 3 0.18
13-Sales 0.09 3 0.27 3 0.27 4 0.36
14-Opportunities 0.07 4 0.28 4 0.28 4 0.28
Total 1 3.29 3.16 3.54
CONCLUSION:
ANALYSIS From the matrix, we can interpret that the CPM of CORONA is higher than
ELSHAMDAN but lower than CADBURY. CORONA is also close to ELSHAMDAN with average
3.29

CORONA has to work to improve its marketing and advertising activities and management. It
also has to exploit its strong BRNAD HISTORY and develop new products with different range of
prices to compete with its rivals. CORONA should improve its supply chain process and it has a
great opportunity to open new markets.
CORONA EXTERNAL ANALYSIS
PESTEL

EGYPT is country located in the middle of 3 continents Most of its territory of 1,000,000
square kilometers lies within the Nile Valley of North Africa and is bordered by the
Mediterranean Sea to the north, the Gaza Strip to the northeast, the Gulf of Aqaba to
the east, the Red Sea to the east and south, Sudan to the south and Libya to the west.
With population over 100 million, Egypt is one of the most densely populated countries
in Africa and the Middle East, and the 15th most populated in the world. The large
regions of the Sahara Desert, which constitute most of Egypt's area, are lightly
inhabited. About half of Egypt's residents live in urban areas, with most spread across
the densely populated centers of greater Cairo, Alexandria and other major cities around
the Nile Delta.

Egypt Country Information

Population 105 million (2023)

GDP $363.78 billion (2023)

GDP growth 7.2% 2023

Exports 3763 Million USD ( 2023)

External debt 167,86 billion (2023)

Public debt 88% of GDP

Credit rating B+

Income Level Lower Middle

POLITICAL

Bio-security, food safety & other regulations from the ministry of health - Government
future trends will most likely be more transparent, helping firms not politically connected
with the government secure lucrative contracts - Following the full implementation of GATT
Treaty, opportunities will increase tremendously for the export of Agricultural products in
general and dairy products in particular.
The business climate has benefited from an active reformation program and modified
investment laws as well as regional economic boom. Egypt has diversified sources of
foreign currency (the Suez Canal, tourism, private transfers, and oil and gas exports).
In 2016, in the light of ongoing economic reform program in Egypt, the International
Monetary Fund (IMF) approved financial assistance for Egypt in the form of a US$12 billion
loan. The aid was aimed to restore macroeconomic stabilization and the return of
international confidence. Bringing down the budget deficit and government debt,
impacting job growth and functioning of the foreign exchange markets were identified as
the main improvements areas.
Participation in BRICKS will open promising prospects of partnership with the economies of
its members.
Increasing the opportunities for the trade exchange and aiding in the attraction of more
investments to the competitive business environment in Egypt.

ECONOMIC

Egypt GDP growth rate is 7.2% in 2023. In addition to its population being the largest in
the region, the fact that disposable incomes are set to rise markedly over the long term
means Egypt’s country structure benefits from probably the most dynamic upside potential,
which confirms the country’s standing as one of the Middle East’s most exciting investment
destinations.
Key Economic variables: Availability of credit& Level of disposable income Low wages in
global terms are advantages for foreign investors, however it’s a disadvantage on the side
of demand as the disposable income is low although it is slightly increasing. Interest rates
22% in 2023. Inflation rates Headline CPI published by the Central Agency for Public
Mobilization and Statistics 35%. in 2023. Egypt Inflation Rate averaged 30%.
Government budget deficits Despite a reduction, a number of restrictive tariffs remain in
place and serve as a barrier to entry for many international brands. Consumer Spending in
Egypt increased to 1257 EGP Billion in the fourth quarter of 2023 from 1248 EGP Billion in
the third quarter of 2023.
SOCIO CULTURAL

Social, cultural, demographic, and environmental changes: With a population of 100+

million, Egypt is the largest market in the Arab world. Population growth at 2% is
considered high compared to developed countries. Nearly 45% of the population is under
the age of 18, which creates a sizeable consumer base. Income per capita is enjoying
higher than average growth as a result of ongoing economic reforms. The expansion of
the middle-class segment, economic openness and better living standards have improved
although it is affected by the last years high inflation rate health consciousness across
growing segments of the Egyptian population. Industry statistics point to strong growth for
years to come, supported by favorable demographic and economic profile.
TECHNOLOGICAL

The use of automated systems is taking over; it helps in reducing the time of production
while increasing the capacity. Also, The Use of ERP (enterprise resource planning)
software in factories and companies become trendy and affordable, the ERP system gives
a better control on all operation especially financial operations to increase the efficiency.
Moreover, the use of digital marketing on all social media platforms became easier and
advanced that helps in better and more effective communication and advertising
ENVIRONMENTAL

The environmental policy of the Government of Egypt seeks to achieve environmental

protection through the establishment of proper institutional, economic, legislative, and
technical frameworks at the local, regional, national and international levels. This is
expressed through the seven directives of the policy statement of the ministry:
 Strengthening partnerships at the national level.
 Supporting bilateral and international partnerships in the environmental fields.
 Enforcing Law 4 of 1994 for the protection of the environment, and Law 102
of 1983 for Natural Protectorates and all other environmental legislation.
 Supporting institutional strengthening and capacity building for the
Egyptian Environmental Affairs Agency and Environmental Management
Units (EMU's) of the governorates.
 Supporting Integrated Environmental Management Systems.
 Integrate the use of market-based instruments in the field of environmental
protection.
 Transfer and adaptation of environmentally friendly technologies.
Within this policy framework, institutional and regulatory reforms are carried out, aiming
at the implementation of national environmental policy objectives and measures .
LEGAL - FOOD AND BEVERAGE LEGISLATION AND REGULATIONS

Established in 2017 and in operation since January 2018, the Egyptian National Food
Safety Authority (NFSA) is responsible for the protection of public health and safety in
Egypt. The authority’s aim is to ensure that food consumed in Egypt meets the highest
standards of food safety and hygiene.

The establishment of a unified authority competent to supervise food safety is aimed at

harmonizing and consolidating the food safety system, including the food safety criteria
and procedures for risk analysis, through structural and legislative reforms.

Currently, processed food falls mostly under the competence of the Ministry of Economy,
while agri- food commodities fall under the competence of the Ministry of Agriculture.
Most competencies are nonetheless gradually being transferred to the newly established
NFSA. However, live animals and non-processed agricultural products (before harvest)
will continue to be under the competence of the Ministry of Agriculture.

The two key pieces of relevant food safety legislation NFSA is currently responsible for are:
 Law No. 10 of the Year 1966 on food control. The Law aims at (a) identifying
the hygienic conditions for the protection of food from pollution and
contamination; (b) ensure that harmful ingredients are not used in food; and
(c) monitoring the hygienic conditions of food.
 Law No. 281 of the year 1994 on prevention of adulteration and fraud. This
Law prohibits the fraud in food and establishes fines and penalties for e.g.
the non-conformity of goods with the
 contractual specifications. The law establishes also fines and penalties for
the import of adulterated, rotten or expired food, agricultural, and organic
products.

On top of that, the following other pieces of legislation should be bear in

mind by potential exporters:
 Minister of Health decree 350/1986 concerning lab testing of
imported food;
 Presidential decree 106/2000 concerning facilitating
inspection and control procedures for exported and
imported commodities;
 Prime Minister decree 291/1986 concerning regulation of
control of imported goods;
 Minister of Health decree 60/1952 concerning specifications
and standards for milk and dairy products;
 Presidential decree 1604/1967 amending edict no. 4/1953
concerning regulation of trade of meat and its products;
 Minister of Agriculture decree 517/1986 concerning slaughter
of animals and trade of meat;
 Act No. 132/1950 on milk and milk products.

EFAS (External Factor Analysis Summary):

External Factor Evaluation (EFE) Matrix is a strategy tool used to

evaluate firm's external environment and to reveal its opportunities as
well as threats.

External Factors Weight Rating Weighted score Description

(%)
1-OPPORTUNITIES:
1- Youth population 0.16 4 0.56
under 15 which
represent 33%
2- The trade agreements
like COMESA, AGADIR, 0.15 3 0.45
BRICKS.
3- Increasing in tariff on 0.14 4 0.56
imported chocolate .
4- Devaluation of the 0.14 3 0.42
Egyptian pound

TOTAL OPPORTUNITIES 0.59 14 1.99 68.15%

2-THREATS:
1- Instability and 0.12 2 0.24
ambiguous investment
lows.
2- Increase in energy cost 0.08 2 0.16
by 30%
3- Instability of the 0.10 2 0.20
currency market.
4- Rich and strong 0.11 3 0.33
competitors.

TOTAL THREATS 0.41 9 0.93 31.85%

TOTAL 1 22 2.92 100%
Conclusion:
As we observe in the external factors analysis using Fred David rating
technique we can find that:
1-the total weighted score is 2.92 points which is above the average of 2.5
points.

2-the opportunities contributes to 68.15% which is 1.99 points of the total

2.92 points.

3-the threats contributes to 31.85% which is 0.93 points of the total 2.92
points.

4-this indicates that the external situational analysis of CORONA is good due
to the rising opportunities which give the organization the chance to be
exploited using its resources and the high ability of the organization to avoid
its threats.

Porter five forces:

Porter's Five Forces is a model that identifies and
analyzes five competitive forces that shape every industry and helps
determine an industry's weaknesses and strengths. Five Forces
analysis is frequently used to identify an industry's structure to
determine corporate strategy.

Porter's model can be applied to any segment of the economy to

understand the level of competition within the industry and enhance a
company's long-term profitability.