This case study analyzes the failure of Sainsbury's in Egypt, focusing on the ethical and Corporate Social Responsibility (CSR) issues faced by the company. The analysis highlights the challenges related to cultural differences, political instability, and unfavorable trading conditions. It examines the foreign exchange risks, including currency shortages and difficulties in obtaining licenses, which significantly impacted the company's financial performance. The study details how Sainsbury struggled with employee motivation, communication barriers, and local competition, ultimately leading to its withdrawal from the Egyptian market after two years of losses. The case underscores the importance of understanding host country policies, cultural nuances, and the potential risks associated with unchecked foreign investment. This assignment provides a valuable example of how international business ventures can be affected by a variety of factors, emphasizing the need for thorough planning and adaptation to local contexts.
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