Turkey: Securing Stability in a Rough Neighborhood SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Global Business
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Turkey: Securing Stability in a Rough Neighborhood
After suffering years of volatility and crises, Turkey desperately sought macroeconomic and political stability in an ever-worsening region of the world. In the short term, Turkey had to repay its debt, which amounted to more than 80% of GDP. By January 2004, Turkey had entered the final stages of the IMF's latest $17 billion loan program. Each review required that Turkey meet specific goals of monetary control (e.g., reducing inflation), restructuring the banking sector, reforming the public sector, and increasing privatization. The country's long-term goal, joining the European Union, would be reached only if the EU's required criteria were met. Elected in November 2002 and the first absolute majority in Parliament in 15 years, the AKP party promised to meet both IMF and EU requirements. Although his AKP party had Islamic roots, Prime Minister Erdogan planned to prove that Turkey was a stable, secular democracy. After Turkey met the EU's requirements, the question remained: Would the EU's "Christian club" accept a Muslim Turkey?
Swot Analysis of "Turkey: Securing Stability in a Rough Neighborhood" written by Richard H.K. Vietor, Emily J. Thompson includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Turkey Eu's facing as an external strategic factors. Some of the topics covered in Turkey: Securing Stability in a Rough Neighborhood case study are - Strategic Management Strategies, Economy, Global strategy and Global Business.
Some of the macro environment factors that can be used to understand the Turkey: Securing Stability in a Rough Neighborhood casestudy better are - – banking and financial system is disrupted by Bitcoin and other crypto currencies, geopolitical disruptions, talent flight as more people leaving formal jobs, increasing energy prices, there is backlash against globalization, increasing household debt because of falling income levels, competitive advantages are harder to sustain because of technology dispersion,
increasing government debt because of Covid-19 spendings, wage bills are increasing, etc
Introduction to SWOT Analysis of Turkey: Securing Stability in a Rough Neighborhood
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Turkey: Securing Stability in a Rough Neighborhood case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Turkey Eu's, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Turkey Eu's operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Turkey: Securing Stability in a Rough Neighborhood can be done for the following purposes –
1. Strategic planning using facts provided in Turkey: Securing Stability in a Rough Neighborhood case study
2. Improving business portfolio management of Turkey Eu's
3. Assessing feasibility of the new initiative in Global Business field.
4. Making a Global Business topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Turkey Eu's
Strengths Turkey: Securing Stability in a Rough Neighborhood | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Turkey Eu's in Turkey: Securing Stability in a Rough Neighborhood Harvard Business Review case study are -
Learning organization
- Turkey Eu's is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Turkey Eu's is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Turkey: Securing Stability in a Rough Neighborhood Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Low bargaining power of suppliers
– Suppliers of Turkey Eu's in the sector have low bargaining power. Turkey: Securing Stability in a Rough Neighborhood has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Turkey Eu's to manage not only supply disruptions but also source products at highly competitive prices.
Successful track record of launching new products
– Turkey Eu's has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Turkey Eu's has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Innovation driven organization
– Turkey Eu's is one of the most innovative firm in sector. Manager in Turkey: Securing Stability in a Rough Neighborhood Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Organizational Resilience of Turkey Eu's
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Turkey Eu's does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Operational resilience
– The operational resilience strategy in the Turkey: Securing Stability in a Rough Neighborhood Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
High switching costs
– The high switching costs that Turkey Eu's has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Digital Transformation in Global Business segment
- digital transformation varies from industry to industry. For Turkey Eu's digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Turkey Eu's has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Ability to lead change in Global Business field
– Turkey Eu's is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Turkey Eu's in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Diverse revenue streams
– Turkey Eu's is present in almost all the verticals within the industry. This has provided firm in Turkey: Securing Stability in a Rough Neighborhood case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Superior customer experience
– The customer experience strategy of Turkey Eu's in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Strong track record of project management
– Turkey Eu's is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Weaknesses Turkey: Securing Stability in a Rough Neighborhood | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Turkey: Securing Stability in a Rough Neighborhood are -
Increasing silos among functional specialists
– The organizational structure of Turkey Eu's is dominated by functional specialists. It is not different from other players in the Global Business segment. Turkey Eu's needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Turkey Eu's to focus more on services rather than just following the product oriented approach.
Slow to strategic competitive environment developments
– As Turkey: Securing Stability in a Rough Neighborhood HBR case study mentions - Turkey Eu's takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
Aligning sales with marketing
– It come across in the case study Turkey: Securing Stability in a Rough Neighborhood that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case Turkey: Securing Stability in a Rough Neighborhood can leverage the sales team experience to cultivate customer relationships as Turkey Eu's is planning to shift buying processes online.
High operating costs
– Compare to the competitors, firm in the HBR case study Turkey: Securing Stability in a Rough Neighborhood has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Turkey Eu's 's lucrative customers.
Products dominated business model
– Even though Turkey Eu's has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - Turkey: Securing Stability in a Rough Neighborhood should strive to include more intangible value offerings along with its core products and services.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Turkey Eu's supply chain. Even after few cautionary changes mentioned in the HBR case study - Turkey: Securing Stability in a Rough Neighborhood, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Turkey Eu's vulnerable to further global disruptions in South East Asia.
Lack of clear differentiation of Turkey Eu's products
– To increase the profitability and margins on the products, Turkey Eu's needs to provide more differentiated products than what it is currently offering in the marketplace.
Workers concerns about automation
– As automation is fast increasing in the segment, Turkey Eu's needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Turkey: Securing Stability in a Rough Neighborhood HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Turkey Eu's has relatively successful track record of launching new products.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Turkey: Securing Stability in a Rough Neighborhood, in the dynamic environment Turkey Eu's has struggled to respond to the nimble upstart competition. Turkey Eu's has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Slow decision making process
– As mentioned earlier in the report, Turkey Eu's has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Turkey Eu's even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
Opportunities Turkey: Securing Stability in a Rough Neighborhood | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Turkey: Securing Stability in a Rough Neighborhood are -
Learning at scale
– Online learning technologies has now opened space for Turkey Eu's to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Turkey Eu's can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Global Business industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Turkey Eu's can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Turkey Eu's can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Turkey Eu's can use these opportunities to build new business models that can help the communities that Turkey Eu's operates in. Secondly it can use opportunities from government spending in Global Business sector.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Turkey Eu's to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Better consumer reach
– The expansion of the 5G network will help Turkey Eu's to increase its market reach. Turkey Eu's will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Turkey Eu's to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Turkey Eu's to hire the very best people irrespective of their geographical location.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Global Business industry, but it has also influenced the consumer preferences. Turkey Eu's can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Turkey Eu's can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, Turkey: Securing Stability in a Rough Neighborhood, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Buying journey improvements
– Turkey Eu's can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Turkey: Securing Stability in a Rough Neighborhood suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Building a culture of innovation
– managers at Turkey Eu's can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Global Business segment.
Using analytics as competitive advantage
– Turkey Eu's has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study Turkey: Securing Stability in a Rough Neighborhood - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Turkey Eu's to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Creating value in data economy
– The success of analytics program of Turkey Eu's has opened avenues for new revenue streams for the organization in the industry. This can help Turkey Eu's to build a more holistic ecosystem as suggested in the Turkey: Securing Stability in a Rough Neighborhood case study. Turkey Eu's can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Threats Turkey: Securing Stability in a Rough Neighborhood External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Turkey: Securing Stability in a Rough Neighborhood are -
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Easy access to finance
– Easy access to finance in Global Business field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Turkey Eu's can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Turkey Eu's needs to understand the core reasons impacting the Global Business industry. This will help it in building a better workplace.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Turkey Eu's.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Technology acceleration in Forth Industrial Revolution
– Turkey Eu's has witnessed rapid integration of technology during Covid-19 in the Global Business industry. As one of the leading players in the industry, Turkey Eu's needs to keep up with the evolution of technology in the Global Business sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Turkey Eu's will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Turkey Eu's in the Global Business sector and impact the bottomline of the organization.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Turkey Eu's with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Consumer confidence and its impact on Turkey Eu's demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
Environmental challenges
– Turkey Eu's needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Turkey Eu's can take advantage of this fund but it will also bring new competitors in the Global Business industry.
Regulatory challenges
– Turkey Eu's needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Global Business industry regulations.
Shortening product life cycle
– it is one of the major threat that Turkey Eu's is facing in Global Business sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Weighted SWOT Analysis of Turkey: Securing Stability in a Rough Neighborhood Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Turkey: Securing Stability in a Rough Neighborhood needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Turkey: Securing Stability in a Rough Neighborhood is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Turkey: Securing Stability in a Rough Neighborhood is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Turkey: Securing Stability in a Rough Neighborhood is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Turkey Eu's needs to make to build a sustainable competitive advantage.
