The expansion of Franke into Egypt.

Abstract

The aim of this study is to identify the opportunities that currently exist in the Egyptian market in order for Franke to make a decision on the expansion of their business into this market. In order for the Board of Directors to make a quality decision they require good and accurate information. In line with the Franke growth strategy Franke South Africa was given the clear directive to grow the market share on the African continent. With this continent being as diverse as it is and suffering from many years of poverty, a focused strategy is required. With this in hand a study of the African continent was undergone and a couple of markets were identified as targets for either a take-over or new formation. With the information gathered on Egypt it became clear that this would be the ideal market to establish another Franke operation. Egypt has many positive issues that attract a decision like this of which the local market size, geographical position, COMESA membership and the fact that the market is well structured form the backbone. Based on this Business Plan, which researches all the relevant issues required to make a quality decision, an investment could be qualified and supported. It focuses on the possible target as well as elaborates on the medium term forecasted performance of the new setup.