Analyze the external environment analysis tool PESTLE framework to understand the potential barriers of the campaign in Egypt?

PESTLE framework actually stands for Political, Economical, Social, Technological, Environmental and Legal aspects of the business that could affect the operations of the business in the area.

• Political: As per report, the Minister of Industry and Trade in Egypt has formally developed and issued a new framework and decree (43/2016) back in January. 2016. The decree defines that the foreign manufacturers dealing with specific products will be required to officially sign and list them for any types of export with the operating council, Egyptian General Organization. This fact is furthered monitored by the Export and Import Control (GOEIC). The decree is specialized to allow only listed products will be allowed to take entry into the Egyptian market only if the products fall under the circumstances of the GOEIC and have registered. The owner of those specific products and manufacturing facility or even any participating legal holder of the product tags and trademark. Further the lis of the accepted products was expanded in January, 2019. This means that there is a trade barrier in Egypt and Marks and spencer need to list their products that they want to sell and those products must be registered by the government authorized body (“Egypt - Trade Barriers”, 2021).

• Economic: Due to the global pandemic Egypt also have gone through the shock of economy decline significantly. But the country has recovered from the shock very quickly with the support of the Government and International monetary Fund. The economy of the country lifted up by 3.5% in the last year. Even after the pandemic continued to hurt the GDP of many countries Egypt have saved their growth to 2.5% in 2021 (“Egypt - Market Overview”, 2021).

There is a positive growth rate corresponding to the use of the Extended Fund Facility (EFF) which helped to avail funds and stable the nations GDP. Further with the help of Central Bank of Egypt the economy become more confident in 2021 as the bank have reduced the policy interest rates significantly by 400 basis points in the last year (Tambunlertchai and Kale, 2021). Even the Central bank reduced the deposit rate 4 percent overnight. Thus, Marks and Spencer will have a positive side while implementing economical plan in Egypt. The GDP will also help M&S to comply with the government norms.

• Social: It is found that the Egyptian Pound LE 6 billion 8.75% Notes which is due 2012 is all set to be placed worldwide. This strategy is supporting the ongoing campaign maintained by Egypt to expand and implement the country’s domiciliary capital market side by side with the international markets. The Egyptian government supported a social campaign PPIC-Work project to support the youth and bring them back in employment (Lewis, 2021). This will help Marks and Spencer to use the program as an opportunity and open stores in Egypt. Further, they can offer employment to many youths and thus will gain the support from the government as well.

• Technological: Technology has gifted retail industry with all sorts of advancement and the retail industry is thus growing significantly. Egypt is now considered tobbe one of the most effective market for retail industry as it has the most diverse population in middle East region. Moreover, it is found that Egypt is already growing with online retail platforms such as SOUQ, JUMIA and NOON are showing great profit and customer base (Kotb and Adel, 2020). M&S thus can use this opportunity to expand their business in Egypt more and grow their business. The fact behind use of retail as a option for shopping is the use of Social Media and the advertisements. Egypt have a huge population and thus Marks and Spencer will have the opportunity to build a strong customer base in Middle-east.

• Legal: The legal system of Egypt is replicated and founded on Islamic law named Shar'ah and the use of Napoleonic codes, mainly named as French Code Civil. This code is largely becane a part of the Egyptian civil code. The courtsin Egypt also replicated increased independence under President Mubarak’s consecutive governments, and the principles of several methods, processes and judicial foundations have earned strong compliance. Legal framework in Egypt is far more defined by the Egypt’s Arbitration Law 27 of 1994 It is amended to serve as a model for arbitration of local and global commercial cases of dispute, and also the disputes taking place between any public enterprises PSUs and the private sector (Taalat et al., 2016). Egypt also amended the International Convention which will be a part of the Settlement of Investment disputes. This are some of the frameworks that Marks and Spencer need to revise before attempting to grow business in Egypt. More the legal framework comply with M&S better will be the chances of winning market deals (Ramzy et al. 2011).

• Environmental: Environmental acts as a key driver to sustain in the market for retail industry. Most common aspects of environmental impacts include raw materials in supply chain. It is evident that use of natural resources has several impacts on environment, thus creating a chance of pollution. Secondly products have great impact on pollution. Many products don’t come with biodegradable disposal option. This will increase pollutants and harm the climate in terms of VOC materials (“Top 5 Environmental Sustainability Issues in Retail”, 2018). To earn sustainability retail industry is focused on waste management techniques as well. Because waste from products like food items preparation, packaging and clothing accessories also have negative impact on the environment. Egypt government has settled with several tough guidelines to ensure reduce pollution from packaging and natural resources. Disposal of byproducts are also responsible for pollution. Marks and Spencer needs to ensure that the products they are selling should be free of VOC and biodegradable.