Hofstede's cultural dimensions.

Strat for Emerging Markets

1. Turkey’s prentation
2. Hofsted’s analysis
3. Pestel analysis
4. Cultural differences
5. How to do business in Turkey

1. Turkey’s introduction :

• Location : Southeastern Europe and Southwestern Asia 
• Capital : Ankara
• Official language : Turkish, Kurdish
• GDP : 822,1 billion Dollars (10 971,66 USD per capita)
• Population : 74,93 million Dollars
• Primary sector : Agriculture (40% of GDP)
• Religion : Islam (98%)

1. Hofstede analysis :

Power distance : 66

The score is high in this dimension, which could be explained by the social inequalities in the country.

Professional structure are very hierachical, and dependent on superiors which fix major rules of the company’s organisation. Employees don’t take usually initiatives and simply follow rules and expect to be told what to do. Relationships with superiors are formal with indirect communication and selective information which could be compared also in relationships in families where the father have major authority and power decision.

Individualism : 37

Tukey has a low score in this dimension which explain the collectivism in the society. Community and collectivism is important and people are usually divided by groups, families or clans especially in business environment where feedback and communication are always indirect to avoid conflicts.

Masculinity : 45

With a score of 45, Turkey’s society is not concentrated about competition and success but more about quality of life, sympathy and collectivism.

People in general rather to enjoy their life and have leisure time with family and friends than concentrate the majortity of their time in work.

Uncertainty avoidance : 85

Turkey has a very high score in this dimension which could be explained by a huge need to follow laws and rules which we have also seen in power distance where the employees should be told what to do by their executives.

This is due to the way the society deals with the future expectation, to minimize anxiety, people rather to have specific plan of everything to avoid surprises.

Indulgence : 49

With a score of 49, society in Turkey have a balance between indulgence and restraint. This is due also to different cultures in the country which could be different and also tolerated by the society. (Southeastern European, Caucasian, and Central Asian traditions)

1. Pestel Analysis :

Legal/Political :

Turkey is a liberal government which allows the country to facilitate international trade with several countries in the EU.

In 31th december 1965, the country have set up a custom union agreement which allows good to be exchanged with EU without customs restrictions. This permit the turkish companies to develop their activities and get bigger. Due to this agreement, Turkey have saw its exportations increase by an average rate of 10% every year.

The generated profits from foreign investment was used in the development of the country’s infrastructure such as highways and airports.

Turkey’s history have seen several terrorist attacks which represent a risk to its government stability, This is due to Islamic extremist, Kurdish radicals.

Turkish militants are also involved in the « Quaida » activities and participate it this organisation’s devlopment.

The judicial system in Turkey is well developed and represent a strengh in the legal system of the country, actually, it’s made up of general courts, heavy penal courts, constitutional and military courts which are concerned by divided type of cases. (domestic, military and penal and government)

The government has created a facility plan for foreign companies implantation, it has reduced registration process to 6 days compared to an average time of 43 days in the other countries.

Economic :

The economic development in Turkey is due to a strong foreing investment,(48% of GDP) actually the country is the largest recipient of FDI in West Asia, this due to legislative reforms that country have adopted to facilitate the reception of foreign investmen.

Generated profits from foreign investment was used in the development of the country’s infrastructure such as highways and airports.

The economy of the country is based on industry and agriculture with a low precence of tertiar sector

Country’s saving is low with a high dependance on foreign capital and external private debt which could be menaced by foreign currency risks.

Social :

Young population which represent more than 50% of the population (<30 years)

This will participate in the economic growth of the country and allows it to have a promessing future due to a young labour force.

But instead of that, an important percentage of the population are unemployed (11.6% of unemployment). This is due to a lack of skills and education of the young generation which doesn’t permit them to enter the professional world.

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