Company Analysis – Weight Loss Pills Business in the Turkish Business Environment

Company Analysis – Weight Loss Pills Business in the Turkish Business Environment

When entering a new international market, there are many factors from within and outside the company that will affect business effectiveness. The following is an evaluation of the factors that will affect the launch of the weight loss pills business in the Turkish business environment.

Considerations to Make when Launching and Maintaining Business in Turkey

            The main consideration that will need to be made is the cultural differences between the local people where the business is located and the Turkish people. Language will be a major factor to consider when launching in this country. The most commonly spoken language in the country is Turkish, but other languages like Zazaki, Arabic, and Kurmanji are also spoken by a significant percentage of people. Therefore, the branding of the products will not be in English as in the local market, but in a language that the natives in Turkey will relate to and understand easily. Turkish cultural practices, such as the modesty of the largely Muslim population, will be considered when doing negotiations in the country.

Risks and Opportunities

            One of the risks that could affect this product is the political environment risk. The product being launched is a health-related product, which can attract a lot of political debate on its validity in the market. The company will make the product to be as safe as possible to minimize this risk. There is also a risk of excess competition from local companies. Local businesses have better experience with the Turkish market; thus, they can be harder to compete with. However, the company has studied the market and established a potential source of competitive advantage.

There is an opportunity for this business to provide what is lacking in the Turkish market, which is a healthy option for weight loss. Most brands in the market are informal businesses that do not focus much on the health aspect of their products (Agency, 2016). As a new business, it is essential to study market gaps and determine opportunities for gaining a market share.

International Business Strategy

            The recommended strategy for entering the Turkish market is exporting. Exporting is a strategy of producing the products locally and moving them to the international markets. This is a cost-effective option for a global strategy because establishing production plants in Turkey will be very expensive and time-consuming.

Appropriate Management Structures

            The right management structure for this organization will be an open organizational structure. In this type of management structure, communication is openly done horizontally and vertically throughout the organization. This is an appropriate structure for Turkey, which has a slightly collective culture. People in the country like to be involved in issues affecting them in a collective manner. This country also has a democratic political structure, meaning that the people will like working in a place where their contribution is valued (Kayumi, 2014).

Production Considerations

            Production will be done locally in the U.S., and then the products will be transported to Turkey. The cost of production in the local Turkish market will be very expensive given the significant investment of time and resources that goes into setting up a pill manufacturing plant. The logistics of the Turkish market also make it easier to use an exportation strategy. The country has three ports and an advanced transportation infrastructure that will allow easy movement of imported goods across the country.

Political and Legal Issues

            This being a company that manufactures a health product, the product will need to be approved by the Turkish government. The country’s Penal Code controls the production and sale of products that affect the health of the consumers in any way. The company will need to understand these laws to avoid experiencing legal liabilities.

Fiscal Issues

            Given that the strategic approach to be used in the market is exportation, the exchange rate is a significant factor that will affect this business. The profitability of the business will be affected by how high or low the Turkish Lira is against the dollar. Therefore, the business will need to be prepared for income fluctuations caused by changes in currency exchange rates.

Measures to Determine Product Profitability

            Product profitability will be examined using profitability ratios. Profitability ratios measure the overall financial health of a business. Therefore, they can be used in decision-making to grow the business in the future (Hamilton & Webster, 2018). Some of the examples of ratios that can be used include operating profit margin, gross profit margin, and net profit margin.

Additional Issues for Consideration

            Another general issue that can be considered when entering the Turkish market is technology development in Turkey. Turkey is an emerging economy with a highly developed technological infrastructure. The technology advancement in the country can be used to improve the business in many ways such as facilitating better customer relationships.

Elements of the Internal Workings of the Company That Should Be Considered Before Making Final Recommendations

Before making this business proposal to the board of directors, it may be important to make sure that the employees are well-trained to work in a new and culturally diverse market. The board needs to understand that the employees are well-suited to implement the explained strategy in the foreign market.

References

Agency, A. (2016). Dieticians warn of increasing weight-loss pill usage in Turkey. Retrieved from: https://www.dailysabah.com/health/2016/04/15/dieticians-warn-of-increasing-weight-loss-pill-usage-in-turkey

Hamilton, L., & Webster, P. (2018). The international business environment. Oxford University Press.

Kayumi, B. (2014). PESTEL analysis of Turkey. Retrieved from: https://www.grin.com/document/271183

 

ORDER A PLAGIARISM-FREE PAPER HERE

We’ll write everything from scratch

---

When considering pursuing foreign markets, a company must analyze its ability to implement and maintain its business abroad. Address the following as you continue your feasibility investigation:

Identify the considerations (including cross-cultural communications and negotiation issues) that need to be addressed to launch and maintain business in the selected country.
Identify and describe in detail the risks and opportunities associated with exporting the selected product to the selected country.
Establish an international business strategy for the launch of the product, including how to promote the launch.
Propose management structures for the company that are appropriate for the social, political, and legal structures and hierarchies in the selected country and justify why those structures were proposed.
Summarize thoroughly all key production considerations, including where manufacturing will occur, packaging, logistics, and delivery.
Identify the key political and legal issues (including forms, rules, and regulations) and explain how the company will manage these issues.
Identify the key fiscal issues, such as the foreign exchange market and the international monetary system, and explain how the company will manage these issues.
Establish the measures that will be used to determine product profitability and indicate why these were selected.
Identify and describe all additional issues that will need to be considered before making final recommendations to the board.
Discuss the elements of the internal workings of the company that you will need to carefully consider before making your final recommendation to the board of directors.
Your submission should be well-organized and written in clear, succinct language. Follow APA rules for attributing sources that support your analysis and conclusions.

As a reminder related to using APA rules to ensure academic honesty:

When using a direct quote (using exact or nearly exact wording), you must enclose the quoted wording in quotation marks, immediately followed by an in-text citation. The source must then be listed on your references page.
When paraphrasing (using your own words to describe a nonoriginal idea), the paraphrased idea must be immediately followed by an in-text citation, and the source must be listed in your