Unit 5 – Assignment 2
Assignment 2
External factors and cultural differences.
Overview
This report has been written by the local chamber of commerce and will be exploring two
different countries that Greggs could expand on. Firstly, there will be PESTEL and SWOT
analyses that will analyse and evaluate whether Turkey and Germany are good expansion
opportunities for Greggs. After examining the two options there will be a decision formed to
decide which one would be the most advantageous. On the second part of the report there
will be an analysis and evaluation of the cultural differences between the chosen country
and the organisation.
Section one
PESTEL Analysis – Turkey
Political: Turkey is a democratic republic. The political situation has not always been stable
as the country has experienced internal conflicts as well as conflicts with neighbouring
countries. In 2016, a military coup occurred in Turkey which failed but caused a lot of
political instability. The reason Turkey is a good expansion opportunity is because it borders
with 8 different countries such as Greece, Iran, Bulgaria, Azerbaijan and others. Additionally,
it borders 5 countries by sea. Things like economic and trade policies are influenced heavily
by political considerations which could be a risk for Greggs in the future as it will affect
trading in the country. The government has taken actions in the past to reduce bureaucracy
in order to help businesses grow.
Turkey is a very important country and an important member in some of the largest
organisations around the world. Firstly, the country is a founding member of the WTO. Also,
it is a member of NATO, EEC, World Bank, United Nations and many others. Although, the
country has experienced different matters throughout the years, it is still considered safe to
do business there. The country has made serious efforts to join the EU however, they have
been unsuccessful, and it has been accused of human rights violation.
Economic: Turkey’s GDP in 2021 was 819 billion and has been growing steadily over the
years. The country has a growing economy which is mostly reliant on exports as it is the 5 th
largest partner in exports and imports. Although the GDP of the country has been growing,
the economy has been impacted by different factors during the years. Some of these things
are high inflation rates, currency devaluation and unemployment rates rise. It's important to
mention that the Turkish economy is impacted a lot by global economic trends such as
fluctuations in oil prices and demand for exports.
, Turkey is a key regional power and part of the Mexico, Indonesia, Nigeria, Turkey block
(MINT). The country has had serious social and economic developments in the past 20 years.
Covid-19 and lockdowns affected a lot the economy as the travel bans caused tourism to
decrease. The current interest rate in February 2023 was 8.5%.
Country's highest inflation rate ever recorder was 85.51% in October 2022. However, that
dropped to 55.81% in February 2023. It is predicted that the Turkish economy will be the
10th largest in the world. By 2023, the economy will be worth $2 trillion. It is expected that
exports will reach $500 billion and per capita income will be $25,000.
The unemployment rate in December 2022 was 10.3% which is high, and it could mean that
the Turkish government would encourage new businesses like Greggs to expand there in
order to support the economy.
Social: Turkey has a diverse population, with many different ethnic and religious groups.
Turkish is country’s main language however; Kurdish is the second most popular language.
The main religion is Islam therefore, the country is heavily influenced by Islamic culture and
the government has implemented policies in order to promote Islamic values. This is a
factor that Greggs would have to take into consideration when expanding there in order to
comply with the policies the government has set.
The country places high value on education and has made significant efforts to increase
access to education for its citizens in recent decades. The country has a mandatory primary
education system that lasts for eight years. Overall, Turkey's attitude towards education can
be described as positive and focused on continued improvement.
The current population is 86.8 million and it has a 0.55% growth rate per annum. According
to the World Health Organization (WHO), Turkey has made significant progress in improving
the health of its population in recent years. Life expectancy at birth in Turkey has been
steadily increasing, and as of 2021, it is around 77 years.
The general attitude of the people in Turkey is mostly described as welcoming and friendly.
As the country is located in the middle of East and West that has caused it to create a
unique cultural identity. The population of Turkey is described as young and well-educated
which can be an opportunity for Greggs to employee individuals that will help the business
grow.
One of the social challenges Turkey is facing is gender inequality. despite progress made in
recent years. Women face discrimination in many areas, including employment, education,
and politics. Violence against women is also serious problem, and efforts to combat this
issue have been met with resistance.
Technological: Turkey has made significant investments in technology and has a rapidly
growing technology sector. The country is investing in developing its digital infrastructure,
and the government has implemented policies to promote innovation and research and
development. The government is aiming to make the country one of the top 10
technologically advanced countries by 2023. This will be achieved by making at least 80% of
the public computer literate.
Assignment 2
External factors and cultural differences.
Overview
This report has been written by the local chamber of commerce and will be exploring two
different countries that Greggs could expand on. Firstly, there will be PESTEL and SWOT
analyses that will analyse and evaluate whether Turkey and Germany are good expansion
opportunities for Greggs. After examining the two options there will be a decision formed to
decide which one would be the most advantageous. On the second part of the report there
will be an analysis and evaluation of the cultural differences between the chosen country
and the organisation.
Section one
PESTEL Analysis – Turkey
Political: Turkey is a democratic republic. The political situation has not always been stable
as the country has experienced internal conflicts as well as conflicts with neighbouring
countries. In 2016, a military coup occurred in Turkey which failed but caused a lot of
political instability. The reason Turkey is a good expansion opportunity is because it borders
with 8 different countries such as Greece, Iran, Bulgaria, Azerbaijan and others. Additionally,
it borders 5 countries by sea. Things like economic and trade policies are influenced heavily
by political considerations which could be a risk for Greggs in the future as it will affect
trading in the country. The government has taken actions in the past to reduce bureaucracy
in order to help businesses grow.
Turkey is a very important country and an important member in some of the largest
organisations around the world. Firstly, the country is a founding member of the WTO. Also,
it is a member of NATO, EEC, World Bank, United Nations and many others. Although, the
country has experienced different matters throughout the years, it is still considered safe to
do business there. The country has made serious efforts to join the EU however, they have
been unsuccessful, and it has been accused of human rights violation.
Economic: Turkey’s GDP in 2021 was 819 billion and has been growing steadily over the
years. The country has a growing economy which is mostly reliant on exports as it is the 5 th
largest partner in exports and imports. Although the GDP of the country has been growing,
the economy has been impacted by different factors during the years. Some of these things
are high inflation rates, currency devaluation and unemployment rates rise. It's important to
mention that the Turkish economy is impacted a lot by global economic trends such as
fluctuations in oil prices and demand for exports.
, Turkey is a key regional power and part of the Mexico, Indonesia, Nigeria, Turkey block
(MINT). The country has had serious social and economic developments in the past 20 years.
Covid-19 and lockdowns affected a lot the economy as the travel bans caused tourism to
decrease. The current interest rate in February 2023 was 8.5%.
Country's highest inflation rate ever recorder was 85.51% in October 2022. However, that
dropped to 55.81% in February 2023. It is predicted that the Turkish economy will be the
10th largest in the world. By 2023, the economy will be worth $2 trillion. It is expected that
exports will reach $500 billion and per capita income will be $25,000.
The unemployment rate in December 2022 was 10.3% which is high, and it could mean that
the Turkish government would encourage new businesses like Greggs to expand there in
order to support the economy.
Social: Turkey has a diverse population, with many different ethnic and religious groups.
Turkish is country’s main language however; Kurdish is the second most popular language.
The main religion is Islam therefore, the country is heavily influenced by Islamic culture and
the government has implemented policies in order to promote Islamic values. This is a
factor that Greggs would have to take into consideration when expanding there in order to
comply with the policies the government has set.
The country places high value on education and has made significant efforts to increase
access to education for its citizens in recent decades. The country has a mandatory primary
education system that lasts for eight years. Overall, Turkey's attitude towards education can
be described as positive and focused on continued improvement.
The current population is 86.8 million and it has a 0.55% growth rate per annum. According
to the World Health Organization (WHO), Turkey has made significant progress in improving
the health of its population in recent years. Life expectancy at birth in Turkey has been
steadily increasing, and as of 2021, it is around 77 years.
The general attitude of the people in Turkey is mostly described as welcoming and friendly.
As the country is located in the middle of East and West that has caused it to create a
unique cultural identity. The population of Turkey is described as young and well-educated
which can be an opportunity for Greggs to employee individuals that will help the business
grow.
One of the social challenges Turkey is facing is gender inequality. despite progress made in
recent years. Women face discrimination in many areas, including employment, education,
and politics. Violence against women is also serious problem, and efforts to combat this
issue have been met with resistance.
Technological: Turkey has made significant investments in technology and has a rapidly
growing technology sector. The country is investing in developing its digital infrastructure,
and the government has implemented policies to promote innovation and research and
development. The government is aiming to make the country one of the top 10
technologically advanced countries by 2023. This will be achieved by making at least 80% of
the public computer literate.
