Aspects of Starting a Business in Marocco

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Introduction

Morocco is a country with centuries-old traditions and certain norms of behavior that must be taken into account when doing business. The majority of the countrys population is Muslim, and the main language is Arabic. French is used to conduct international business. When building relationships with Moroccan partners, it is important to emphasize face-to-face interpersonal communication: use the telephone to communicate or meet with partners. Moroccans build their business relationships on mutual trust and respect. To do business successfully in this country, one needs a good understanding of its regulatory environment and business climate.

Discussion

Consumer preferences are an important factor in terms of the economy. Currently, the following trends are observed:

  • The growing demand for convenience foods and ready-to-eat meals;
  • Negative attitude of Moroccans towards GMOs;
  • Increased demand for Halal products;
  • Stable development and expansion of the retail sector;
  • Development of tourism and a steady increase in tourist traffic.

Morocco imports a wide range of products. The structure of imports was mainly wheat (16.3% of all agribusiness imports), corn (9.3%), sugar (7.0%), and soybean oil (6.5%) (IBP 17). Morocco is traditionally a major exporter of vegetables and fruits. For example, tomatoes accounted for 12.0% of Moroccos agribusiness exports in 2019 (11.1% in 2018) and citrus fruits for 7.8% (7.2% in 2018) (IBP 19). Morocco also exports fish and seafood, grain legumes, sugar, meat and bone meal, and other products.

In terms of business culture and ethics, it is important to note several aspects. Moroccans practice an open system of communication, so one must be prepared to be distracted by extraneous topics during negotiations. Discussing any issue will take a long time, and the ideal outcome of the negotiation is a mutually beneficial solution for all parties (Miri 28). Moreover, the Moroccans always opt for a long-term relationship; therefore, a businessman must be prepared for the Moroccans to haggle for a long time (Ait Hattani and Khoumssi 113). Finally, the bureaucratic system in this country is quite strong, so most decisions will require a huge number of approvals and permits.

There are also many peculiarities within this countrys legal system. The promotion of foreign direct investment is a priority of the Moroccan government. The relevant legislation applies equally to Moroccan and foreign legal entities, as well as to domestic or foreign investments (IBP 17). Business activities are subject to corporate tax applicable to the income and profits of companies, public institutions, and any person engaged in commercial activities in the country (Naciri 7). The corporate tax rate varies depending on the capital of the business.

Based on the studied data on the characteristics of the infrastructure of Morocco, we can make the following SWOT analysis of the business:

Strengths

  • First in Morocco to scale on this micro-segment;
  • Has expanded beyond its region;
  • Have lower prices for services than the competitor;
  • Our equipment is of German quality, so it breaks down half as often

Weaknesses

  • Increase in bad reviews;
  • Staff is growing rapidly; We do not have time to train our staff;
  • Prices of goods are 5% higher than those of competitors;
  • High turnover of staff
  • No large budget for advertising

Opportunities

  • Outlets are opening in two more cities;
  • People willingly come to open vacancies;
  • It is possible to use social networks for marketing activities;
  • Trainer for training can be found in any region;

Threats

  • Not allowed into the regional market by local companies  competitors;
  • No alternative suppliers of goods, in case of force majeure we will be left without kitting;
  • Introduction of new innovative technologies can jeopardize the niche itself.
  • There is no way to quickly resolve a dispute in a local court.

Conclusion

Thus, starting a business in Morocco should be based on an analysis of the political, economic, and cultural aspects. The peculiarities of the market also impose a certain imprint on the ways of solving current management issues.

Works Cited

Ait Hattani, Hanae, and Khawla Khoumssi. The Role of New Media in Travel and Tourism Industry in Morocco: Customers Attitudes. Journal of Media Research, vol. 13, no. 2(37), 2020, pp. 11128, Web.

IBP, Inc. Arab States: Gulf Arab States Cooperation Investment and Business Guide  Strategic Information, Regulations, Developments. Lulu, 2017.

Miri, Meriem. The Effects of Central Transfers on Local Own-Revenue: The Case of Morocco. Journal of Economics and Business, vol. 2, no. 4, 2019, pp. 134, Web.

Naciri, Ahmed. What Would Make Morocco an Emerging Economy? Archives of Business Research, vol. 8, no. 6, 2020, pp. 118, Web.

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