International Business Environment: Turkey's Market Analysis

This report provides a comprehensive analysis of Turkey's international business environment, focusing on its status as an emerging market. It begins by defining the international business environment and then explores Turkey's position, highlighting its advantages and disadvantages, including its youthful demographics and strategic location. The report delves into the challenges Turkey faces, such as political instability, economic vulnerabilities, and fluctuating interest rates, while also examining the opportunities present, like its growing economy, infrastructure development, and potential for foreign investment, particularly in the tourism sector. The report also highlights the country's continued movement towards EU membership, which has developed a momentum to choose European business regulations and standards. The conclusion summarizes the key findings, emphasizing Turkey's potential for growth and the opportunities available for investors. A reflective section follows, discussing the author's learning experience and skill development through the research and writing process.

INTERNATIONAL
BUSINESS
ENVIRONMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
Turkey as an emerging market...............................................................................................1
Challenges which Turkey is facing........................................................................................2
Opportunities which turkey have............................................................................................3
CONCLUSION................................................................................................................................5
REFLECTIVE..................................................................................................................................5
REFERENCES................................................................................................................................7

INTRODUCTION
International business environment can be defined as an environment in different other
sovereign countries comprising the factors exogenous to the home environment of mentioned
organization and also influencing up the decision making on different types of resources and
capabilities. Further, the components of business environment is as same as normal business
environment which constitutes factors like political, social, economic, technological, tax,
cultural, legal, etc. (Cavusgil, Knight and Riesenberger, 2008). This present report is based on
Turkey who is generally developing as an emerging market with considering their focus on e-
commerce and Travel and Tourism sector. This report will critically analyze the challenges and
opportunities which mentioned country is having in order to attract foreign investors for
expanding there core business franchisee.
Turkey as an emerging market
Turkey is continuously following up the global as well as domestic developments and
focusing on to adjusting and reforming up their business environment by making up new and
innovative development. An emerging market of a country is that which having characteristics of
developed market but have not meet the standards of the developed market yet. Further, with the
growing and developing economies, rising income of individuals, expansion of population,
Turkey offering wealth of opportunities for marketers in order to stagnant the demad in the
developed markets (Wild and Wild, 2014). Further, Turkey is far more homogeneous and they
are having some advantage and drawbacks which generally improving as well as affecting the
country's performance. Moreover, Turkey is considered as an economic giant for the future as
country having some of exciting growth opportunities for both consumer goods and for
manufacturers. Turkey is promising for giving long tern return to investors by setting up the new
business in cited country.
Furthermore, with increase in population in Turkey, individual will demand more of the
products which tend to satisfy their needs and wants. Country also having youthful demographics
as the highest mean age among countries like Indonesia, Nigeria, Mexico, Philippines is Turkey
which is considered as lowest age when it is compared with the developed markets. Further,
mentioned country is opting policies like changing and developing urbanization concept,
increase in number of women working, later marriages, etc. are considering some signs of
developing countries (Brooks, Weatherston and Wilkinson 2010). However, the reason why
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Turkey has not yet developed is there ethnic tensions, anti-government protests, drug violence
and also the national insurgencies. Moreover, the poverty and income level are generally
prevalent and they are developing a huge gap between the wealthy and poor man.
As the use of internet and mobile phone is rapidly increasing, country is getting impacted
by the changing lifestyle of individual and they are demanding new things which country is
unable to give them (Ulutaş, 2005). However, if the use of internet is compared with Mexico
then Turkey having almost 44% of internet users while Mexico as a developed country having
only 46%.
Turkey's growth drivers and constraints
 Turkey's political instability suffers by having war in Syria
 Religious and political tension getting worsts
 Leading in total economic output
 Badly hit by the recession of 2009.
 Long term potential
 Opens get for the investors
 Conducting social programs which helping mentioned country to get out of poverty.
 High income for individuals
 Middle earners are still in minority
 Country showing the disparity between poorest and also the richest households
 Country also having large population with youthful demographics.
Challenges which Turkey is facing
Turkey's emerging market is looking stronger than 1990 but this market is generally
vulnerable. Increase in interest rates has taken many observers by surprise as country were not
having any other option to stem the decline the currency as normal proceedings might have
damaged up the foreign capital (Baloglu and Pekcan, 2006). However, economic growth of
Turkey by the end of 2011 was spectacular but it is down falling and pedestrian now.
Government officers are forecasting that the economy will grow by 5% by the end of 2015 as
people and investors are ambitious to see that but they are confused whether forecasted
expectation will be met or not. Further, this thing matters a lot to the investor's confidence and
also to the country who needs investors for economy to grow as it will supply new jobs.
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However, Turkey is not the single country who is been caught with tightening of US
monetary policy and also economic slowdown in China. Further, as interest rate has risen in two
biggest economies of the world, capital which was earlier contributed by investors in emergent
market is now leaving the country (Kirişci, 2007). This is the major problem why investors are
lacking in investing money in country development. However, to manage the instability of
capital flow as well as currencies, countries like Brazil and India are also focusing on increasing
the interest rates.
Moreover, it is necessary to understand the broader context as many emerging markets
has arrived after a long time period and they are also seeking more of the growth as Turkey is
looking. Unfortunately, it has become harder to achieve the growth while managing the stability
as well. Recently the elections which held in Turkey gave new hope and inspirations to the
people of Turkey as they are on the verge to see the best of the expansion and growth in coming
years. Further, it is also true that emerging market conditions is far better than before if it is
compared to 1990's time.
Further, devaluation can turn up as an advantage for Turkish economy as mentioned
countries emergent market is divided into two different categories (Gillett, Hammond and
Martala, 2009). One is a commodity exporters which is at its worst hit and the other is exporter
of wide range of goods which might generally take the advantage of the global economic
slowdown. Further, Turkey's economy has also been hit by the dissatisfaction of international
investors with the emerging market. The worst effect of all has been the downfall of lira to
approx. 3 dollars. However, it can turn as an advantage for the Turkish economy as sharp
depreciation of Lira will help the trade deficit. This states that in a world of slow trade, country
do not expect to accelerate the growth significantly as country focuses on to see better external
data in coming time period.
Opportunities which turkey have
Republic of Turkey's having a continued movement towards the membership in European
Union has developed a momentum to choose European business regulations and standards in
Turkey in order to make easier for conducting a business in the Turkish market (Soytas and Sari,
2009). Moreover, Turkey is considered a commercial hub of the region and different U.S.
companies need to consider Turkish partners for accessing new business opportunities
throughout the Central Asia and in Africa. Turkish partners know there neighboring markets well
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therefore, they can implement best of the operations in order to achieve the goals and objectives
(Kirkgoz, 2005). Investors can invest their funds in Turkey by proper analyzing and by
considering these facts: Successful economy- Country having stable economic growth with an average annual real
GDP growth rate. Further, Turkey is 16th largest economy in the world and it is 6th in the
largest economy within EU. Further, country having new, dynamic and matured private
sector. Infrastructure- Country having new and highly developed technological infrastructure in
transportation, energy and also in telecommunication sector (Manktelow, 2014). Further,
country having easy connectivity through railway transport as it gives advantage to
Central as well as Eastern Europe. Central location- Country having nature bridge all the side axes which gives a plus point
to country for creating an efficient and cost effective outlet to major markets. Country
also having easy access to millions of customers in different continent likes Eurasia,
Europe, Middle East and North Africa. Large domestic market- Country has almost 40 million internet subscribers with more
than 71 million mobile phone users. Further, tourism in Turkey is always on boom as
almost 36 million international tourist comes to visit the country's beauty.
 Qualified individuals and competitive labor forces- Turkey having 29 million young well
educated and motivated professionals who are exploring and giving their productive
sources throughout the country (Morrison, 2011). Country also have well renounced 183
universities which producing excellent students every year.
Further, being a well known tourism destination, Turkey proceeding to present new
investment opportunities for investors both in established and also in newly developed sub
sectors of the industry. Further, Turkey is considered as sixth most popular destination in the
world which attracts more than 30 million tourists on annual basis and this ratio is generally
increasing year by year. Moreover, the Turkish tourism industry’s energetic and continuous
growth remains unhampered by negative effects due to recent global economic crisis, and there
is still an immense amount of untapped potential in different sectors of the country (Sakarya,
Eckman and Hyllegard, 2007).
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A flood of new hotels has been set by considering the tourist attraction in past one
decade. Investors are seeking their major contribution in hospitality sector only as it is the vast
sector and investors are providing best of the services to tourists in order to satisfy their needs
and wants. Further, cities like Ankara (capital of Turkey), Istanbul, etc. giving their major
contribution for helping out the tourism sector and exceed more of the revenue by the end of
2023 (Economic and Consumer. 2015). Further, there are some essential facts regarding the
Turkish tourism sector and some of them have been stated below:
 Tourism sector has immensely set an annual target of 50 million tourist arrivals and
extending their revenue up to USD 50 billion by the year 2023.
 When it is compared 2002, number of international tourist has been extended over 200%
as approximate 40 million visitors are coming every ear to see the Turkish beauty.
By seeing all the above scenario, it is favorable that investors from different countries
enroll their major contribution in the hospitality sector as it will satisfy more of the tourist needs
and corporate will able to develop their healthy brand image (Rugman and Collinson, 2009).
CONCLUSION
From the above report it is clearly inferred that Turkey is sixth most popular destination
in the world and investors can seek varied new opportunities in order to explore their business
activities and can also develop a healthy brand image. Further, this report showcase the
challenges which Turkey is facing in order to attract the investors and these challenges are
becoming drawback for the country in relation to the growth and expansion. High interest rates,
low income, etc. are some points which has been discussed in the report. Further, this report
elaborates the opportunity which Turkey has in order to attract more of the investors for
increasing country's performance, growth and profitability.
REFLECTIVE
From this report, I have understood and gained much of the knowledge which will help
me in the future. This report helped me to gain and develop my writing as well as
communication skills. Further, it helped me to gain more of the critical research on Turkey so
that I can briefly explain the opportunities which investors can seek in the country. I have also
learned the new things which I was not knowing about the country as it helped me to make my
knowledge stronger and better. I have successfully gone through the reference which has been
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provided in the case study which has successfully developed my knowledge on different
opportunities as well as threats.
With the help of this report, I have strengthened my writing skills and my approach
towards the content has become more specific and point to point. Further, this report helped me
to gain more of the knowledge on country's perspective as I was lacking with the opportunities
and weakness which Turkey has even after being the favorite destination point for individuals. I
have successfully gone through the books and journals of authors and writers which have given
me and idea to write this report in perfect and significant manner.
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REFERENCES
Journals and Books
Baloglu, S. and Pekcan, Y. A., 2006. The website design and Internet site marketing practices of
upscale and luxury hotels in Turkey. Tourism Management. 27(1). pp. 171-176.
Brooks, I., Weatherston, J. and Wilkinson G., 2010. The International Business Environment:
challenges and changes. Harlow: Prentice Hall.
Cavusgil, S., Knight, G. and Riesenberger, J. R., 2008. International Business: Strategy,
Management and New Realities. Upper Saddle River: Prentice Hall.
Gillett, A., Hammond, A. and Martala, M., 2009. Successful Academic Writing. Harlow: Pearson.
Kirişci, K., 2007. Turkey: A country of transition from emigration to immigration.
Mediterranean politics. 12(1). pp. 91-97.
Kirkgoz, Y., 2005. English language teaching in Turkey: Challenges for the 21 st Century.
Teaching English to the world: History, curriculum, and practice. pp. 159-175.
Manktelow, A., 2014. Guide to Emerging Markets: the business outlook, opportunities and
obstacles. London: The Economist.
Morrison, J., 2011. The Global Business Environment: meeting the challenges. 3rd ed.
Basingstoke: Palgrave Macmillan.
Rugman, A. M. and Collinson, S., 2009. International Business. 5th ed. Harlow: Prentice Hall
Sakarya, S., Eckman, M. and Hyllegard, K. H., 2007. Market selection for international
expansion: Assessing opportunities in emerging markets. International Marketing
Review. 24(2). pp. 208-238.
Soytas, U. and Sari, R., 2009. Energy consumption, economic growth, and carbon emissions:
challenges faced by an EU candidate member. Ecological economics. 68(6). pp. 1667-
1675.
Ulutaş, B. H., 2005. Determination of the appropriate energy policy for Turkey. Energy. 30(7).
pp. 1146-1161.
Wild, J. J. and Wild, K.L., 2014. International Business: The Challenges of Globalization: 7th
ed. Boston: Pearson.
Online
Economic and Consumer. 2015. [Online]. Available through:
<http://www.euromonitor.com/new-emerging-markets-nigeria-indonesia-mexico-the-
philippines-and-turkey/report>. [Accessed on 23rd November 2015].
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