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Assignment on Strategic Analysis 2022

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Added on  2022/10/19

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Assignment
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This is written assignment so we need to make notes and take it in to the exam day, so what I need is you to prepare the notes for me and then i can use it to do my writing, 5 A4 size notes and 2 pages of referencing

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Strategic analysis

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Introduction
The Turkish airline is the first flight carrier of turkey and was established in 1993. The company
has enhanced its value by including the growth strategies and by that new flights were added to
the process. It is situated in the turkey’s northwestern part where the main center is located.
The strategic position of Turkish airline
Pestle analysis
Political factors
In the company, there are various policies
which are established with the help of local
government and with the change in the
government the policies are also modified
(1).
There are the standards policies which will
be applied to all the countries (2).
Economic factors
Fortune of the business is affected by the
intervention of government (27).
There is the availability of funds easily in
the equity market (26).
There is an increase in investment in
infrastructure (5).
Social factors
More priority is given to the preferences of
consumers (4).
There is an investment in public services
which increased the customer base (3).
Health and safety are given high priority
(28).
Technological factors
Use of latest technology has reduced the
servicing and production cost (7).
There are the latest developments which
are involved and by that user experience is
enhanced (6).
Environmental factors
High investment is made in waste
management (9).
Cost of operations is increased because of
supply chain investment to deal with
extreme weather (8).
Legal factors
All the norms which are specified by the
government are complied with (11).
In compliance with laws, the increased cost
is faced (10).
Figure 1 Turkish Market Growth (mn passengers)
(13)
In the domestic market, the constant growth is
forecasted for the upcoming period whereas in the
international market growth has been forecasted
which will be beneficial for the company (13).
Figure 2 Key financial data (12)
This image represents all the important
financial information and change taking
place.
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Figure 3 Turkish Airlines Historical Growth (14)
The changes which are taking place in the company
from the past in terms of destinations covered are
shown. In 2018 there are 322 aircraft (15).
Figure 4 124 destinations (16)
All the destinations which are covered
by the company are shown in the table.
There are a total of 124 countries in
which flights are available.
Porter’s five forces
Bargaining power of buyers: There
is a high rate of the same as many
airlines are available for all the
customers whether they are traveling
for pleasure or the agents (17).
Bargaining power of suppliers: The
suppliers have high power as they
can sell their services to those paying
more by providing best services (18).
The threat of substitute: The threat
is high as there is the use of
advanced technology by all and that
may attract the consumers by other
airlines (19).
The threat of new entrants: This is
low as the entry in the airline
industry requires due to the amount
of capital (20).
Rivalry among existing
competitors: there are many
competitors available for Turkish
airlines and so rivals are more and
dealing with them is made in the best
possible manner by providing the
preferred services (21).
Figure 5 Highest Connectivity for Europe, Africa, and the
Middle East (22).
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Figure 6 Total Passengers (mn) (23)
The highest number of passengers who were
provided with the services is 75.2 m and that is in
the year 2018 (30).
Figure 8 Revenue Breakdown (1Q’19) (25)
Figure 7 Revenues (mn USD) (24)
The revenues of the company have
raised in 2018 which is due to rise in
passengers count.

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Challenges faced by Turkish airlines
The main challenges which were faced by the company are as follows:
1. The main challenge which is faced by the company is due to Brexit. With the EU exclusion,
there is the rise in the cost of the carbon and fuel and this has created issues for the business.
With this, there were no secured contracts which could be undertaken in Europe and this led
to a decline in the profitability (31). There were reductions in the investments which were
faced as the investors were not sure of the future and returns which will be available to them.
2. The size of the main hub is another challenge which is faced by Turkish airlines. Due to the
size, it can have a lesser number of operations and they are around 32 flights each day (32).
There is a point to point flights under this and connect with other Turkish airlines is not
established. The delay is also faced by many flights due to this issue which hampers the
complete process (33).
3. Increasing competition is also a challenge for the business it is required to compete with the
other airlines which are growing at a fast pace. There is the development which is taking in a
fast manner and in that company is required to include all the advanced technology which is
a difficult task (34). There is a need or continuous research in this and that requires funds and
the complete process lead to a rise in the overall expenses which are made by the company
(35). By the rise in the cost, there is a decline in the profits and that leaves the company with
fewer amounts to be reinvested.
4. Instability in the political and economic conditions also creates challenges for the company
(36). Due to this the airline is not able to undertake its expansion plan there is the instability
in the market and due to that, it is not possible for the company to attain the required amount
of growth. Due to the political conditions, the tourist is not willing to visit the place and that
decreases the overall number of passengers that travel in every period. This is a loss for the
company which is to be borne and with that further growth is not possible to be made (37).
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Various solutions to face political and economic instability
The challenge is faced by the company and due to that, there is the need to take the appropriate
steps. There are the losses which are faced and for that, there will be changes in the strategy
which will have to be made so that the situation can be controlled. There will be a requirement to
have the proper plans which can be used when the situation arises (38). The rules and regulation
which are being followed shall be monitored regularly so that the changes which are coming up
can be noticed and inculcated in the business on time. The complete schedules and other actions
will also be needed to be analyzed which will help in determining the activities which are
affecting the business in an adverse manner (39). The political and economic activities which
affect the business will be identified and then steps and policies will be formulated in such
manner that there is planning for all and also in case of emergency they can be taken into
account. The prices of the tickets will be reduced and that way more customers will be attracted
and also packages shall be offered which will be providing the passengers with the additional
services and facilities. The total destinations will have to be increased and by that overall
profitability will be enhanced (39).
4 implementation of the solution
The management team of the company will be required to take the appropriate steps by which
the implementation of the solution can be made effectively. They will be continuing to perform
the actions until the improvement in the conditions of the company is made. There will be
undertaking of the programs in which the awareness will be spread among the tourist and they
shall be assured that their safety is the priority and no issues will be faced (39). The company
will be working with the agencies and in that there will be a risk which will be involved and that
will have to be taken into consideration in advance. There will be an adequate price which will
be offered by the company for the same (40). There will be the establishment of proper security
practices by the business and they will be brought to the notice of all so that people will have a
positive image for the company. There will be the use of strong advertising which will be highly
impacting all the customers. The airports will be made more secured and this will be done with
the installation of the additional CCTV on airports. The staff which is currently involved is not
that skilled and so there will be hiring of the adequate staff with the required skills they will be
able to deal with all the conditions in the most effective manner.
Conclusion
All the factors by which the company is getting affected have been analyzed adequately and by
that, all the required information is collected. There are various challenges and political stability
is main among them. The solutions to be undertaken are identified and with that, manner of
implementation of the same is also taken into account.
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Reference
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