ElectroMisr Business Simulation

The business simulation theme will be carried out over three interrelated episodes$/$workshops each featuring distinct business challenges related to the target competencies of the episode. Participants will be requested to work in teams in order to accomplish the required simulation tasks.

The workshop facilitator will explain the requirements for each simulation task and can also present some background information and$/$or support documents prior to the start of the task to enhance understanding of requirements. Also participants are allowed to make assumptions, resort to their experiences, and$/$or other sources like the Internet to accomplish certain simulation tasks.

Later to completion of each simulation task the facilitator will discuss the activity rationale and share participants experiences to highlight learning outcomes and actual application opportunities.

All business details of ElectroMisr simulation are entirely made$-$up and do not relate to any organization working in a similar business in Egypt or abroad.

The events of this business simulation take place between January $2013$ and December $2015.$

$-$ PREPARE THE SWOT ANALYSIS AND THE BALANCE SCORE CARD ACCORDING TO THE INFORMATION INCLUDED IN THE CASE.

Company Name: ElectroMisr SAE

Date of Establishment:$1975$

Company Formation: Joint Stock Company

ShareholderStructure:

$40\%$ Founders $($an Egyptian Family$)$

$30\%$ An Egyptian national commercial bank

$30\%$ Recently acquired by a Gulf based investment fund company in$2010$

Description of Business: Electronics and home appliances. The first company to do manufacturing and assembling of electronics and home appliances in Egypt and the Middle East.

Products Portfolio:

Technology Line: TV $($classical screen$),$ computers $($desk top$),$ printers $($inkjet$)$

Durable Goods Line: Refrigerators, gas ovens, washing machines, dishwashers, and electric water heaters

Communication Line: fixed phones $($wired & wireless$),$ mobiles, and accessories

Geographical Coverage

Head Office: Down Town Cairo

Factories:

Durable Goods Factory: Shobra AlKhaymah

Technology & Communication Factories: El Sadat Industrial City

Retail & Service Stores:

Cairo $2$ retail stores $($Down Town & Heliopolis$)$ and $1$ service store Down Town

Giza $2$ stores $($Haram & Dokki$)$

Tanta $1$ retail & service store

Ismailia$1$ st

Distribution network operating $4$ retail & service stores in $3$areas:

Cairo

Giza

Alexandria

Business Lines:

Sales Line Contribution to Annual Sales Turnover

Retail Sales $($across all products range$)60\%$

Technology $(30\%)$

Durable Goods $(50\%)$

Communication $(20\%)$

Service Sales $($durable goods only$)5\%$

Export Sales $($durable goods only$)15\%$

Distribution Network Sales $20\%$

Annual Sales Turnover is LE $250$ million

Manpower:

Total Manpower: $3,600$employees

Manpower allocation by function:

Commercial: $450$employees

Manufacturing: $2,500$employees

Support: $650$employees

Manpower allocation by organization level:

Senior management:$0\mathrm{.}5\%$

Middle management:$7\%$

Staff:$13\mathrm{.}5\%$

Blue Collar:$79\%$

Item ElectroMisr Global Electric Asia Technology Sultan Stores

TV $20\%30\%15\%10\%$

Desktop $10\%25\%20\%10\%$

Printer $10\%35\%20\%5\%$

Refrigerator $20\%35\%10\%15\%$

Gas Oven $35\%0\%30\%20\%$

Washing Machine $5\%5\%40\%10\%$

Dishwasher $10\%10\%40\%0\%$

Water Heater $20\%15\%15\%40\%$

Kitchen Machine $10\%20\%20\%30\%$

Iron $30\%0\%0\%40\%$

Fixed Line Phone $10\%5\%30\%30\%$

Mobiles $20\%40\%10\%5\%$

Item ElectroMisr Global Electric Asia Technology Sultan Stores

TV $17\%32\%15\%10\%$

Desktop $12\%25\%20\%9\%$

Printer $17\%33\%18\%3\%$

Refrigerator $16\%37\%9\%17\%$

Gas Oven $29\%0\%32\%21\%$

Washing Machine $6\%8\%38\%11\%$

Dishwasher $15\%8\%41\%0\%$

Water Heater $20\%12\%14\%42\%$

Kitchen Machine $7\%22\%21\%28\%$

Iron $12\%0\%0\%47\%$

Fixed Line Phone $10\%5\%30\%30\%$

Mobiles $20\%40\%10\%5\%$

Item ElectroMisr Global Electric Asia Technology Sultan Stores

TV $19\%31\%11\%14\%$

Desktop $12\%26\%16\%8\%$

Printer $16\%28\%18\%4\%$

Refrigerator $16\%34\%14\%13\%$

Gas Oven $35\%0\%29\%18\%$

Washing Machine $9\%6\%38\%10\%$

Dishwasher $21\%8\%35\%0\%$

Water Heater $28\%15\%15\%40\%$

Kitchen Machine $6\%20\%22\%31\%$

Iron $4\%0\%0\%50\%$

Fixed Line Phone $10\%5\%30\%30\%$

Mobiles $23\%37\%12\%3\%$

Global Electric International

$1-$ International brand

$2-30$ years in the market

$3-$ Highest price in the market $($almost $10\%20\%$ above any competitor$)$

$4-$ Highest quality in the market in most of the products

$5-$ Very well$-$trained sales people

$6-$ They Have installment system with national banks

$7-5$ Showrooms in Cairo $($Heliopolis$,6$th of October, Maadi, $5$th district and Mohandseen$)8-2$ Show rooms in Alex $($Down town and Mostafa Kamel$)$

$9-2$ factories $(6$th of October and Badr City$)$

$10-$ Their main revenue is coming from retail sales and key accounts

$11-$ They do not depend on Egypt manufacturing for export $($they have a factory in KSA$)$

$12-12-$ Weak distribution channels specially in Delta and Upper Egypt.

Asia Technology

$1-$ Korean$/$Chinese brand origin

$2-2-25$ years in the market

$3-$ Competitive prices

$4-$ Some products are of very good quality $($washing machine and gas oven$)5-$ Very qualified maintenance service

$6-3$ Showrooms in Cairo $($Nasr City, Down town and Giza$)7-1$ in Alex $($SediBeshr$)$

$8-1$ inAssuit

$9-2$ Factories $($Assuit and $10$th ofRamadan$)$

$10-$ Main revenue is coming from retail sales $($mainly washing machines, dish washers, gas ovensand fixed line phones$)$ and export to the Gulfregion

$11-$ Weak distribution channel weakness

$12-$ High turnover in employees

$12-$

Sultan Stores

$1-$ Local brand $($Egyptian Family Business$)2-10$ years in the market

$3-$ Cheapest price on the market

$4-$ Most of the products are of low$-$quality

Very good distribution channel.

$6-$ Variety of installment systems

$7-2$ showrooms in Cairo $($Abdeen andFaisal$)8-1$ in Mansoura

$9-1$ factory in El ObourCity

$10-$ Main revenue is coming from distribution channels $($mainly water heaters and fixed linephones$)11-$ High rate of customer complaints specially frommaintenance

High Level Organization weakness $($inadequate hr and organization structure$)$

Second Organization Level

CommercialDirector

o MarketingManager

o Brand & Product Managers $(10)$

o Research & Development Manager

o SalesDirector

ShowroomManagers

DistributionManager

Key AccountManager

ExportManager

OperationsDirector

o Showroom Managers $($dotted linereporting$)$

o WarehouseManager

o Service Manager

o LogisticsManager

Chief FinancialOfficer

o AccountingManager

o TreasuryManager

o PurchasingManager

Administration & PersonnelDirector

o AdministrationManager

o PersonnelManager

o TrainingManager

o Legal Section Head

ManufacturingDirector

o Factory Manager$(2)$

o Technical Manager$(3)$

o Health & SafetyManager

o Production PlanningManager

Participants: $1,950$ employees