Prepared By: Team Pioneers (Group 04)

Submitted to: Mohammad Asif Gazi (MAG)

Course: BUS 251
Section: 09

RESEARCH PROPASAL
Egypt
Aarong is a renowned brand in Bangladesh. Their products have unique design which can easily grab the
attention of our people. Hence, the company has a great number of loyal customers but now they are bit
worried about being left behind for having to launch their product globally. So they’re eagerly looking for
a country in the Middle East where they can easily boost their market by introducing their products. By
analyzing, our team thinks it is a great opportunity to Aarong for launching their business in Egypt as the
country has so many great tourists sites like Pyramids, Bibliotheca Alexandrina, Mausoleum of the Aga
Khan, Luxor Temple and so on. Also Egypt has Suez Canal. By this route it is easy for Aarong to wide
their business through Europe, Asia and Africa.

Overview of the problem that exists for Aarong:

Uniqueness is one kind of product design. Unique products and services are the lifeblood of all
businesses. Due to the high cost levels in developed markets, Aarong may choose to relocate their
operations to lower-cost regions and countries such as Egypt in order to reduce production costs. So,
when Aarong begins to operate in a certain geographic area, it becomes easier and more profitable to
promote its products there. On the other hand, the major problems Aarong can face while promoting their
products in Egypt is currency exchange and inflation rates. The value of a currency in Bangladesh will
not be equal to the same amount in Egypt currency, nor will the currency consistently be worth the same
quantity of products and services on a continuous basis. It is a crucial matter to keep an eye on inflation
rates, which are the percentage increases in general price levels in an economy from year to year.
Inflation rates differ per country, and thus can have an impact on material and labor expenses, along with
product sales.

About Egypt:

Egypt, officially the Arab Republic of Egypt is located in the North Eastern corner of Africa. It is known
that the principal civilization of the ancient Middle East was grown from here. This country is full of
historical resources. About 90% of people in Egypt are Muslims. As we know this country's history was
began from Neel River. The romans ere enquired the country as Byzantine Empire until its conquest by
Arab Muslims armies in 639 to 642 CE. After that time Egypt became one of the intellectual and cultural
countries of the Arab and Islamic world. In 18 century the country was colonial part of British colony.
However Egypt is always influenced by French and it is being seen that it the relation between these two
countries is quite strong.

Geographic Location:

The main geographic features in ancient Egypt are the desert, The Delta of Neel River and fertile lands.
The country is lies between the Red Sea the east and Mediterranean see to the north. The Red Sea is a
narrow landlocked sea that separates Africa from Arabian Peninsula. It links to the Mediterranean through
the Gulf of Suez and Suez Canal.

Egypt’s economical Background:

Egypt economy stands by its agriculture, services, industries and manufacturing. Its main economy lies on
petroleum natural gases and tourism. Another important economical resource is Suez which is known as
the shortest Maritime route from Europe to Asia. By this route energy commodities consumer goods and
componentry product are shipped every day. Eventually this canal is so important that if this route is
blocked for a day then it will be impacted on the all over the world economy. Egypt earn nearly about 6
billion dollars per year from this canal.

Reason of Choosing Egypt for solve the problem:

We all know, Aarong is a great brand in Bangladesh which is mainly focused on Bengali ethnic wear and
handicraft products. They produce from clay pots to diamond jewelry. They also produce silk and cotton
fabrics to brass and leather merchandise. Their product showing a very true quality of vast range
innovative product.

In compare of Egypt’s geographical location and tourism economy, Aarong has a great opportunity for
introducing their product in all over the world. If we can look towards their economy the Egyptian had a
great audience of tourists. In 2021 about 3.7 million of tourist came to this country for visiting the
historical places. We know already Aarong creates a great impact on tourists by their great designs and
quality products in locally. Although the country has not have a good business environment but we must
to keep a good knowledge that the country has the craziest route in between Asia and Europe. If Aarong
can introduce and producing their product in Egypt then they had a great opportunity to broaden up their
business to the Europe, Middle East of Asia as well is Africa.

Layers of audience for whom we will present formal report and presentation:

Ayesha Abed and Martha Chen, Founder

Tamara Hasan Abed, Managing Director
Mohammad Ashraful Alam, Chief Operating Office
Rajesh Khajuria, Chief of Design and Product Development
Sasi Kumar, Head of Operation, AAF.

Verbal & non-verbal communication:

Egyptians are quite expressive. They tend to converse with a person by telling stories, making
jokes and they are full of humors. However, showing anger publicly is discouraged there.

In terms of non-verbal communication, the touching during conversation depends on how close
both of them are as well as the gender. If they are close enough, they like to talk while touching
or taunting each other.

Tone of communication:

In terms of tone of communication, they like to talk standing very closely towards the person
they are talking to. In other cultures, they might think their personal space has been invaded, but
it is a type of generosity Arabic people tends to have. They do not like shouting and showing
anger publicly. It is to keep in mind that, to make a strong relationship with Arabic people, one
has to be comfortable taking with close proximity. It is a better way of building a good
relationship.
Roles:

The eldest member of the home, regardless of gender, is usually in charge. The usual home
structure, on the other hand, is patriarchal, with authority often resting with the most senior man.
Furthermore, men tend to have greater decision-making power than women. The bulk of
Egyptian culture is conservative, and there is a common expectation for women to fulfil
traditional tasks like as child raising and home labour, which are believed to be solely female
obligations.

Attitude towards materialism:

In terms of attitude towards materialism, it is found that, the young people of Egypt tend to have
a positive attitude towards materialism. They seem to follow the latest fashion trend going on
worldwide. Materialism acts as a link between fashion consciousness and fashion garment
participation. According to the findings, materialism somewhat mediates the association between
fashion consciousness and fashion garment engagement among young Egyptian customers. This
gives a comprehensive explanation of the motivations behind Egyptian youth fashion clothes
engagement.

Time awareness differences:

In terms of time awareness, it is not mandatory in Egypt to be very much punctual towards time.
You can be late for a meeting or for a work. But you have to make sure you yourself have to
arrive timely for a business meeting, whether your counterparts might arrive late in a meeting.

Concepts of personal space:

In terms of personal space, they like to keep arms distance between one another depending on
the relation & gender. If they are close enough, they seem to talk very closely. Same genders talk
openly & closely in public areas. But in terms of opposite gender, they seem to keep a huge gap
between them.

Decision making, problem solving & negotiation:

Decision making in modern Egypt is highly personalized. Thus, institutions have little to do with
major decisions, often built to meet the needs of a very limited number of powerful men in
different fields and networks. This includes the President, his aides, the best military intelligence
officers, the chief justices of the Supreme Court and very few people associated with the security
services and the business world. These individuals play an important role in making decisions
regarding their policy areas, overcoming any institutional dynamics and structures that may
hinder them.
Political afflictions with Bangladesh:

Bangladesh and Egypt share a common view on international issues such as Palestine and the
Organization for Economic Cooperation (OIC) D8.

With respect to trade relations, the trade volume between the two countries is 100 million
dollars. Bangladesh mainly buys fertilizers, iron, steel and mining products from Egypt and
mainly sells textiles. A small number of students from Bangladesh study in Egypt on his
scholarship program.

Bangladesh and Egypt have similarities in religion, nature and society. After the Bangladesh
Liberation War Since 1971, Bangladesh and Egypt have still maintained strong diplomatic
relations and are getting stronger day by day. Ambassador believes that the friendship between
Egypt and Bangladesh is very warm. He added, "We have opened our doors for all Bangladeshis
who want to come to Egypt and do business after arriving in Bangladesh." He invited all
Bangladeshi businessmen to invest in Egypt, saying that Egypt has ample investment and
business opportunities.

Basic etiquette:

 It is considered rude to point your finger, heel, or part of your foot in someone else's
direction. It is also rude to show the soles of your shoes.
 Modest dress and appearance are highly regarded in Egyptian culture.
 Greetings often occur prior to social interactions. For example, anyone joining a group
should say hello to everyone present.
 Small children, as a rule, obey and respect their elders, do not challenge their elders, and
use special verbal appeals to aunts, uncles, grandparents and unrelated relatives.
 If a spouse identifies himself as a Muslim, walking in front of the person praying or
talking to the person who is currently praying is prohibited.
 Anyone who receives a compliment should express gratitude. To do this, you must show
the same respect for the same subject and, if you are a Muslim, ask Allah (God) to bless
you.

Impact on Aarong:

Aarong employs about 65,000 Bangladeshi craftsmen in rural areas, with 85 percent of them
being women. It shows their consumers everything they love about Bangladesh and follows the
trend industry of Bangladesh. It specializes in Bengali ethnic apparel and artisanship, which will
be difficult to replicate in any country. To be a thriving business in Egypt, they must concentrate
on Egyptian style.
Reference:

1. Marketing strategy of Aarong based on different target markets. (2020). HM Rusab. Retrieved 21
November 2021, from
http://dspace.bracu.ac.bd/xmlui/bitstream/handle/10361/14908/16104051_BBA.pdf?
sequence=1&isAllowed=y

2. ‘Aarong’, Bangladesh’s craft and fashion icon, looks forward to going international. (2017).
TextileToday. Retrieved 21 November 2021, from https://www.textiletoday.com.bd/aarong-
bangladeshs-craft-fashion-icon-looks-forward-go-international/

3. Brac - Aarong: Financing and Promoting the Creative Industries. (2009). International Trade
Centre. Retrieved November 21, from
https://www.tradeforum.org/Brac-Aarong-Financing-and-Promoting-the-Creative-Industries/

4. Aarong: Crafting hope, weaving dreams. (2011). The Daily Star. Retrieved November 21, from
https://www.thedailystar.net/news-detail-178976

5. Aarong Dairy was founded to change the fortune of rural people. (2021). The Business Standard.
Retrieved 21 November 2021, from
https://www.tbsnews.net/supplement/aarong-dairy-was-founded-change-fortune-rural-poor-254137