Wendy's International Market Analysis for Egypt and Ghana

Running Head: WENDY’S INTERNATIONATIOL MARKET ANALYSIS 1
WENDY’S INTERNATIONATIOL MARKET ANALYSIS
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WENDY’S INTERNATIONATIOL MARKET ANALYSIS 2
Egypt
Introduction
Egypt’s economic growth has been poor and is ranked position 11 out of the 14 nations in
the Middle East and North Africa region. It has low economic freedom score of 53.4 and
according to the 2018 Index; it is ranked position 139 in terms of economic freedom. Its
economic growth score is less than the expected averages both at regional and world level. The
country’s economic growth is anticipated to improve in future (Abu-Bader & Abu-Qarn, 2017).
Discussion
Consumers
According to the cultural practices of the residents of Egypt, most of the foods which are
offered by Wendy’s International are acceptable and are highly consumed in the country. The
entire population has embraced modernization and hence consumption of fast foods is becoming
common. According to Nielsen Quest report, more than 21 percent of Egyptian consumers
consume restaurant meals. The report also shows that more than 55 percent of the Egyptian
consumers consume fast foods. This is due to the fact that Egyptian lifestyle is changing due to
influence by the western culture and consumer level of income is also rising. They include
hamburgers, chicken sandwiches and signature Frosty dessert (Ibrahim & Vignali, 2016).
Legal system
The legal system of Egypt is highly politicized and unstable. It involves complex
procedures in acquiring the title deeds of properties. This is due to corruption involved in the

WENDY’S INTERNATIONATIOL MARKET ANALYSIS 3
system and the mechanisms of investigating and eliminating it are very poor (Barton, Gibbs &
Merryman, 2014).
Political system
The political system of Egypt has improved to a greater extent and the government is
currently reforming the nation’s business environment and is gradually restoring its financial
stability.
Economic system
Considering the economic system of Egypt it has continued to lag behind in terms of
economic growth though it is improving currently. Egypt has been depending much on aid from
international bodies and other nations such as Saudi Arabia. Considering the three systems
namely the legal, economic and political systems of Egypt, Wendy can invest in Egypt but is
likely to face problems of protecting the property rights.
The currency exchange rate of the Egyptian dollar against the US dollar has been
increasing and is relatively stable. It does not increase with a great margin over a short period of
time. Currently the exchange rate stands at 1$ = 17.9088 Egyptian dollars. The rise in exchange
rates has resulted from the high inflation rate in the country. The inflation rate stands at 10.2
percent which is very high. This has led to rise in price of fast foods. As a result of this, the fast
food industry has lost many customers as they shifted to other food service industries (El-Ramly
& Abdel-Haleim, 2017). The rent in big malls such as the mall of Egypt also increased and as a
result only the bigger fast food companies such as McDonald’s, Cook Door, Mo’men and Burger