Introduction FamilyBusiness2FamilyBusiness
The fictional Egyptian MS family faces many challenges including dealing with a growing competition for their hand-made leather goods, finding ways to include all family members in the family business activities, and increasing the profitability of their shop in the centre of Cairo. To assist the MS family business in making the right strategic decisions, Tharawat magazine has sent out this issue’s case study to family business members all over the world. They have shared their expert advice with the MS family and have generated interesting statistics.
Many years ago in Egypt...
I
n the early 1940’s MS immigrated from the South of
workshops that produced different lines of products at lower
Egypt with his wife and three children to begin his
prices but remained loyal to their values and style.
first workshop in a narrow street in old Cairo. He designed and manufactured bags, chairs, vests, belts,
As the second son MMS and his sister NMS graduated from
decoration items and more. MS developed a sense
university, they joined their father and elder brother in the
of perfectionism in his work detailing his products to into
business. Their talents were more commercial. Seeing the
the smallest detail. Employees were trained with much care
growing demand from the new middle class, they proposed
and over a long period of time. Soon MS’s reputation for top
to open a first shop for their products. MS and AMS were
quality products was known to the rich of Cairo. MS became
very hesitant to get into the retail business. What had always
a brand and demand continued to increase; the workshop
differentiated them from other manufacturers was that the
expanded three times within five years. MS’s eldest son AMS,
client could come to the workshop and see the birth of each
who trained from a young age in the workshops had a real
product. At the same time AMS as well as his father wanted
passion for leather and soon joined his father in the business.
to involve the rest of the family to ensure the continuity of the family business.
Egypt changed dramatically during the 70ies; new consumer
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behaviours and tastes emerged. The MS family business
The first shop was established and run by the two younger
started to adapt to the new trends. The family created new
siblings in a highly frequented area in old Cairo. The old
Tharawat magazine Volume 14
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