CHARBROS is considering expanding its business to new markets due to profit drops in the Middle East. Morocco is recommended as the top option due to its political stability, infrastructure like ports and airports, and future opportunities in Africa. The implementation strategy would focus on the Moroccan and African markets through a warehouse in Tangier's free trade zone supplied by CHARBROS' Serbian sawmill. Contingency plans include exploring Tunisia if needed.

1. CHABROS WILL GO
TO MOROCCO
01/19/2020
Professor
Dr. Paul W. Thurman

2. EXECUTIVE SUMMARY
CHARBROS is making important decision to expand or not and where to ?
CHARBROS is facing the following challenges
▪ Several possibilities for expansion
▪ High production capacity in Serbia Sawmill (Closing Parts?)
▪ Profit drop, especially in the Middle East.
We recommend
▪ Morocco presents an interesting option for the short term
▪ Tunisia could be a valid alternative where CHARBROS could still deploy its expansion
strategy
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3. OPTIONS : CHARBOS must expand its business to new
markets
3
Pros Cons
Do nothing • Crisis might take end
• No extra investment
are needed
• Risk of bankruptcy
• Over capacity to be
managed
• Crisis could expand to other
market
Divest • Cash generation
• Adaptability to the
current situation
• Investment could be
liquidated at loss
• Non reversible action in
case of recovery
Explore new
market
• Reduce the
dependency on the
ME market
• Absorption of the
capacity
• Growth enabler
• New investment could be
needed
• Risk of failure

4. Country Ranking : MOROCCO at the top of the podium based on the
market size combined with the political stability
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Country
Market
size
GNI per
cap
PPP
Likely
growth rate
Total
Iran 10 6 7 9 8,85
Algeria 9 7 6 3 7,3
Morocco 8 3 2 6 6
Tunisia 5 5 5 10 5,75
Libya 4 8 8 4 5,2
Bahrain 1 9 9 8 4,45
Kuwait 2 10 10 5 4,85
Syria 6 2 3 2 4,4
Iraq 7 1 1 1 4,3
Jordan 3 4 4 7 3,9
Weigh 55% 10% 20% 15%
Country Political Legal Commercial Geographical Total
Kuwait 10 10 9 7 9,9
Morocco 9 6 6 1 8,25
Jordan 8 8 7 9 8
Bahrain 7 9 10 6 7,6
Algeria 6 3 5 2 5,45
Tunisia 4 7 8 3 4,85
Iraq 5 1 2 8 4,1
Iran 3 2 4 4 2,95
Syria 2 5 3 10 2,55
Libya 1 4 1 5 1,45
Weigh 75% 15% 10% 0%
0
2
4
6
8
10
Political system
legal system
Commercial
Geographical
dis from Leban
Kuwait Morocco
Jordan Bahrain
Algeria

5. Morocco is the ideal choice : Stability, Infrastructure and future
opportunities
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▪ Political stability
▪ No requirement for local partnership
▪ Free trade agreement with EU
▪ Convention on bilateral relations between Morocco and
sub-Saharan Africa
▪ Currency tied in with Euro (low fluctuation)
▪ 4600 hectares dedicated to investment mainly in Free
Zone: tax incentive, attractive rent
▪ 11 trading ports and 8 airports across the country.
▪ Tangier Med: launched in 2007, 78 billion dirhams of
investment, large capacities (9 million containers).
▪ Morocco in the top 20 global logistics connectivity
▪ Moderate competition : CEMA BOIS, WOOD PARQUET,
10RAJAB
▪ Anti dumping against Chinese similar products

6. Morocco is the gate to Africa: Implementation strategy
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▪ Focus:
▫ Moroccan market, A, AB and B, veneer and lumber
▫ African market, especially north and west Africa
▪ How:
▫ Tangier, attractive location, tax incentive, qualified workforce
and world wide class Med Port.
▫ We will rely on available logistic platforms, low investment and
interesting prices
▪ Growth outlook :
▫ As the company will grow following market trends, partnership
with local producers has to be developed
▫ This market will reduce dependency on other markets

7. Recommendations, Action and contingency plans
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Contingency plan
As per the previous
analysis Tunisia is a valid
alternative where
CHARBROS could still
deploy its expansion
strategy
Recommendations
Quick and Agile
implementation in Morocco.
A market where the real
estate is currently booming
(2010), and Morocco will grow
a hub to serve Africa and
reduce the group
dependency on the Middle
east Market
Action plan
• Set an operational business
plan for the warehousing in
free Zone of Tangier
• Dedicate sufficient wood
capacity from Serbia to fulfil
the local needs
• Deploy market prospection
in the WECA* region
*WECA : West and central Africa

8. 8
THANKS!

9. CREDITS
Special thanks to all the people who made and
released these awesome resources for free:
▪ Presentation template by SlidesCarnival
▪ Photographs by Unsplash
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