The University of Economics in KatowicePoland

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The University of Economics in Katowice/Poland

• FOREIGN DIRECT INVESTMENTSin Turkey
• FDI

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The University of Economicsin Katowice/Poland

• Part Three
• THE STRATEGIC ANALYSIS
• SWOT
• Intensive Programme Seminar of teachers and
  students
• 1st-13th May 2006 HONIM / Brussels

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The University of Economicsin Katowice/Poland

• Authors
• Anna Brzeska
• Anna Gandor
• Edyta Tyc
• Artur Barski
• Slawomir Czech
• Session led by PhD Joanna Czech-Rogosz

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• What should Turkey do or change in the field of
  FDI to take advantage of joining of the European
  Union?

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SWOT
THE RESEARCH METHODOLOGY
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THE PURPOSE
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THE STRATEGIC ANALYSIS
INTERIOR
SURROUNDINGS
S
W
O
T
Strengths Weaknesses Opportunities Threats
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SWOT Analysis (1)
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SWOT Analysis (2)
an example
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SWOT Analysis (3)
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Strategy implementation
What to do to gain the goals and improve the
situation?
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TURKEY
FDI SWOT ANALYSIS
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THE GOALS
?

• Is Turkey an attractive
• country for the FDI
• 2. Does Turkey take advantage
• of the FDI

?
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Weaknesses (27)
Strenghts (27)
Opportunities (17)
Threats (20)
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The swot analysis results
DOMINATION OF THE AGGRESSIVE STRATEGY
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Turkey should take immediate actions based on
main strenghts...

• High tourist attractiveness of the Turkey
• Low employers total payroll costs
• Special Zones for investors
• High potential in the fields of maritime and
  railroad transportation
• Continuation of the structural reforms process
• Wide range of the financial institutions
• Low costs of living
• Low tax share in the GDP

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The strengths should be reinforced in order to
take the advantage of the main opportunities...

• Companies relocation tendecy in the EU
• Possibility of using the EU funds by Turkey
• Advanced telecommunication technology development
• Stability of the EU market
• Investors demand for high quality labor
• Strong relations of cooperation between Turkey
  and Asian countries
• Structural changes in the economy
• Increasing interest in Turkey as a tourist
  destination

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A HIGH POSITION OF THE COMPETITIVE STRATEGY
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Turkey should be aware of the main threats which
hinder exploiting the strenghts...

• Tough competition among the EU countries for
  attracting investments
• Not joining the European Union
• Negative stereotypes and opinions about Turkish
  people in the EU
• Possible dominant position of an investor in the
  host country

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CAUTION!DANGEROUS WEAKNESSES

• Cultural and religious differences between Turkey
  and other UE countries
• Breaking human rights in Turkey
• Poor foreign investments promotion

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The suggestions
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Economic promotion

• Prepare a professional investment background for
  European investors that shall highlight the
  Turkish advantages
• Provide FDI encouraging legislation
• Set up a Foreign Investment Promotion Agency in
  order to encourage potential foreign investors
• Promote free market and privatization

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Education

• Maintain the high-quality level of high education
  
• Put an impact on IT and advanced technology
  teaching
• Promote the knowledge about Turkey in the
  European Union by students (Turkeys week)
• Strengthen the exchange of students
• Introduce a new subject in Turkish
• schools concerning European culture

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Domestic economy

• Stimulate the domestic companies activity
• Maintain low employers total payroll costs
• Invest in technological and
• social infrastructure
• 4. Promote Turkey as a
• tourist destination country

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Politics

• Maintain political and economic stability
• Reduce bureaucracy, fight against corruption
• Promote high-quality legislation
• Simplify the tax system
• Reduce social security

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Turkish strategy motto

• HEALTH, NOT WEALTH

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Thank you for your attention!!

• Have a nice day!