Business Environment of Turkey - Case Study Example

RIP CURL Executive summary This report focused on the business expansion policy of the company Rip Curl. The famous company Rip Curl wants to enhanceits position in the global market by expanding its business in other countries. In this report Turkey is selected as a target market by this company. For this reason a detailed analysis of this market has been done in this report. PESTL analysis has been done in this report for highlighting various external factors which will affect the growth and development of this business. Based on PESTL analysis, SWOT analysis of external factors has also been conducted. These analyses helped the company to understand the impacts of various factors on its business. Some recommendations for Rip Curl are also provided in this report. Contents Executive summary 2 Contents 3 Introduction 4 Discussion 4 PESTL Analysis 5 SWOT Analysis 8 Conclusion 12 Recommendations 12 References 12 Introduction Rip Curl is a famous Australian company which is involved in manufacturing, designing and selling surfing sportswear. It is one of the major sponsors of athletic. It is one of the large brands in Australia involved in the business of manufacturing and selling board wears. Rip Curl has its presence in South America, North America, Europe and South Africa. Rip Curl is among the top three companies who are involved in this type of business. This company is involved in retail business. It is a private company. Rip Curl was founded in 1969. The firm has its headquarters in Victoria and Torquay. The company is presently focusing on expanding its business internationally. By this process Rip Curl wants to enhance its global reputation in international market. The present target market of this company is Turkey. In this report the business environment of Turkey will be analysed in details. On the basis of this analysis SWOT analysis of the company will be done. This report will also focus on some recommendations which will be beneficial for the company in enhancing its reputation in international market. Discussion The economy of Turkey is growing significantly in past few years. Many private companies are developing its business in Turkey for gaining more customers. It is beneficial for the companies to invest in this country as it is the 16th largest economy of the world. Rip Curl wants to expand its business in Turkey for getting various advantages. Textile and clothing is one of the important industries of this country. For this reason it will be beneficial for Rip Curl to extend their business in Turkey. Various external factors will influence the business of this company in Turkey1. PESTL Analysis Political Environment The government of Turkey follows the policies of liberalisation. This is one of the major political strengths of the country. Turkey’s government strongly supports the policies of allowing open trade with different other countries of the world. Trade liberalization helps all the private companies operating in Turkey in achieving their growth and objectives. But violent terrorist attacks in Turkey are hampering its political environment. The government of this country is trying to overcome this disadvantage by providing many facilities to different companies for establishing their businesses in Turkey. Therefore Rip Curl will experience many benefits from Turkish government in establishing its retail business of surfing sportswear. The government of Turkey has started encouraging this kind of sports which will help the company to grow in this market. Economic Environment Economy of Turkey is presently experiencing huge growth. Huge amount of money is flowing into Turkey from other countries. Many companies are investing in the market of Turkey for establishing their business. Huge investments of these companies facilitate the growth of Turkish economy. Fashion industry of Turkey is mainly benefited by this economic development. Many foreign companies are establishing their fashion retail stores in Turkey. The present economic condition of this country is experiencing current account deficit. This hampers the economic stability of the country. Turkey is a member of European Union. For this reason the company experiences many economic benefits. Presently the GDP of this country is growing which has a positive impact on the businesses of this country. Rip Curl being a foreign company will be encouraged by the government of Turkey for establishing its business in this country. The firm will invest in this country with will contribute in the economic developed of Turkey2. Economic development of this country leads to the rise of income level of people. As a result their disposable income increases which will help the firm in generating more revenue by selling their products. Socio-cultural Environment The population of Turkey is mainly dominated by young adults. This is one of the strengths of this country. The population of this country is gradually growing. As a result the employment of this country is increasing and most of the labour force is young. This helps the companies operating in this country in employing large number of young people. But at present the country is experiencing huge unemployment3. Therefore if Rip Curl expands its business in Turkey then the company can get cheap and skilled labours. This will help the company in saving huge amount of money. The culture of Turkey is very rich. It is influenced by the culture of many other countries. Many new trends and things are accepted by the people of Turkey. The culture of this country is modernizing gradually. This will facilitate Rip Curl in marketing and selling its different products in the market of Turkey4. Technological Environment Turkey for a long time is putting huge effort in developing its technology. The country is mainly focusing on modernizing and renewal of its existing technology. Turkey is spending a lot in various research and development processes for innovating new technologies. The major strength of this country lies in the technological development of its ICT sector. The country is experiencing huge growth and development in this sector for the advancement of technology. Turkey is adopting many advanced technologies from European countries for developing itself. By expanding the business of Rip Curl in Turkey, the company can experience modern technological facilities at a very low cost. Legal Environment The legal structure of Turkey is developed in a very effective way. This helps the country in handling various legal issues successfully. The judicial system of Turkey is very strict. Therefore illegal activities are so much dominated in this country. Different types of courts exist in this country which looks after various types of illegal activities. The country believes in giving justice to innocent people. For this reason laws and regulations of this country are designed in such a way which facilitates its legal bodies in helping innocent people through most effective ways. Different types of industries in Turkey have various legal rules and regulations5. Rip Curl needs to follow all the rules and regulations of Turkey’s retail industry for operating its business in this country. If the company violets any of the rules then there will be a strong chance of losing its growth opportunity in Turkey6. SWOT Analysis SWOT of Political environment Strengths Government supports the businesses of foreign companies. Turkey believes in trade liberalization policies Weakness Political structure of turkey is not very strong7. Opportunities Government supports private companies to develop their businesses. Turkey government encourages water sports Threat Terrorist attack8 SWOT of Economic Environment Strengths Foreign direct investment is high in Turkey9. Fashion and retail industry contribute a lot in economic development. Weakness Turkey is struggling a lot for overcoming its financial crisis. Current account is decreasing. Opportunities GDP of Turkey is gradually growing. Income level of the people is rising. Threat Economic condition is not very stable10. SWOT of Socio-cultural Environment Strength Population mainly consist of young people. Weakness Unemployment level is high. Opportunity Cheap labours are easily available. Threat High level of unemployment creates strong negative impact on economy. SWOT of Technological Environment Strength Strong development in information technology. Weakness Turkey still now struggling to develop modern technologies. Opportunity As a member of EU, Turkey gets much technological assistance from other countries. Threat Cost of technical development is high in Turkey. SWOT of Legal Environment Strength Judicial system of Turkey is very strong. Weakness Presently the county is experiencing judicial inefficiency for political issues. Opportunity Laws and regulations help foreign companies to develop its businesses. Threat Strong legal rules can hamper the business operations. Conclusion This report deals with the famous Australian company Rip Curl and its plan of business expansion in Turkey. For expanding its business in Turkey the business environment of this country has been discussed in this report in a detailed way. PESTL analyses helped the company to understand the impact of various external factors which will affect the expansion of this business. The market of Turkey offers various advantages which will help the company in growing its business in this country. Recommendations Rip Curl has to follow certain policies for developing its business in the market of Turkey. The company needs to make good relationship with the government of Turkey for experiencing various benefits from the government. By this process the company can establish its strong position in the market of Turkey. The economic condition of Turkey is presently not very strong. For this reason the Rip Curl needs to have strong financial back up for developing its business in Turkey. Initially the firm can keep the price of its products low for facilitating Turkish people to purchase its products. The organization needs to provide effective training to the people how will operate the business activities in Turkish market. Rip Curl has to maintain the rules and regulations of the country efficiently for establishing its business successfully. 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