Power Control Engineers: Turkey Market Entry Strategy Report

This report provides a strategic analysis of Power Control Engineers (PCE) and its intended entry into the Turkish business market. It begins with an overview of PCE, a UK-based firm specializing in engineering services, and justifies the selection of Turkey as a suitable host nation due to its favorable macro and microeconomic factors, lenient business regulations, and emerging economy. The report then explores strategic design, including the application of the Ansoff matrix, Porter's Generic Strategies, Bowman's Strategic Clock, the Uppsala Internationalization Model, and the Blue Ocean Strategy. It examines market entry options such as joint ventures, mergers and acquisitions, and foreign direct investment (FDI), recommending a joint venture strategy for PCE. The report concludes by discussing the strategic implications of the chosen approach, providing a comprehensive overview of PCE's international business strategy for the Turkish market.

Running head: INTERNATIONAL BUSINESS STRATEGY
International Business Strategy
Name of the Student:
Name of the University:
Author’s Note:

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Table of Contents
1.0 Introduction..........................................................................................................................2
2.0 Overview of Power Control Engineers (PCE).....................................................................2
3.0 Country Choice and Product Choice....................................................................................3
4.0 Strategy Design....................................................................................................................3
5.0 Options for Market Entry.....................................................................................................5
5.1 Joint Venture....................................................................................................................5
5.2 Merger and Acquisition....................................................................................................6
5.3 Foreign Direct Investment................................................................................................6
6.0 International Business Strategy Choice...............................................................................7
7.0 Strategic Implications of the Choice....................................................................................8
8.0 Conclusion............................................................................................................................9
9.0 References..........................................................................................................................10

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1.0 Introduction
This strategic report intends to focus on the business firm Power Control Engineers
(PCE) and its intended entry into the business market of Turkey. The researcher for the
completion of this article will take the help of past literature on the concepts of business
strategy, foreign business market modes or strategies and others. The report begins by
offering the background information of the concerned firm and also justification for the
selection of the host nation of Turkey and the product that it will offer in the concerned
nation. The report next highlights the strategic design that the firm will follow for the
formulation of strategies and also the different market entry options that are available to it.
Lastly, the report discusses international business strategic choices which are available to the
firm and the implications of the usage of these strategic choices.
2.0 Overview of Power Control Engineers (PCE)
Power Control Engineers (PCE), is a UK based firm which specialises in offering a
plethora of services to the customers like designing, consulting, project management and
others to the different individual clients and also business firms (Pceng.com.au, 2019). More
importantly, the different services offered by the concerned firm are specially tailored to meet
the needs or the requirements of the individual customers and also the other business firms to
which it offers its services. Moreover, apart from the domestic market of Newcastle, the firm
also has extensive business interests in the cities of Perth and Melbourne of Australia and the
risk assessment, fault investigation and other similar services offered by the firm are
especially in demand among these customers (Pceng.com.au, 2019). In this regard, in needs
to be said that some of the most important key competencies of the concerned firm which had
enabled it to gain success in the business market are the wide knowledge base of the

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engineers who are a part of the firm, the focus of the firm on quality rather than quantity and
others (Pceng.com.au, 2019).
3.0 Country Choice and Product Choice
The nation that had been selected as the potential host nation for the services offered
by the firm under discussion here is Turkey. This is because of the fact that an analysis of the
macroenvironmental and the microenvironmental factors of the concerned nation conducted
in “Assignment 1” clearly revealed the majority of the factors are congenial for the conduct
of business. Furthermore, the lenient business regulations or stipulations, lack of effective
business competition, free trade policy followed by the national government and others are
some of the major factors which had made the concerned nation a suitable host nation for the
services offered by the firm under discussion here (Ayden, Demirbag & Tatoglu, 2017). In
addition to these, the emerging economy of the concerned nation and also the new firms
which are being established in the nation through the processes of foreign direct investment,
cross border mergers and acquisitions and others greatly supports the services offered by the
firm. More importantly, it is seen that there are many business firms in the nations of Turkey
which require the different kinds of designing, consulting, project management, risk
assessment, fault investigations, maintenance planning and other similar kinds of services
that the firm under discussion here offers and also it had been found that there are not many
firms that offer these services in the concerned nation (Ayden, Demirbag & Tatoglu, 2017).
4.0 Strategy Design
Chen et al. (2017) have articulated the viewpoint that the different kinds of strategies
have emerged as an integral tool which the diverse business commonly for the attainment of
their business objectives of goals that had been outlined by them. On the other hand,
Thompson, Strickland and Gamble (2015) have stated that the overall growth or business

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prospects of the business firms greatly depends on the kind of business strategies that they are
following within the framework of their fir. In this regard, it needs to be said that in the
present times different kinds of theories or models or concepts have gained popularity which
are commonly being used by the diverse business firms for the purpose of designing their
strategies.
As opined by Ansoff et al. (2019), one of the most important models which is being
used by the contemporary business firms for the purpose of designing their strategies is the
Ansoff matrix. This strategic model enables the firms to design effective growth strategies
which can be used by them not only for the purpose of the enhancement of their profitability
but at the same time for the attainment of competitive advantage as well (Tulung, 2017).
Thus, the firm under discussion here can take the help of the product diversification to meet
the needs or the requirements of the different business firms of the nation of Turkeys through
the wide range of services that they would offer. Porter’s Generic Strategies is another
important framework which enumerates different kinds of strategies that can be used by the
business firms for gaining competitive advantage (Ahi et al., 2017). In this regard, it needs to
be said that there are various strategic options that this model recommends like cost
leadership, product diversification, focus and others (Ang, Benischke & Doh, 2015). Thus, it
can be said that the firm Power Control Engineers (PCE) would be able to gain in a
significant manner if it takes the help of the cost leadership strategy so as to offer the best
quality services to the customers and that too within a price range which is comparatively
lower than the ones charged by the other firms.
Lojacono, Misani and Tallman (2017) have articulated the viewpoint that Bowman's
Strategic Clock is an important strategic tool which enables the firm to attain a unique market
position within the business market in which they are operational by recommending two
approaches, namely, one on the basis of price and another one on the basis of perceived

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value. It is pertinent to note that since the firm, Power Control Engineers (PCE, intends to use
the cost leadership strategy thus it would be easier for the concerned firm to attain a unique
market position on the basis of the entity of price. The Uppsala Internationalization Model is
another important model which the firm under discussion here can take the help of for the
purpose of its market entry into the nation of Turkey. According to Frow et al. (2015), the
concerned model states the firms first need to create a demand for the products or services
offered by them by exporting them to the host nation of their choice and once the demand for
the products or services offered by them had been established then the firm can undertake the
actual process of expansion. Thus, for the process of market entry the firm Power Control
Engineers (PCE) can take the help of this model. Lastly, the Blue Ocean Strategy is another
important one which will enable the concerned firm to use the cost leadership strategy and
product differentiation strategy in an effective manner and also to enhance the demand of the
services which are being offered by the concerned firm (Blueoceanstrategy.com, 2019). In
this regard, it needs to be said that there are not only business firms in the nation of Turkey
which offers the kind of project management consultancy services like risk assessment, fault
investigation, maintenance planning and others to the firms. Thus, it is likely that the
concerned firm by effectively creating the demand for these services would be able to benefit
in a significant manner.
5.0 Options for Market Entry
França et al. (2017) have articulated the viewpoint that the business prospects of the
different firms in the host nations depends greatly on the kind of market entry strategy that
they have selected for the purpose of entering into the business market of other nations. Some
of the most important market entry strategies which are available to the firm Power Control
Engineers (PCE) for the purpose of entering into the business market of Turkey are listed
below-

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5.1 Joint Venture
As opined by Bhamra and Lofthouse (2016), the market entry strategy of joint venture
is the one through which the different firms have the option to enter into a partnership to
enter the business market of a host nation. Furthermore, the firms have the option to share
resources, capital, profit, loss, risks and other aspects for the attainment of the common
objective that they have outlined for the venture (Buehring & Liedtka, 2018). However, the
major negative aspect of the concerned process is the fact the business firms involved in the
process do not often take full accountability for the ventures, the objectives of the ventures
are not always clear and others (David & David, 2016).
5.2 Merger and Acquisition
Wheelen et al. (2017) are of the viewpoint that merger and acquisition is the process
through which one firm invests into the business of other firm and often a new firm is created
for entering into the business markets of the other host nations. The best aspect of this
process is the fact that it enables the firms to utilise to resources, customer base and other
aspects of the firms with which they are undertaking the process of merger for the attainment
of the objectives that they have outlined (Chen et al., 2017). However, the negative aspect of
the process is the fact that it is seen that often the organisational culture, resources and other
aspects of the firms which are undergoing the concerned process are not in synchronicity with
each other and this in turn adversely affects the success of the firms that have been formed
through the concerned process (Tulung, 2017).
5.3 Foreign Direct Investment
According to Thompson, Strickland and Gamble (2015), foreign direct investment is
the process through which the firms invest into the business markets of the other nations for
the establishment of their business in the concerned host nation. There are various benefits
that the effective usage of this market entry strategy offers to the different firms like the firms

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are able to have a physical presence of their own in the different host nations, they have the
opportunity to penetrate the business markets of the concerned nations in the manner in
which they want, the opportunity to earn a higher amount of profitability through the
exploitation of the resources of the host nation and others (Ayden, Demirbag & Tatoglu,
2017). However, there are various negative aspects associated with the concerned process as
well like the element of risk is higher, liability is higher, the accountability or the
responsibility that the firms need to have is higher, cultural differences are higher and others
(Ahi et al., 2017).
On the basis of the above discussion it can be said that the firm is likely to gain in an
effective manner if it undertakes the process of joint venture for the purpose of entering into
the business market of Turkey. This can be explained on the basis of the fact that the risks
which is involved in the process is less, the firm would have to take lesser accountability for
their business activities and others while being able to use the resources, expertise level,
customer base and other aspects of the firm with which it is undertaking the joint venture.
6.0 International Business Strategy Choice
As mentioned above the business firm under discussion here for the purpose of
entering into the business market of Turkey will take the help of the market entry strategy of
joint venture. Thus, the concerned firm would also have to significantly modify the business
model that it had been following for the purpose of its business in the nations of UK and
Australia. In this regard, it needs to be said that in the nation of Turkey, the firm Power
Control Engineers (PCE) would take care of the service aspects or for that matter the services
which would be offered to the customers or other business firms like risk assessment, fault
investigation, maintenance planning and others whereas the other aspects of the business like
sales, customer care or customer support, accounts and others would be taken care of by the
firm with which it would enter into the venture. This can be explained on the basis of the fact

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that the prospects of the concerned firm in Turkey would greatly depend on the quality or
thee nature of services that it would offer to the client and this is the reason why this aspect of
the business would be taken care of by the firm under discussion here itself. Furthermore,
another important factor which will motivate the firm to handle this aspect of the business
themselves is the fact that the satisfaction level of the customers as well as their loyalty
greatly determines the profitability of the firms.
The sales department, customer service or customer support and others will be taken
care of by the other firm with which it entering into the venture because of the fact that these
aspects will of secondary interest if Power Control Engineers (PCE) is being able to deliver
quality services to the clients. More importantly, the firm Power Control Engineers (PCE)
have past experiences in delivering various kinds of project management consultancy
services to the clients and even in the nations of UK and Australia these aspects of the
concerned firm are being taken care of by other firms. On the basis of these aspects, it can be
said that the above proposed business model is one of the best possible ones that the firm
under discussion here can use for the process of its business operations in the nation of
Turkey.
7.0 Strategic Implications of the Choice
Power Control Engineers (PCE) for the effective implementation of the above-
mentioned strategy and also business model would have to align its organisational resources
and capabilities with that of the firm with which it is entering into the joint venture.
Furthermore, the firm would also have to create the kind of management or leadership style
which will take into account the positive aspects of the leadership or the management styles
that are being followed in both the firms (Rothaermel, 2015). More importantly, for the
purpose of staffing employees in the new venture which had been established in Turkey, both
of the firms can resort to the usage of the Geocentric approach of international staffing which

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will help the firms to offer important designations to the best qualified employees on the
basis of their expertise level and talent (Wheelen et al., 2017). Moreover, for the purpose of
marketing the firms can take the help of the different kinds of digital marketing strategies
which will use the name of both the firms involved in the venture so as to effectively utilise
the customer base and reputation of both the firms. Power Control Engineers (PCE) can
invest a larger amount of capital in the concerned venture in comparison to the other firm
with which it is entering into the venture so as to derive a higher profitability from the same.
Lastly, the firms for the purpose of contributing in an effective manner towards the cause of
the environment can reduce their ecological footprinting and take into account the different
environmental legislation of Turkey.
8.0 Conclusion
I would like to say that collecting the information needed for the completion of the
task was not an easy task since very limited amount of information was available regarding
the firm Power Control Engineers (PCE). Thus, I had to take the help of the information
related to the unit concepts which were articulated in past literature. However, I feel that the
quality of the assignment could have been improved substantially had I being able to more
detailed information regarding the project management consultancy services industry.

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9.0 References
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How Do Small and Medium-Sized Enterprises Make Decisions?. Journal of
International Marketing, 25(1), 1-21.
Ang, S. H., Benischke, M. H., & Doh, J. P. (2015). The interactions of institutions on foreign
market entry mode. Strategic Management Journal, 36(10), 1536-1553.
Ansoff, H. I., Kipley, D., Lewis, A. O., Helm-Stevens, R., & Ansoff, R. (2019). Implanting
strategic management. Springer.
Ayden, Y., Demirbag, M., & Tatoglu, E. (2017). Turkish multinationals: Market entry and
post-acquisition strategy. Springer.
Bhamra, T., & Lofthouse, V. (2016). Design for sustainability: a practical approach.
Routledge.
Blueoceanstrategy.com, (2019). What is Blue Ocean Strategy | About Blue Ocean Strategy.
Retrieved from https://www. blueoceanstrategy.com /what-is-blue-ocean-strategy/
Buehring, J. H., & Liedtka, J. (2018). Embracing systematic futures thinking at the
intersection of Strategic Planning, Foresight and Design. Journal of Innovation
Management, 6(3), 134-152.
Chen, P. L., Kor, Y., Mahoney, J. T., & Tan, D. (2017). Pre‐Market Entry Experience and
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David, F. R., & David, F. R. (2016). Strategic management: A competitive advantage
approach, concepts and cases. Pearson.

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França, C. L., Broman, G., Robèrt, K. H., Basile, G., & Trygg, L. (2017). An approach to
business model innovation and design for strategic sustainable development. Journal
of Cleaner Production, 140, 155-166.
Frow, P., Nenonen, S., Payne, A., & Storbacka, K. (2015). Managing co‐creation design: A
strategic approach to innovation. British Journal of Management, 26(3), 463-483.
Lojacono, G., Misani, N., & Tallman, S. (2017). Offshoring, local market entry, and the
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https://www.pceng.com.au/ [Accessed 19 Mar. 2019].
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Wheelen, T. L., Hunger, J. D., Hoffman, A. N., & Bamford, C. E. (2017). Strategic
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