...an investment to expand the global market (Tift, 2015), Meanwhile, because Turkey is the fastest rising country for luxury cars, it seems advisable to target Turkey as a potential developing market (Porturkey, 2013). This report will attempt to evaluate the expansion of Aston Martin in Turkey with macro PESTLE analysis, followed by SWOT analysis, a market entry strategy and concluding recommendation for future marketing strategies based on the previous analysis. 2. PESTLE analysis 2.1. Political Turkish politics has become more stable and 50 political parties has compete in freedom, Turkey's political development is moving towards the EU accession process, the rule of law and civil liberties have been actively improved (Abylkassymova et al, 2011: 8; World Bank, 2015). Moreover, Turkey has significantly low trade barrier due to its customs union with the EU, Foreign companies are attracted by low income tax of 20%, which is an important driver of foreign direct investment(FDI) (Abylkassymova et al, 2011: 11). Furthermore, Turkey is a place where relatively easy to begin a business, as reported by the World Bank’s Doing Business Report 2015, which ranks Turkey above Italy and Greece, and also significantly exceeds the fast economic growth in China and Brazil (World Bank, 2014: 4). Nevertheless, Demirbag et al (2007: 275) indicate that Turkey complex bureaucratic processes is a barriers for foreign firms; and the complex reduces the number of foreign companies entering...
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...rapid expansion”. This is the title of an article appeared on November 14, 2013 in the Financial Times. In the decade 2003-2013 the company expanded enormously, from 65 to 233 aircrafts, the passenger numbers have more than quadrupled and the number of international destinations grew surprisingly from 76 to 199. (See Exhibit 1) At present, Turkish Airlines appears to be one of the most extensive airline companies with 106 connected countries (the last was added in April 2014). It was also acclaimed as the best European company in the last four years consecutively at the Skytrax World Airline Awards, being the third most profitable carrier after Ryanair and Easyjet. The expansion continues: with the project of the third Istanbul’s international airport and the announcements of new destinations to countries like Mexico, Philippines and South Sudan. (See Exhibit 2) How a small Turkish state-owned company became so huge and successful? What are the main challenges it had to face and how did it tackle them? What are the main actual and future issues for a company that is expanding quickly and widely? We will try to give an answer to these questions in the paper: starting from an essential and short presentation of Turkish Airlines historical evolution, making a synthetic overview of its main strategies and analyzing the past and the future challenges in developing countries such as India. Turkish Airline historical steps towards internationalization. The “State Airlines Administration”...
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...Institutional Structures Institutional Structure of Turkey At a first glance, Turkey has a diversified economy, excellent infrastructure, and a legal and social structure of a developing nation. Proximity to Europe, integration with European markets, the external anchor of the European Union accession, and a lengthy track record of solid economic management and structural reform are the drivers of Turkey’s long-run prospects (World Bank, 2010). Turkey’s high degree of integration with the world economy, through both trade and financial channels, resulted in the country becoming vulnerable to the impact of the global recession, with the economy contracting by 4.7% in 2009. That being said, the economy has now recovered to pre-crisis levels with growth reaching 7% in 2010, shown to be a larger growth than almost all European counterparts. Despite the economic and political expansion in the last 10 years, Turkey’s battle with corruption, unemployment, income inequalities, and the Kurdish problem have been risk factors for any business that considers investing. According to corruption rankings, Turkey was ranked below South Africa, and tied for a spot with Cuba (Transparency International, 2010). Sociopolitical Structure Turkey is a parliamentary democracy with a free market economy. Since legal reforms instituted in 1926, Turkey's judicial system has been based on the Swiss Civil Code, the Italian Penal Code, and the Neuchâtel (Swiss) Code of Civil Procedure. The 1982 Constitution...
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...Like many Eurasian states, Turkey struggles to find a balance between new capitalistic markets consuming its larger cities and the agricultural sector of its economy that still accounts for 25.5 percent of employment. Its influence in the global market has been slim; however, technology and automobile markets are growing significantly and have helped raise real GDP by over five percent per year. Turkey’s main priority is to maintain the stability of growth in GDP and reduction in inflation (“Turkey”). Since the 1980s, Turkey has struggled to reform its economic policy through the ups and downs of military coupes and competing government parties. Turgut Ozal, finance minister at the time, is responsible for Turkey’s economic reforms. Ozal focused on the reliance of market forces; he devalued the Turkish lira, reduced exchange rates, increased incentives for exports, increased the price of goods produced by public sector companies, and abolished price controls (Rivlin, 212). The policy was successful, driving down inflation and increasing GDP. By the mid-eighties, however, inflation rates skyrocketed due to outside spending that increased national debt, an increase in unemployment rates, and unstable trade agreements (213). Throughout the next decade, the rollercoaster of inflation and increased debt continued to plague Turkey’s economy. A 1989 reform allowed capital movements in and out of the country and high interest rates encouraged investment into the country, keeping the...
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...The European Union (EU) was established in 1957 by six western European countries. Then known as the European Economic Community (EEC), its aim was to create a Common Market. During its lifetime, the EU has evolved from this Common Market towards monetary union with the establishment of a single currency, the Euro. There has also been a great deal of political integration, with an example of this being the Common Foreign and Security Policy (CFSP). Currently, membership of the European Union consists of twenty five states. The last wave of admissions included many former Communist bloc countries such as Poland, Czech Republic and Slovakia. The next scheduled enlargement is in 2007, when Romania and Bulgaria are scheduled to join. After this, the next state scheduled to join is Turkey, which will open negotiations with the EU in October 2005. Potential Turkish membership of the EU is in many ways a paradox. Turkey has for many years had pro-western leanings. Its strategic requirements during the Cold War led Ankara to strongly embrace NATO and rely on the west for its security guarantees. Also, the founder of modern Turkey, Kemal Ataturk founded the state on six profoundly western pillars. These were: firstly, Secularism, which effectively meant removing the direct influence of religious leaders on political decisions and education; secondly, Republicanism, organising the polity as a modern state, as opposed to the Ottoman Empire; thirdly, Populism, not accepting...
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...Turkish Economy and Business 1. Turkey has been one of the fastest growing economies in the last 10 years. What have been the main drivers of this rapid growth? a. Fast recession recovery: The painful experience of 2000-01 meltdown that lead to an increase in public debt from38% to 74% of Turkey’s national income, made Turkey better prepared to handle the next crisis. b. Attractive foreign direct investment destination, which grew 20 times from 1990s c. Young and vibrant demographics: Current population of 72 mil with an average age of 29 that makes the young entrepreneurs amongst industrious people d. Europe’s 6th and the world 16th largest economy. e. Strong financial sector and one of the biggest exporter of construction material(cement), car, textile, and agri-business f. Soring share of export to middle east g. Relatively low labor costs compared to higher costs European labor market h. Recent advancement in medium to high-tech sectors i. Recent betterment of the neighboring markets: Russia, Iran, other Middle east countries j. GDP growth rate at 6% between 2002-08 k. Inflation of 9% from 75% a year in 1990s. l. Utilizing its Special geographic location to be the energy corridor amongst Europe ,Middle east & North Africa m. Attempt to normalize relations with all neighboring countries including Armenia. n. Keen and long-term interest in becoming an EU member ...
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...The Logistics Industry in Turkey November 2013 1 Disclaimer Republic of Turkey Prime Ministry Investment Support and Promotion Agency (ISPAT) submits the information provided by third parties in good faith. ISPAT has no obligation to check and examine this information and takes no responsibility for any misstatement or false declaration. ISPAT does not guarantee the accuracy, currency, reliability, correctness or legality of any information provided by third parties. ISPAT accepts no responsibility for the content of any information, news or article in the document and cannot be considered as approving any opinion declared by third parties. ISPAT explicitly states that; it is not liable for any loss, negligence, tort or other damages caused by actions and agreements based on the information provided by third parties. Deloitte accepts no liability to any party who is shown or gains access to this document. The opinions expressed in this report are based on Deloitte Consulting’s judgment and analysis of key factors. However, the actual operation and results of the analyzed sector may differ from those projected herein. Deloitte does not warrant that actual results will be the same as the projected results. Neither Deloitte nor any individuals signing or associated with this report shall be required by reason of this report to give further consultation, to provide testimony or appear in court or other legal proceedings, unless specific arrangements thereof have...
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...1.Brief Background of Turkey Turkey, officially the Republic of Turkey is a contiguous coasttocoast country, located mostly on Anatolia Western Asia, and on East Thrace in Southeastern Europe. Turkey's location at the crossroads of Europe and Asia makes it a country of significant geostrategic importance. Turkey's largely freemarket economy is increasingly driven by its industry and service sectors, although it traditional agriculture sector still accounts for about 25% of employment. Oil began to flow through th BakuTbilisiCeyhan pipeline in May 2006, marking a major milestone that will bring up to 1 million barrels per day from the Caspian to market. Tourism in Turkey has experienced rapid growth in the last twenty years, an makes up an important part of the economy. 2. PESTE Factors 2.1 Political (P) Stability of Government Turkey’s current government (Justice and Development Party), Turkish Adalet ve Kalkınma Partisi (AKP), als called AK Party or Turkish AK Parti, political party that came to power in Turkey in the general elections of 2002 Prime minister of the party is Recep Tayyip Erdoğan since 2002. In the most recent election, Turkey's 17th general election was held on 12 June 2011 to elect 550 new members of Grand National Assembly. Justice and Development Party garnered 21,399,082 votes, which was almost half of the total votes and ...
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...European Union: Issues and Policies Name: Course Name: Course Instructor: Date of Submission: Executive Summary The current policies of the European Union continues to play an important role in the development of member states both in the political, economical, social, and agricultural sectors of the economy. Many succession countries are trying their lack in the otherwise difficult procedures of becoming member to the union. The union continues to offer adverse marketing fields for its members as trade free zone create and increase coverage and economic growth. The aftermath of the war that shuttered continents has led to succession countries joining the union out of free will. Succession countries by far benefit from the European union membership as the membership comes with a lot of advantages that influence economic growth for the member country. Contents Introduction 4 Succession Countries on Joining the European Monetary Union 4 CAP Reforms 8 The arguments in favor of the enlargement of the European Union 10 The Arguments against the Enlargement of the Union 11 Global Competitors 13 China and the Option to Leave the Eurozone 14 Conclusion 16 References 17 European Union: Issues and Policies Introduction The European Union is a group of 27 states primarily located in Europe with a de-facto capital in Brussels and operates using a supranational independent institutions and decisions negotiated intergovernmental by the member states. It...
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...The European Union: Questions and Answers Kristin Archick Specialist in European Affairs March 4, 2013 Congressional Research Service 7-5700 www.crs.gov RS21372 CRS Report for Congress Prepared for Members and Committees of Congress The European Union: Questions and Answers Summary The European Union (EU) is a political and economic partnership that represents a unique form of cooperation among sovereign countries. The Union is the latest stage in a process of integration begun after World War II, initially by six Western European countries, to foster interdependence and make another war in Europe unthinkable. Today, the EU is composed of 27 member states, including most of the countries of Central and Eastern Europe, and has helped to promote peace, stability, and economic prosperity throughout the European continent. The EU has been built through a series of binding treaties, and over the years, EU member states have sought to harmonize laws and adopt common policies on an increasing number of economic, social, and political issues. EU member states share a customs union, a single market in which goods, people, and capital move freely, a common trade policy, and a common agricultural policy. Seventeen EU member states use a common currency (the euro). In addition, the EU has been developing a Common Foreign and Security Policy (CFSP), which includes a Common Security and Defense Policy (CSDP), and pursuing cooperation in the area of Justice and Home Affairs (JHA)...
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...Toyota’s History Global Toyota Toyota in Europe The Toyota Production System 30 5. Customer First 34 6. Sustainability: Economic, Environmental and Social Stewardship 38 7. The Vehicle Line-Up 46 8. Motorsport & Formula One 58 9. The Toyota Work Experience 60 4 | Toyota’s European Network March 2008 edition | 3 Foreword Dear Reader, Since the early 1960’s, Toyota’s presence in Europe has grown and changed, keeping pace with the changing vehicle tastes and requirements of the European public. Since 1992, when the first of our European production facilities was opened in the UK, Toyota has invested almost €7 billion throughout Europe. We now employ approximately 80,000 people and have nine European manufacturing facilities. But the construction of vehicle and engine assembly plants is only part of the story. In 2007, we also expanded our technical centre in Belgium, investing an additional €75 million to ensure that Toyota and Lexus vehicles continue to meet the high engineering and design standards of European customers. Another major investment was the new European Global Production Centre in the UK, established for the training of production staff and supervisors from all over Europe. Toyota also continues to invest heavily in the training of our engineering and management staff, as well as our retail and marketing teams. Programmes such as Toyota’s Graduate Development Programme, the School for Retail...
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...Throughout the past 60 years the European Union has established itself as a leader in dismantling national level economic and cultural barriers in return for a meso-scale regional framework which has gone on to become a key feature of globalization. In wake of the atrocities committed during World War II, Europe sought to establish a community of peace, stability, and prosperity with the common interest of humanity (De Vasconcelos, 2005). This unification has been achieved through the liberalization of four essential freedoms of movement: goods, service, capital, and labour (Molchanov, 2007). Even reconciliation between former enemies, such as France and Germany, came from the understanding that new world order has dampened the ability of nations to solve their problems on their own. Integration at a regional level can be thought of as integral part of globalization as it has become Europe’s primary defense amidst rising global competition (Murray, 2011). In fact, Peter Schmitt-Egner identified the process undertaken by the EU as transnational regionalism, as it seeks to 1: Utilize European integration as arena for transnational learning to foster internal regional development and; 2: Enhance regional competence to create a ‘Europe of Regions of Citizens’ (Schmitt-Egner, 2002). For Europe, regional integration has presented itself as a window of opportunity that allows for: “outward looking trade policy, internal competitiveness and involvement in cross-border agreements” (Downs...
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...www.ccsenet.org/res Review of European Studies Vol. 4, No. 3; July 2012 Europe and the Middle East: From Imperialism to Liberal Peace? Raymond Hinnebusch1 1 School of International Relations, University of St Andrews, Scotland, UK Correspondence: Raymond Hinnebusch, School of International Relations, University of St Andrews, St Andrews, Fife KY16 9AX, Scotland, UK. Tel: 44-1334-462-861. E-mail: rh10@st-andrews.ac.uk Received: November 24, 2011 Accepted: April 26, 2012 Online Published: July 1, 2012 doi:10.5539/res.v4n3p18 URL: http://dx.doi.org/10.5539/res.v4n3p18 Abstract Europe’s relation with the Middle East and North Africa (MENA) is discussed in the context of normative (International Society) and materialist approaches (World System’s Theory). First, European imperialism’s export of a flawed Westphalian state system is summarized. How Europe is “caught” between MENA and the US and co-opted into a division of labour toward the region is then surveyed. The gap between the normative rhetoric and actual inequitable outcomes and structures constructed under the Euro-Mediterranean partnership is examined, looking at the three “baskets” of economic developmental, political reform and cultural convergence. Four “hard cases,” EU policies toward Palestine, Iran, Syria and Turkey, illustrate the ambiguities of the EU’s approach to MENA. MENA public opinion’s ambivalence toward Europe reflects these realities. The conclusion is that the EU’sMENA policy...
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...1. Introduction The most important factor in the fate of societies and nations is command of energy. Energy is defined as the ability or capacity to do work. Energy policy in the European Union represents one of the core policies since the beginning of the European Integration. The treaty of Paris to establish a European Coal and Steel Community (ECSC) and the European Atomic Energy Community (EURATOM or EAEC) were the first attempts to an energy cooperation within the European Community. As the size of the European Union grows (reached twenty eight member states as of March 2013), it needed more energy sources as energy plays an important role for economic development. Now the European Union is the largest importer of energy (oil and gas) in the world, and the second largest energy consumer. Therefore, member states of the EU need more secure access to energy resources. Beside the North-South and East-West energy corridors, Europe ingests the South-North corridor, connecting it with North Africa and the Middle East. In 2007 Oil and Gas Journal estimated stocks and supplies of oil at 114 billion barrel and natural gas at 13, 9 billion cubic meter. Almost one third of European imported oil comes either from the Middle East or from North-West Africa. Europe pipeline interests in the south are focused exclusively on natural gas. In 2006 Algeria delivered 16, 7% of Europe gas, and it’s considered to be the biggest third land delivers natural gas, including LNG (Liquefied Natural...
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...macroeconomic, geopolitical, socio-demographic and technological change worldwide. Council membership is limited to a select group of corporate leaders and their companies. The Council’s core program includes periodic meetings in strategically important parts of the world, tailored analytical products, regular member briefings, regional events and other services. Global Business Policy Council A.T. Kearney, Inc. 8100 Boone Boulevard Suite 400 Vienna, Virginia 22182 U.S.A. 1 703 891 5500 telephone www.atkearney.com I n the two years since A.T. Kearney released its last Foreign Direct Investment Confidence Index, the global economy has faced unprecedented turmoil—a housing market collapse, a banking system teetering on the edge, rising unemployment and falling sales across almost all industries. In the 2010 FDI Confidence Index®, we examine the future prospects for international investment flows in the context of these tumultuous times. While conditions have improved, senior executives at the world’s largest companies remain wary of investing during the current climate, and few expect a full turnaround before 2011. Amid the economic downturn of the past two years, several emerging markets remain attractive to foreign investors. China, India and Brazil are in the top five of the 2010 Foreign Direct Investment (FDI) Confidence Index, while emerging markets with large consumer bases, such as Indonesia and Vietnam, also rank highly. However, some smaller, more...
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