A.Situation analysis: Definition of company & product.
Mo'men is an Egyptian fast food chain, with branches all over Cairo, Alexandria and El Mansoura. The restaurant's menu offers a selection of sandwiches, featuring mainly beef, chicken and seafood, in addition to an assortment of finger foods and side orders.
Mo'men is thinking of expanding internationally and is considering London, UK, for its new branch. The management needs to make a decision about the possibility of such a thing and how to proceed with the needed steps to make such a decision.
C.What kind of information do we need.
Generally, we need data to assess market potential and investment climate, as well as the risks and costs of operating in the UK market. The next step is to make an explicit evaluation of demand in the UK, specifically the London fast food market, which is important when considering initial market entry, because of the high costs and uncertainty associated with entering new markets.
Consequently, the Mo'men management has to make an initial estimate of demand potential in the market.
Secondary data is particularly valuable in assessing opportunities in countries with which the management has little familiarity.
We need secondary data to:
1.Develop estimates of demand in the UK, using lead-lag analysis and econometric forecasting models, but more preferably using surrogate indicators and barometric procedures. For the UK market, surrogate indicators are not appropriate, as they are useful in markets where little data is available, market potential is limited and relatively crude estimates will suffice. Barometric procedures, on the other hand, provide more precise estimates at both the aggregate market level and for specific market segments.
2. Assess the extent of market interconnectedness, using macroeconomic trade data, data concerning flows between countries and industry and product market...