COMPANY PROFILE

WHO WE ARE?

has had it's ups and downs, its highs and lows and in a country where history is rich, it has stood
the test of time, resurrecting itself time and time again, becoming a beacon, symbol and icon of
modern Egypt.

Founded in 1856, Omar Effendi was first christened Orosdi Bak, over the past century Omar
Effendi has molded itself to match the needs of the Egyptian public, becoming more then icon in
the country, becoming the primary brand for inexpensive quality goods. The first flagship store,
which still stands today, on Abdel-Aziz Street, was originally built to cater to well-heeled foreign
and Egyptian customers. Since then the company has gone through various transformations
opening up over 60 branches throughout the start of the 1900's. Adolf Orosdi was a Hungarian
army officer, who had found refuge in the Ottoman Empire, opened a first clothing store in
Galata in 1855. With the Back family, of Austrian-Hungarian descent, Orosdi and his sons began
establishing similar stores elsewhere, including Baghdad, Istanbul and Beirut.

Some older Egyptians may still remember Orosdi-Back, that famous turn-of-the-century
department store which early on added the Turkish-derived "Omar Effendi" to its name. The six-
story rococo department store designed in 1905-6 by Raoul Brandon (1878-1941) stands at the
corner of Abdelaziz and Rushdi Pasha Streets, a powerful architectural testimonial to Cairo till
today.
Orsodi Bak became Omar Effendi in 1920 when it was sold to new owners, it was then
nationalized in 1957, with over 69 branches up and running and one of the first brand to exist in
Egypt and the Middle East. This was the first major retail entity to exist in the region.

Since nationalization the department store has weathered major changes, fluctuating between an
iconic and deteriorated status. Throughout the 20th century, the sixty-some stores became centers
for inexpensive goods with quality. The stores lost some of their luster; lacking in the
infrastructure that was pivotal in competing with other huge stores propping up in a modern
market.

OUR DEPARTMENTS:

Women wear & lingerie

Women accessories
Men wear
Kids wear
Footwear
Perfumes, make up & cosmetics
Linen
Home accessories
Heavy households
Electronics & small appliances
Furniture
Sports goods
Carpets
Luggage
Furniture

OUR PROMISE:

To Go Through new shopping experience where you can buy the latest in cosmetics, everything
you need for dinner, a brand new outfit for a night out and a new lazy boy for your living room,
all wrapped up in a delicious, inviting and tantalizing package, making for a quality shopping
experience. Combining the latest in fashion, sophistication and style in a unique environment, is
just what the doctor ordered, and Omar Effendi is a very fabulous remedy.
MISSION

• Providing good quality products with good service to Egyptian families while making sure the
family members are finding all their needs and goods while feeling safe, satisfied, appreciated
and having a good time shopping at Omar Effendi

VISION

• Core Ideology

• Core Values

• Become the wide spread market leader in retail industry

• Elevation of the Egyptian culture and national status

• Being a pioneer, not following others

• Being a benchmark for Egyptian and foreign alike hyper markets

• Purpose

• Families satisfied and feeling happy relying on us

• Envisioned Future

• BHAG

• Become the Arab nations most known for retailing and families products

• Vivid Description

• We will provide people with products that can find nowhere else.

• We will be the first Egyptian company to go into the Arab countries market and distribute
directly.

• We will succeed with dedication to work and sticking to high standards

• In 30 years time our name will be as well known as any in the world.

• “Omar Effendi” will mean something fine, not something bad.

GOALS AND OBJECTIVES

 • Being the market leader in the retail industry of goods we provide

• Facilitating the purchasing process on customers

• Facilitating products delivery to customers

• Providing a fun and joyful place for customers

• Strengthening the position of OE in the customers perception

• Maximizing the target market to contain the high population

• Lead and force the competitors to a good competitive environment

Political Economical
. High pressure of the instability due to unrest &
protests . With less income coming in to Egyptian families, the
. political power of government demand for goods, services and their retailers grew

Social
. Egyptian consumers got used to hyper markets and
Malls
. Consumers perceive going to Malls as fun and getting
out to spend spare time plus shopping
. There is a shift to brands, shifting consumer
Confidence to brands rather than retailers
Technological
. Technology seekers but within the budget that can
allow them
. Quick to adopt new tech as they were developed and
adapt them to their operations

LEGAL

Government protects governmental enterprises

The Egyptian government has proven its commitment to ease doing business in the country which was
reflected in recent tax reformation
The government is looking to develop an efficient retail environment supporting various sectors of the
growing economy.
OMAR EFFENDI SWOT ANALYSIS
Strengths
- Wide Network of branches around the country – 83
branches
- Highly Equipped Warehouses to Receive Any Kind of
Goods except Food & Beverage.
- The Good Reputation from Establishment Until early
90's.
- The Strategic Geographical place of the branches.
- The Internal Design of the Branch It Self to ready to
be flexible with any kind of LSM Plans and internal
planning for the sections.
- Fleet of Trucks and cars to move the goods.
- More Than155 In Market of retail
- Meet the various needs of customers at all levels
- From The 60's to 90's OE Known for its Quality in all
type of goods.
Opportunities
- High reach ability
- To get into strategic alliances with retailers
- Reputation of the big network
- The wide spread phenomenon of big malls
emergence provide an opportunity for each store to
act as a mall on its own
- Old customers coming back to OE and their
recommendations and word of mouth
Weaknesses
- Unqualified man power.
- Unfortunate choice for the suppliers and goods.
- The standards of cleanliness.
- The Internal and the external lighting system of
the store
- Bad arrangement of the exhibits
- Poor methods of presentation within and outside
the shop
- The Exhibits out-dated
- No Price competitive advantage
- Lack of sales promotions and discounts
- Lack of effective advertising
- Absence of the internal marketing tools
- There's no unified external design for the stores.
The Colour of the brand does represent the real
image of the brand
Threats
- Current political situation and its effect on
customers, suppliers attitude and vendors
attitudes
- Customers are focusing on basic products only
- Competitor’s reactions
- Suppliers and vendors bargain and pressure
 To get into Merge with well
strategic alliances known and well
with retailers established brands

To be used in promo

High reach ability Old customers,

although we will use
that in our

Promotional
campaign

Current political Suppliers and

situation vendors bargain and
pressure

Customers are Competitor’s

focusing on basic reactions
products only
SWOT AND TOWS ANALYSIS FOR STRATEGIES
FORMATION
Strategies Internal strengths
Tactics
Actions - Network of branches – 83
branches
- Highly Equipped Warehouses
- The Good Reputation
- The Strategic Geographical
place
- The Internal Flexible Design of
the Branches
- Fleet of Trucks and cars to
move the goods
- Meet the various needs of
customers at all levels
- Quality in all types of goods.
Internal weaknesses
- Unqualified man power.
- Unfortunate choice for the
suppliers and goods.
- The standards of cleanliness.
- Poor physical evidences
- Poor methods of presentation
within and outside the shop
- The Exhibits out-dated
- High Prices
- Lack of sales promotions and
discounts
- Lack of effective advertising
- Absence of the internal
marketing tools
- There's no unified external
design for the stores.
 External opportunities
- High reach ability
- Reputation of the big network
- The wide spread phenomenon
of big malls emergence
provide an opportunity for
each store to act as a mall on
its own
- Old customers coming back to
OE and their recommendations
and word of mouth
External threats
- Current political situation and
its effect on customers,
suppliers attitude and vendors
attitudes
- Customers are focusing on
basic products only
- Competitor’s reactions
- Suppliers and vendors bargain
and pressure
S-O strategy
- To merge with well known and
well established brands
providing areas and sections
“i.e.: Toshiba, LG, Pizza
restaurants, IKEA,
Telecommunication providers”
- To get into strategic alliances
with retailers and vendors
“Long term contractual
agreements”
S-T strategy
- Use the high number of
branches to make a Strategic
Alliance with a well known
Supermarket
- Offer competitive prices and
position the near store idea
- Have different products other
than that’s being offered by
competitors
W-O strategy
- Improve a standard physical
evidence in all the branches
- Transforming the branches
into Mall alike
- Position the good quality of
the products
- Extra care to cost reduction
and value chain to reflect and
be able to give sales
promotions
W-T strategy
- Develop flexible payment
plans to be used with suppliers
and vendors
- Develop a strong promotional
campaign positioning quality
then price
- Use the current situation of
lack of job opportunities in
having new employees,
filtering the current, offering
internal trainings on the
highest levels of customer
etiquette
- Have a price margin for
competitors reactions and to
do unpredictable actions from
our side
COMPETITOR ANALYSIS

Carrefour: “Strongest competitor” further analysis later,

• International company operating with regional partner Maijd Al-Futtaim Group.
• Market leader, driving trend towards hypermarket shopping in Egypt.
• Plans further developments targeting affluent segments of society.

Metro Supermarkets:
• Domestic chain owned by Mansour Group.
• Mainly mini-markets in middle-income residential areas.
• The company has introduced discount format at three stores under the name Kheir Zaman.

Spinneys:
• Gulf retailer is present in Cairo’s CityStars modern shopping facility.
• Plans further expansion in the country.

Alfa:
• Established Egyptian chain of department stores with an aging profile.

HyperOne:
• Owned by Egyptian retailer El-Hawary.
• More discount oriented than Carrefour, targeting average and lower income.
• Located outside central Cairo.

Carrefour

Company:

Carrefour Egypt started fully functioning at the end of 2002 and the other stores opened thereafter, and since that time
Carrefour is the most popular retailer in Egypt and it’s characterized by:

Carrefour is Egypt's most dynamic, fast-moving and exciting hypermarket chain - Carrefour! A joint
venture company by Majid al Futtaim and Carrefour France, this global expertise helps them offer
shoppers here in Egypt the same quality, variety and value-for-money that is provided all over the world.
Carrefour reputation has been built, above all, on the quality and freshness of the products, customer service and
competitive prices. Selling goods with quality choices in food, personal care, communication, leisure, entertainment and
household goods while continually meeting the needs of local consumers, with the ranging from needed to refrigerate food
to clothes under one roof, is trendy as shoppers pick specialized stores.

Services provided by Carrefour:

Consumer Goods:
* Beverages
* Detergent/ Perfumery/ Health Care
* Grocery
* Ultra Fresh
* Dairy Products
* Delicatessen
* Poultry
* Frozen Food

Market:
* Delicatessen Counter
* Dairy Products Counter
* Butchery
* Fishery
* Bakery
* Pastry
* Fruits and Vegetables

Light Household:
* Do It Yourself
* House ware
* Stationery
* Camping and Gardening
* House Equipment
* Car
* Toys
* Library
* Sports
* Luggage

Heavy Household:
* Household Goods
* Photo
* Computers and Office Automation
* Gift and Shop
* TV and VCR
* Hi Fi Sound
* Appliances
* Music
* Mobility

Textile:
* Home Linen
* Baby
* Children
* Ladies
* Men
* Shoes
* Accessories
Carrefour offers the widest choice of products you can find anywhere under one roof in a spacious area where
you and your family can enjoy shopping for all your needs at the lowest price!

Free Parking: The idea of a free parking and multiple checkouts makes the shopping experience at Carrefour
so convenient!

Fresh: Due to the speed of turnover of products, you can guarantee that the food is always more fresh than
anywhere else!

Credit Cards: We accept all major credit cards.

Ecological Bag: Carrefour is giving its customers the chance to be part of protecting the environment and
saving the world.

Gift Vouchers: We offer you also a gift voucher that helps if you don't know what they really need!

100% Guarantee: Rest assured that all the electrical products come with a full guarantee!

Installment: Installment of Every Electrical Appliance in Carrefour.

Coverage:

Carrefour has Four branches as follows:

 Maadi: covers Maddi, Katamya, New Cairo, Mohandseen and Giza

 Dandy Mall: covers October, Haram, Giza and Mohandseen
 Obbour: covers Obbour, Shorouk and Orabi
 City center: covers Alexandria

The main competition will come through Maadi and Dandy Mall branches as they are the nearest
to Giza area.

http://www.carrefour.com.eg/services.aspx
 THE VALUE CHAIN

Omar Effendi Value Creating Activity Value Created

Store merchandise in distribution center Buy in volume at attractive prices

Centralized purchasing (in store terminal + central computer) Inventory control

Central computers linked to several hundred vendors Expedited deliveries

Hub-and-spoke distribution network (400+ truck tractors) Less than 48 hour delivery and backhauls

Inbound logistics Distribution network

Leasing costs More capital (high sales/sq.ft. & bargain-basement acquisition

Store manager salary Autonomy in ordering stock and setting up displays

Store renovations Upscale look

Licensing fees Specialty departments

Computerized system in each store Computerized inventory system to track sales and do accounting

Ease real-time communication to headquarters and cap phone costs

Satellite system ($10 million)

Speed checkouts, bypass, paperwork, simplify inventory, reorders, post

UPC at point of sale audits

Increased store size (42 to 85,000 sq. ft.) and more locations More floor space and increased efficiency of delivery trucks

Advertising expenditures Newspaper, circulars, and spot TV to advertise promotions

Terms of sale No questions asked return policy, credit transactions

Computer aided design Merchandise mix for each store based on 100 factors

Employee salaries "We care about our people" reduced shrinkage to 1.3% of sales

Administrative costs Regional vice-presidents living in Bentonville and flown to stores

Warehouse club Sam's club diversification

Category of Sales Description

Soft goods sales Apparel, linen, and fabrics

Hard goods sales Hardware, house ware, automotive, small appliances

Stationary and candy

Sporting goods and toys

Health and beauty aids

Gifts, records, and electronics

Shoes

Pharmaceuticals

Jewelry
KPI AND CONTROL

• What’s the percent of change in the market share?

…….%

• Which segment got us the highest value?

SOHO/Retail – SMB – Major Accounts – Government Tenders

• If our market share has been maximized, it was ON the account of which competitor?

Tawheed & Nour – Carrefour – Spinny’s – Malls – other shops

• If our market share has been minimized, it was TO the account of which competitor?

Tawheed & Nour – Carrefour – Spinney’s – Malls – other shops

• Other competitors market shares

T & N ….%– Carrefour ….%– Spinney’s ….%– Malls ….%– Others….%

• Sales percent of change

…….%

• Results: Value – Volume

Value: Volume: