Introduction: Sunday’s International restaurant is one of the world leading restaurants

among the hospitality industry and currently wants to open its new branch in some
new European countries such as Hungary, Bulgaria, Romania, Turkey and including
one of the top Middle East market such as Egypt. Though the Sunday’s International
restaurant groups have various choices to open its new branch but the chief executive
officer wants the best country favorable to do new investment by opening its new
branch. The general manager assigned me to a report to determine the approach
(Political, economical, social, cultural, and technological) to those selected countries.

Sunday’s International restaurant has branch almost every country in the Europe. The
head office of Sunday’s international restaurant is Located in New York, USA. It is
supreme to provide luxury restaurant experience to its values customers includes
tourist, business travelers with in competitive prices. The Sunday’s restaurant group
has wide range of employees. The demand of the restaurant high class services
increase gradually due to the offer of the competitive prices. These chain groups of
restaurant generate revenue every year is approximately 20 million pounds and its
increasing day by day.

After having read the various researches the general manager has decided to open its
new branch one of the top tourist destination country and its called Egypt therefore I
am going to research and outline the international manager’s environment of Egypt in
order to ensure success for new business venture.

Introducing with Egypt and Tourism of Egypt:

• Location: North East Africa bordering Palestine (Gaza Strip) 11 km, Israel
266 km, Libya
1,115 km, Sudan 1,273 km
• Capital: Cairo
• Climate: desert; hot, dry summers with moderate winters
• Population: 76,117,421 (July 2004 EST.)
• Ethnic Make-up: Eastern Hamitic stock (Egyptians, Bedouins, and Berbers)
99%, Greek, Nubian,
Armenian, other European (primarily Italian and French) 1%
 • Religions: Muslim (mostly Sunni) 94%, Coptic Christian and other 6%
• Government: republic

Egypt enjoys a unique geographical location in the heart of the world between Asia,
Africa and Europe; thus serving as a media for all types of tourism to flourish due to
the fact that it contains about one third of the world’s monuments. For over more than
7,00 years, Egypt has been well-known for its remarkable historic heritage and deep-
rooted civilization, thus became the melting pot for the pharaonic, Greek, Roman,
Coptic and Islamic civilizations to mix and interchange, leaving behind a huge
amount of monuments and rendering Egypt a unique country on the map of
international tourism. Most people who think of Egypt think of antiquities, but Egypt
offers much more. Certainly it is a prime location to see our great heritage from the
ancient world, including Pyramids and wonderful temples, but it is also part of
the Holy Land, and tours to Christian and other religious monuments are popular.

Cairo is vibrant bustling capital of Egypt and cultural, business and political centre of
the Middle East. Cairo is an amazing city full of life and movement and it is that way
almost 24 hours a day with the constant noisy honking of horns and hum of traffic.
Cairo is one of the world's largest urban areas and offers everything any visitor who
wants an unforgettable, astonishing and simply enjoyable holiday in Egypt could
desire. Cairo is not just a highlight of a holiday in Egypt, it’s a genuinely world class,
once in a lifetime experience not to be missed. Every year for all these attraction more
then 1 Billion us dollar revenue Egypt earn just from the travel industry.

The Political Environment in Egypt: The government of Egypt consists of a semi-

presidential republic whereby the president is both head of state and head of
government, and of a system dominated by the National Democratic Party. Executive
power is exercised by the government. Legislative power is vested in both the
government and the Political system: The main principles of the Egyptian Political
system which are: Peace through:

• Freedom,
• Arab Unity,
 • National Development.

The constitution establishes Egypt as a "Democratic State", deriving its sovereignty

from the people, and as part of the Arab World.

It proclaims the system of government as a multi-party Semi-presidential system

within the framework of the basic principles and components of the Egyptian society.

The Constitution upholds the concept of separation of powers; hence balances the
powers of the three main authorities (Executive, Parliament, and the Judiciary).

Within this scheme, the Parliament monitors the actions of Executive Authority
through many mechanisms and instruments, and in order to fulfill such monitoring
role, members of the People's Assembly enjoy parliamentary immunity.

The Constitution establishes party plurality as the foundation of the political system
(Article 5) and so allows the formation of different political parties, however political
parties are not allowed to be established based on any discriminatory basis such as
religion, race or sex.

The Constitution also sets out methods for its own amendment by the request of either
the People's Assembly or the President's. Both of which have to be subjected to a
public referendum, after being voted for by at least two-thirds of the Assembly
People's Assembly.

Background of politics: Egypt has been a republic since 18 June 1953. Since the
declaration of the republic, four Egyptians have served as presidents. The first
President to take office was President Mohamed Naguib. The People’s
Assembly: The People's Assembly is the principal legislative body. Out of the
assembly’s 454 deputies, 444 are directly elected while no more than 10 may be
appointed by the President (article 87 of the Constitution). The Constitution
reserves fifty percent of the assembly seats for ‘workers and peasants’. The
assembly sits for a five-year term but can be dissolved earlier by the President.

Parliamentary elections: The formation of political parties based on religion is

prohibited by the Constitution. The official opposition and political pressure groups,
like the Muslim Brotherhood, are active in Egypt and make their views public. They
are represented at various levels in the political system. However, power is
concentrated in the hands of the President of the Republic and the National
Democratic Party which retains a super-majority in the People's Assembly.

Political parties and elections: According to the Egyptian Constitution, political

parties are allowed to exist. Religious political parties are not allowed as it would not
respect the principle of non-interference of religion in politics and that religion has to
remain in the private sphere to respect all beliefs. In addition, political parties
supporting militia formations or having an agenda that is contradictory to the
constitution and its principles, or threatening the country's stability such as national
unity between Muslim Egyptians and Christian Egyptians.

Civil society: Egyptians have been living under emergency law since 1967, except for
an 18-month break in 1980. Emergency laws have been continuously extended every
three years since 1981. These laws sharply circumscribe any non-governmental
political activity: street demonstrations, non-approved political organizations, and un-
registered financial donations are formally banned. Nonetheless, since 2000, these
restrictions have been violated in practice.

Political pressure groups and leaders: The Muslim Brotherhood currently

constitutes Mubarak's most significant political opposition; Mubarak tolerated
limited political activity by the Brotherhood for his first two terms, but has
moved more aggressively in the past six years to block its influence (arguably
leading to its recent rise in public support). Trade unions and professional
associations are officially sanctioned.

Operational risk: The Middle East & North Africa region includes several wealthy oil
Producing nations and is characterized by regional instability and periods of regional
violence.
Transfer risk: With the World Bank forecasting oil prices to remain below their peak
levels for the foreseeable future, there region will continue to face economic
Challenges.
In addition to falling oil prices, the global economic slowdown has
Impacted the region through reduced tourism and tightening credit conditions.
The Egyptian economy has been evolving from a highly nationalized, government-
controlled platform to a more market driven model.
• While the Egyptian economy is relatively large and diversified it is heavily reliant
on world economic conditions due to its large export and tourism sectors.

Ownership control risk: The government has made some progress toward divesting its
ownership of public banks.
• The Egyptian Insurance Supervisory Authority (EISA) was formed in 1981 and
supervises the insurance industry.

The Egyptian Legal environment: The Egyptian legal system is built on the
combination of Islamic (Shariah) law and Napoleonic Code, which was first
introduced during Napoleon Bonaparte’s occupation of Egypt and the subsequent
education and training of Egyptian jurists in France. The Egyptian legal system,
being considered as a civil law system, is based upon a well-established system
of codified laws. Egypt’s supreme law is its written constitution. Egypt has three
level of power: The Executive Power, The Legislative Power, and The Judicial
Power.

The Executive Power: The President of Egypt is the Head of the State, and he is also,
under the Egyptian Constitution, the Supreme Commander of the Armed Forces and
Head of the Executive Authority (the Egyptian Cabinet).Under the others executive
power are following:

• The president
• Cabinet
• The prime minister
• Ministers

The Legislative Power: The Parliament of Egypt is geographically located in Cairo.

As the legislative authority, it has the power to enact laws, approve general policy of
the State, the general plan for economic and social development and the general
budget of the State, supervise the work of the government, ratify international
conventions, and the power to vote to impeach the President of the Republic or
replace the government and its Prime Minister in a vote of no-confidence.

Legislative powers are following:

• Parliament:
• People assembly
• Jurisdiction
• Bodies
• Committees
• Shura council
• Condition and candidature
• Term of membership and activities

The Judicial Power: As the third and independent authority of the State, the Egyptian
Judiciary is comprised of secular and religious courts, administrative, non-
administrative courts and a Supreme Constitutional Court, and penal courts, civil and
commercial courts, personal status and family courts, national security courts, labour
courts, military courts, as well as other specialized courts or circuits.

Judicial powers are following:

• The supreme constitutional court

• Court of cassation
• Court of appeal
• Court of first instance
• Family court
• Egyptian state lawsuits authority
• Public prosecution
• Courts of jurisdiction arbitration
• Enforcement of arbitral awards
• Primary materials: Political parties, Major parties, minor parties,
governorates.
The Cultural Environment in Egypt:

• Language in Egypt: For almost 13 centuries Arabic has been the written and
spoken language of Egypt. Before the Arab invasion in AD 639, Coptic, the
language descended from ancient Egyptian, was the language of both
religious and everyday life for the mass of the population; by the 12th
century, however, it had been totally replaced by Arabic, continuing only as a
liturgical language for the Coptic Orthodox Church. Arabic has become the
language of both the Egyptian Christian and Muslim. The written form of the
Arabic language, in grammar and syntax, has remained substantially
unchanged since the 7th century. In other ways, however, the written
language has changed the modern forms of style, word sequence, and
phraseology are simpler and more flexible than in classical Arabic and are
often directly derivative of English or French.

Religion status: “Islam” is practiced by the majority of Egyptians and governs

their personal, political, economic and legal lives. Islam emanated from what is
today Saudi Arabia. The Prophet Muhammad is seen as the last of God's emissaries
(following in the footsteps of Jesus, Moses, Abraham, etc) to bring revelation to
mankind. He was distinguished with bringing a message for the whole of mankind,
rather than just to a certain peoples. Among certain obligations for Muslims are to
pray five times a day - at dawn, noon, afternoon, sunset, and evening. The exact time
is listed in the local newspaper each day. Friday is the Muslim holy day. Everything is
closed. Many companies also close on Thursday, making the weekend Thursday and
Friday.

During the holy month of Ramadan all Muslims must fast from dawn to dusk and are
only permitted to work six hours per day. Fasting includes no eating, drinking,
cigarette smoking, or gum chewing. Expatriates are not required to fast; however,
they must not eat, drink, smoke, or chew gum in public. The festivities often continue
well into the night. In general, things happen more slowly during Ramadan. Many
businesses operate on a reduced schedule. Shops may be open and closed at unusual
times.
 • Family Values: The family is the most significant unit of Egyptian society.
Kinship plays an important role in all social relations.
The individual is always subordinate to the family, tribe or group.
Nepotism is viewed positively, since it is patronage of one's family.
The family consists of both the nuclear and the extended family.

• Egyptian Honors: Honor is an important facet of interpersonal relationships.

. Respect and esteem for people is both a right and an obligation.
. An individual's honor is intricately entwined with the reputation and honor of
everyone in their family.
. Honor requires that Egyptians demonstrate hospitality to friends and guests.
. It also dictates that people dress as well as their financial circumstances
allow, and show proper respect and deference to their elders and those in
authority.

• Social Class: Social class is very apparent in Egypt since it determines your
access to power and position. The social class an Egyptian is born into dictates
their everyday life and the opportunities they will have. There are three social
classes: upper, middle, and lower. Status is defined more by family
background than by absolute wealth. There is little social mobility.

Etiquette & Customs in Egypt

• Meeting Etiquette: Greetings are based on both class and the religion of
the person. Handshakes are the customary greeting among individuals of
the same sex. Handshakes are somewhat limp and prolonged, although they
are always given with a hearty smile and direct eye contact. Once a
relationship has developed, it is common to kiss on one cheek and then the
other while shaking hands, men with men and women with women. In any
greeting between men and women, the woman must extend her hand first. If
she does not, a man should bow his head in greeting.
 • Gift Giving Etiquette: If you are invited to an Egyptian's home for dinner,
bring good quality chocolates, sweets or pastries to the hostess. Do not give
flowers, which are usually reserved for weddings or the ill, unless you know
that the hosts would appreciate them. A small gift for the children shows
affection. Always give gifts with the right hand or both hands if the gift is
heavy. Gifts are not opened when received.
• Dining Etiquette: If you are invited into an Egyptian's house. You would
normally remove your shoes before entering, dress well and conservatively,
appearances are important to Egyptians, compliment the host on the house.
• Table manners: Wait for the host or hostess to tell you where to sit.
. Eat with the right hand only.
. It is considered a sincere compliment to take second helpings.
. Always show appreciation for the meal.
. Salting your food is considered an insult.
. Leave a small amount of food on your plate when you have finished eating.
Otherwise they will keep filling it up for you!

The Economic Environment in Egypt: As Egypt is known for its mixed economic
system, Compared with other emerging markets, Egypt's private sector is tiny. The
public sector still accounts for almost 70 per cent of GDP despite the fact that
hundreds of public enterprises have been wholly or partly privatized during the past
four years. Mixed economic system between Government and private sectors. "There
is concentrated lending in the Egyptian banking sector because there are so few
eligible companies to lend to," says a foreign banker. "This is forcing the larger
companies to look elsewhere for capital. And, with privatization slowing in the past
12 months, the Egyptian Stock Exchange and the country's growing investor base are
hungry for new listings.
Such offerings do not grow on trees, however. A handful of publicly listed stocks
accounts for a large share of the market's turnover despite the fact more than 800
companies are listed. In Egypt, a number of economic factors influence participation,
including unemployment and high cost participation.
Unemployment: The process of searching for a job and the trials following it to
improve one’s income, where incomes are low, is considered one of the main
hindrances to citizen participation in political and social affairs

High Cost of Political Work: The economic circumstances of the country and the
citizen as well as the limited capabilities of many institutions with respect to political
and social work results in a transfer of the financial burden of political work to the
citizen himself. The direct economic cost of participation is therefore a deciding
factor in whether the citizen will participate or not.

The Technological Environment in Egypt: The Internet child of Tourism, e-

Tourism, is said to be the fastest growing e-commerce sector, E-Tourism currently
develops interdisciplinary knowledge to facilitate the flow of tourists and deliver the
tourist to the ‘product’ in an efficient and cost effective way. The application of the
internet, the World Wide Web, and multimedia information in web pages has
facilitated the tourism process, by making it more efficient and effective financially.
Technological products have transformed the efficiency of operations. The internet
and e-commerce have been adopted extensively by the tourism product. The
combination of internet technologies business principles and tourism can be viewed as
the elements of e-tourism today. The use of web site technologies, communications
technologies (e-mail, telephone, computers, fax, video clips brochures), search
engines, secure electronic payment systems, combined with electronic booking
systems are some examples of the extent of technology penetration in traditional
tourist businesses. In Egypt the e-commerce and providing multimedia tourism
information to the tourist is increasing rapidly now days. Digitalization the tourism
sectors regarding provide information to the customer, online hotel reservation, air
ticket booking etc is large scale of visible in Egypt to facilitate the sectors. All the
hotelier have good website and e-commerce site where Guest can book their
reservation and get travel information such as historical place, climate of Egypt which
can be competitive advantages for the company.

Conclusion: The hotel sector is one of the most major effective sectors in the field of
tourism. Furthermore, it enjoys a model geographical distribution; hotels and tourist
villages extend in Egypt’s main tourist cities and along its coasts, in addition to the
floating hotels that cruise the Nile and Nasser Lake behind the Dam, thus enhancing
Nile tourism that enjoys international fame. The hotel sector witnessed a tangible
leap; the number of hotels, tourist villages and floating hotels amounted to 1187 in
2006, and the hotel capacity increased to 170,000 rooms in 2006 so as to match the
huge increase in the number of tourists and tourist nights. According to me Sunday’s
International restaurant has bright prospects in Egypt, if Sunday’s International
emerges in the developed tourist market with its hotel service in cheap price.

Recommendation: After analyzing the international manager’s environment of Egypt

seems to be a good place for hospitality business because the number of tourist and
investment in this sector is increasing. Besides that the entire international managerial
environment are positive towards to the new comers company. On the government
also facilitate this sectored to flourish more. Having read the various researches
presented in this project I strongly believe that Egypt is a great country for to have
hospitality business and Sunday’s international restaurant would be making more
popularity with competitive advantage.

References:
1. Book- “International management” written by Marinos Aniftos.
2. Article-“Supporting Public Participation in Egypt” written by Dr. Ahmaed
Abdel Halim, Member of the Egyptian council for foreign affairs.
3. http://www.cipe.org/pdf/publications/fs/halim.pdf
4. http://en.wikipedia.org/wiki/Egypt
5. http://www.touregypt.net/
6. Book: “The Lodging and food service industry” written by, Gerald W. Lattin