Economic Crisis and Business Enterprises: Analyzing Egypt’s Economic Status Between 2011 and 2013: A Comparative Study

Mona Badran

Abstract


Egypt’s current economic status is indeed facing major changes. This has resulted mainly from Egypt’s current political turmoil starting January 2011 revolution till June 2013 continued revolution stage. This research aims at analyzing Egypt’s economic status starting January 2011 till June 2013. Also, this research explains the strategic approaches adopted to face economic crisis in a country like Egypt. The purpose of this research is achieved through answering its main research question, which is how has business enterprises survived and even made revenues in a country facing political turmoil and economic crisis?

The research discusses the impact of economy on business enterprises since the Egyptian revolution in January 2011, as since then the economy of Egypt has been going from bad to worse. This is perceived in the increase of the unemployment rate that results in budget deficit and a loss in the value of the Egyptian pound. Also, matters are becoming worse with the increase in the lack of security. There has been a massive decline in the industrial production as most of the companies are government owned and the government is actually running out of money. And foreign investment has almost dried up because of the unstable conditions in Egypt regarding politics and security forces.

This research includes a comparative study between two different sectors, which are Fast Moving Consumer Goods and Textile. According to the objective of the study, the data required for this research is maintained through applying the appropriate research methodological approach, which is conducting intensive interviews with the regional marketing director of PepsiCo snacks in North Africa and the general manager of Mega Textile Company in Egypt in order to understand how such companies reacted to such a crisis and what are the followed strategies that helped them in a market facing political turmoil and economic crisis.
Results signify the marketing strategies such companies apply in the market to achieve its revenues. Also the results of the applied methodological approach have shown the relation between the studied companies and its loyal customers. Based upon research, this study includes recommendations for a better economic status in Egypt.

Keywords: Economy and business, Strategies, Egypt, Economic crisis, Textile, FMCG


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