PESTLE Analysis: Expanding Turkey's Beauty Business to Australia

This report explores the potential expansion of a beauty industry business from Turkey to Australia, providing a comprehensive analysis of the international business environment. It includes a PESTLE analysis for both countries, examining political, economic, social, technological, legal, and environmental factors influencing the beauty industry. The report also discusses various strategies for international business expansion, with a focus on franchising and licensing as key methods for entering the Australian market. Risks associated with internationalization, ethical considerations, corporate social responsibility, and sustainability are addressed, offering recommendations for a successful and responsible expansion. The analysis highlights the opportunities and challenges involved in establishing a Turkish beauty brand in Australia, emphasizing the importance of adapting to local market conditions and regulatory frameworks.

Running head: INTERNATIONAL BUSINESS ENVIRONMENT
INTERNATIONAL BUSINESS ENVIRONMENT
Name of the Student
Name of the University
Author Notes

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Executive Summary
Australia is a major business country in the world and the expansion to Australia for a
business in Turkey is one of the positive decisions made by the business executives of the
country. The PESTLE analysis of the two countries has been done along with the risk of
internationalisation of the business. In addition, the different strategies of the international
expansion of the business is being done with special emphasis to franchise and licensing part
that holds a major way to establish and expand a business to Australia. Recommendations for
the better expansion of the business is also being done with the same flow.

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Table of Contents
1. Introduction............................................................................................................................4
2. Turkey as a country................................................................................................................4
3. PESTLE Analysis for Beauty Industry in Turkey..................................................................4
3.1 Political-...........................................................................................................................4
3.2 Economic-........................................................................................................................5
3.3 Social-..............................................................................................................................5
3.4 Technical-.........................................................................................................................5
3.5 Legal-...............................................................................................................................5
3.6 Environmental-.................................................................................................................6
4. Strategies for International Business Expansion....................................................................6
4.1 Franchise and Licensing as a strategy for Business Expansion.......................................7
5. Australia as a country.............................................................................................................8
6. PESTLE Analysis of Beauty Industry in Australia................................................................8
6.1 Political-...........................................................................................................................8
6.2 Economic-........................................................................................................................8
6.3 Social-..............................................................................................................................8
6.4 Technical-.........................................................................................................................9
6.5 Legal-...............................................................................................................................9
6.6 Environmental-.................................................................................................................9
7. Risk in Internationalisation....................................................................................................9

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8. Ethical Consideration of the Industry....................................................................................9
9. Corporate Social Responsibility of the industry..................................................................10
10. Sustainability Theory.........................................................................................................10
11. Conclusion..........................................................................................................................10
12. Recommendation................................................................................................................10
12. Reference............................................................................................................................11

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1. Introduction
One of the major ways to make a business expand in the modern times is to expand it
to the international arena both in terms of business and customer base. The importance of
international expansion of business lies in the fact that it helps the brand as well as the
country to make its mark in the international arena and niche a name for itself on a global
platform. The importance of the international expansion of business is evident in the fact that
most of the major companies of both the developing and developed countries are trying to get
hold of the market of the other countries in which the company has not ventured before
(Shenkar, Luo and Chi 2014). The following report deals with the expansion of beauty
industry from the province of Turkey to Australia with the amount of risk and other problems
involved in the same. The following paragraphs deal with the PESTLE analysis of both the
countries along with the ethical, corporate social responsibility and sustainability conditions
with the same. The highlights of both the countries in terms of business modules are also
mentioned to give an apt image of the conditions that influence the market of both the
counties.
2. Turkey as a country
Turkey is one of the major developing markets of Asia which is both attracting
business from outside the country and making its presence felt in the other countries of the
world. Situated at the conjuncture of West Asia and South East Europe, the unique location
of Turkey makes sure to gather business from both the sides of the continent and give
adequate revenue to the business done and the business involved (Buğra and Savaşkan 2014).
The country supports a Free-Trade policy that makes it one of the potential countries for
marketing the products and selling them. Being one of the richest countries with a democratic
picture, it has a lot of scope for flourishing of the industries mentioned. The beauty and
cosmetic industry of Turkey is one of the major booming industries of the country as like
every country of the world, it has a growing and expanding customer base for the beauty
products (Irwin 2015). The country supports the flourishing of the beauty industries which
can be seen in the positive PESTLE analysis mentioned below.

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3. PESTLE Analysis for Beauty Industry in Turkey
3.1 Political-
The political factors of Turkey play an important role in flourishing the market for
cosmetic and beauty industry. The government support and non-rigorous industrial policy for
the country provide an adequate amount of political support for the conduction of the
business. Turkey is a Republican Parliamentary Democracy that helps the country to make
adequate provisions for the internal growth of the business sector (Bianchi 2014). Inspite of
the support of the internal government, the country is near to the war zone of Syria which
makes it a potential threat for the industries to get flourished which the government is dealing
with.
3.2 Economic-
Turkey has a free-trade economic zone that helps the industries to flourish and make
way for their international expansion. The industries from outside the country also are
welcomed in the country with the open market urged by economic reforms of privatisation of
industrial sector (Balasubramanyam and Togan 2016). The beauty industry receives the right
amount of economic boost from the country as it gives a booming and ever-growing market
to the industrial sector.
3.3 Social-
The social factors of the beauty and cosmetics industry of Turkey include the factors
of constant demand for the products and acceptance of new and innovative products into the
market. The social factors also include the increase of women empowerment that gives them
the purchasing power and also the will to express their demands and needs of the products
(Çaha 2016).
3.4 Technical-
The technical factors associated with the cosmetic and beauty industry of Turkey
include the various resourcing of methods and raw materials for the implementation of the
final products. The ways in which the products are manufactured are also taken into
consideration and various processes and new technical advancement are made sure in the
technical aspects of the analysis of the beauty industry. The technical factors play a major
role in the beauty industry of Turkey as with the technical advancement it is possible to make
new and innovative products for the customers which will attract more sales and thereby
more revenue for the company.

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3.5 Legal-
The legal factors have a major role to play in the beauty industry of Turkey as the
compliance to legal terms and factors make the overall process of manufacturing and
processing of the goods easier to connect to the audience. When an industry follows all the
legal formalities and abides by the acts set by the Consumer Law and the Cosmetic products
(safety) regulation 1996, then the customer makes the brand a better aspect and a more
reliable purchasing source. The legal compliance to the cosmetic industry is of major
importance in Turkey as the customers can trust the brand more with the legal backings.
3.6 Environmental-
The environmental factors also play a major role in the cosmetic and beauty industry
of Turkey. With the compliance to the environmental facts and conditions and adherence to
the norms of environmental sustenance the industry finds it important to make their products
both bio degradable and safe for the environment. The banning of plastic packaging and
using non-soluble beads in the products hamper the environmental balance of the industry
that is not desirable at any instance. The products that are to be manufactured should be in
accordance to the environment safety rules and regulations set up by Turkey which is valid in
most of the cases of the times.
4. Strategies for International Business Expansion
Business Expansion is defined as the ways in which a business or an industry of a
particular sector is expanded from the local market of a particular country to the global front
or to any other country where the industry or the brand has no present presence. The
importance of business expansion lies in the fact that with adequate business expansion, the
industry and the brand can help to get more sales and revenue into its consideration and also
make sure that the brand has more customer base from not only the native country but also
from the other countries or international market (Kumar, Gaur and Pattnaik 2012). There are
a number of ways in which business can be expanded on an international level which are
mentioned below –
 Increment of Sales of the products
 Introduction of a new product
 New Market Segment or venturing into a new market
 Starting a chain
 Franchise or License

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 Collaboration or alliance with a brand from the desired country
 Going global in terms of products and marketing
All these ways help a business to develop into the new market arena and help the existing
brand or industry to flourish with a level that help the brand to create a good market place for
the new industry. The use of these strategies in the market of the brand or the industry help
the particular brand or product to create a global value that in turn affects the market value
and the pricing of the brand. Also, the shares of the brand increase to a major extent with the
business expansion of the products. One of the major ways to expand a particular business to
the international level is through Franchise and licensing which is analysed below.
4.1 Franchise and Licensing as a strategy for Business Expansion
Franchise is defined as a temporary business opportunity given to a particular
business both in terms of investment as well as the leasing of the products for a substantial
period. The importance of franchise lies in the fact that it involves less risk for the
businessman and also gives more opportunity for the brand to get an overview of the
demands and the conditions of the brand in the new business arena (Keup and Keup 2012).
Licensing is defined as an arrangement or contract in which the licensor gives the
right of intangible property to another entity or person for a considerable specific period and
in return get a royalty fee from the license (Dratler Jr 2017). This is one of the major ways to
expand any new business to a new economy and also to take chance at any new brand being
established in the foreign land without any proper investment by the brand with minimum
risk taken. This form of business expansion is done mostly by the food and beauty industry
where the physical presence of the company is not required while the existence of the brand
is more vital.
The beauty industry is one of the potential industries for the expansion of business in
terms of franchise and licensing sector. The beauty industry is one of the growing industry all
over the world which is focussed on the growth and development of the brand. The beauty
industry of Turkey when in a developing spree to the rest of the world should adopt the
policy of franchise and licensing so that the industry should get into the various parts of the
world with minimum risk and maximum profit both for the industry and the new business
organization in which it is spreading (Davis 2012). The beauty industry when spreading from
Turkey to Australia should adopt to the various licensing policies of the country which should
be adopted to the Franchising Code of Conduct. The adoption of the various policies for the

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franchise of the products should be made into effect considering the licensing acts along with
the taxation policy of the country. The compliance to the various taxes of the country along
with the various other factors makes the expansion of business to Australia one of the
essential and positive decisions that can be taken by the industry.
5. Australia as a country
Australia is one of the developed countries of the world with a wide customer base
that attracts business from most of the countries of the world. Different countries try to set up
their business in the Australian province as it attracts a large number of customer base and
makes sure that the brand gets enough exposure to the world business. Being situated in the
heart of Southern Hemisphere, isolated from the rest of the world, the brands that are
focussed on the country makes sure that the customers give importance to the brand that is
being established in the genre. The country has its own regulatory body for business with
business visa associated with it which makes it one of the best places for the fair practises of
the conduction of business.
6. PESTLE Analysis of Beauty Industry in Australia
6.1 Political-
The political factors of the country play a major role in the setting up and establishing
a franchise for the beauty industry in the province of Australia. The political condition of the
country is stable which makes it one of the best places to invest and set up the body of the
industry. The government has its own regulatory body for franchise and licensing for brands
that are coming from outside the country to set up an identity in the country (Gray,
Harymawan and Nowland 2016). The expansion to Australia of a beauty company can be
profitable as there is an increase in demand for the middle-eastern beauty products in a
market regulated by chemicals and normal companies as the government has the measure to
imply good subsidy and other factors for the setting up of new business.
6.2 Economic-
Being one of the best capitalistic economies of the world, Australia is one of the
greatest markets for economic expansion of the brands from the Middle East. The economic
stability of the country makes it one of the potential markets for the expansion of the
cosmetic industry from the middle east to the south. The country has a history of economic

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stability which attracts a huge amount of investment both from the eastern to the western
countries.
6.3 Social-
The market for the cosmetic and beauty in Australia is one of the major factors that is
responsible for the good market for the cosmetic industry in Australia. There is a huge
population that uses beauty and cosmetic products in the country making it one of the
potential markets for the advancement of the business in the area. Other social factors include
the need for the new and traditional products that the people of the country demands over the
chemical-laden goods.
6.4 Technical-
The technological advancement is one of the major factors of the establishment and
advancement of the industries in the province of Australia. There is a surge in technology in
the sector that makes it one of the potent market for the technical advancement of the industry
related to beauty and cosmetics.
6.5 Legal-
Australia has its own set of legal implications like procuring a legal visa for the
setting up of the business in Australia. There are certain rules and policies that are set up by
the Australian government for the establishment of the cosmetics industry. The legal factors
like approval from FDA is one of the major issues that is being faced by the Australian
industries as well as the industries coming from outside.
6.6 Environmental-
Being one of the most developed countries of the world, the country emphasises on
the need of environmental approval from the required sources for the setting up of the
industries. The environmental factors like minimum use of plastic and other non-
biodegradable products make the setting and advancement of industries in Australia one of
the major issues.
7. Risk in Internationalisation
In order to make a certain industry reach the international level, there are some
analyses done which has been discussed. However, there are certain risks associated with the
same like adoption of the products in the new market and the risk involved in terms of
investment. The product should be accepted by one and all when venturing into the new

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market and should include all the necessities that are said by the brand (Liesch, Welch and
Buckley 2014). When a beauty industry is being franchised in Australia, then there is a need
for the people to accept the products and believe in the traditional forms from Turkey. This, if
not the case will pose a serious concern for the owners as well as the franchise holders.
8. Ethical Consideration of the Industry
The industry should adopt to the ethical consideration of the country as well as the
industry. The raw materials sourced should come from fair places that are both cruelty-free
and environment-friendly. All the associates of the brand should be treated in a proper
manner that should be the primary ethics of the brand along with the other sources of raw
materials. All the process should be conducted by fair means and should be made to procure
the maximum gains.
9. Corporate Social Responsibility of the industry
The industry should adhere to the corporate social responsibility of the industry. In
terms of beauty industry, no animals should be harmed along with zero tolerance for the
animal testing and other cruelty. The products should be made using sustainable means and
should be one of the major sources of revenue for the people involved. The industry should
be responsible towards the society and should not promote racism or any sort of malpractices
by any means.
10. Sustainability Theory
The beauty and cosmetic industry should be sustainable both to the environment and
to the society. The products should be of good quality that should be environment friendly
and majorly attracted to the young and trendy people of the society.
11. Conclusion
In conclusion, it can be said that the idea and intention to expand a cosmetic and
beauty industry to Australia from Turkey is one of the major positives that is being taken by
the business development executive of the country. The PESTLE analysis of both the
countries should be considered along with the other practises to make sure that the ways and
means of expanding the business is done in a fair and conventional means.

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12. Recommendation
 The demand for the product should be analysed for the better sales and profit of the
organization
 Marketing of the products should be done accordingly so that the customers can know
more about the brand
 Advertisements and social media promotions should be done for the better conduction
of the business.
 Both the countries should be analysed to know the common traits of beauty and what
new should be done or innovated to make sure that the destination country receives
the products well.