Name Module: Strategic Management

Submitted to: Professor. Hanady Ragaii

Submitted by:
Name: Eslam Reda Moubarak Saleh Registration Num.20122210
MBA (48-S)
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 Table of Contents

EXECUTIVE SUMMARY…………….…………………………………………………….…… 4
Company overview……………….…………………………………………………….……….4
1.0 Company Mission, Vision, and Values………………………………………………5
1.1 Propose Vision Statement………………………………………………………………. 5
1.2 Propose Mission statement……………………………………………………………... 5
1.3 Propose Values……………………………………………………………………………5
2.0 External Environmental scanning……………………………………………………5
2.1 PESTEL Analysis………………………………………………………………….……..6
2.2 Industry Analysis…………………………………………………………………..…….14
2.3 Porter’s five forces model………………………………………………………............16
2.4 Opportunities and Threats………………………………………………………………21
2.5 External Factors Analysis Summary “EFAS”…………………………………...........22
2.6 Competitive Profile Matrix (CPM)………………………………………………………24
3.0 Internal Analysis………………………………………………………………………..25
3.1 Resources and capabilities……………………………………………………………..26
3.2 VRIO Framework of analysis……………………………………………………………28
3.3 Value chain analysis……………………………………………………………………..30
3.4 SWOT Analyses (Micro Environnement)………………………………………………34
3.5 Financial Analysis………………………………………………………………………...35
3.6 Internal Factors Analysis Summary “IFAS”……………………………………..……..37
4.0 Quadratic Analysis…………………………………………………………….............38
4.1 Strategic Factors Analysis Summary “SFAS”………………………………….. ……..39
4.2 SWOT Analysis…………………………………………………………………………..41
4.3 TOWS Analysis…………………………………………………………………………..42
4.4 Strategic Position and Action Evaluation (SPACE Matrix)…………………………..48
4.5 Boston Consulting Group (BCG)……………………………………………………….50
5.0 objectives …………………………………………………………………………….52
6.0 Strategy Selection………………………………………………………………………53
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6.1 Corporate strategy …………………………………………………………………….….53
6.2 Directional Strategy……………………………………………………………………....55
6.3 Business strategy………………………………………………………………………...55
6.4 Functional strategy……………………………………………………………………….56
7.0 Strategy Formulation…………………………………………………………………..57
7.1 QSPM (Quantitative Strategic Planning Matrix)………………………………………58
8.0 Internal Policies…………………………………………………………………………59
9.0 Strategy Implementation………………………………………………………………60
9.1 McKinsey 7 S Model……………………………………………………………………..61
10.0 Control and Evolution………………………………………………………………….63
10.1 evaluation matrix ………………………………………………………………………..65
10.2 business plan ………………………………………………………………………….68
10.3 operational plan ………………………………………………………………………….70
11- Recommended Organizational Chart…………………………………………………..71
12- Marketing and sales Plan( strategy)………………………………………………..…..72
13- marketing strategy implementation …………………………………………………..73
14- products life cycle ………………………………………………………………………..74
15- marketing budget………………………………………………………………………….75
16- Financial projections……………………………………………………………………..76
17- conclusion…………………………………………………………………………………78
18- References………………………………………………………………………………..79

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 BRAUN Executive summary
Braun began in Frankfurt, Germany in 1921, when the mechanic and engineer Max Braun (1890–1951)
founded the company as a workshop for the construction of appliances. From the very beginning, the
company was characterized by its progressive ideas, innovative product solutions, and its use of the latest
technical developments, which Max Braun was able to transform into marketable products.
Max Braun quickly realized the potential of new market segments, entering the kitchen and household
appliances segment in 1950 with the Multimixer kitchen blender. At the same time, he began series
production of the S50, the first dry foil shaver. This laid the foundations for two product divisions that have
remained core segments for Braun to this day. Max Braun died in 1951 and his sons Artur (1925–2013)
and Erwin (1921–1992) took over the management of the company.
The Braun brothers soon set about reorganizing the company and expanding its product lines. For example,
the product range was extended to include additional kitchen appliances and electronic flashguns for
amateur photographers. In 1955, Dieter Rams arrived at Braun, quickly making a name for himself within
the company. The company won a rapid succession of national and international prizes and awards for its
products.
Braun became world-famous as a design brand, the first company to bring 'good design to the mass market.
In 1967, Braun moved its headquarters to Kronberg, Germany and the Boston-based Gillette Company
bought a majority stake in Braun. The Braun brothers left behind a healthy international company. In 2005,
the Braun brand joined the consumer goods company, Procter & Gamble, as part of their acquisition of
Gillette. The fusion united two companies whose "strengths, cultures and visions" complemented each
other, as Gillette boss James M. Kilts put it.1
BRAUN OVERVIEW
In BRAUN company we have a strong Financial Strength (FS) with a huge ROA in a short time and
middle-level Leveragees with a big amount of Liquidity and suitable amounts of Cash Flow allowing us to
implement our plans, and depending on the huge Egyptian market with high demand our Inventory
Turnover is very fast also we gain many Earnings per share in Egyptian stock market with a high Price-
earnings ratio relying on big Working capital.
Also, we have a Competitive Advantage (CA) in BRAUN company with a very strong Product Quality
making our company gain a huge Market Share with a very distinguished Brand & Image with a very long
Product Life Cycle making us win Customer Loyalty and maximize our Capacity Utilization besides
developing our innovative Technological Know-how products with limited control over suppliers and
distributors due to fluctuations Egyptian market.
Also, we have Industry Strengths (IS) with a very limited Barrier To Entry the into Egyptian market and we
expected to face a rapid Growth Potential after passing the Russian – Ukrainian war with a full Productivity capacity
in our retailers and also on our company to maximize our capacity utilization to make a huge profit potential from
our sales in this market after going back to Egyptian Financial stability with an Extent leveraged vision to exploit
our Resource utilization in the best way.
Also, we face some issues in the Egyptian Environmental Stability (ES) such as a very high Inflation rate similar to
all of the world and a middle level of Technological change with a very high Demand Elasticity and numerous levels
of Taxation depending on GDP in Egypt and we face a various Price Range Of Competing Products from a few
competitors and many of facked products with a limit Barriers To Entry Into the Egyptian Market because the
government offers a competitive Pressure to courage companies to enter the market and invest into it with a middle
level for Exit From Market.
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 business industry
Brown decided to manufacture small electric appliances, kitchen and household appliances, and electronic
flashguns for amateur photographers.
Market Value Added
All are Satisfied with (Good Quality, High-Level Technology) from Our Decent Treatment &
Experience.
Company Vision
To be one of the world’s leading manufacturers of small electric appliances.
Company Mission
BRAUN is a worldwide leading company that seeks, its main strategic goals for sublime meanings of
human service, and its development in the field of providing advanced, high-accuracy small electronic
devices specialized in maintaining human healthcare, customer service, and psychological comfort, our
customers are looking for technological comfort and smoothness products in dealing with small devices.
The volume of advanced technology that achieves the highest standards of sustainability and continuity is
dictated by our ethical philosophy, obligations towards our customers, society, and environmental
community obligations in which our leading brand is spreading with confidence and competence,
achieving the truth of our words in terms of sales and market acquisitions compared to our competitors in
this field and the number of complaints that we receive and the speed of our response to it, which you
will not see in others because of our product quality, and speed of technological development, its
advantages, performance efficiency and at a competitive price.
As an extension of the commitment of the parent company to provide its services to the customer in a
sustainable manner and to reach him with its services as close as possible to him to meet his needs and
provide our products in markets that witness increasing demand for our products, the company decided to
open 3 new branches in EGYPT and also what these outlets require of skilled employees that meet the
desires of the community by providing opportunities Youth work Our commitment to our moral and
societal faith.2.

ENVIRONMENTAL SCANNING
Environmental scanning is necessary to be done due to the rapid changes which are taking place in both the
external and internal environment, those changes have a great impact on developing our BRAUN
company, therefore the analysis of those outside/inside elements helps in maximizing the strength,
minimizing the weakness, grabbing the opportunities, and diffusing threats which help in developing and
modernizing our products innovation to keep it in the front positions in the global market.

Moreover; environmental scanning helps in the optimum use of resources by making optimum utilization of
human, natural, and capital resources, as well reduce wastage and making optimum use of available
resources. Therefore; it's important to make the environmental scanning that aids accordingly in the
decision-making process by selecting the best alternative strategy fromamong various available alternatives.
In the following part, we will start with making the external environment analysis at the first level,
followed by the internal environment analysis.

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PART 1:
External Environnement Analyses
Tools used for analyzing external analysis and understanding the market are PESTEL Analysis and
Porter’s 5 Forces analysis.

PESTEL Analyses (Macro Environement)

A PESTLE analysis studies the key external factors (Political, Economic, Sociological, Technological, Legal, and
Environmental) that influence our organization. It can be used in a range of different scenarios and can guide our
professionals and senior managers in strategic decision-making. It is a broad fact-finding activity around the
external factors that could affect our organization’s decisions, helping it to maximize opportunities and
minimize threats. It audits six external influences on our organization:

By auditing the external environment, a PESTLE analysis can detect and understand broad, long-term
trends. This can support a range of business planning situations, such as:

Factors may be altered by the government’s influence on a country’s infrastructure. This may
include tax policy, employment laws, environmental regulations, trade restrictions, tariffs,
Political
reform, and political stability. Charities may need to consider where a government does not
want services or goods to be provided.
Factors include economic growth, interest rates, exchange rates, inflation, wage rates, working
Economic hours, and cost of living. These factors may have major impacts on how charities operate and
make decisions.
Factors include cultural aspects, health and safety consciousness,population growth rate, and
Social various demographics.
Factors include ecological and environmental aspects and available products and services.
Technological Charities may need to innovate, having considered the compatibility with their technologies
and whether they are transferable internationally.
Factors include any law that may impact the charities’ operations, including NGO regulation
Legal and criminal and terrorist legislation that differ from country to country.
Factors include an awareness of climate change or seasonal or terrainvariations which may affect
Environmental charities’ service delivery methods.

Strategic business planning

A PESTLE analysis provides contextual information about our business direction, our brand positioning,
growth targets, and risks (such as another pandemic) to productivity. It can help to determine the validity of
existing products and services and define new product development.

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Workforce planning
PESTLE analysis can help us to identify disruptive changes to our business models that may profoundly
affect the future employment landscape. It can identify skills gaps, new job roles, job reductions, or
displacements.
Marketing planning
PESTLE analysis provides the ‘climate’ element in the situation analysis phase of the marketing planning
process. It can help us to prioritize business activities to accomplish specific marketing objectives within a
set timeframe.
Product development
By monitoring external activity, a PESTLE analysis can help us in informing whether to enter or leave a
route to market, determine if our product or service still fulfills a need in the marketplace, or when to
launch a new product.
Organizational change
A PESTLE analysis helps us to understand the context for change and it is most effective when used in
association with a SWOT analysis to understand opportunities and threats around labor changes, such as
skills shortages or current workforce capabilities.
People strategies, reports, and projects
PESTLE analysis can be used as a framework to look outside our organization and hypothesize what may
happen in the future and what should be further explored. we can ensure that some basic factors are not
overlooked or ignored when aligning people's strategies with the broader organizational strategy.
Political Factor

1. Political stability

The last years have seen forms of ups and downs in Egypt’s political situation, especially after facing two
consecutive revolutions in 2011 and 2013. This used to be looked upon as a threat to the political system
stability but the political situation nowadays is relatively better and we can see gradual improvement since
2015 as shown in Figure 1 and Figure 2 by representing the index of Political Stability and Absence of
Violence/Terrorism.

The average value for Egypt from 1996 to 2020 was -0.93 points with a minimum of -1.64 points in 2013
and a maximum of 0.05 points in 2000. The latest value from 2020 is -1.21 points. For comparison, the
world average in 2020 based on 194 countries is -0.07 points. 7

So, it is obvious there is a gradual improvement we can see. We can consider it a good opportunity for
investing in Egypt for the short term in the field of home appliances.

Source: The global economy Figure 1. Political Stability in Egypt

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 Source: The global economy Figure 2. Political Stability in Egypt since 2013

Source: The Worldwide Governance Indicators (WGI)8 Figure 3. Political Stability in Egypt (Percentile Rank)

(Rank of Egypt among all countries in the world)

1. Pressure groups

There are many syndicates in Egypt such as the commercial champer or the ministry of industry and trade
in Egypt, and others related to professionally investing and manufacturing in Egypt. These groups would
be supportive of expanding our market share by penetrating more markets and penetrating more
segmentation.

2. Relation with neighboring countries

Egypt has a good relationship with its neighbor and Arab countries and has played a leading role in
supporting them. All of these International agreements such as ( COMESA-AGADIR- EUROPIAN
COLLABORATION – G.S.P- G.S.T.P -ATA- Greater Arab Free Trade Area ) will be a good chance to
enhance our flow of material and products to be spread in these countries beginning from Egypt to increase
our sales in these markets.
Economic Factors

According to IMF's latest report; the World Economic Outlook update, A tentative recovery in 2021 has
been followed by increasingly gloomy developments in 2022 as risks began to materialize. Global output
contracted in the second quarter of this year, owing to downturns in China and Russia, while US consumer
spending undershot expectations. Several shocks have hit a world economy already weakened by the
pandemic: higher-than-expected inflation worldwide––especially in the United States and major European
economies––triggering tighter financial conditions; a worse-than-anticipated slowdown in China, reflecting
COVID- 19 outbreaks and lockdowns; and further negative spillovers from the war in Ukraine. 4

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 As for Egypt, It undertook exchange rate, monetary and fiscal measures in response to adverse global
developments (including soaring prices, tightening financial conditions, and fading demand), aggravated by
the war in Ukraine. 5

Yet, these policy actions also reflect underlying structural challenges. The surge in growth is expected to
slow down gradually through FY2022/23. Reforms to enhance private investment, exports and FDI remain
crucial for the economy’s resilience and competitiveness. 6

1. Exchange Rate

On 21 March 2022, the Central Bank of Egypt (CBE) allowed the exchange rate to depreciate overnight by
around 16% to stem the widening net exports deficit.

Source: Trading economics 13 Figure 4. Exchange Rate

2. GDP Annual Growth Rate

Before the external shocks that triggered these policy measures, Egyptian economic activities were
recovering strongly, although inflation was on the rise and pressures on external accounts were building. 9

As demonstrated in figure 5 the Egyptian economy expanded 5.4 % year-on-year in the first quarter of 2022
compared to a modest rate of 1.4% a year earlier. However, base effects and the demand review are
expected to start tapering off and economic activity will be adversely affected by the repercussions of the
war between Russia- Ukraine. Thus, growth is expected to slow down in FY2022/23.10

And all of these situations make us at BRAUN company make a cautious step forward to investing in all of
our markets.

Figure 5. Egypt GDP Annual Growth Rate 11

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 3. Inflation Rate
According to the Egyptian Central Bank's last data, Egypt's inflation in August 2022 was 14.56% with a
nearly 1 % increase compared to the previous month and an almost 9 % increase compared to the same
month last year.
It is the highest reading since November 2018, sending inflation above the upper limit of the central bank’s
5-9% target range for the sixth straight month amid soaring global commodity prices and devaluation of the
currency. The main upward pressure came from the recent hike in fuel costs contributed to overall inflation.
And all of these situations make us at BRAUN company make a cautious step forward to investing in all of
our markets and postpone our expansion for the short term in Egypt despite our strong investing plans and
market shares for the long term. Consumer prices rose 0.9% every month, easing from a 1.3% gain in
July. 12

Figure 6. Inflation Rate 12

Figure 7. Inflation Rate for previous 5 years 12

4. Unemployment Rate

The unemployment rate in Egypt remained unchanged at 7.20 % in the second quarter of 2022 from 7.20 %
in the first quarter of 2022. 14. And this means that we will remain our plans about recruiting for a short
time.

Figure 8. Unemployment Rate 14

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Social Factors

1. Population

Although Egypt's population growth (annual %) has declined gradually since 2013 from 2.3 % to 1.9 % as
shown in Figure 9. (According to World Bank), in international comparison this growth is considerably
above average. It still has one of the fastest-growing populations in the world. And this makes us in BRAUN
increase our production depending on high expected demand related to overpopulation and that will make us
gain more sales and more profits.

Source: World Bank Figure 9. Population Growth (annual %) 15

Egypt is one of the most populous countries in Africa and the Arab world. The current population of Egypt
(September 2022) is approximately 104 M (CAPMAS) which is expected to reach 190 million by 2050 in the
event of the current population growth. (State Information Service) and we can translate it into a huge
market that will demand a huge supply of our products to cover the gaps in this huge market within different
segmentation.

Source: World data Figure 10. Egypt's Population in millions of 16

Figure 11. Egypt's Population of millions

High population growth rates in addition to low economic growth rates will decrease spending per capita on
health, education, and other services while fostering unemployment and illiteracy rates.

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 2. Birth rate and life expectancy

High birth rates (Figure 12) and long life expectancy (Figure 13) are raising our expectations that our
customers will take care of their lifestyle and will seek rest and Beauty also will search for the most
innovative products to make their life’s easier and more convenient.

Figure 12. Egypt's Birth Rate

Source: World Bank Figure 13. Egypt's Life expectancy at birth, total (years)

3. Lifestyleyle

There is an obvious trend toward a healthy lifestyle as young adults are concerned about their shape, face
care, or making their life easier by using the smartest home appliance we can see in the Egyptian market
many different segmentation have various lifestyles and we should cover their needs.
Technological Factors
1. Digitalization:
Sound and reliable health information is the foundation of decision-making across all health system building
blocks. Egypt's national health information system is moving forward to perform huge steps in that field and
relies on the relatively strong implementation of (AI), IT, and communication networks to match and cope
with the international standards at all levels of the system of production or laws.

COVID-19 has further accelerated digitalization in the country with the increased use of remote
monitoring, and remote beauty centers and the implementation of Artificial Intelligence (AI) in our products
will enable our customers to use our apps and devices easily and remotely without engaging with other in
isolation era to make them safer. The Egyptian government is driving digitalization across all sectors and
especially has been pushing for cross-industry collaborations.
2. Research and development
Promoting R&D, innovation, and entrepreneurship in the field of ICT in all Egyptian sectors to drive sector
growth, support sustainable national industrial development, and put Egypt as a regional innovation hub.
And that courage our BRAUN company to continue improving our innovated products in home appliances
and also in the beauty care sector as well.

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 3. Internet Users
The number of internet users increases gradually over the years to reach 72 million in 2020 according to
World Bank

Source: Wall Bank Figure 17. Individuals using the Internet (% of the population) 17

Briefly; Egypt's shift towards digitalization helps attract a lot of investors as it qualifies Egypt to keep pace
with global technological development, which will have a great impact on saving a lot of time, effort, and
money compared to traditional methods. And to align with this direction we always improve our BRAUN
website to keep in touch with our customers and also to display our newest products, receive complaints
from our consumers and make an effective channel open. also, we involved this IT technology in some of
our home appliances devices to make life easier.
Environmental factors:
1. Green recycled Products

The Government has a direction toward achieving sustainability goals and implementing Egypt's 2030
vision. One of the plans is to upgrade our industry’s raw materials to convert them into recycled ones to
become Egypt the first country applied the green industries facility in Africa. This comes in line with
Egypt’s preparations to host the Conference on Changes Climate Change for the United Nations (COP27) in
Sharm El-Sheikh next November.
2. Pollution and availability of resources

The increase in technology use led to a rise in carbon emissions in addition to the waste of other natural
environmental resources such as water or deliberate damage to other resources such as polluted air from car
exhaust, factories, etc., which consequently affects the health of citizens and by the way, the plenty of
material and skilled human resources also the high smart technology for equipment make the sequences of
manufacturing smooth and convenient and also in BRAUN company we help in saving water and power
supply by making some of our products such as shaving machines work without water and use low wattage
electricity in a home appliance to save resources like electrical power.

3. Renewable energy resources

The usage of renewable energy resources is an important tool to help the improvement of our environment,
Egypt’s effort in this sector is considered modest, and new plans are set to increase the usage of renewable
resources to reach 20% of the total generation of electricity, especially in the green energy like the hydrogen
energy and also, we are in BRAUN company we exploit these opportunities to develop our products to cope
up with the new technology besides our responsibilities to our customer and our social accountabilities to
our society to offer the most applicable products to them which save power and expenses for the favor of our
customers like using solar power in some equipment.
4. Location :
Egypt has a very important position in the MENA to middle the way of distributing material and products to
enhance our opportunities to reach all countries and expand our BRAUN new markets easily also there is a

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huge revolution in developing the infrastructure such as roads to reach our end users depending on choosing
the best locations for our retailers and also warehouses.
5. Reversed products:
We always seek to offer good after-sale services even with damaged products to keep the environment clear
from harmful components like carbonic material and to reach a green environment and make it as can be
manufactured from recycled material.
Legal factors:
1. Constitution
During the last decade, the constitution has been reformed not once but twice, the change in the constitution
was made to take into consideration the changes needed by the people and for the people, stating new laws
is a power that was rarely used by the authorities, but now we see the agility of the system and the short
response and action shown by the authorities in this concern, which is considered a great opportunity that
needs to be benefited from.
2. The new consumer protection Laws;

Egypt has amended many laws in the field of industry, production, and human labor conditions to keep pace
with the requirements of the times, starting with the enactment of legislative laws for the conditions of the
work environment, the legal age for people to start working, the prevention of child labor, the exploitation of
minors and their deprivation of education, as well as the life insurance measures for workers to reach a
working environment Better and more generous living opportunities for workers.
The new Law covers all citizens, whether they are public or private employees, seasonal or permanent
workers, men or women, children or adults.

3. Competition Law
Egypt has also enacted many laws to combat monopoly and prevent and allow freedom of purchase and sale
following the policy of supply and demand. It has also enacted many laws encouraging investment and
attracting foreign capital to invest in Egypt. It has provided many incentive packages to investors, including,
for example, the allocation of many plots of land in new industrial zones. and facilitating all routine and
legal procedures to expedite the completion of the procedures for initiating the implementation of their
projects, including the localization of industry, international experience, and modern technology in Egypt,
with the participation of fair percentages of the local component during manufacturing processes, as well as
the percentages of trained Egyptian workers within the operating skills.
4. Importing and exporting laws:
Egypt has also enacted many laws binding on the quality of the product, whether it is imported from abroad
or manufactured inside the local area to reach the highest appropriate production rates for reputable products
that conform to international standards and specifications. As a global company, BRAUN has to abide by
these good laws that encourage honest competition and stimulate investment in the Egyptian market,
including To all Middle East markets.

Industry Analysis
Industry Size
The Egyptian economy is achieving the highest growth rate in 14 years despite the repercussions of the Russian-
Ukrainian crisis, as the economic growth rate exceeds the global growth rate expected to reach 3.2% in 2022, to
achieve 6.6% in 2021/22, compared to 2.9% in 2013/2014 This comes at a time when the GDP at current prices
increased more than 3 times, reaching 7.9 trillion pounds (initial statement) in 2021/2022, compared to 2.2 trillion
pounds in 2013/2014. With the continued achievement of low levels of the unemployment rate and reaching the
lowest rate in Over 30 years, it recorded 7.4% in 2021, compared to 13% in 2014, while the unemployment rate
recorded 7.2% in the second quarter of 2022.

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The containment of the inflation rate within the targets of the Central Bank of Egypt is 7% (±2%) for the end of 2022,
as it recorded 8.5% in 2021/2022, compared to 10.1% in 2013/2014, while the interest rates on overnight deposits
witnessed an increase to contain Inflation rate after the Russian-Ukrainian crisis, to record 11.25% on 08/18/2022,
compared to 9.25% on 7/17/2014. And that maximizing revenues and controlling expenditures contributed to reducing
the levels of the total deficit and government debt, about public expenditures as a percentage of GDP. The total
amounted to 22.8% in 2021/22, compared to 32.9% in 2013/2014. The rationalization of expenditures has contributed
to achieving a primary surplus in the general budget.

As for revenues, they increased by about three times in 2021/2022, compared to 2013/2014, but they decreased as a
percentage of GDP growth by a large percentage, reaching 16.7% in 2021/22, compared to 21.4% in 2013/2014. The
primary balance as a percentage Of the GDP, a primary surplus was achieved despite the advanced economies
achieving a primary deficit of 3.4% of GDP in 2022, recording 1.3% in 2021/2022, compared to a deficit of 3.9% in
2013/2014. Egypt’s GDP is less than the total deficit in emerging economies (not including the oil-rich countries of
the Middle East) of 6.6% of GDP in 2022, as it recorded 6.1% in 2021/22, compared to 12% in 2013/2014.

In addition to the above, it was found that Egypt’s debt rates are lower than global rates, as government debt as a
percentage of GDP was recorded at 87.2% in 2021/2022, compared to 89.3% in 2013/2014, pointing out that the
global government debt ratio of GDP The total in 2022 is expected to reach 94.4%, and the government debt ratio for
advanced economies is expected to reach 115.5% of GDP in 2022. 18.

Market Characteristics

The Egyptian market enjoys being a promising and attractive market for industrial and commercial investment, and
the Egyptian consumer is keen to own the latest technological tools that facilitate his personal and household living
matters, including small technical devices and equipment that meet the required purpose quickly and efficiently, and
there are many competing companies such as Philip’s or Kenwood in the Egyptian market in the same field and with
wide opportunities Investment and market acquisition plans on new markets and in light of the end of the world from
the Corona pandemic, every company seeks to reach the highest rates of market acquisition in the field of small
household appliances and personal care, as the Egyptian market is an attractive market and one of the most promising
markets in the Middle East.

Industry Trends
The prevailing trends today for the Egyptian state is the technological and digital transformation in all fields, services,
and products provided by the state, government, or private sector to citizens to facilitate matters and save time and
effort, as is evident in all industrial services to transform into an advanced technological product, which is what we
distinguish in our BRAUN company from home appliances products And a sophisticated, small-sized personality that
suits all tastes, aspiration,s and prices for all customers, and we work on the continuation of development and
creativity in our products to suit environmental, price and technological requirements, energy saving and can be
recycled and reduce carbon emissions following the United Nations orientation of the 16 sustainable development
goals ( SDGs)
A major driver of change
The main factor and driver of change is the international trend of transformation into the technological and digital era
as a fourth global revolution and with the increase of pressures and the accelerating demands of life forcing the world
to keep pace with these radical changes, as well as all international companies and brands like ours, and our priorities
were to respond to the desires and aspirations of customers from modern technology to save time and effort and
facilitate The tasks were performed on them more easily, and the application and incorporation of the technology
element in all our products started from accuracy, speed, quality, energy, materials, the total cost of the products ...
etc.

Major industry trends

The global industrial motive affecting all industries and its tendency to develop its products was the rise in global
energy prices and their arrival at world record rates with the global tendency to reduce carbon emissions and the
resulting climate changes that led to global warming, and the main factor for it was the use of fossil fuels. It is
incumbent upon us, especially and for the whole world, to start implementing global ambitious plans to reduce the use
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of fossil fuels, including using biofuels, green hydrogen, or clean renewable energy such as solar energy, and
modifying battery technology to be more sustainable, smaller, longer lasting and more efficient, including lithium and
magnesium batteries and other IoT innovations. With the acceleration of all engines, machines, and generators that
work on generating energy to become less consuming in energy rates, electric amperes and voltage and more powerful
and efficient in energy production, which is what our BRAUN company started as a global leader in this field

Competition Landscape
As it is clear that competition is evident in the global market for home appliances products, skin care products, and
personal care, as well as the Egyptian market is also more competitive and there are many products such as those
that have many market shares, but they are not the size of our giant market shares that we acquire locally and
internationally and we always strive to develop our products to keep up with the customer's aspirations and loyalty,
which in turn will bring us profits, expand our market acquisition and continue to be at the fore.

Secondly Porter’s 5 Forces Model:

While the PESTEL framework is intended to help understand the broad macro-environment that a company
is operating in, Porter’s Five Forces is a framework to understand the five industries that a firm operates in.
to determine the conclusions of the reasons for differing levels of intensity of competition in differing
industries and its profitability level. It helps highlight how the relative powers of buyers and suppliers, as
well as competition from new entrants, substitute products, and rivalry between competitors, influences the
extent to which the industry can capture the value that is created.
They are empirically derived, i.e. by observation of real companies in real markets, rather than the result of
economic analysis.
As per Professor Michael Porter’s model, the healthcare industry like any other industry is also susceptible
to the five competitive forces as follows:
When talking about the desire to achieve digital transformation within Egyptian healthcare, in the public
sector. It is also important to use this tool for analyzing the external environment to be aware of the
competition or challenges in facing this transformation towards using digital transformation; as follows:

1- The threat of New Entrants:

This force determines how easy (or not) it is to enter a particular industry. If an industry is profitable
and there are few barriers to entering, rivalry soon intensifies. When more organizations compete for
the same market share, profits start to fall. Existing organizations need to create high barriers to entry
to deter new entrants.
The threat of new entrants is high when:
- Low amount of capital is required to enter a market.
- Existing companies can do little to retaliate.
- Existing firms do not possess patents, or trademarks or do not have established brand reputations.
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 - There is no government regulation.
- There is low customer loyalty.
- Products are nearly identical.
- Economies of scale can be easily achieved.

The threat of new entrants (Medium) low middle high Comments

Enter Barriers *

Need for Economies of scale * yes

Customer loyalty to existing brand * If the customer has good offers
with benefits can change
Capital requirements * Yes, needed
Cumulative experience * Yes needed

Government policies * Can be managed but not easy

Access to distribution channels * Not very easy.

The industrial sector depends on several basic factors, the first of which is the quality of the product,
secondly, the price of the product and its availability, and thirdly, the level and quantities of demand
according to the customer’s desires, with which production rates and then sales must be commensurate
with it, which is the size of competitors before entering this market to measure the extent of my endurance
to provide various new services at a competitive price, including Our company is a leading company in
this field and has the financial capacity and liquidity that enables it to penetrate new markets and has
sufficient experience to produce and develop new products and all its competitors in the Egyptian market
in this field are less powerful and able to reach the amount of our sales or market acquisition, the entry
and expansion in the markets It does not represent a direct threat to us, especially in markets in the
developing countries or the Middle East ,And the African countries in which we already have a good
reputation.
In general, The threat of new entrants represents a major challenge in our sector, as will be explained
below:
✓ Barriers to Enter ( low) :
We can be certain that at the time of the pandemic, there were strong restrictions on our expansion
plans, market acquisition, or entry into any new market, especially markets that do not have an
effective health system to combat this pandemic. Complete paralysis, but after the end of most of the
effects of the pandemic, the World Health Organization considered the pandemic as seasonal flu
symptoms, and the emergence of many vaccines contributed to curbing the pandemic.
And factories resumed production and supply chains, shipping, export, import, and the return of
employment, but what we consider from the lessons learned after the passing of this pandemic is that
companies have to intervene Internet of things in their products and the willingness to work remotely
and expand the use of Technology in all areas of industry and production.

✓ Higher Economies of scale (High):

Because of the experience possessed by our manufacturing sector, which the epidemic crisis clearly
showed, as they had the lead in using modern technology indealing with many facilities remotely, and
therefore this point must be taken as an advantage point when expanding in developing the digital
transformation plan or IOT in our products, and this will gain more money and revenues to us after
increasing sales because we targeted our customer satisfaction and their goals from digitilized
products.
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✓ Brand loyalty(High):
Many Egyptians prefer the idea of dealing with technological products, and because we are dealing
with daily-uses equipment so it is very important to our families. once our consumer trust a product
this product provides in him a convenient way and smooth style it will raise a loyal relationship
between them and our products and they will be very satisfied with the performance of the products
when we reach that level it became a very sensitive matter to our revenues because all of our sales and
revenues will rely on its reputation which customer loyalty represents into it.

Large capital requirements( High):

The critical necessity for huge investments in the IoT products or high technological home appliances
sector to ensureits complete transformation towards industrial digitization within the specified
timeline, in addition to the need to spend on small home appliances research and development skincare
and body care, forecasting the future innovation matching with the future demand, future customer
requirement, and spending on developing this sector fastly.

✓ Government policies:
Egyptian law guarantees the right to provide good products and materials to all Egyptian or non-
Egyptian citizens residing on Egyptian territory, in addition, the new customer protection law that will
be applied in all governorates of Egypt during the 15-year period that began in 2018 guarantees the
right to customers and deal with those who are unable to provide good material or products and for all
workers The state in all its sectors.
2- Bargaining Power of Buyers:
Customers have the power to demand lower prices or higher product quality from industry producers
when their bargaining power is strong. Lower price means lower revenues for the producer, while higher
quality products usually raise production costs. Both scenarios result in lower profits for producers.
Customers exert strong bargaining power when:
- Buying in large quantities or controlling many access points to the final customer
- Only a few customers exist
- Switching costs to other suppliers are low
- They threaten to backward integrate
- Many substitutes are
- Customers are price sensitive.

Bargaining powerof
low middle high Comments
buyers: High (T)
Number of Buyers * Many buyers in the market provide similar
products.
Number-of The number of competitors is high. Which
alternatives * increases the power of the buyer
Switching costs from one Switching only on new purchasing will be
company to another medium. For IT and IoT technologies, most of
the server material supplies can switch easily
from one vendor to another in new projects. But
* prefer to stay with an existing supplier and get
better offers and services. Also, the time
consumed for team training on the new products.

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 Purchased amounts in public The new central purchasing unit collects all
company orders and makes one big order.
*
Which made the buyer power higher
Access to competition product and In our market, the competitor act individually.
services prices Which deadrises the power of the buyer. but they
can easily find the competition online and get offers
* then compare the price and technical. Which
increases the buyer power.
Product differentiation Not much differentiation. Which made the buyer
* power high
The desires of the "Egyptian citizen" as buyers in this step are to obtain home appliances and products
body care at aminimum cost side by side to the high possible quality, knowing that the low cost of facked
products or not genuine is much shipper than in the original products thus, can be shapedaccording to:
✓ The number of customers and size of the order for each of them:
Customers usually have a lot of power when there aren’t many of them or when the customers have
many alternatives to deal with, when applying that to the home appliances or small beauty care
devices sector and according to this analysis we can say that it depends on the quality of services,
there will be many of alternatives to compare between, especially with affordable prices, therefore
some products can gain high profits depending on the value base which should consider as an
ultimate goal of the beauty care sector or home appliances in Egypt by creating value and building
affordable prices.

✓ Differences between competitors & switching costs ( High):

Another way to control the costs of services is determined by the industrial home appliances providers
in the Egyptian market by providing insurance through their companies; thus giving consumers the
upper hand and the power to choose and determined which terms or companies can fit with their
standard of living, which leads to having more competitions between those companies resulting
lowering in prices.
3- The threat of Substitute Products (Services):
This force is especially threatening when buyers can easily find substitute products with attractive
prices or better quality or after-sale service and when buyers can switch from one product or service to
another with little cost. For example, switching from a BRAUN IPL device to Philips IPL doesn’t cost
anything, unlike switching from a car to a bicycle.
• Determining Factor:-
• if the consumer’s switching costs are low
• if the substitute product is cheaper than our firm industry’s product
• if the substitute product is of equal or superior quality compared to our firm industry’s product, the
threat of substitutes is high
• if the functions, attributes, or performance of the substitute product are equal or superior to our firm's
industry’s product.
The threat of substitution: Moderate low middle high Comments

Number of substitutes * Substitutes are very limited

Buyers’ willingness to substitute workflow
*

Price performance trade-off The customer has a good money value also
*
all companygive good services prices.

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The threat in the Egyptian home appliances and beauty care devices sector is the availability of many
alternatives for the same type of products offered by industry providers either in the same sector or in the
private sector with slight differences in prices from one provider to another, which allows Egyptian
customers to make comparison and selection on the basis on price and quality.

This can be managed through the Ministry of trade and industry or customers protection by monitoring services prices
that got presented for the same type the same service by providing a unified pricelist for all typesof services that can be
applied either to similar products from another firm in the same field and to be renewed on annual basis.

4- Bargaining Power of Suppliers:

Strong bargaining power allows suppliers to sell higher-priced or low-quality raw materials to their
buyers. This directly affects the buying firms’ profits because it has to pay more for materials.
Suppliers have strong bargaining power when:
- There are few suppliers but many buyers.
- Suppliers are large and threaten to forward integrate.
- Few substitute raw materials exist
- Suppliers hold scarce resources.
- The cost of switching raw materials is especially high.

Bargaining power of suppliers: low middle high Comments

(Moderate)
Number of suppliers * Good number
Switching cost * Not very easy but can be done
Available substitutes They are substitutes but will
* need time and training
The uniqueness of the supplier’s Not much differentiation
product *
The availability of suppliers and their diversity in the home appliances and beauty care devices market is
an important factor that can support the provision of appropriate services at reasonable prices to a large
segment of customers, but also these suppliers can control the prices of the device’s components
provided, which lead to an increase in the prices of the services provided especially when they are limited
or there is no available substitution to any of them.
Therefore, it is incumbent upon the Ministry of industry and trade, supported by the government, to
develop appropriate plans to control the prices of necessary materials that are included inmany parts of
the home appliances sector which can affect the provided services without hurting the citizen's health
by the end.
5- Rivalry Among Existing Competitors:
This force is the major determinant of how competitive and profitable an industry is. In a competitive
industry, firms have to compete aggressively for market share, which results in low profits.
Rivalry among competitors is intense when:
- There are many competitors.
- Exit barriers are high.
- Industry growth is slow or negative.
- Products are not differentiated and can be easily substituted.
- Competitors are of equal size.
- Low customer loyalty.

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 Rivalry among existing competitors:
(medium) (T) low middle high Comments

Number of competitors * Many competitors

Size of competitors * Same or larger

Product differentiation * Not much differentiation

Exit barriers * Hight exit barriers
The BRAUN company naturally seeks to acquire the largest part of the Egyptian market share due to having
many advantages such as qualified sales persons, and training programs that qualify its employees to provide
a distinguished service. This was evident during this period, as the Covid-19 pandemic forced many sectors,
including the home appliances sector, to change their methods of dealing, especially the direct interaction
with all customers, and to rely on more remote communication through using modern technological methods,
which enhances the capacity of our company and its superiority in this point.

Therefore, the home appliances sector should focus not only on price but also on providing unique maintenance
services with a high standard of quality As well as digital transformationto satisfy their customer.

1. Power of other governmental stockholders: (Medium)

Power of other
stockholders: (Medium) low middle high Comments

Investment authority * Middle effects.

Trade champer * Middle effects.
Ministry of trade and industry * Have a big role to put pressure on the companies

Opportunities and Threats:

Based on the previous analysis of the external environment, we can put the following list of opportunities and
threats that face the Ministry of Health and population.
BRAUN Opportunities:

1- Few competitors in the market

2- Market demand for high-quality personal care products
3- Egypt MENA location.
4- Transportation low price.
5- Trends toward establishing green power devices, and reducing carbonic emissions.

6- Governmental Investment support such as Five years TAX Waiver for newly launched businesses in new
cities.
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7- The country's new high ways infrastructure will increase the city's reach. (Connecting cities)
BRAUN Threatens:

1- Market saturation and petroleum fluctuation prices.

2- Emerging technologies.
3- Copying business model by competitors.
4- shortage of raw materials from suppliers in the corona era.
5- New entrants from other strong Competitions.
6- Government regulation restrictions.
7- Competition with far eastern companies (Japanese and Chinese) far eastern is so famous with high
features and reasonable prices.

Opportunities Threats
O1 Few competitors in the market T1 Emerging technologies.
Market demand for high-quality personal Market saturation and petroleum fluctuation
O2 T2
care products prices.
O3 Egypt MENA location. T3 Copying business model by competitors.
trends toward establishing green power shortage of raw materials from suppliers in the
O4 T4
devices, and reducing carbonic emissions corona era.
Governmental Investment support, such as New entrants from other strong Competitions.
O5 Five years TAX Waiver for newly T5
launched businesses in new cities.
The country's new high ways Government regulation restrictions.
O6 infrastructure will increase the city's T6
reach. (Connecting cities)
Competition with far eastern companies
O7 Transportation low price T7 (Japanese and Chinese) far eastern is so famous
with high features and reasonable prices.

External Factors Analysis Summary (EFAS)

After analyzing the external environment with PESTLE analysis and Porter’s Five Forces, the key external
factors can be identified and the external Factors Analysis Summary (EFAS) is used. It indicates whether the
firm can effectively take advantage of existing opportunities along with minimizing external threats. Similarly,
it will help the strategists to formulate new strategies and policies based on the existing position of the
company.

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 Weighted
score
Factors Weight Rating Comments

Opportunities
O1 Few competitors in the market 0.13 5 0.65
O2 Market demand for high-quality personal care products 0.1 5 0.5
O3 Trends toward establishing green power devices, and
0.09 3 0.27
reducing carbonic emissions

O4 Governmental Investment support, such as Five years

0.08 4 0.32
TAX Waiver for newly launched businesses in new cities.

O5 The country's location and it’s new high ways

infrastructure will increase the city's reach. (Connecting 0.08 3 0.24
cities)

Threats
T1 Market saturation and petroleum fluctuation prices. 0.14 5 0.7
T2 Copying business model by competitors. 0.1 4 0.4
T3 shortage of raw material from suppliers in the corona era. 0.09 4 0.36
T4 Government regulation restrictions. 0.1 3 0.3
T5 Competition with far eastern companies (Japanese and
Chinese) far eastern is so famous for its high features and 0.09 2 0.18
reasonable prices.

TOTAL SCORE 1 3.92

Clarification :
The EFAS score means that the trend of going forward innovated devices with high technology to serve
customers as a home appliance and beauty care is in the upper position, and From what was mentioned above,
it can be said that based on the result of analyzing the external environment, which was equal to 3.92 the
BRAUN company has the strong ability to exploit the available opportunities towards the digitalization it’s
products and to overcome the threats it faces depending on the opportunities available to it in an outstanding
way,represented which we can see in the strong trend supported by the government's commitmentto applying the
digitization method in all platforms sectors, in line with Egypt's 2030 goals, to transform for Digital home
appliance in Egypt and in line with the sustainable development goals, especially the third goal related to
having good health and well-being through the optimal use of all resources, especially aid and programs
funded by the United Nations.
by collaborating with investors to develop this sector of industry and save more energy and reduce emissions with
innovative products involved with IoT, along with other related sectors listed, as well as benefit from the huge
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 experience that belongs to our company manpower and also, in the application of digitization and implement
the digital applications in communication with customers plus to training the employees in the company which
will cover the expenses of using foreign experts for the same purpose. This can support us in facing the threats of
inflations to finally reach to develop this industry and gain more market share by utilizing the usage of our
expertise at this point along with optimal use of aid and funded programs and that will have a great impact on
the extermination of the resistance of the sample users to the idea of transforming into small compact digital
devices.
Competitive Profile Matrix (CPM):
The Competitive Profile Matrix (CPM) is an essential strategic management tool that compares the BRAUN Company
and its rivals and reveals their relative strengths and weaknesses, To compare the firm with the major players in the
industry to reach a better understanding of the external environment and the competition in a particular industry, to
illustrate the clear company picture about their strong points and weak points relative to their competitors. The matrix
identifies a firm’s key competitors and compares them using the industry’s critical success factors. The analysis also
reveals to allows business owners, stockholders, and other interested parties the BRAUN's relative strengths and
weaknesses against its competitors, so that our company would know, which areas it should improve and, which areas to
protect. This helps visualize and communicate the competitive landscape. As a result, our home appliances and beauty
care devices sector can be easily identified the areas it should improve and the areas it should protect.

Critical Success Factors

Critical success factors (CSF) are the key areas that determine a sector’s success in the industry. To succeed in its
industry, a company must perform at the highest possible level of excellence. These factors vary among industries or even
strategic groups. CSF should include both internal and external factors for analysis. Therefore, if you want a more robust
and accurate analysis, include more, relevant factors.

Weight

Assign a weight ranging from 0.0 (low importance) to 1.0 (high importance) to each critical success factor. The weight
indicates the importance of that factor in the company’s success. If you don’t assign weights, then all factors would be
equally important. This is an impossible scenario in the real world. The sum of all the weights must equal 1.0. we should
not emphasize separate factors too much by assigning a weight of 0.3 or more. This is because a sector's success is rarely
determined by just one or a few factors.

Rating

The ratings in CPM refer to how well sectors are doing in each area. They range from 4 to 1:

4 - means a major strength /3 – a minor strength /2 – a minor weakness /1 – a major weakness.

Subjectively assign the ratings and weights to each sector. However, this process can be done easier through
benchmarking. Benchmarking reveals how well sectors are doing compared to each other or the industry’s average. Note
that firms can have equal ratings for the same factor.
Score

The score is the result of weight multiplied by the rating. Each sector receives a score on each factor. The total score is
simply the sum of all individual scores for the sector. The firm that receives the highest total score is relatively stronger
than its competitors.

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 Kenwood
BRAUN Company Phillips Company
Company

Critical Success factor Weight Rating score Rating Score Rating Score

Market Share 0.09 2 0.18 4 0.36 3 0.27

Range of Services 0.1 3 0.3 5 0.5 4 0.4

Price Competitiveness 0.15 1 0.15 5 0.75 4 0.6

Reputation 0.1 2 0.2 5 0.5 4 0.4

Quality Management System 0.12 2 0.24 4 0.48 3 0.36

Technological Competencies 0.14 3 0.42 5 0.7 3 0.42

Innovation 0.12 2 0.24 3 0.36 3 0.36

Financial Position 0.09 2 0.18 5 0.45 4 0.36

Accessibility 0.09 1 0.09 4 0.36 3 0.27

Total 1 2.00 4.46 3.44

CLARIFICATIONS:
The CPM MATRIX score for BRAUN is 4.46 which means that the trend of going forward innovated devices with high
technology to serve customers as home appliances and beauty care is in the upper position, relying on the huge market
share in face of other competitors in the market. so we need to select an appropriate strategy to focus more on how to take
the advantage of the opportunities.

PART 2: (Matching stages )

Internal Environment Analyses

BRAUN Resources and Capabilities

The resource-based perspective has proven useful in understanding how a firm's resourcesand capabilities act as
sources of long-term competitive advantage. The resource-based view (RBV) is a firm-specific approach that
emphasizes the relevance of a firm's distinctive tangible and intangible resources as a source of sustainable
competitive advantage.

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 BRAUN Resources and Capabilities

Human Physical Financial Technological

resources resources resources resources

Employees Patents Cash flow Research and

Development
(R&D)
Retailer Distribution
s Reputation
network

Partners Natural
resources Balance sheet

Suppliers

Human Resources
I. Employees
BRAUN’s mission is to make a difference in the lives of its customers. As it is old in the market,
these advances are possibly made by the collaboration of our group of talented experts. BRAUN employees'
engagement, dedication, and performance are closely linked to its continued success. BRAUN is not only
trying to attract and keep the greatest varied personnel, but also to ensure that they are engaged in assisting
them in growing, succeeding, and directly contributing to BRAUN’s mission. It strives to create a
comprehensive and empowering work environment also, competitive rewards and benefits are adopted to
simplify the process, eliminate unnecessary complexity, reward both performance and leadership, and
promote a healthy work-life balance to make all colleagues feel trained, equipped, and energized to create
innovative breakthroughs that improve the patient's life.
BRAUN strongly believes in workplace diversity, it is a very important asset as a diverse
workplace is one that gives equal rights and opportunities to all employees, regardless of age, gender,
physical ability, or other factors.

ii. Retailers
BRAUN’s goal of cover as many as possible to ensure retailers’ safety. It employs tens of thousands
of experts. These experts collaborate to get the best workplaces and pharmacies. Regulatory agencies (such as
the FDA), pharmaceutical firms, healthcare suppliers, and retailers collaborate to better understand.
Thousands of BRAUN professionals work throughout the world to assess and convey the risks and benefits of
our collaborations before and after they are authorized for use. retailers can also play a significant role in
reporting any negative effects they may face.

iii. Partners
BRAUN is proud of its successful collaborations with P&G Company which shares its mission of
developing life-changing products that benefit patients. BRAUN partnerships with innovators regularly to
advance science and to actively seek out new partners working on large scientific concepts, skills, and
technologies that might lead to breakthroughs to make our customers’ lives easier through innovative
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 technological home appliances and beauty care devices. BRAUN has several key areas of interest in which it
would want to engage with others. BRAUN is investing in areas where it sees the most potential and where it
believes it can provide the most value to strengthen its scientific foundation. BRAUN forms form unique
collaborations that enable us to obtain access to cutting-edge research.

iv. Suppliers
While it's simple to see how doing business with a multinational home appliances and beauty care
company, BRAUN helps suppliers and their communities economically and socially, the advantages are
considerably more reciprocal than they appear. BRAUN is better equipped to improve customer care through
these linkages to a more inclusive collection of communities, therefore enhancing service for all, by using
innovative perspectives learned from working with suppliers who contribute to diversity. The Supplier
Diversity Program is one method BRAUN has sought to advance company-wide and global equity.

Physical resources:

I. Patents
Patents for particular items are granted for various periods, based on the date of publishing and the
duration of the patent in different countries where patent protection is secured. Also, the breadth of patent
protection varies per nation, based on the nature of the invention, its claims, and the applicable legal remedies.

ii. Natural resources

Going green and being a cruelty-free company is a priority to BRAUN, it supports and participates in
environmental programs that restore land, and power saving, reduce emissions, recycled material, and assist
maintain natural resources at many of its facilities and in the communities where we work. These initiatives are
sometimes the outcome of prior actions related to previously-owned lands. BRAUN aims to:
• Reduce the amount of waste we generate as a whole.
• Prevent pollution of the soil and groundwater.
• Put in place strict waste management procedures.
• Saving power by inventing products consuming less power and electricity.
• Reducing carbonic emissions by producing products manufactured from recycled materials.
iii. Distribution networks
BRAUN has a large and wide distribution channel to reach numerous numbers of customers leading
to an increase in sales. BRAUN not only cares about several distribution channels but also about how reliable
and practical it is.

Financial Resources:

The huge financial resources help BRAUN to invest in the correct locations, or take advantage of
opportunities and defend against threats. Financial resources include the following:
i. Cash flow
Cash flow refers to the company’s liquidity which is very important data for investors. BRAUN cash
flow as a part from P&G shows that the annual cash flow for 2022 obviously is not posted yet but the
quarterly reports are so, at the first quarter it has a net income of millions, the second quarter has $ million
net income while the third quarter had million.
ii. Balance sheet
BRAUN’s sheet shows what it owns and owes, as well as how much moneyshareholders have invested
so, it is very important for the firm and investors. According to the COVID-19 pandemic, the total assets of
BRAUN will be increased. And in the second quarter of 2022, the total assets become millions so, so it’s clear
BRAUN’s total assets slightly increasing in 2023.
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 iii. Reputation
BRAUN was honored for its business policies, charity activities, and supplier diversity programs. It
always has great word of mouth as it always tries to satisfy its customers. BRAUN is promising a 97%
effectiveness rate. A good reputation attracts customers and suppliers which is good for BRAUN.

Technological Resources:

I. Research and development (R&D)

R&D is the process through which working with home appliances and beauty care devices
professionals is critical for understanding how the best in the market, Once the companies are selected,
R&D work isn't done. our experts continue to do critical continuing research into their safety and efficacy.
We also have independent researchers and developers internally besides collaborating with the same
number externally to investigate new applications and platforms for current products and services,
telemedicine platform is BRAUN'stop priority to start work on.

Analysis of BRAUN Resources and Capabilities Using the VRIO Approach

BRAUN VRIO analysis examines each of its internal resources individually and assesses whether they offer a
sustainable competitive advantage or not. In addition, BRAUN VRIO states foreach dimension whether these
resources can be developed to gain sustained competitive advantageor will remain the same. Finally, the
analyzed resources identify the type of competitive advantage that the resource provides. Capabilities provide
BRAUN with a chance to gain a sustainable competitive advantage over competitors. This long-term
competitive advantage may enable BRAUN to achieve above-average revenues while avoiding competition
challenges. So, one of BRAUN's resources should be valuable, rare, inimitable, and organized to have a sustained
competitiveadvantage.

VRIO Key Issues

Value(V) Does the resource allow the company to explore an environmental

opportunity and/or neutralize a threat?
Rarity (R) Is this resource currently controlled by a small number of competitors?
Do companies without the resource face a cost disadvantage to get or return it?
Imitability(I)
Are other policies and procedures of the company organized to support the
Organization(o)
exploitation of its resources that are valuable, scarce, and costly to imitate?

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 R I O
Resource or Capability V RARIT INIMI
VALUE
Y TABLE ORGANIZED
Purchasing power with Yes NO Yes YES Competitive
financial resources advantage
Wide range of geographic Yes NO YES YES Competitive Parity
locations
Yes Yes Yes YES Temporary
Enriching the lives of our
Competitive
employees
Advantage
Yes Yes YES YES Unused
Customer Success Competitive
Advantage
Yes yes NO YES Sustainable
Technology Competitive
Advantage
Well-known name with a YES YES No Yes Competitive
good reputation advantage
Yes NO NO Yes Sustainable
Innovation Competitive
Advantage
Figure (3): VRIO Analysis

Value

Value simply is that the resource allows the

company to take advantage of the opportunity
and defendagainst the threat or not.
BRAUN partnerships are a valuable resource
as it helps to develop new inventions. And The good reputation of BRAUN of course is a valuable resource
as it has an impact on customers’attitudes. So that BRAUN excessively consumes a lot of money on R&D to
generate ideas for the competitiveadvantage

• Distribution networks of BRAUN count as a valuable resource because many distribution networks
increase retailers’ reach to many customers.
• BRAUN employees and managers are a valuable resource for sure as they are well-trained,loyal, and
productive BRAUN financial resources are extremely valuable as it enables the firm to engage in external
markets and also, help BRAUN to fight against external threats.
Rarity
Rarity means is it difficult or challenging for your competitors to acquire or it is easy to apply.
• All the resources mentioned above are not rare but not easy to master them all with high quality and
accuracy because it not easily available or possessed by competitors except for partnerships is can easily
be done by competitors.
Inimitability
Inimitability means that the resource is difficult or expensive for competitors to imitate or it isacommon
recourse.
• All resources mentioned above are costly to imitate except human and financial resources as competitors
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 also can train their employees well and provide them benefits and a friendly work environment, satisfy
customers and make good relationships with suppliers. Regarding financial resources, it is not difficult for
other home appliances companies and beauty care device manufacturers to manage them well that’s why
it is not imitable.
Organizational support
This means whether the company exploits the resources or not.
• The distribution networks of BRAUN are well-organized and it provides BRAUN with a sustained
competitive advantage as BRAUN uses these networks to be in connection with its consumers by ensuring
that products are available across different locations.
• BRAUN's natural resources are well-organized providing BRAUN with a sustained competitive advantage.

BRAUN VRIO analysis revealed that two resources provide a sustainable competitive advantage, natural
resources, and distribution networks. Well-managed financial resources and skilled human resources have
helped the distribution networks and natural resources to provide a sustainable competitive advantage, so that,
we can consider it to provide BRAUN a permanent competitive advantage. Last but not least, there is an
existence of a competitive party for partneringand finally, R&D is defiantly a competitive disadvantage.
Value Chain Analysis
Ricciotti (2020) stated that Michael Porter created the Value Chain idea during his researchon competitive
advantage. This is a model for thinking strategically about business operations (value activities) in terms of
costs and benefits; it is also valuable for figuring out how companiesmay produce, sustain, and optimize value
for their customers. Each business contains physical andprocess components, which are grouped into two
categories of Value Chain activities:

Five primary activities / Four support activities.

Figure (4): Value chain analysis

A. (Support activities)
These activities play a very important role to help primary activities to run more smoothly and facilitating
them.
Firm Infrastructure (Strong)
The firm's infrastructure plays an important role in the business BRAUN quality management systems and processes
facilitate quality-oriented behavior andensure decision-making based on patient and consumer safety, product quality, the
reputation of BRAUN, and what best suits the business. It could maximize and support the entire value of its whole value
chain not only individual activities with an effective business infrastructure such as quality management, strategic
management, and planning. This can be a powerful source of competition. Activity includes the following:

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 a. General management
b. Planning: There is a strong planning department which is very clear from the case as the opinion
comes from the shareholders or the government or the market to go forward involving technology
inside the home appliance to be smart.
c. Finance: There is a huge finance department and a big budget to invest in this sector to develop our
products to match the customer needs.
d. Accounting: It’s a very basic need for the company and it is responsible for determining the amount
of money needed and calculating the percentage of profits and ROI and total expenses.
e. Legal: Must have essential for the establishment
f. Quality Management: very clear and one of our competitive advantages.
g. Governmental affairs: very clear but, for new companies maybe they do not know yet the importance
of governmental affairs.

Human Resource Management HRM (very clear)

HRM is the 2nd type of supporting activity. BRAUN can assess several elements of HR that plays important role
in performance management, such as reinforcing the company's competitive advantage including,recruiting the
right people is fundamental to success, training, and other people management operations. Well-trained HR
management motivates the employees, and regarding the cost of hiring and selecting skills of BRAUN
personnel may help it to minimize competitive pressure. Activity includes the following:
1) Recruiting.
2) Hiring.
3) Training.
4) Development.
5) Compensation.
Technology Development (Strong)
Nowadays, technology plays a vital role in the home appliances and beauty care industry. BRAUN
recognizes this relevance of technology development because of the integration of technology in building
BRAUN products software (SW) and the websites platform, moreover supporting and operating HR
activities and marketing through applications and digitizing all BRAUN functions and activities.

BRAUN's purpose is to develop and improve the product as well as the process. From the case, it seems that
R&D plays a big role and is well trusted by the shareholders as well he participates in the direction strategy of
BRAUN company. Also, he seems to have good knowledge of the market trend. Activity includes the
following:
- Programming & Engineering Designs: Working on several product developments, must have friendly user
software in a simple design and understandable Arabic language, which gives us a great advantage in front of
international companies. Tailor-made solutions especially for our market to increase our competitive
advantages.
- Product/Service and process improvement:
As the core business is software the company's role model will be (LG) or (SAMSUNG) in the innovations
department - A flagship company that digitalizes everything as they are IT at their core.
Procurement ( Strong):
Procurement is the fourth and final type of support activity. BRAUN always carefully analyze its
procurement efforts to optimize the operational and outbound value chains as they are linked to other value
chain activities. and It refers to the purchasing of the inputs used in the company value chain, and not to the
inputs themselves. The inputs purchased may include raw materials, supplies, and other consumable items, as
well as assets such as machinery, equipment, office equipment, and buildings. Activity includes the
following:
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 1) Procurement by the purchasing department.
2) Procurement by other departments.

B. (Primary Activities):
I. Inbounded logistics (Strong):
Inbound logistics represents the first category of primary activity in your value chain. It comprises the
activities relating to the receipt of the inputs necessary for the company of our product, as purchased by the
purchasing department (support activity).
BRAUN's priority is to collaborate with a high standard of home appliances and beauty care devices
that applies to all rules and regulations and is always available when required; that’s why their companies are
everywhere. BRAUN holds all of its production and supply partners to the same high standards as it, and it
spends extensively on employees, technology, and processes to ensure the excellent quality that customers
expect when they choose a BRAUN company or use our products.
Furthermore, BRAUN is committed to working with suppliers who have a great track record of
managing environmental, health, and safety issues. BRAUN's priority for current suppliers who exhibit
increased risk is to assist them in improving their performance as quickly as possible.

ii. Outbound logistics already exist (strong):

Outbound logistics represents the third category of primary activity in your value chain. It comprises the
activities relating to the storage of the finished product within your facilities and its delivery to your buyers
once an order has been placed.
Outbound activities refer to actions that convey the cards to a customer via many channels.It can examine and
develop its outbound activities to find new resources of a sustainable competitive advantage that help it to
meet its business expansion goals, that’s because customer satisfaction may increase when outbound
operations are managed in a cost and time-effective way.

We need to fuse inbound and out-pound logistics with one department. This will play an important role after
the establishment of the medical supplies trending business unit. And start to receive and distribute the
product. Activity includes the following:
1) Receiving & storing inputs.
2) Diffusion of inputs to the different departments.
3) Warehousing.
4) Inventory control.
5) Return to suppliers.
6) Storage of the finished product.
7) Order processing.
8) Scheduling.
9) Delivery.
iii. Operations ( strong) :
Operations represent the second category of primary activity in our value chain. It comprises the activities
responsible for transforming the purchased inputs into our final product, It is the process by which BRAUN
is turning the raw materials choosing the best home appliances products from the manufacturer to retailer to
the best salesmen with the highest discount percentage into a finished product that the consumer receives and
launch on the market. The analysis of operationalactivities is critical for increasing productivity, increasing
efficiency, and assuring BRAUN's competitive performance. BRAUN could benefit from enhanced
productivity by achieving stable economic growth, establishing a sustained competitive advantage, and
increasing profit. We are not doing manufacture so the activity of the operation will be as below. Activity
includes the following:
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 1) Maintaining an inventory of raw materials or supplies and ordering new items as needed.
2) Reviewing records to ensure compliance with regulations.
3) Developing strategies to improve the operational and developing efficiency and effectiveness of
retailers’ facilities
3) Evaluating staff performance and identifying areas of improvement or concern.
4) Providing leadership to the industrial operations team and salesmen team as well.
5) Ensuring that all regulatory standards are met regarding, safety standards, etc.
6) Reviewing operational budgets and recommending management changes.
7) Monitoring the performance of salesmen and evaluating their compliance with industry standards.
8) Overseeing the hiring and training of new staff members and ensuring their performance is compliant
with company policies.

iv. Marketing and sales ( strong):

v. Marketing and sales form the fourth category of primary activity in your value chain. These activities
induce potential buyers to purchase your product and provide a means whereby they can do so.
BRAUN is very keen to build great transparency, so it points out the benefits and differences between
its products and competitors’ products to persuade customers that the product offered is unique. BRAUN
creates value through the creation of high-quality and high-technology home appliances devices offers at an
affordable price with unique features and it engages in marketing and sales efforts; that’s why marketers play
a vital role. They use responsible consumer advertising, and it has been shown the benefits that provide
customers by allowing them to have more discussions with their sales professionals teams, leading to
improving their satisfaction outcomes. It sticks to strong internal guidelines to ensure that the information it
provides to customers is scientifically sound, easy to comprehend, and useful in encouraging individuals to
seek to sustain obtaining our devices.
Not mentation clearly but it’s recently established so they have to start a high strong team to drive the
marketing and sales of the company product and service. Activity includes the following:
1) Advertising
2) Promoting
3) Channel selections & relations
4) Price decision
5) Sales
vi. Service ( strong) :
Service represents the fifth and final category of primary activity in our value chain. The service category
comprises those activities geared towards maintaining the value of your product once it has been sold to the
final customer. Which play a very important role in our long - relationship with our customers.
BRAUN’s before-sale and after-sale services are critical to building customer loyalty. Therefore, Post-sale
services are crucial to modern customers because customers feel that their feedbacks are important to the
company and this increases customer engagement and satisfaction leading to the creation of good WOM. In
today's technologically advanced society, the effect of negative word of mouth could not be underestimated, it
spreads in a short period. BRAUN always examines its support activities and focuses to spread positive WOM
because it is rapid and efficient for the company and to prevent undermining BRAUN’s reputation. Activity
includes the following:
1) Installation.
2) Repairs.
3) Training.
4) Parts supply.
5) Product adjustment.
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SWOT Analyses (Micro Environnement):

BRAUN Strengths:

1- Economies of scale.
2- Efficient product distribution network.
3- Brand equity.
4- Excellent R&D to compete with other products and technology innovation.
5- Availability to get the products online.
6- Its brand has a high recall and visibility due to excellent marketing and advertising.
7- Providing Many different designed products that targeted women, men, and youth.
8- Sustainability in economic, social, and environmental.
9- Excellent after-sales service and a long guarantee period for their products.
10- Training and development plans for employees.
BRAUN Weaknesses:
1- High prices BRAUN products comparison to low-quality products in the same field since the brand is
German, regardless of the products serving the MENA market, and are manufactured in China.
2- Shortage in the retailer's shops in upper Egypt and also difficulties reaching all customers due to
limited fleets there.
3- Long lead time to shipping Stocks and products from abroad to reach MENA markets which affects
the availability.
4- Having production facilities in MENA to serve the Middle Eastern market that is for the quick
response and customer fulfillment.
5- High prices for after-sale services due to high technological and sensitive parts besides it came from
abroad.
6- Product diversification, since they are in personal care appliances they may also have production for
aftershave or shaving foam for men, and also they may have some lotions for ladies while using
BRAUN hair dryers, this diversification would enlarge the market share for BRAUN and not only
this, it would differentiate BRAUN products (Ex. Washing machines and washing powders JVs) also
(Gillette blades – they have trimmers they have lotions and aftershave they have face wash and body
sprays.

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 Strength & Weakness (SW)
Strength Weakness
S1 Economies of scale with suitable prices W1 The limitation of Having production facilities
match its good quality. in MENA to serve the Middle Eastern market
is for quick response and customer
fulfillment.

S2 Excellent R&D to compete with other products W2 High prices for after-sale services due to high
and technology innovation technological and sensitive parts besides it
came from abroad.

S3 Providing Many different designed products W3 Long lead time to shipping Stocks and
that targeted women, men, and youth. products from abroad to reach MENA
markets which affects the availability.

S4 W4 High prices BRAUN products comparison

Availability to get the products online,
Excellent after-sales service, and a long
guarantee period for their products.
Training and development plans for employees.
S5
to the low-quality products in the same
field since the brand is German, regardless
of the products serving the MENA market,
manufactured in China.
Shortage in the retailer’s shops in upper
W5 Egypt and also difficulties reaching all
customers due to limited fleets there.

Financial Analysis
Financial Statements
The only clear information we have about the finance is the company has a capital of 30 million L.E. (S) And I think it
could be owner equity.
• Income statements (P&L)
• Balance sheet (Financial position)
• Cash flow statement
Ratios:
• Liquidity:

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• Activity:

• Profitability:

- Operational Margin (EBIT Margin) = EBIT/Sales.

- Return on sales (ROS) Net income margin = Net income / Sales.

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• Leverage:

Internal Factors analysis summary (IFAS)

The internal factors analysis is used to examine our corporation's competitive viability and cost position within the
market. It gives information to our company which can be used to grow and sustain the business. It analyzes
resources and functional strengths and weaknesses. In BRAUN, it helps to internally assess our capabilities, and
formulate and implement a strategic plan by taking decisions.

Internal Factors Analysis (IFAS)

Weighted
Weight Rating score comments
Factors

Strength
S1 Economies of scale with suitable prices match its 0.06 4.5 0.27 Practices key
good quality. success.

S2 Excellent R&D to compete with other products and Continuity

technology innovation. development in
0.2 5 1 products.

S3 Providing Many different designed products that Implementing a

targeted women, men, and youth. strategy of
0.04 4.5 0.18 targeting,
positing, and
segmenting

S4 Availability to get products online, Excellent after- 0.1 4 0.4 Butting perfect
sales service, and a long products period guarantee. strategy of CRM.

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S5 Training and development plans for employees. effective plans
0.1 4 0.4 and monitoring
them well.

Weakness
W1 limitation on Having production facilities in MENA Strategic decision
to serve the Middle Eastern market that is for the quick 0.05 2.5 0.125
response and customer fulfillment.

W2 High prices for after-sale services due to high High technology

technological and sensitive parts besides it came from 0.1 5.00 0.5 cost
abroad.

W3 Long lead time to shipping Stocks and products from Long shipping
abroad to reach MENA markets which affect the lines and
0.2 3.00 0.6 difficulties in
availability.
some procedures

W4 High prices BRAUN products comparison to the low- High quality

quality products in the same field since the brand is besides high
0.1 3.5 0.35 technology.
German, regardless of the products serving the MENA
market, manufactured in China.

W5 Shortage in the retailer’s shops in upper Egypt and Relying on low

also difficulties reaching all customers due to limited 0.05 4.00 0.2 populations.
fleets there.

1
TOTAL SCORE 4.025

CLARIFICATIONS:
Depending on the result of analyzing the internal environment, which was equal to 4.025 it can significant
acceptable situation as a strong solution for the short time to get a solution to enhance our market share
expansions depending on high liquidity in our BRAUN company and our sales and R&D sector growth rate is
growing rapidly and as a result, consume large amounts of cash on developing the sector but there is a huge
amount of ROI with mass profits than we had spent because we have a huge market share, so we gain and
generate much cash. Cover our expenses so The result is a small and predictable net cash consumption because it
is under control so it is obvious we will go to (star – market penetration ) strategy by market share with our
alliance in P&G to make an effective co-operation for the short and Medial time to reach a win-win situation.
The next step will be creating the final Strategic Factor Analysis Summary (SFAS) matrix that amalgamates the
IFAS & EFAS matrices together into a single matrix for the generation of an overall score, thus, providing a
holistic, overarching view of each factor to establish the effective strategy that should be applied.

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Strategic Factor Analysis Summary (SFAS)

Long term
Weighted

comment

mediate
Weight

Rating

Short

Inter
term
score
Factors

O1 Few competitors in the market 0.06 5 0.3 * * *

Governmental Investment support, such as Five
years TAX Waiver for newly launched 0.08 4.5 0.36 * *
O2 businesses in new cities

The country's location and its new high ways

infrastructure will increase the city's reach. 0.08 4 0.32 * * *
O3 (Connecting cities) to cover the high demand.

T1 Market saturation and petroleum fluctuation prices. 0.1 3.5 0.35 *

T2 Copying business model by competitors. 0.09 5 0.45 * *
shortage of raw materials from suppliers in the
T4 corona era. 0.09 4 0.36 *
Economies of scale with suitable prices match its
S1 good quality. 0.07 4 0.28 * * *
Excellent R&D to compete with other products and
S2
technology innovation
0.08 5 0.4 * * *
Providing Many different designed products that
S3 targeted women, men, and youth. 0.08 3.5 0.28 * * *
The limitation of Having production facilities in *
W1 MENA to serve the Middle Eastern market is for 0.1 4 0.4
quick response and customer fulfillment.

High after-sale services prices due to high

W2 technological and sensitive parts besides it came 0.09 4.5 0.405 * *
from abroad.

Shortage in the retailer’s shops in upper Egypt and

also difficulties reaching all customers due to limited 0.08 3.5 0.28 * *
W4 fleets there.

1
TOTAL SCORE 4.185

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CLARIFICATIONS:
from what was appearing on the result of the Strategic Factor Analysis Summary (SFAS) matrix that amalgamates the
IFAS & EFAS matrices together into a single matrix for the generation of an overall score of 4.185, which provides a
holistic, overarching view of each factor to establish our effective strategy that should be applied in the short term with
exploiting our capabilities internally and gain benefits from huge budget and strong financial situation relying on high
sales and high profits with good reputation depending on big market share and integrated with our companies in P&G
organization to penetrate new markets and market development with newly developed products in the short and middle
term and for the long term to make a vertical integration in almost our global markets.

SWOT Analysis
SWOT analysis is a strategic planning tool used to assess the internal and external (micro) factors that are considered to
have a positive effect or negative effect on achieving the firm objectives and sticking to its business market. and each
letter sample to one dimension so we have a 4 letter ( SWOT): S: REFER TO STRENGHT, W refers to weaknesses, O
refers to opportunity, and finally T refers to threats.
Opportunity :
The external environment may refer to certain new opportunities for gaining any value or profit or growth even if it was
tangible or intangible such as (high demand – unfilled gaps for customer needs – competitors getting out of the market
due to internal reasons in the company – new product inter the market -…etc.).
Threats:
It is depending on changes in the external ( micro ) environmental factors that may lead to present threats to the firm such
as : ( raw material shortage- new regulations connected with our industry- new competitors - shifting consumer behavior).
Strengths:
It’s all factors our firm possesses and enhances its capabilities to gain a competitive age such as : ( skilled human power –
high equipment technologies – patented- high revenues make more liquidity to invest – big market share- high quality
with affordable cost – good brand image and reputation).
Weaknesses :
It’s all internal problems and gaps that the company didn’t overcome until now and affect the company's progress
negatively such as : ( low market share- low quality- internal generations hassle – low salaries and no compensations –
bad reputation or brand name – long life cycle production tine- a long time for buyback – liquidity shortage).

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summarize: SWOT Analysis
strengths
S1 Economies of scale with suitable prices match its good quality.
S2 Excellent R&D to compete with other products and technology
innovation.
S3 Providing Many different designed products that targeted women,
men, and youth.
S4 Availability to get products online, Excellent after-sales service, and
a long products period guarantee.
S5 Training and development plans for employees.
Opportunities
O1 Few competitors in the market
O2 Market demand for high-quality personal care products
O3 Trends toward establishing green power devices, and reducing carbonic
emissions
O4 Governmental Investment support, such as Five years TAX Waiver
for newly launched businesses in new cities.
O5 The country's location and it’s new high ways infrastructure will
increase the city's reach. (Connecting cities)
Weaknesses
W1 limitation on Having production facilities in MENA to serve the
Middle Eastern market that is for the quick response and customer
fulfillment.
W2 High prices for after-sale services due to high technological and
sensitive parts besides it came from abroad.
W3 Long lead time to shipping Stocks and products from abroad to
reach MENA markets which affect the availability.
W4 High prices BRAUN products comparison to the low-quality
products in the same field since the brand is German, regardless of the
products serving the MENA market, manufactured in China.
W5 Shortage in the retailer’s shops in upper Egypt and also difficulties
reaching all customers due to limited fleets there.
Threats
T1 Market saturation and petroleum fluctuation prices.
T2 Copying business model by competitors.
T3 shortage of raw material from suppliers in the corona era.
T4 Government regulation restrictions.
T5 Competition with far eastern companies (Japanese and Chinese) far
eastern is so famous for its high features and reasonable prices.
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 TOWS Analysis
CLARIFICATIONS
SO:
Use the internal strengths to gain more external opportunities:
Leverage strengths to maximize opportunities= attacking strategy

1- Grand strategies / Intensive Strategies: Market penetration, Market development, and Product
development
2- Diversification: Concentric in the same field with more products developed by R& D.
3- Growth strategies – Vertical integration for the long term.
4- Maxi-Maxi Strategy with Growth initiative:
1- We can leverage S1 by obtaining opportunities from O3, and O4.
2- leverage S3 by obtaining opportunities from O5.
3- we can leverage S4 by obtaining opportunities from O1.
4- leverage S2, and S5 by obtaining the opportunities from O2

1- We can exploit the feature of our success in gaining the loyalty of our customers and employees by
identifying our customer’s loyalty to our brands with customer surveys every year and encouraging the
attraction of many competencies, experts, professionals and senior employees who are not interested in
the demands of their companies and their companies do not pay attention to their level of satisfaction from
their job ( headhunting ), especially in the competing companies in the market and also rising to work for
us due to our distinct systems such as compensation systems, promotion, motivation, different rewards
and effective systems to measure the extent of our job satisfaction and performances rates.
2- Due to our strong and effective economic system and giant capital we can use all of this to expand the
diversity of industries, especially in home electronic devices but large sizes such as screens, vacuum
cleaners, personal computers, desktops, and others as a first step and then we invade the commercial
market in the field of large electronic devices such as the medical devices and medical supplies as an
example and this is one of the exit doors of this industry in the market when the indicators of depression
appear and start to diversify our industries and sources of income.
3- We can use our good system in the distribution of our products across many countries in the world and
we have many branches and shipping methods from access to many new suppliers to us also agents,
sponsors as well as experienced shipping and maintenance companies. To facilitate our tasks and reduce
shipping costs or services after After-sales. as well as gaining new customers and suppliers will provide us
with many operating expenses and it will be a great opportunity for our new suppliers to be linked to the
name of our company as an agent, suppliers or sponsors to us in these countries, conditionally they
succeed in our tests and their capabilities match the requirements of our terms.
4- We can exploit the name of our brand and our good reputation in attracting many production factories
in the world to work for us and open production lines in these countries, especially on different continents
to achieve the global reach of our products and speed of access to our customers to prove our human
being to achieve reducing production costs as much as possible while adhering to the quality
specifications and quality standards of our brand in the harmony of the strategic company plans.
5- We can exploit the efficiency of our development department in the field of many technicians, small
innovators, and patent holders in these fields to work for us and form a variety core of small professionals
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to have precedence in obtaining new ideas in this field or even industries close to our industries when our
company changes the field or start opening other areas and invading new markets and areas as one of the
company's strategies towards the diversity of sources of income and industries.
6- We can exploit our presence on the websites and social networking sites and the company's official
website to communicate quickly and decisively with our customers and suppliers and know their needs,
their dreams about our products, and their problems as well as involve them in the process of designing
new products by sharing their opinions and ideas towards what they wish for in our products. also,
predicting the market trends, attitudes, and desires will help us to keep up with the market's requirements
firstly, quickly, and smoothly.
7- We can exploit, develop and monitor our internal systems and applicable sustainability processes,
whether economic, social, or environmental, by attracting the loyalty of citizens when employing many
competencies in the countries in which the activities will be opened, which represents success on the
social and economic side of both the company and the host country What these measures represent as one
of the processes and programs to reduce unemployment, combat it, and settling the industry therein for
what its citizens gain or in the correct sense of what our technical or technical staff will gain from
scientific and practical experience in this field as soon as possible. This represents one of the trends and
interactive activities of the social side and through the economic side, We can achieve sustainability by
reducing the prescribed rates, taxes, and issued fees From the host country because of our contribution to
providing energy consumption in our facilities through the energy saving system and the work of solar
energy systems with the efficient use and distribution of the fleet of modern cars that are examined
annually to ensure their technical safety and participation in programs to reduce global warming by the
company’s strategy that is committed to implementing it globally in all Branches of the company
regardless of their location and this is one aspect of environmental sustainability.
8- We can take advantage of the efficiency of the company's after-sales services by expanding the use of
products that are easy to disassemble, assemble and deal with due to our high experience in the field of
maintenance, which will provide us with attractiveness to obtain spare parts that meet our specifications
from the local market in the countries that will be expanded provided that they meet the quality
specifications and we can also obtaining many patents to integrate many parts into one device to do more
than one task at the same time, i.e. multi-functional and multitasking. We can also obtain products that
achieve recycling and are environmentally friendly and low in cost and price when maintenance
operations are performed on them, and they are one of one Attractions for our suppliers, agents, and
maintenance companies in many countries who want to carry Our company name to be successful
partners with us in serving our customers in every country.
9- We can use our good training and development systems to make this a gateway for us to enter new
areas and attribute new products and industries due to the experience of our employees and technicians in
the production and development processes, sales, marketing, and shipping, thus making it easier for us to
transform the industry when the company's strategy matches the developments and requirements of the
market from change and when the indicators of the recession of one of our industries appear
10- We can take advantage of the absence of many strong competitors with experience in this field,
whether in the local or international market, which enables us to exploit our giant capital to expand our
participation rates in the market and progress in the acquisitions of many service companies that will
serve our future interests and strengthen of our economic power.
11- We can take advantage of Egypt’s unique location, which is in the middle of the Middle East and
through which most of the international shipping lines pass by making use of our capital and the huge
human force present in the Egyptian people and opening a major factory for us to be a manufacturing,
assembly and distribution center for Africa, West Asia, and Southern Europe and thus serve the expansion
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 plans of the company around the scientist. All of this will not happen unless Egypt made a huge leap in
the field of infrastructure, improving the investment environment, constructing many highways, and
raising the efficiency of the old ones to enable Egypt to own a giant network of roads at the best level, as
well as ports, and the stability of its political, economic and security system, which will save us time,
effort and money for our production operations. and distribute our products.
12- We can take advantage of the facilitation measures taken by the Egyptian government to encourage
the investment climate and grant five years exemption from fees and taxes for newly established
companies and covenants, which strengthens our position and matches the company’s plans to open 3 new
branches in Egypt, and from here it would be better for us to think seriously about Opening a factory for
us to be the first of its kind in The Middle East to serve our products in the old continent and the Middle
East, taking advantage of these favorable economic conditions for the benefit of investing for our
company in Egypt.
WO:
Overcoming internal weaknesses to exploit external opportunities:
Counter weaknesses through exploiting opportunities = build strengths for attacking strategies

1- Grand strategy Intensive Strategies: Market penetration, Market development, and Product development
2- Diversification- Concentric in the same field with more products developed by R& D.
3- Maxi-Mini Strategies with Digital marketing initiative.
1- We can treat our weaknesses in W1 by exploiting the opportunity O4.
2- We can treat our weaknesses in W2 by exploiting the opportunities O2, and O3.
3- We can treat our weaknesses in W3, and w4 by exploiting the opportunities in O2, and O4.
4- We can treat our weaknesses in W 5 by exploiting the opportunity O5.
5- Brown can take advantage of the low cost of marketing operations in developing markets and the
encouraging grants from the Egyptian government to strengthen the company's marketing budget and
gain and develop expertise.
6- Our company can take advantage of the low shipping costs in Egypt and the good giant transportation
and shipping network to reduce the total costs of our relatively high-priced products due to their quality.
7- Our company can take advantage of a small number of competitors in the market and they are not of the
same experience and quality to overcome our excess stock in expanding to acquire market shares and
presence in all regions of the Middle East and not only in Egypt to meet the increasing demand for these
products.
ST:
Use internal strengths to avoid external threats.
Leverage strengths to minimize threats= and defensive strategy.

1- Diversification: Concentric in the same field with more products developed by R& D.
2- Intensive: we will use market penetration and product development
3- Mini-Maxi Strategies- with initiative Growth strategies
1- We can leverage our S1 strength to face and minimize our T5 and T4 threat.
2- We can leverage our S2, and S4 strengths to face and minimize our T2, and T1 threats.
3- We can leverage our S4 strength to face and minimize our T2 Threat.
4- We can leverage our S3 strength to face and minimize our T5 and T3 Threats.

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5- The loyalty of our customers to our brand and excellent after-sales service make it difficult for new apple
to apple competitors to have a share in the market.
6- Our brand's excellent R&D department and innovative technologies have value and a competitive edge
that differentiates Braun from its competitors and overcome market saturation.
7- Availability to get products online, excellent marketing and advertising campaigns, and efficient product
distribution networks help us to spread in emerging markets.
WT:
Overcoming internal weaknesses and minimizing external threats.
Counter weaknesses and threats = build strengths for defensive strategies

1- We can observe our weaknesses in W1 by studying well T4 to be fully prepared to face it.
2- We can observe our weaknesses in W2 by studying well T5 to be fully prepared to face it.
3- We can observe our weaknesses in W4 and W3 by studying well T3 to be fully prepared to face it.
4- We can observe our weaknesses in W5 by studying well T2, and T1 to be fully prepared to face them.

5-Reduce the threat of competition by making new investments.

6-Create new and creative marketing ideas to increase the brand image in the market.
7-Add an exit market plan to reduce risk management.
8-increase the market share of current products by price adjustments.
Making business deals to enter another market
CLARIFICATIONS:
By implementing a product development strategy, we will use the opportunities in the market such as a few competitors
to develop our products with our expert R& D, and a huge budget allow these steps to treat our weakness and overcome
it.
And by implementing Expansion Through a concentrations market development we will exploit our opportunities in the
market to enhance our strengths and capabilities to stay able to provide excellent and innovative products to our
customers depending on the rapid implementation of innovative home appliances and beauty care to cope with new
technology in the market.
Also, by Expansion Through market penetration: internally with product development by the power of P&G company, we
can empower our strengths to face the predictable threats by exploiting our capabilities and benefit from our
organization skills or experiences to use our financial abilities to improve our technologies to face the market threats.
And we can overcome our weaknesses after focusing on the potential threats through Expansion Through
Internationalization: Global Strategy vertical integration in all global new market Penetration to achieve new market
Penetration.

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Tows Matrix
BRAUN Opportunities
O1 Few competitors in the market
O2 Market demand for high-quality personal care
products
O3 Trends toward establishing green power
devices, and reducing carbonic emissions
O4 Governmental Investment support, such as
Five years TAX Waiver for newly launched
businesses in new cities.
O5 The country's location and it’s new high ways
infrastructure will increase the city's reach.
(Connecting cities)
BRAUN Threats
T1 Market saturation and petroleum fluctuation
prices.
T2 Copying business model by competitors.
T3 shortage of raw material from suppliers in the
corona era.
T4 Government regulation restrictions.
T5 Competition with far eastern companies
(Japanese and Chinese) far eastern is so famous
for its high features and reasonable prices.
BRAUN Strengths
S1 Economies of scale with suitable prices match its good
quality.
S2 Excellent R&D to compete with other products and
technology innovation.
S3 Providing Many different designed products that targeted
women, men, and youth.
S4 Availability to get products online, Excellent after-sales
service, and a long products period guarantee.
S5 Training and development plans for employees.
SO Strategies
Leverage strengths to maximize opportunities= attacking
strategy ( max-max)
We can leverage S1 by obtaining opportunities from O4,O3
We can leverage S3 by obtaining opportunities from O5
we can leverage S4 by obtaining opportunities from O1
We can leverage S2, S5 by obtaining opportunities from O2
Expansion Through Concentration: Market development
ST Strategies
Leverage strengths to minimize threats= defensive strategy
(min-max)
We can leverage our S1 to face and minimize our T5, T4
We can leverage our S2,S4 to face and minimize our T2,T1
we can leverage our S4 to face and minimize our T2,
We can leverage our S3 strength to face minimize our T5,T3
Expansion Through market penetration: internally with
product development by the power of P&G company
BRAUN Weaknesses
W1 limitation on Having production facilities in MENA to serve
the Middle Eastern market that is for the quick response and
customer fulfillment.
W2 High prices for after-sale services due to high technological
and sensitive parts besides it came from abroad.
W3 Long lead time to shipping Stocks and products from abroad
to reach MENA markets which affect the availability.
W4 High prices BRAUN products comparison to the low-quality
products in the same field since the brand is German, regardless of
the products serving the MENA market, manufactured in China.
W5 Shortage in the retailer’s shops in upper Egypt and also
difficulties reaching all customers due to limited fleets there.
WO Strategies
Counter weaknesses through exploiting opportunities = build
strengths for attacking strategies (max-min)
We can treat weaknesses in W1 by exploiting the opportunity O4
We can treat weaknesses in W2 by exploiting O2,O3
We can treat weaknesses in W3, w4 by exploiting Og2, O4
We can treat weaknesses in W5 by exploiting the opportunity O5
Expansion Through Concentration: Product Development
WT Strategies
Counter weaknesses and threats = build strengths for defensive
strategies( min-min)
observing weaknesses in W1 by studying well T4 to be ready for
it
observing weaknesses in W2 by studying well T5 to be ready for
it
observing weaknesses in W3,W4 by studying well T3 to be ready.
observing weaknesses in W5 by studying well T2,T1 to be ready
Expansion Through Internationalization: Global Strategy vertical
integration in all global new market Penetration
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Strategic Position and Action Evaluation (SPACE Matrix)

STRATEGIC FACTORS ANALYSIS:

The SPACE matrix is a management tool used to analyze our company. It is used to determine what type of
strategy a company should undertake. The Strategic Position & Action Evaluation matrix or short SPACE matrix
is a strategic management tool that focuses on strategy formulation especially as related to the competitive
position of our organization. The SPACE matrix can be used as a basis for other analyses, such as the SWOT
analysis, BCG matrix model, industry analysis, or assessing strategic alternatives (IE matrix).
To explain how the SPACE matrix works, it is best to reverse-engineer it. First, let's take a look at what the
outcome of a SPACE matrix analysis can be, take a look at the picture below. The SPACE matrix is broken down
into four quadrants where each quadrant suggests a different type or nature of a strategy:
•Aggressive •Conservative •Defensive •Competitive
This particular SPACE matrix tells us that our company should pursue an aggressive strategy. Our BRAUN
company has a strong competitive position in the market with rapid growth. It needs to use its internal strengths to
develop a market penetration and market development strategy. This can include product development, integration
with other companies, acquisition of competitors, and so on.
we get to the possible outcomes shown in the SPACE matrix by :
The SPACE Matrix analysis functions upon two internal and two external strategic dimensions to determine the
organization's strategic posture in the industry. The SPACE matrix is based on four areas of analysis.
- Internal strategic dimensions: Financial strength (FS) Competitive advantage (CA).
- External strategic dimensions: Environmental stability (ES) and Industry strength (IS).

Every business is also affected by the environment in which it operates. SPACE matrix factors related to
business external strategic dimension are for example overall economic condition, GDP growth,
inflation, price elasticity, technology, barriers to entry, competitive pressures, industry growth potential,
and others. These factors can be well analyzed using Michael Porter's Five Forces model

The SPACE matrix calculates the importance of each of these dimensions and places them on a
Cartesian graph with X and Y coordinates.
A few model technical assumptions are:
- the CA and IS values in the SPACE matrix are plotted on the X-axis.
- CA values can range from -1 to -6.
- IS values can take +1 to +6.
- The FS and ES dimensions of the model are plotted on the Y-axis.

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 - ES values can be between -1 and -6.
- FS values range from +1 to +6.

Internal Strategies Position

Financial Strength (FS) Rate Competitive Advantage (CA) Rate
ROA 5 Product Quality -6

Leverages 2 Market Share -5

Liquidity’s 6 Brand & Image -4

Cash Flow 5 Product Life Cycle -5

Inventory Turnover
5 Customer Loyalty -5
Earnings per share
5 Capacity Utilization -4
Price-earnings ratio
3 Technological Know-how -6

Working capital 4 Control over suppliers and distributors -3

Average = 4.375 Average = - 4.75

External Strategies Position
Environmental Stability (ES) Rate Industry Strength (IS) Rate

Inflation rate -6 Barrier To Entry 2

Technological change -4 Growth Potential 5

Demand Elasticity -5 Productivity, capacity utilization 5

Taxation -4 Consolidation 5
Price Range Of Competing Products
-2 Profit potential 6
Barriers To Entry Into Market
-2 Financial stability 6
Competitive Pressure
-3 Extent leveraged 3
Ease Of Exit From Market
-3 Resource utilization 5
Average = - 3.6 Average = 4.625
Total axis Y Score = 0.775 Total axis X Score = -0.125
The SPACE matrix can help us to find out our strategy and it will be a conservative strategy.

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Y-Axis
Financial Strength (FS) = 4.375
Environmental Stability (ES) = - 3.6
------------------------------
Y-Axis = 4.375 + (- 3.6 ) = 0.775

X-Axis
Competitive Advantage (CA) = - 4.75
Industry Strength (IS) = 4.625
---------------------------------
X-Axis = (- 4.75) + (4.625) = - 0.125

CLARIFICATIONS:
The above graph and the final score of the space matrix indicate the followingresults:
✓ BBRAUN company should follow a conservative strategy;
✓ BRAUN company has financial strength but also low competitive clarity in Egyptian market analysis due to
numerous fluctuations affecting the local economy making a foggy vision about the market situation after many
crises because of the Russia – Ukrainian war.
✓ A slightly stable market, but suffering from many threats in Egypt nowadays.

The following procedures must be observed:

✓ Development of existing services provided;
✓ Follow the "Product Development Strategy" - to be discussed later;
✓ Entering new markets to provide a budget that can be used in development such as the IoT home appliances and
compact technological devices.

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> Boston Consulting Group (BCG):
The Boston Consulting Group (BCG) Matrix is a simple tool to assess a company’s position in terms of its
product range. It helps a company think about its products and services and make decisions about which it
should keep, which it should let go of, and which it should invest in further.
INVEST (Stars) :
Stars generate large sums of cash because of their strong relative market share, but also consume large amounts
of cash because of their high growth rate. So the cash being spent and brought in approximately nets out. If a
star can maintain its large market share it will become a cash cow when the market growth rate declines.
ANALYSIS(Question Marks):
Question marks are products that grow rapidly and as a result, consume large amounts of cash, but because
they have low market shares they don’t generate much cash. The result is a large net cash consumption. A
question mark has the potential to gain market share and become a star, and eventually a cash cow when the
market growth slows. If it doesn’t become a market leader it will become a dog when market growth declines.
Question marks need to be analyzed carefully to determine if they are worth the investment required to grow the
market share.
Cash Cows( MILIK):
As leaders in a mature market, cash cows exhibit a return on assets that is greater than the market growth rate –
so they generate more cash than they consume. These units should be ‘milked’ by extracting the profits and
investing as little as possible. They provide the cash required to turn question marks into market leaders.
DIVEST(Dogs):
Dogs have a low market share and a low growth rate and neither generate nor consume a large amount of cash.
However, dogs are cash traps because of the money tied up in a business that has little potential. Such
businesses are candidates for divestiture.
H(0.2)

For middle and long -term

RATE OF MARKET GROWTH

For short-term

ANALYSIS (?) INVEST( STAR)

L(-0.2) DIVEST( DOG) CASH COW (MILK)

L RELATIVE MARKET SHARE H
(0) (1)

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 BCG MATRIX

Market Share Relatives To Toughest Competitors

Relative Market Share

Growth Rate Of The Industry ( New-Old/Old*100)

2020
2021
Growth Rate

CLARIFICATIONS:
The above graph and the final score of the BCG matrix indicate the followingresults:

There are many SPACE matrix factors under the internal strategic dimension. These factors analyze a
business’s internal strategic position. The financial strength factors often come from company accounting.
These SPACE matrix factors can include many elements such as return on investment, leverage, turnover,
liquidity, working capital, cash flow, and others. Competitive advantage factors include for example the
speed of innovation by the company, market niche position, customer loyalty, product quality, market
share, product life cycle, and others.
It is obvious to us that our position does not allow us to expand in the new market our making market
penetration due to our limited resources and low quality despite spending lots of money to deliver our
services but our expenses are more than our revenues and our profits can’t cover our consumption so that
for the short term we can’t enhance our situation with our capabilities so that it is necessary to collaborate
with an external partner for the mean term by studying the existing market and penetrate it with a new
service distinguish with perfect quality relying on implementing digital transformation to cope with the
rapid revolutions of technology.

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OBJECTIVES:
BRAUN company is currently playing a very distinct role as a price maker in home
appliances and beauty care in the Egyptian market which are:

✓ Providing new technologies in this field.

✓ Control prices.
✓ Courage investment by bushing cash flow in our market by maintaining producing our
products and keeping working despite high inflation.
and with the issuance of the new laws preventing monopoly and courage investment and
ensuring good quality to all products in the Egyptian market, to achieving united nations goal
SDGs in line with Egypt Vision 2030 completely free for all customers as:
According to that, we can conclude the following common objectives:
✓ Involving IoT in home appliances and beauty care devices.
✓ Supporting the converting into green energy and producing very compact devices that work
with smart motors which save energy and consume less power with good quality.
✓ Helping in keeping the environment green by manufacturing all products from recycled
material to reach a low carbonic emissions level
✓ Make customer life easier by introducing smart home appliances to save time, money,
energy, effort Etc.

Otherwise; the following objectives could be specified briefly:

1- Financial Objectives:
✓ Increase our profits by increasing our sales due to expanding in market shares by penetrating
new markets.
✓ Produce products at a suitable price for any customer who gets them.
✓ Covert into green energy by using low Ambers electricity to save power and also save money
for our customers and according to that we will gain more sales and more profits and achieve
the company vision which alliance with the country’s vision of saving power and converting
into green.

2- Internal Process / Operational Objectives:

✓ Increase the number of retail shops in upper Egypt.
✓ Increase our fleets, especially in upper Egypt.
✓ Increase the expansion in market share by penetrating new markets

3- Customer Objectives:
✓ The customer gets the product at an affordable price and with high quality.
✓ Enable the customer to communicate seamlessly with customer service, whether through
social media, exhibitions, or the company's website or application on the Internet.
✓ The customer receives excellent after-sales service throughout the year.
✓ The customer obtains a real guarantee against manufacturing defects for a sufficient period
with the availability of spare parts for the product for a while appropriate to the normal
consumption of the products.
✓ The customer is not harmed physically or healthily from using our products, with no negative
impact on him in the future, whether the negative effects are related to the skin or general
physical health.
✓ The customer obtains all information about the product before purchasing it and the potential
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 damages or defects that may occur when using the product.
✓ The customer obtains an energy-saving product for him and it saves time, is small in size, and
has few or rare malfunctions. It is easy to use and is characterized by advanced technology.

4- Learning and growth / Personnel Objectives:

✓ Improving the human resource management system to select and hire strongand qualified
professional employees.
✓ Ensure that all retail shops are accredited by the company monitor and control department
and were employees’ performance or revise every while to ensure the best practice with the
customer
Strategy Selection
Strategies to be adopted:
Many strategies can be adopted but we will choose the most suitable ones for implementation in the short
term and long term and we can categorize to be:
A - corporate level ( 1st growth: expansion into new products and markets and seeking to increase the
organization’s business by expanding into new products and markets.
- Types of Growth Strategies :
- Concentration{market penetration -market development – product development}.
- Vertical integration{ backward vertical integration – forward vertical integration}.
- Horizontal integration{
- Diversification{related – unrelated }.
- Co-operation - internationalization.
- 2nd stability: A strategy that seeks to maintain the status with the uncertainty of the environment, when
the industry is experiencing slow-or no-growth conditions. And it concentrates on maintaining its
current market position
- Stability Strategies could be of three types: (No-Change Strategy - Profit Strategy - Pause/Proceed Commented [em1]:
with Caution Strategy).
- 3rd renewal: redirection of the firm into new markets.
- 4th competitive : { differentiation ( leadership- focus (Niche)) – cost ( focus- leadership/lowcost)}.

differentiation ( leadership- focus (Niche)) – cost ( focus- leadership/lowcost)}.

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B - business level: A strategy that seeks to determine organization should compete in each of itsSBUs
(strategic business units). At Business-Level allocation of resources among Functional-level and
coordination with the corporate level to the achievement of the corporate-level objectives.

- Cost leadership: Attaining, then using lowest the total cost basis as a competitive advantage.
- Differentiation: Using product features or services to distinguish the firm’s offerings from its
competitors.{ Attributes of products (Features – Complexity – Timing – Location) / Relationship with
customers (Customization – Marketing – Reputation) / Linkages within or between firms (Among functions
within a firm With other firms - Product mix - Distribution channels - Service and support)}.
- Market focus: Concentrating competitively on a specific market segment.
C - Operational level :

The time horizon of the most important strategies for corporate level strategies that can be used based
on VRIO Analysis, CPM matrix, TOWS matrix, SFAS, SPACE matrix, BCG matrix, and QSPM
until allocating resources and improving weaknesses and seizing opportunities, and overcoming
threats.
Accordingly, the different levels of strategies will be as follows:

Short-term (1-2) years Medium-term (3-5) years Long-term (6-10) years

Products Development Market Penetration Global Vertical Integration

Market Development

Corporate strategy:

Levels of Short-term Medium-term Long -term

Strategy (1-2) years (3-5) years (6-10) years
Market Penetration
Corporate Product Development Global Vertical Integration
Market Development
Cost focus Leadership
Business Cost Leadership Cost Leadership
(Focused Low Cost)
Functional Policies & Procedures Policies & Procedures Policies & Procedures

Directional Strategy :

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Directional Strategy
- After calculating the SFAS and getting the result score of (4.185), So the company can choose growth.
- Based on the above QSPM and concerning the highest total attractiveness score (3.86), it is recommended
for the company start with
- Growth initiative. And the next phase will start the PPP initiative.
Stage 1:

Growth initiative (1 to 2 years)

(O2+ O3+ S2+S4)

Grand strategies
Intensive Strategies: Market penetration, Market development, and Product development
Diversification: Concentric(O4 +S2+ S4)
Growth strategies – for long-term global Vertical integration

Stage 2:
(T2 + S2) PPP initiative (3 to 5 years): This initiative will have a huge impact on the cash capital as
R&D takes a lot of money for research and development so it is very expensive then it gets a lower number
in QSPM. So, it will be in the next phase as we need the capital for growing short term first to grow the
company capabilities to be able to handle the PPP projects.
Stage 3
Go to MENA and Africa, Which we will sell the succusses story in 2 stages 1st and 2nd.

Business strategy:
We will use 2 main strategies Differentiation strategy and the Cooperative strategy.
Stage 2:
(T2 + S2) PPP initiative (3 to 5 years): This initiative will have a huge impact on the cash capital as
R&D takes a lot of money for research and development so it is very expensive and it gets a higher number
in QSPM. So, it will be in the next phase as we need the capital for growing short term first to grow the
company capabilities to be able to handle thePPP projects.
Stage 3
Go to MENA and Africa, Which we will sell the succusses story in 2 stages 1st and 2nd.
Business strategy:
We will use 2 main strategies Differentiation strategy and the Cooperative strategy.
Differentiation strategy:
- We must give excellent customer product and after-sale service for both products quality and technology
and after-sale service (CRM).
- We will use our capabilities and strengths to reach the customer in upper Egypt even for sales or after the
sale and cover these areas with mobile vans from our fleets to make them satisfied and expand our market
share.

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 Cooperative strategy
Expansion Through Internationalization: Global Strategy vertical integration in all global new market
Penetration:
We will use our organization power ( P&G ) to expand in the new markets relying on the database we have
before and use our stores and retailers to distribute our products in our shops and benefit from vertical
integration, especially in MENA and Africa. Which will benefit in the next 3rd Stage.
Also, they have differentiated solutions based on the IA and have a different way ofthinking not like the
Egyptian local companies. Which matches our strategy for differentiation.

Functional strategy:
Functional level strategy (internal policies and procedures to implement the chosen strategies)

Function Internal Policies

• Increase awareness of Egypt's IoT in home appliances vision 2030.
Sales, • increase sales volume and market share.
Marketing
• improve (SLA) Service Level Agreement between customers and customer satisfaction.
• Enhancing the cash flow cycle by finding the best funding sources to finance
operational costs and cover cash flow gaps.
Finance
• Strategic implications of sustainability challenges on financial systems.
• Equity.
• Minimize turnover through motivation & incentives.
Human • Development and training plan for talented employees especially key persons.
Resources • Enhance a performance management system linked with productivity and efficiency.

• Reduce service time at hospitals by improving the software process, and Increasing
efficiency.
Operations • Tracking product and service quality results in continuous improvement.
• Reach maximum utilization for people's feedback.
• Focus group from IT to be working on cost saving.

Human Resource Management (HRM) Strategy

As we are working in development and we will depend on differentiation need talented people to work in
BRAUN company to achieve the goals in a short time. HRM should hire Killed employees who receive
relatively high pay and are cross-trained to participate in the self-managing work team.

Information technology Research and Development (R&D) Strategy

BRAUN company is a startup we need to build the structure needed to develop newplatforms so we need
an open innovation strategy.
Marketing and Sales Department main Strategies:

- Product Development.
- Market development.
- Pricing strategy: Cost plus pricing.
-
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Operations Strategy
The main strategy operation function in our organization is Resource planning effective and efficient.

Finance:
leveraged buyout, a company is acquired in a transaction financed largely by internal debt, usually
obtained from the main organization (P&G), as an internal loan. As this will also reduce the tax as loan
interest will consider an expense.

Product Development Strategy:

Depending on the use of this strategy to mitigate risks in developing a new concept for the services
provided, by achieving progress toward the development of smart home appliances and beauty care :
✓ Remote communication applications.
✓ Electronic issue records.
✓ Robots in manufacturing processes.
✓ The Internet of things.
✓ Mobile application.
As explained earlier, in a way that guarantees the satisfaction of customers and improves the level of
services provided, thus improving customer lifestyle in dealing with smart home appliances and
overcoming other traditional obstacles. On the other hand, producing smart home appliances and
beauty care devices embedded in IoT inside can add more benefitsas follows:
✓ Strong foreign exchange earner.
✓ Help with economic recovery, and reduce the unemployment rate.
✓ Motivating the industry sector especially smart, compact home appliances to continuously develop
itself.
✓ Support in increasing local AI industries in home appliances in every house.
Quantitative Strategic Planning Matrix (QSPM)
• Is a high-level strategic management approach for evaluating possible strategies, Provides an analytical
method for comparing feasible alternative actions, and The QSPM method falls within the so-called
stage 3 of the strategy formulation analytical framework (When company executives think about
what to do, and which way to go, they usually have prioritized list of strategies, if they like one
strategy over another one, they move it up on the list, this process is very much intuitive and
subjective).
• The QSPM method introduces some numbers into this approach making it a little more expert technique,
and it attempts to objectively select the best strategy using input from other management techniques
and some easy computations, in other words, the QSPM method uses inputs from stage 1 analysis
matches them with results from stage 2 analysis, the decides objectively among alternative
strategies
• Stage 1 the first step in the overall strategic management analysis is used to identify key strategic
factors, this can be done using EFE Matrix and IFE Matrix
• Stage 2 after we identify and analyze key strategic factors as inputs for QSPM, we can formulate the
type of strategy we would like to pursue, this can be done using the stage 2 strategic management
tools such as SWOT analysis, TOWS matrix, SPACE matrix, BCG matrix or IE matrix
• Stage 3 determines the relative attractiveness of various strategies based on the extent to which key
external and internal critical success factors are capitalized upon or improved, the relative
attractiveness of each strategy is computed by determining the cumulative impact of each external
and internal critical success factor

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(QSPM):
Product Development Market Penetration market Development

Factors Weight AS TAS Weight AS TAS Weight AS TAS

Few competitors in the market

O1 0.10 4 0.40 0.06 3 0.19 0.06 2 0.13
Governmental Investment support, such as Five years TAX Waiver for newly
O2 0.15 4 0.61 0.13 4 0.52 0.09 3 0.28
launched businesses in new cities
The country's location and its new high ways infrastructure will increase the
O3 0.02 3 0.05 0.06 2 0.11 0.10 4 0.39
city's reach. (Connecting cities) to cover the high demand.
Market saturation and petroleum fluctuation prices.
T1 0.01 2 0.02 0.01 1 0.01 0.12 3 0.36
Copying business model by competitors.
T2 0.01 1 0.01 0.02 1 0.02 0.10 2 0.20
shortage of raw materials from suppliers in the corona era.
T4 0.01 2 0.02 0.10 3 0.29 0.11 3 0.32
Economies of scale with suitable prices match its good quality.
S2 0.12 4 0.50 0.11 4 0.43 0.08 2 0.15
Excellent R&D to compete with other products and technology innovation
S5 0.02 3 0.05 0.13 4 0.52 0.08 1 0.08
Providing Many different designed products that targeted women, men, and
S1 0.02 2.5 0.04 0.07 2.5 0.17 0.09 2.5 0.23
youth.
The limitation of Having production facilities in MENA to serve the Middle
W1 0.01 2.5 0.02 0.01 2.5 0.01 0.12 2.5 0.29
Eastern market is for quick response and customer fulfillment.
High after-sale services prices due to high technological and sensitive parts
W2 0.50 4 1.98 0.21 4 0.84 0.11 4 0.44
besides it came from abroad.
Shortage in the retailer’s shops in upper Egypt and also difficulties reaching all
W4 0.04 3.5 0.16 0.10 3.5 0.37 0.09 3.5 0.33
customers due to limited fleets there.
TOTAL SCORE 1 3.86 1 3.47 1 3.20

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CLARIFICATIONS:
AS : Attractiveness Score / TAS : Total Attractiveness Score
The Quantitative Strategic Planning Matrix (QSPM) mainly use for evaluating possible strategies by providing an analytical method for
comparing feasible alternative actions, therefore; and according to the previous results we can conclude the following results:

The total Attractiveness Score for the priority “product development Strategy” is 3.86 which is higher than the other two strategies, therefore we
recommend relying on using this strategy at the first level. This strategy can guarantee the achievement of using digitalization (AI-IoT) in the home
appliances field by creating value depending on using the newest innovative applications by developing the R&D programs to create a device that can
make life customers easier more convenient and save real-time home-using smart devices, limited the waste of financial resources, as well; raise the
efficiency and the quality of the provided services leads to customers satisfaction by the end depending on eliminating numbers of factors like the
traditional way or physical efforts, which wasting time on doing the manual processes; resulting in the waste of the customer's data. And the second plan
for the middle term will be market penetration and the third plan is market development and which will be for the long term.
Internal Policies and procedures
Managerial policies
1) Confidentiality Policies: To protect sensitive information, and be sure to cover relationships with customers - Establishing Leadership.
2) International agreement policy: To organize all points during any collaboration between BRAUN and any other international organization.
And keep the Policy Developed allows.
3) Pricing policy: To include the cost of new services in the overall costs of the company.
4) Distribution policy: To minimize land disturbance and encourage efficient use of natural resources.
5) Working environment policy: To foster a work culture that rewards and holds employees - Identifying Partners.
Operational policies
1)Law and Regulation policy: To ensure all legal and regulatory documents are monitored and filled using compliance with laws and regulations
2)Collaboration policy: To build alliances and partnerships of BRAUN company with other organization
3) Understanding the Context and Process - What Needs to Be Done – and Who Should Be Involved?
Human resources policies
1) Training policy: To maintain facilities, provide training, and conduct operations to protect BRAUN employees - Obtaining Input and Building
Support
2) Hiring policy: To hire good expertise employees with a solid background in the healthcare industry to be able to adapt to the working
environment
3) Privacy policy: To protect employees, the company, and customers by establishing a policy that encourages transparency, and Identifying
Resources Assessing the Results - Planning Outreach and Implementation Strategies

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 STRATEGY IMPLEMENTATION:

Internal Policies and Procedures for the selected strategies

Strategy Implementation
Strategy implementation is the total of the activities and choices required for the execution of a strategic plan. It is the process by which objectives, strategies,
and policies are put into action through the development of programsand tactics, budgets, and procedures. Implementation should be evaluated as strategy is
being formulated although many companies separate the two. Implementation is the key part of strategic management for without implementation we have
nothing.

The different layers of management should take care of the 10 common strategy implementation problems mentioned below:

1. Implementation took more time than originally planned. (All)

2. Unanticipated major problems arose. (All)
3. Activities were ineffectively coordinated (All)
4. Competing activities and crises took attention away from implementation. (All)
5. The involved employees had insufficient capabilities to perform their jobs. (All)
6. Lower-level employees were inadequately trained. (Only Front-linemanagement)
7. Uncontrollable external environmental factors created problems. (TopManagement)
8. Departmental managers provided inadequate leadership and direction. (Top management and middle management)
9. Key implementation tasks and activities were poorly defined. (All).
10- The information system inadequately monitors activities. (All)
McKinsey 7 S Model
• The 7-S Framework was first mentioned in "The Art Of Japanese Management" by Richard Pascale and Anthony Athos in 1981.
• They had been investigating how the Japanese had been so successful.
• At around the same time, Tom Peters and Robert Waterman were exploring what makes a company excellent.
• The 7 S model was born at a meeting of these four authors in 1978.
• It was taken up as a basic tool by the global management consultancy company McKinsey.

Page 60 of 79
THE HARD S-1- Strategy
• Strategy: the direction and scope of the company over the long term. And it is the way to achieve a competitive advantage. Such as (Low-cost
strategy through economic production or delivery - Product differentiation through distinct features or innovative sales).
THE HARD S-2- Structure
Four main structures: Functional Structure - Divisional Structure - Matrix Structure - Network Structure
THE HARD S-3- Systems: such as ( Performance Measurements - Reward Systems – Planning – Budgeting - Resource Allocation - Information
systems - Distribution Systems).
THE Soft S-1: Staffing
People, their background & competencies. An organization’s approach to recruitment, selection, socialization, training, and employee development
is important for effective staffing.
THE Soft S-2 Skills
Distinctive competencies in our organization. Can be of People, Management Practices, Systems, and/or Technologies.
THE Soft S-3 Style
Leadership style of top management and overall operating style of our organization. Impacts norms followed by people, and how they work and
interact with each other and customers.

Page 61 of 79
THE Soft S-4 Shared Values
• Core values are shared in the organization and serve as guiding principles of what is important. Helps focus attention and provides a broader
sense of purpose.
In conclusion, successful strategy implementation requires committed leadership, appropriate program structure, and documented program
outcomes that are brought together within an integrated program methodology to achieve success
Implementation of the chosen strategy:
- Adopted Strategy: product development for the short term.
- Annual Objectives: to increase market share by penetrating new markets even in MENA or Africa with (10 %) by the Q4 year 2024 to reach (10%) of the
local market share in the same period to overcome the break-even point to reach ( 10 -15%) profit margins in the financial position reports for the physical year
2024.
- Strategic Objectives: we are going to increase the market share development for home appliances devices by introducing a new product continuously in the
market by (35%)to reach (70 %) of the local market share by the end of the Q4 physical year 2028 to foster our reputation as a market leader in this field to
reach profit margins of (35 %) by the end of the Q4 physical year 2028.

Functional
Functional Objective Procedures Actions Policies Required Resources KPI's
Area

Increase awareness of our vision for 2030, Online website on social media. Digital platform - Marketers Sales growth - customer
Sales, Marketing
increase sales, increasing market share. TV Ads. - Budget orientation index

Enhancing the cash flow cycle by expanding in new

by updating payment terms and Government Budget - ROI – exploit our working
Finance markets to increase profits to cover our finance
optimal use of income resources donors - resources capital well.
operational costs and cover any cash flow gaps.

Minimize turnover through motivation & Training programs and rewards Turnover rate -
HR Budget- Training programs
incentives for the highest KPIs achievers performance appraisals

Implementing our services on the website parallels

The system must always be People - Budget- The efficiency ratio,
Operations with physical retail time by improving the Increase
available Technology productivity rate
efficiency of software processes.

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 CONTROL AND EVALUATION
Control Matrix: Balance Score Card:
• Strategic controls consider the changing assumptions that determine a strategy, continually evaluate the strategy as it is being implemented, and take the
necessary steps to adjust the strategy to the new requirements
• According to Schendel and Hofer: “strategic control focuses on the dual questions of whether: 1- the strategy is being implemented as planned.
2- the results produced by the strategy are those intended.”

Types of Strategy Control

Premise Implementation Strategic Special Alert

Control Control Surveillance Control

1. Premise Control
It checks systematically and continuously whether the premises or predictions set during the planning and implementation process are still valid or not, Premises
are concerned with Two factors: such as (Inflation, Technology, Interest Rates, Regulation, Demographic & Social Changes) and Industrial Factors of the
Porter’s 5 Forces Analysis such as (Competitors, Suppliers, Substitutes and Barriers toEntry)
2. Implementation Control
• Implementation control is designed to assess whether the overall strategy should be changed inthe light of unfolding events or only some parts to be changed
• Based on the time limit of each strategy, then a Quarterly and Annually follow-up will be done regarding the implementation of the strategies, to ensure that
the plan is going as expected, and incase there are any deviations, an action plan will be implemented based on the circumstances
3. Strategic Surveillance
• Strategic surveillance is similar to “environment scanning” and It is designed to safeguard the established strategy continuously.
• It helps in monitoring a broad range of events inside and outside the company that is likely tothreaten the course of the firm’s strategy.
• Department heads will be responsible for providing Weekly Reports to the CEO and be auditedby the Internal Audit regarding the activities implemented such
as Operations, Sales, and Marketing.
• Sales, Marketing, and Local Procurement teams will be responsible to collect all the required information about the competitors and to be reported to the CEO
monthly while any change in the external environment will be collected by the strategic team and reported to the CEO quarterly.
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 4. Special Alert Control
• It refers to being prepared for unexpected events. And It is the need to thoroughly, and often rapidly, reconsider the firm’s basic strategy based on a sudden,
unexpected event such as Natural Disasters, product defects, hostile takeovers, and pandemic.
• In BRAUN We are implementing an ERP system that linked all the functions together, the system will monitorall the company’s activities along an electronic
platform, and record and observe all the inputs andoutputs in case of noticing any abnormal behavior, the system Immediately will alert the decision maker
with the problem occurred and in which segment or sector or position and provides with several suggestions to solve the current problem with an action plan.

Functional Planned Achieved

Functional objective Deviance possible reasons correction actions
area KPIs KPIs
Sales, Increase awareness of our Increase 20% 15% To cover the increases To consider the positive impact of training on
Marketing vision for 2030, increase Market customers' needs in the field future planning as well as an appropriate
sales, increasing market share by of home appliances. assessment of external factors.
share. 35%
Enhancing the cash flow
cycle by expanding in new
markets to increase Save 10-15%
Technology revolution in the Allocate 10% of the budget for emergency
Finance profits to cover our from the 5% -10%
market crises
finance operational costs budget
and cover any cash flow
gaps.
Human Minimize turnover minimize 4% -1% Salary and incentives Increase in salaries and incentive
resources through motivation & turnover
incentives rate by 5%

Operations Implementing services on Achieving 85% -5% Employees are unfamiliar with Increasing the training programs granted to
our website parallels with 90% of the the new systems employees and continuously monitoring their
physical retail time by planned performance
improving the Increase time
software efficiency.

Page 64 of 79
Evaluation Matrix
• Strategic Evaluation and Control Is defined as the process of determining the effectiveness of agiven strategy in achieving the organizational objective and
taking corrective action wherever required
• The key strategy evaluation activities are appraising internal and external factors that are the rootof present strategies, measuring performance, and taking
remedial actions
• Evaluation makes sure that the organizational strategy, as well as its implementation, meets theorganizational objectives

Importance of Strategy Evaluation

• Decisions match the intended strategy requirements
• Achieving goals and objectives
• Information and experience for strategists
• Checking the validity of Strategic choice
• Checking the deformities
• Variance & Corrective actions
• Direction
• Information to Stakeholders
• Measuring the performance

Process of Strategic Evaluation:

Fixing Alligning Taking Corrective &

benchmark of Measurement
Variances Remedial Actions
Performance of Performance
Page 65 of 79
Participants in Strategic Evaluation:
(Shareholders - Board of Directors - Chief Executives - Financial Controllers - Company Secretaries - External & Internal Auditors - Corporate Planning Staff
or Deptt - Middle-Level Managers).
Process of Strategic Evaluation:
• (Fixing benchmark of Performance - Measurement Of Performance - Aligning Variances - Taking Corrective & Remedial Actions).
Techniques of Strategic Evaluation:
Gap Analysis: Measures the gap between the organizational current position and desired position.
- Determining steps to be undertaken to improve that state. Gap Analysis /Common uses (Strategy
Development - Project Planning - Process appraisals - Marketing). The gap analysis Process:( Step 1: Describe General Area - Step 2: Identify specific
Improvement Area - Step 3: Determine Targets - Step 4: Determine Current State - Step 5: Determine Action Steps).
- SWOT Analysis: (Evaluates the organization’s strengths, weaknesses, opportunities, and threats - Strengths and weaknesses are internal factors, while opportunities
and threats are external factors - Focusing on resources to take advantage of strengths and opportunities and combat
weaknesses and threats.
• Strength:(Reputation - R & D - Unique Resources(Skilled, knowledge, staff) - Info & Tech - Quick to
respond to market change).
• Weakness:( Ltd. Resources - Poor Location - Obsolete Tech - No Brand Power - Missing expertise in
some areas - Less experience).
• Opportunity:( Few competitors in your area - Need for your products - Converting existing products for
new markets - Unmet customer needs - Upcoming changes to status quo (pol. econ) ).
• Threats:( Existing & Potential competitors - New product, IT developed - Economy, govt. Regulations - Fluctuating markets).

- PESTEL Analysis: (Identification of the Political, Economic, Social, Technological, Ecological & Legal factors that may impact the organization’s ability to
achieve its objectives, ( Political – Economical – Social – Technological – Environmental – Legal).

- Benchmarking:

Area of objectives Benchmark KPI’s Achieved KPI’s Deviance Possible reasons Corrective actions

Managers & To face Increase the budget for training and

Training programs for staff 80% -20%
Employees competitors reward programs
Page 66 of 79
 enhancing managerial level by
Enhance Increase the budget for training and
supporting senior managers to 75% -25%
effectiveness reward programs
obtain MBA and DBA degree

Increasing the training programs

Operation & Achieving 90% of the planned To match with granted to employees and
83% -7%
Processes time new technology. continuously monitoring their
performance

Having a strong CRM system to Due to our gap, Recording and following up on
Customers reach a customer satisfaction rate 4 0.5 we face in upper customer complaints and reviewing
of 4.5/5 Egypt them continuously

Covid-19 Allocate 5% of the budget for

Financial Save 20% from the budget 0% -20%
pandemic emergency crises

Business Plan

Page 67 of 79
 Functional area Functional objective Procedures/ actions Required resources KPIs

Increase awareness of our vision for 2030, Online campaigns on social Digital platform - Sales growth - customer
Sales, Marketing
increase sales, increasing market share. media and TV Ads. Marketers - Budget orientation index

Enhancing the cash flow cycle by expanding

by updating payment terms
in new markets to increase profits to cover Government Budget - ROI - Acquiring needed
Finance and optimal use of income
our finance operational costs and cover any donors - resources capital
resources
cash flow gaps

Minimize turnover through motivation & Training programs and rewards Turnover rate -
Human Resources Budget- Training programs
incentives for the highest KPIs achievers performance appraisals

Reduce service time at hospitals

The system must always be People - Budget- The efficiency ratio,
Operations by improving the software process.
available Technology productivity rate
Increase efficiency
Responsible Sourcing, Taking Advantage of 20% decrease in the cost of Source of the fund, Cost reduction
Procurement Digitization, Innovation in Services, items (perishable and People, Process
Operational Efficiency, Value Delivery, nonperishable) in a specified
time (negotiating better deals
and costs with suppliers)
Cost Leadership 10% decrease in the cost of Source of the fund, Audit Planning, Audit
InternalAudit items (perishable and People, Process Quality
nonperishable) in a specified
time (negotiating better deals
and costs with suppliers)
execute proper planning on 85% decrease in time to ship Source of the fund,People, Purchase Order Cycle
transportationmodes and inventory to customer (from territory Process Time, Warehouse
Logistics available to satisfy the customers. warehouse to customer) Productivity
This leads to a smooth freight moving (number of days/hours),
process and timely delivery Achievement of warehouse
of products or goods internal movements as per
Time Page 68 of 79
 Number of legal cases won Legal support in
Legal Measure Budget vs. Actual vs. handled, 80% courtcases,
Spend,Measure Department reduction in no. of unresolved Resolution of
Spending as a Percentage of grievances,Accuracy, grievances, Advice
Company Revenue Evaluate significance, and value of legal on legal matters, Key
Outside Counsel Performance, advice provided, 100% Source of the fund, Talent Retention and
Measure the Source of Legal
compliance & accuracy of PDPs People, Process Development,
Spend by Business Unit, Track
by target date for the line Database updating/
Legal Team’s Productivity,
management team, and Timely maintenance/
Measure Attorney
and accurateupdating/ retrieval
Performance, Measure
maintenance/ retrieval of the – General Information,
Completed Contracts
database details of allcommercial
Business Excellence Creation and governance procedures, 25% Increase in Process Improvement,
policies, and authority matrices productivity due to the Source of the fund, Business Improvement,
process People, Process Budget Utilization
re-engineering initiatives,
9% reduction in Turn
Around Time, Cost,
Manpower, Manual
Interventions, 5% variance
from the budgetary
allocations
Deliver Advanced Capabilities to Foster Customer satisfaction scores, Source of the fund, Customer Satisfaction,
Information Collaboration, Knowledge Management, 90% decrease in the number of People, Process Data Management,
Technology and Analytics instances of errors in reported Database Connectivity
data, 0 No. of instances of

Page 69 of 79
- Operation Plan :
o In this part, we will focus on how to start doing the operation plan for sucha new project. Normally, there
are fixed steps to do it as follows:
▪ Step 1: Examine our organization's vision.
• Our Vision is clear here and we mentioned it clearly in the previouspart.
• The Vision must be clear and distributed to all employees.
▪ Step 2: Define the goals and strategy.
• The BRAUN Goals were also mentioned previously and it is shown clearly to activate this system for all
Customers in Egypt Market starting with a very ambitious plan to expand our markets to reach MENA and
distribute our innovative smart home appliance products. And also there is another main goal here is to be
the best home appliances company system provider in Egypt by Providing all services on one platform.
• The strategy has been discussed as well previously and was clear to doan integration Strategy for the long-
term vision with exploit P&G capabilities to gain these opportunities.
▪ Step 3: Plan out activities.
• In this part, we can use any of the known software to show the progress and see where we are from our time
plan.
• We can check the workload with the cost and all details related tothe project team, and check the activities
themselves with all needs of resources by the SW. plz check the below example for one workload sheet for
the similar project
▪ Step 4: Assign roles and responsibilities.
• The HR team is responsible to assign the roles here and also to evaluate the team working during the work
time.
• The main point to have the right way of evaluation is the KPIs, every dept has its responsibilities and has to
review them on regularbasis.
• Putting the target for everyone and clear responsibilities we give the company the ability to measure the
outputs and then amend ( ifneeded ) the KPIs levels.
▪ Step 5: Monitor and adjust.
• Getting feedback from the customer will show you how tomonitor and where are the weaknesses in your
performance.
• Also, the deviation from the Targets will help you evaluate theteam and adjust all that you want to do.
• There are a lot of samples for the Performance evaluation cards forall teams whatever their departments.

Page 70 of 79
Recommended Organizational Chart
Matching structure with strategy:
1- Functional structure.
2- Divisional structure.
3- Strategic business units ( SBU) structure.
4- Matrix structure.

And in our company we will use the (SBU) structure:

• Large, diversified companies organize themselves into divisions to break the management of the
company into the smaller, organizationally cohesive part. and The company headquarters still gives the
divisions strategic direction. The Strategic Business Units, or SBUs, are organizationally complete and
separate units that develop their strategic direction.

They still report back to company headquarters but operate as independent businesses organized according to

their target markets. They are often large enough to have internal
organizational divisions.

Corporate Structure {strategic business units ( SBU) }

P&G operates through five industry-based Sector Business Units or

SBUs: Baby, Feminine, and Family Care; Beauty; Health Care;
Grooming; and Fabric and Home Care. We manage our 10 product
categories within these SBUs. The SBUs have sales, profit, cash, and
value creation responsibility for our largest and most profitable markets, called Focus Markets—accounting for
about 80% of Company sales and 90% of after-tax profit.

In each Focus Market, Market Operations works across the six SBUs on scaled market services and capabilities,
including customer teams, transportation, warehousing, logistics, and representing P&G externally.

Page 71 of 79
The rest of the world is organized into Enterprise Markets—a separate unit with sales, profit, and value creation
responsibilities. The SBUs provide innovation plans, supply plans, and operating frameworks for the Enterprise
Markets to deliver these mutually agreed business goals. Enterprise Markets are important to the future of P&G
because of their attractive market growth rates, and the intent is to accelerate this growth and value creation.

Supporting the SBUs, Market Operations, and Enterprise Markets are key corporate resources focused on scaled
services, governance, stewardship, and areas requiring high mastery. This structure enables a more empowered,
agile, and accountable organization to accelerate growth and value creation.

Marketing and Sales Plan

Market strategies
- Market Development
- Product development
- Pricing strategy: Cost plus pricing
Short-term objective (upcoming year)

- Increase brand awareness in the market by 35% in year 1 Extend the reach of
communications to 80 % of target customers for each campaign.
- Create brand awareness for the new product by 70 % of the target market in the 1styear
- Achieve a high level of customer satisfaction among 95% of target customers.

Long-term objective (3 to 5 years)

- Make the company grow to be one of the big 3 players in the Egyptian to start to go to Africa in year 5
- Build strong ad awareness for our product and solution.
- Integrated with the global supply by year 6.
- Marketing Mix (4Ps):
• PRODUCTS
The customer gets the product at an affordable price and with high quality. with excellent after-sales service
throughout the year. The customer is not harmed physically or healthily from using our products, with no negative
impact on him in the future, whether the negative effects are related to the skin or general physical health. And The
product should obtain an energy-saving and it saves time, is small in size, and has few or rare malfunctions. It is easy
to use and is characterized by advanced technology
• PLACE
➢ will establish the Business Within Cairo And Alex, Upper Egypt, North Coast, Governorate Of Red Sea then
will go to cover all of Egypt.
• PRICE
➢ The founders will use a cost-plus pricing strategy wherein all products that will be offeredwill be sold with a
20% markup.
• PROMOTION
To effectively and efficiently market the products and services of BRAUN, We decided on thefollowing
strategies:
➢ Advertising :
• (Distribution of Flyers - Business Posters – Radio - Social media (Facebook Page, Instagram,..)
➢ Personal Selling :

Page 72 of 79
 Sales Team
In addition to this also decided that on the launching campaign of the business, thefollowing will be
offered:
➢ Sales promotions :
• Free Health consultations
• % discount vouchers
• Price packs (reducing pricing marked on the package)
• Set collaboration plans with health entities for specific discounts
related to theamounts
• Guarantees or extended warranties.
Marketing strategy implementation
Market (Segmentation, Targeting, and Positioning Strategy )

Identify the selected target market(s)

- Provide the profile of the target market according to the following with customer information.
Segmentation Variable Data
Geographic
Country Egypt
Cities Main cities
Density Urban

Demographic
Age Anyone can purchase our product and service
Gender M/F
Income Anyone has access to funds – employment and has a fixed income to be able
to pay the price for our products And our supplies, Anyone has access to funds
with the same features and quality.

Education Any customer can deal with innovative devices and smart machines.

Psychographic
Social class All
Lifestyle All

Behavioral
Benefits - Saving money and time and making our customer lifestyle easier and
smooth to deal with home appliances and beauty care devices.
User status Old user and First time

Readiness stage Not aware

Loyalty status No

Attitude toward service Already exist in the market and it is a strong approach to deal with technology in
our lifestyle to be smart and ready for dealing with IoT.

Page 73 of 79
A . SEGMENTATION
Market research has identified the following market segments for BRAUN Service :
➢ Geographical: all Egypt cities and urban governments as well
➢ Demographic: all Egyptian citizens male & female whose ages range from 15 to 90 years old, well-
educated with average salaries starting from 1K and different levels of occupation ( as afirst step but we
can reduce this amount to 500 EGP on some products )
➢ Psychographic: all categories A, B, and C, who are looking for fast solutions
➢ Behavioral: the customers who are looking for convenient services, can use technologies,and are open to
exploring new technologies
B. Targeting:
“ BRAUN “ will provide the services to any user after conducting & studying the different marketsegments and
the survey results that indicate a definite type of customers we would target the following Customers.
➢ Class A - Class B - Class C - Individual customers – Hospital – Clinics – Pharmacies – Laboratories –
Radiology – Doctors - home keepers - wife - man’s
C. Positioning:
The company has positioned itself as the best in the following aspects of the business.

• Consistent Quality Service

➢ Providing consistent quality Healthcare products and services, the level of competence, efficiency, attention to
detail, and honesty remains the same as the last visit by a customer.
➢ Updates on new techniques and procedures, and emphasis on customer relations for staff andemployees with a
friendly environment.
• Efficient and Courteous Service
➢ Keep the personal touch with its customers.
➢ A detailed database of all customers that includes the services availed of, feedback, and otherpreferences is
made accessible to all its employees for easy reference through the CRM system.
• Convenience for customers
Convenient services through a mobile application, website, online reservation, and fast service.

Product Life Cycle

Most of the products are in the introduction innovators phase.

We will use the push and Pull strategy, in the advertising used in this stage.
- Push all customers to get our product, and also the doctors tojoin our marketing campaign and marketing
program.
- Pull the retails and beauty center and clinics and mega stores for home appliances to purchase our medical
supplies, and the customer to ask for thetelemedicine service

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Marketing Budgeting
A bottom-up approach, where the budget is set according to the cost of Integratedmarketing communication
(IMC) activities that fulfill the communication objective.

MARKETING PROGRAMS
Marketing Mix
Product:

- We will use a differentiation approach

and develop a unique solution to be able
to achieve a market penetration strategy
for the middle time and a market
development strategy for in the long term for product and services
Pricing:

- We will you Cost plus pricing.Place:

- The main activity will be online with the online store but also, but we will go to the
Marketing campaign providers to offer the solution.
Promotion:
The promotional plan will be through four main ways:
1. Advertising.
2. Interactive Marketing.
3. Personal selling through the sales team.
4. Sales Order Taker.

Major players: in the market include P&G Group Inc., Be tech – Philips – Samsung – Kenwood -
private hospitals – famous beauty centers, and clinics.

Page 75 of 79
Financial projections
The Procter & Gamble Company
Consolidated Balance Sheets

Amounts in millions except stated values; As of June 30 2021 2020

ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 10,288 $ 16,181
Accounts receivable 4,725 4,178
Inventories
Materials and supplies 1,645 1,414
Work in process 719 674
Finished goods 3,619 3,410
Total inventories 5,983 5,498
Prepaid expenses and other current assets 2,095 2,130
TOTAL CURRENT ASSETS 23,091 27,987
PROPERTY, PLANT AND EQUIPMENT, NET 21,686 20,692
GOODWILL 40,924 39,901
TRADEMARKS AND OTHER INTANGIBLE ASSETS, NET 23,642 23,792
OTHER NONCURRENT ASSETS 9,964 8,328
TOTAL ASSETS $ 119,307 $ 120,700

LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES
Accounts payable $ 13,720 $ 12,071
Accrued and other liabilities 10,523 9,722
Debt due within one year 8,889 11,183
TOTAL CURRENT LIABILITIES 33,132 32,976
LONG-TERM DEBT 23,099 23,537
DEFERRED INCOME TAXES 6,153 6,199
OTHER NONCURRENT LIABILITIES 10,269 11,110
TOTAL LIABILITIES 72,653 73,822
SHAREHOLDERS' EQUITY
Convertible Class A preferred stock, stated value $1 per share (600 shares authorized) 870 897
Non-Voting Class B preferred stock, stated value $1 per share (200 shares authorized) — —
Common stock, stated value $1 per share (10,000 shares authorized; shares issued:
2021 - 4,009.2, 2020 - 4,009.2) 4,009 4,009
Additional paid-in capital 64,848 64,194
Reserve for ESOP debt retirement (1,006) (1,080)
Accumulated other comprehensive loss (13,744) (16,165)
Treasury stock, at cost (shares held: 2021 - 1,579.5, 2020 -1,529.5) (114,973) (105,573)
Retained earnings 106,374 100,239
Noncontrolling interest 276 357
TOTAL SHAREHOLDERS' EQUITY 46,654 46,878
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 119,307 $ 120,700

The Procter & Gamble Company

Consolidated Statements of Comprehensive Income

Amounts in millions; Years ended June 30 2021 2020 2019

NET EARNINGS $ 14,352 $ 13,103 $ 3,966
OTHER COMPREHENSIVE INCOME/(LOSS), NET OF TAX
Foreign currency translation (net of tax of $(266), $59 and $78, respectively) 1,023 (1,083) (213)
Unrealized gains/(losses) on investment securities (net of tax of $5, $(1) and $0, respectively) 16 (12) 184
Unrealized gains/(losses) on defined benefit retirement plans (net of tax of $445, $(42) and $22, respectively) 1,386 (150) 169
TOTAL OTHER COMPREHENSIVE INCOME/(LOSS), NET OF TAX 2,425 (1,245) 140
TOTAL COMPREHENSIVE INCOME 16,777 11,858 4,106
Less: Total comprehensive income attributable to noncontrolling interests 50 60 70
TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO PROCTER & GAMBLE $ 16,727 $ 11,798 $ 4,036

Page 76 of 79
The Procter & Gamble Company
Consolidated Statements of Shareholders' Equity

Common Stock
Accumulated Other
Reserve for ESOP Debt Comprehensive
Dollars in millions except per share amounts; shares in thousands Shares Amount Preferred Stock Additional Paid-In Capital Retirement Income/(Loss) Treasury Stock Retained Earnings Non-controlling Interest Total Shareholders' Equity
BALANCE JUNE 30, 2018 2,498,093 $ 4,009 $ 967 $ 63,846 $ (1,204) $ (14,749) $ (99,217) $ 98,641 $ 590 $ 52,883
Impact of adoption of new accounting standards $ (326) $ (200) $ (27) (553)
Net earnings 3,897 69 3,966
Other comprehensive income/(loss) 139 1 140
Dividends and dividend equivalents ($2.8975 per share):
Common (7,256) (7,256)
Preferred (263) (263)
Treasury stock purchases (53,714) (5,003) (5,003)
Employee stock plans 55,734 93 3,781 3,874
Preferred stock conversions 4,638 (39) 6 33 -
ESOP debt impacts 58 99 157
Noncontrolling interest, net (118) (248) (366)
BALANCE JUNE 30, 2019 2,504,751 $ 4,009 $ 928 $ 63,827 $ (1,146) $ (14,936) $ (100,406) $ 94,918 $ 385 $ 47,579
Net earnings 13,027 76 13,103
Other comprehensive income/(loss) (1,229) (16) (1,245)
Dividends and dividend equivalents ($3.0284 per share):
Common (7,551) (7,551)
Preferred (263) (263)
Treasury stock purchases (61,346) (7,405) (7,405)
Employee stock plans 32,603 362 2,212 2,574
Preferred stock conversions 3,738 (31) 5 26 -
ESOP debt impacts 66 108 174
Noncontrolling interest, net (88) (88)
BALANCE JUNE 30, 2020 2,479,746 $ 4,009 $ 897 $ 64,194 $ (1,080) $ (16,165) $ (105,573) $ 100,239 $ 357 $ 46,878
Net earnings 14,306 46 14,352
Other comprehensive income/(loss) 2,421 4 2,425
Dividends and dividend equivalents ($3.2419 per share): -
Common (8,020) (8,020)
Preferred (271) (271)
Treasury stock purchases (81,343) (11,009) (11,009)
Employee stock plans 28,001 650 1,586 2,236
Preferred stock conversions 3,302 (27) 4 23 -
ESOP debt impacts 74 120 194
Noncontrolling interest, net (131) (131)
BALANCE JUNE 30, 2021 2,429,706 $ 4,009 $ 870 $ 64,848 $ (1,006) $ (13,744) $ (114,973) $ 106,374 $ 276 $ 46,654

The Procter & Gamble Company

Consolidated Statements of Cash Flows

Amounts in millions; Years ended June 30 2021 2020 2019

CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF YEAR $ 16,181 $ 4,239 $ 2,569
OPERATING ACTIVITIES
Net earnings 14,352 13,103 3,966
Depreciation and amortization 2,735 3,013 2,824
Loss on early extinguishment of debt 512 - -
Share-based compensation expense 540 558 515
Deferred income taxes (258) (596) (411)
Loss/(gain) on sale of assets (16) 7 (678)
Goodwill and indefinite-lived intangible impairment charges - - 8,345
Change in accounts receivable (342) 634 (276)
Change in inventories (309) (637) (239)
Change in accounts payable, accrued and other liabilities 1,391 1,923 1,856
Change in other operating assets and liabilities (369) (710) (973)
Other 135 108 313
TOTAL OPERATING ACTIVITIES 18,371 17,403 15,242
INVESTING ACTIVITIES
Capital expenditures (2,787) (3,073) (3,347)
Proceeds from asset sales 42 30 394
Acquisitions, net of cash acquired (34) (58) (3,945)
Purchases of investment securities (55) - (158)
Proceeds from sales and maturities of investment securities - 6,151 3,628
Change in other investments - (5) (62)
TOTAL INVESTING ACTIVITIES (2,834) 3,045 (3,490)
FINANCING ACTIVITIES
Dividends to shareholders (8,263) (7,789) (7,498)
Increases/(reductions) in short-term debt (3,333) 2,345 (2,215)
Additions to long-term debt 4,417 4,951 2,367
Reductions of long-term debt (1) (4,987) (2,447) (969)
Treasury stock purchases (11,009) (7,405) (5,003)
Impact of stock options and other 1,644 1,978 3,324
TOTAL FINANCING ACTIVITIES (21,531) (8,367) (9,994)
EFFECT OF EXCHANGE RATE CHANGES ON CASH, CASH EQUIVALENTS AND RESTRICTED
CASH 101 (139) (88)
CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH (5,893) 11,942 1,670
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF YEAR $ 10,288 $ 16,181 $ 4,239

SUPPLEMENTAL DISCLOSURE
Cash payments for interest $ 531 $ 434 $ 497
Cash payments for income taxes 3,822 3,550 3,064
(1)
Includes early extinguishment of debt costs of $512 in 2021.

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Conclusion

• This study is based on strategic analysis tools including internal and external analysis through using
(PESTEL, CPM, EFAS, IFAS, SWOT, TOWS,and QSPM analysis)
• Based on this analysis we came up with 3 strategic alternatives that enhance the company's position in
the market and enable it from competingwell.
• The applied strategies will support the transformation of the home appliances and beauty care sector into
a digitalized and innovative sector which will generate new business opportunities to ensure the
continued competitiveness, growth,and sustainable development of the sector.
• And according to the strategic plan and business plan, the expected duration forthe company strategy is 5
years to be reevaluated every year. Finally, the success of the company will be through continuous
monitoring and evaluation.
• Disruptions happen, and it is how a business pre-plans for it that determines its survival. Failure to
prepare for disruptions is what causes many seemingly profitable enterprises to become insolvent when
disruptions cause economically distressing events. And whereas companies like BRAUN are very
experienced in the home appliances and beauty care industry.
• As Christopher Tang pointed out in his article on Robust Strategies,62 companies perhaps do not take
appropriate measures because they underestimate the risk in the absence of accurate supply chain risk
assessment; or companies are not familiar with ways to manage supply chain risks (which is highly
unlikely in the case of (BRAUN ) or that perhaps companies inaccurately estimate the probability that a
major disruption would occur and are thus, unable to effectively perform a cost-benefit analysis, or
return on investment analysis to justify resources channeled towards.

• risk reduction programs or contingencies. Accordingly, a company’s complete preparations for

disruptions like those discussed in this paper can be synonymized with taking out property insurance. It
may never be used. But should the need arise, it can protect a business from an economically distressing
situation that can cause a seemingly profitable enterprise to snowball into insolvency.

• The need for industries to have elaborate policies in place to cater to both anticipatable disruptions, as
well as disruptions resulting from acts that are beyond human control, like natural disasters, wars,
terrorist attacks, and pandemics cannot be overemphasized. Because these disruptions are usually far
and wide apart, albeit unsystematic, very few companies dedicate the right amount of resources for
disruption planning since, as the saying goes, no one ever gets credit for a problem that never really
happened.

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References
1- https://us.pg.com/annualreport2021/
2- https://us.braun.com/en-us/
3- https://us.pg.com/annualreport2021/financial-highlights/
4- https://www.imf.org/en/Publications/WEO/Issues/2022/07/26/world-economic-outlook-update-july-2022
5- https://www.worldbank.org/en/country/egypt/overview
6- https://www.worldbank.org/en/country/egypt/publication/economic-update-april-2022
7- https://www.theglobaleconomy.com/Egypt/wb_political_stability/
8- http://info.worldbank.org/governance/wgi/Home/Reports
9- https://www.worldbank.org/en/country/egypt/overview
10- https://www.worldbank.org/en/country/egypt/publication/economic-update-april-2022
11- https://tradingeconomics.com/egypt/gdp-growth-annual
12- https://tradingeconomics.com/egypt/inflation-cpi
13- https://tradingeconomics.com/egypt/currency
14- https://tradingeconomics.com/egypt/unemployment-rate
15- https://data.worldbank.org/indicator/SP.POP.GROW?end=2021&locations=EG&start=1961
16- https://www.worlddata.info/africa/egypt/populationgrowth.php
17- https://www.capmas.gov.eg/Pages/IndicatorsPage.aspx?Ind_id=1063
18- http://www.mti.gov.eg/Arabic/Pages/reports.aspx?folder=%D8%AA%D9%82%D8%A7%D8%B1%D9%8A%D8%B1
%20%D8%A7%D9%84%D9%82%D8%B7%D8%A7%D8%B9%D8%A7%D8%AA/%D9%82%D8%B7%D8%A7%D8%B9
%20%D9%86%D8%B8%D9%85%20%D9%88%D8%AA%D9%83%D9%86%D9%88%D9%84%D9%88%D8%AC%D9%
8A%D8%A7%20%D8%A7%D9%84%D9%85%D8%B9%D9%84%D9%88%D9%85%D8%A7%D8%AA

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