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Assessing Turkey Wine Industry for Kraft-Foods Group

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Added on  2019-10-18

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This report analyzes the competitive edge of wine industry of Turkey using Porter’s National Diamond model and suggests market entry strategy for Kraft-Foods Group. It also discusses advantages, appropriateness, and limitations of using foreign direct investment.

Assessing Turkey Wine Industry for Kraft-Foods Group

   Added on 2019-10-18

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Global & International Business Assessing Turkey Wine Industry for Kraft-Foods GroupStudent Name: Student ID: Course Name: Course ID:Faculty Name: University Name:
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Table of ContentsPart 1: Porter’s National Diamond.....................................................................................2Factor Conditions...........................................................................................................2Related and Supporting Industries.................................................................................4Demand Conditions........................................................................................................5Structure of Firms and Rivalry........................................................................................6Government....................................................................................................................8Chance...............................................................................................................................9Part 2: Market Entry Strategy..........................................................................................10Advantages of using Foreign Direct Investment..........................................................10Appropriateness of using Foreign Direct Investment...................................................11Limitations of using Foreign Direct Investment............................................................11Recommendations.......................................................................................................12Part 3: Contemporary Management Issues.....................................................................13References.......................................................................................................................15
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Part 1: Porter’s National Diamond The model of the Porter is broadly used In order to anatomize the macro environment ofthe specific country. Further, it is being known that when it appertains to the environment of a specific industry and there are various factors which the organizers must bear as they will not be having any idea that which factor will occur first (Fainshmidt et al., 2016). Furthermore, this model of Porter will help in demonstrating the competitive edge of wine industry of Turkey depending on the various factors like the conditions of the factors, supporting and the relating industries, conditions of the demand, framework of the rivalry and the firms, government and the chance.The use of Michael Porter’s National Diamond is wide as it brings in multiple contexts together to the decision making. The National Diamond has focused on integrating the various works that has been done by the Porter in the past. Some of them are five forces analysis, value chain, and assessment of competitive advantage. It has brought all the aspects together through the National Diamond. Moreover, the consideration of whole nation with contextualizing it as a market gives greater scope to the use of the method. The tool helps in the analysis of the organization’s ability to function properly within the national market. Moreover, it helps assess the ability of the national market tosustain competition in the international market.Factor Conditions The wine industries are in relation to the natural products and the resource which are home grown are significant to the industry. Further, the grapes play an important role in order to make the wine as the grapes are considered as the raw materials. The climate of Turkey is beneficial to the plants of the grapes. Steady climate state, sunshine, soil
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fertility and the reduced pollution generates the planting of grapes. Furthermore, the population is not much but the skills which are required to make the wine and the people who are involving in growing grapes is relatively high (Sen, I. and Tokatli, F., 2014). There are various universities in Turkey which have the particular subject in order to learn the creation and the marketing of wine. This further helps in encouraging technical progress and the innovation related to the advanced technology. People of Turkey prefer great varieties of wine along with the high quality. As stated that the grapes are produced within the country which is the major raw material for the production of the wine. This ensures that the company will be able to procure raw material at the relatively cheaper price. The company, if operates near the location that amply produces grapes then it will help save cost on the transportation. Apart from that, there are universities that have courses on the technologies related to wine production. This will ensure that the continuous researches keep going on this sector to bring in more innovation (Garcia et al, 2012). As stated that the people of the turkey prefer wine products, therefore it will help the company bring in different tastes in wine and experiment in the market. If all these factors are considered, then it can be stated that the factors supporting the production of the wine within the country is favorable. One of the contradicting situations that has come up is the new rules from the government regarding advertisement, display and sale of the wine products. It can be stated that there are some increase in the overall tax rates that is going to impact theconsumers’ pocket and companies also. There is also some conflict on the ideological part. The country’s ideology is stuck between that of the Europe and Middle East. Moreover, the explicit and causal challenges are creating roadblocks for companies.
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