1. International Business Case
ConnectingEnglish in Morocco
Lucile SCHWEITZER
3A5 Marketing

2. Macro-environment
• Economic opportunities: Perspectives of sustainable growth and development - Morocco attracts
foreign investors - Low inflation, improved financial performance, and steady progress in developing the
services and industrial sectors – An advanced status in its 2000 Association Agreement with the EU -
France remains the country's first provider of Morocco (15.3% of total imports). After Spain (11.8%),
China (8.4%), United States (6.9%) and Italy (5.9%) in 2010 - France is also its first client (21.5% of
total exports), Spain (16.6%), India (6%), Italy (4.3%) and Britain (3.6%) in 2010.
• Political stability: some demonstrations during the Spring Revolution but without any violence (the
King Mohammed is appreciated by the population) – A moderately free press - King MOHAMMED in
2005 launched a National Initiative for Human Development a $2 billion program – COFACE grade
country risk stays unchanged: A4 (it’s not the case for Tunisia, Egypt, Libya, Bahrein, Syria, modified in
April 2010)
• Socio-cultural opportunities: Low labor cost Francophile country (around 70% less expensive) -–
French is often the language for business, government and diplomacy - Highly educated skilled
resources – minimum wage = 200€
• Technological & legal opportunities: Reliable and affordable communication infrastructure: telecom
and Internet. The law 09/08 for the protection of the intellectual property (near the European legislation)
is a good point for Offshoring particularly in BPO and ITO –
• Geographical advantage: Proximity of the European Market and the Sub-Saharan Africa – A 1 hour
time difference with France

3. Competition & Risk Analysis
Risk Analysis
Mapping Competition  Industrial risks
Our real competitor are both local language - Personal Data Protection
center: Calliope and Foreign entrant for
- Intellectual Property
practical language training: Berlitz
 Commercial risks
- Delay in the delivery
- Delay in the payment (from 4 to 6 months)
Quality & Performance - High income and financing banking
 Human risks
- Quality and quantity for Human Resources
- Level of Training/skills and Language
Register
Experience & Recognition
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4. Intercultural Management
KEY VALUES LANGUAGES
- The family Arabic as a local language (public institutions), dialectal
- The solidarity Arabic, French perceived as modernity and
- The transparency education, Spanish as a 2nd or 3rd language (some
areas), English for IT and international environment
- The loyalty
- The honesty
RELIGIOUS ISSUES
- The reward
A Muslim country = Paternalism - Control - Fatalism -
- The relationship
The integration of social and economic –
Passion
CROSSCULTURAL ISSUES
Hoffstede’s results: PERSONAL BEHAVIORS AND RELATED BEST MANAGEMENT
Be patient, loyal, adaptable, thankful, clear in planning
• Power Distance Index: 70 – in France: 68 tasks and objectives
• Individualism Rate: 46 – in France: 71 A mix between Paternalist Management practiced in
• Masculinity Rate: 53 – in France: 43 Latin countries and participative management
• Uncertainty Avoidance Index: 68 – in France: 86 practiced in Anglo-Saxon countries

5. II / E-learning Services Outsourcing
from France to Morocco
Outsourcing the most as possible in Morocco: salary, call centers, CRM…
• Morocco = 1st country for call centers (17 500 employees) – high qualified workforce –
reactive teams speaking currently French – wages are less than in France (minimum wage is
200€) – geographical proximity with France (U€) – Time difference is only 1 hour – Moroccans
learn 4 languages at school (Arabic, French, English, Spanish)
In a recent Gartner study, Morocco will stay in the Top 30 of the destinations most attractive
for outsourcing in 2011.
OUR NEXT PARTNER is OUTSOURCIA – a French company (headquarters in Paris) created in
2003 with 3 call centers in Casablanca. The company is pioneer in premium
outsourcing in its 4 business areas.
Call centers: overall management of the customer relationships, a multilingual (7 languages:
French, English, Spanish, Italian, Netherlands, Portuguese, Dutch) & multichannel offer.
BPO: outsourcing business processes, providing back office.
ITO: IT services and software development.
Offshore Academy: 1st school specialized in the business of customer relationships.
Don’t need to train their employees, the company has a lot of experience with prestigious clients
from all over the world.

6. II / E-learning Services Outsourcing
from France to Casablanca
Casablanca: the city where to setting up
The common bases for Outsourcing contract with
Service Level Agreement
• 80% of call centers are located in
Casablanca or Rabat
• Outsourcia will be in charge of our phoning and our e- • The economic capital in Morocco
learning platform in these languages: French, English,
Spanish, Italian, Netherlands, Portuguese, Dutch – in one
month Key features for location in CasaNearshore
• A place dedicated to TIC in Morocco
launched in 2005
• ConnectingEnglish will provides to Outsourcia the lessons
and teaching methodology used by phone and e-learning but • Low rental for trays: 90 DHs/m2 (8€/m2)
the company ConnectingEnglish stays the only owner. • Low income tax of 20% (against 40% to 42%
for income above 5000 DHs per month)
• ConnectingEnglish will train Outsourcia team to their • Tax exemption on profits in the first 5 years
teaching methods during 1 month and check at the same • Telecom costs are 35% below the market
time their level in the 4 foreign languages. price
• Help for training if recruiting Moroccan people
• Outsourcia will present us a complete reporting every month (5800€ per employee)
on a PPT document and they will prepare a reporting call
each week to show the quality of their work to
ConnectingEnglish.

7. II / E-learning Services Outsourcing
from France to Casablanca
Action Plan
• To sign up the outsourcing contract and discuss the SLA with Outsourcia – 3 weeks
• To make a trip to Morocco to visit their buildings and meet their teams – 1 week
• To outsource the salary and CRM – 1 testing month
• To report our 1st month of collaboration – 1 day
• To train their teams to our teaching methods, briefing about our company/business/target
clients – 1 month
• To outsource of our phoning and e-learning – after 3 months – 1 testing month
• To report these 4 activities outsourced – 1 day

8. III / Language training center offshoring for
business and sales development in Morocco
Casablanca is the economic capital where there’s a concentration of higher educated
workforce and a strong equipment rate of the population
Reasons to offshore:
- Fit a local and a global demand
- A place to learn Arabic: global demand (immersion)
- A lack of language training center with a full range of languages
- E-learning isn’t well develop, it’s a new market with a potential of growth
Key features for location in CasaNearshore :
A place dedicated to TIC in Morocco launched in 2005
• Low rental for trays: 90 DHs/m2 (8€/m2)
• Low income tax of 20% (against 40% to 42% for income above 5000 DHs per month)
• Tax exemption on profits in the first 5 Y
• Telecom costs are 35% below the market price
• Help for training if recruiting Moroccan people
Mode of entry: Moroccan law - partnership with a local company specialized in training
Timing: soon as possible because competition is already there

9. III / Language training center offshoring for
business and sales development in Morocco
Resources needed
• Human: 12 teachers (native speakers and professionals) – 5 administrative employees
• Technical: computers, phones, chairs and tables
• Financial: Rental the building, Telecom/Electricity costs, Wages
Demand/target market: global demand and local demand, particularly professionals/businessmen.
Local demand: call-centers/international and large companies
Global demand: companies doing business with the Arab World
Marketing mix
Service: 6 languages available: French, English, Arabic, Spanish, Hindi, Chinese – lessons for face to
face, phone, e-learning, immersion
Promotion: Local Economic Newspapers, Business School, Call-centers
Price: affordable price for Moroccan companies and European companies – Package for business group
Place: at our local language training center – inside our clients walls – online – phone
Competitive advantage: A French company – 6 languages
Position with the French headquarter: 1st center partner for teaching Arabic – a subsidiary in Morocco

10. III / Language training center offshoring for
business and sales development in Morocco
The budget
Function Number Mensual salary (DH) Annual salary (DH)
Marketing Director 1 10000 130000
HR Responsable 1 10000 130000
Accountant 1 10000 130000
Chief Executive Officer 1 20000 260000
Teachers 12 1200000 15600000
Direction Assistant 1 5000 65000
Total Cost 16315000
Cost Mensual cost Annual Cost (DH) Annual cost (Euros)
Rental cost 25000 300000
Water, Internet and Electricity 2000 24000
Phones (15) 10000 120000
Office furniture 100000 1200000
Tables (10 per class) 21000 252000
Security and Cleaning labour 5000 60000
Salary cost 16315000
Total Cost 18271000 1588782,609
The turnover
Year Number of learners Monthly Training Price Annual Training Price Turnover
1 250 10000 120000 30000000
2 275 10000 120000 33000000
3 300 10000 120000 36000000

11. Outsourcing VS Offshoring
Strengths Strengths
• Reduce and control operating cost • Be present on a new market: respond to a local
• Focus on core capabilities demand
• Gain access to world class capabilities • An implementation in the Maghreb Zone: Morocco
• Free resources for other processes as a « country test »: hyphen between Europe and
Africa
• Resources not available internally
• Faster time to market by providing visibility into
• Reduce time to market
effort, focus and risks
• Accelerate re-engineering benefits • Lower travel and coordination costs
• Function difficult to manage • Higher degrees of trust and goodwill and few
• Share risk contract cancellations
• Transfer fixed costs into a variable cost model • Reduce and control operating costs
• More sophisticated jobs can be create if the less
important jobs have been sent oversea
Weaknesses
• Loss of control on applications
• Fear of sub-optimal cost Weaknesses
• Quality benefits • Need for adaptable management practices
• Difficulty of managing suppliers with high process • Retaining managerial control
quality standards and different cultures • Gaining operational efficiency
• Need to match EMS provider with OEM needs • New physical, temporal, cultural, and organization
barriers
• Proprietary Information: way to teach languages
• Losing customers because the company is engaged
in offshoring
• In Morocco, laws are not as protective of workers
and the environment as in France

12. IV / Market entry Optimal mode and Strategy
The best solution for Connecting English is to offshore a language
training center in Casablanca because this subsidiary could fit with a
local and global demand in a long term. Maybe for the moment, htey
can just outsource some services to Outsourcia, in order to know
better the Moroccan market.
Strategic recommendations
• To invest in communications and BtoB event organization, to be
recognized
• To be perceived as the leader in language teaching on the BtoB
market, within the professional target
• To get paid by customers (Moroccan companies) and ensure them
reimbursement by the State up to 75% (it’s guaranteed by the
OFPPT for Moroccan companies)

13. IV / Market entry Optimal mode and Strategy
Our Key Success Factors
- We have the best teachers: professionals and native
speakers in various businesses
- A worldwide presence and recognition
- A French company with a real know-how
- An innovative way to teach: e-learning, phoning, face to face
and immersion
- International clients have confidence in ConnectingEnglish