A realistic PESTEL analysis showing relevant factors.

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Tahir Ishaq                                                                                 p25557

E4 A realistic PESTEL analysis showing relevant factors.

Now I am going to conduct a PESTEL analysis for Autoliv setting up a satellite plant in turkey.

The PESTEL analysis is going to contain the following:

  • Political
  • Economic
  • Socio-Cultural.
  • Technological
  • Environmental
  • Legal

   

Political

    Turkey is a developing country which is an anxious country which wants new firms to locate there. However, there are some reforms being carried out, many leading to riots which are threatening stability in Turkey. There are very high security in the businesses because of these riots and particularly important because of the terrorist alerts.

Economic

Turkey's dynamic economy is a complex mix of modern industry and commerce along with a traditional agriculture sector that in 2001 still accounted for 40% of employment. It has a strong and rapidly growing private sector, yet the state still plays a major role in basic industry, banking, transport, and communication. The most important industry - and largest exporter - is textiles and clothing, which is almost entirely in private hands. The other industries in Turkey are food processing, autos, mining (coal, chromites, copper and boron), steel, petroleum, construction, lumber, paper.  In recent years the economic situation has been marked by erratic economic growth and serious imbalances. Real GNP growth has exceeded 6% in many years, but this strong expansion has been interrupted by sharp declines in output in 1994, 1999, and 2001. Meanwhile, the public sector fiscal deficit has regularly exceeded 10% of GDP - due in large part to the huge burden of interest payments, which account for more than 50% of central government spending; inflation has remained in the high double-digit range. Perhaps because of these problems, foreign direct investment in Turkey remains low - less than $1 billion annually. In late 2000 and early 2001 a growing trade deficit and serious weaknesses in the banking sector plunged the economy into crisis forcing Turkey to float the lira and pushing the country into recession. Results in 2002 were much better, because of strong financial support from the IMF and tighter fiscal policy. Continued slow global growth and serious political tensions in the Middle East cast a shadow over prospects for 2003.  

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Socio-Cultural.

   In Turkey there are 98% Muslims, so the company responded by putting a mosque in every factory so workers could pray on their break rather than leaving and going to a mosque further away, which will make them late for there shift. In Turkey, there were two different types of people. There were the rich westernised people and the poor traditional people. From the rich westernised people the company could get the highly skilled workers and also could get managers. They weren’t able to recruit the uneducated poor people because they would not know what to ...

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