Report 2 1. Explain the cultural differences between the UK and Egypt. Do these differences affect execution of strategy in each market? How? Give examples. 2. Based on the information available in the case study and further research you may wish to carry out individually, discuss the 3 options below of what Sainsbury’s should do next. Make recommendations and justify your answer. – Scale down its operations; – Find new local partners; OR – Sell the business entirely. Guidance: Please note that you need to cite and explain relevant theories and employ a critical argument to justify your answers.

1. Explain the cultural differences between the UK and Egypt. Do these differences affect execution of strategy in each market? How? Give examples. • Part 1: In this question you need to use national culture theories to explain the differences between UK and Egypt (Arab countries). • Part 2: How could these differences (above) have impacted the effectiveness of Sainsbury's expansion to Egypt? Give examples (Did any of Sainsbury’s decisions conflict with Egyptian culture?).

2. Based on the information available in the case study and further research you may wish to carry out individually, discuss the 3 options below of what Sainsbury’s should do next. Make recommendations and justify your answer. - Scale down its operations; - Find new local partners; OR - Sell the business entirely. • Look back at the case study – based on all the information you have at hand: what Sainsbury’s should do next? Justify you answer and make recommendations. • Important tip: they need to minimise their loss!