Abstract
The 2015 elections in Turkey disrupted corporate business models in the country. Conducting business in Turkey has unquestionably been impacted by political activity that has often erupted into cultural wars and civil demonstrations. This paper discusses the strategies corporations must undertake to secure a sustainable competitive advantage in Turkey. It researches and critically evaluates the business impact of the changing and often turbulent politics, as well as collects and analyzes economic data in order to propose a decision making platform allowing companies to make informed strategic decisions. Paralleling this research, the paper also investigates how supply chains into and out of Turkey have been severely disrupted as a result of political unrest. Supply chain disruption is increasing amongst trading nations as they (the supply chains) become more complex as a result of their global expansion. External, as well as internal data, are gathered and examined for this paper in order to recommend corporate action to be taken to minimize supply chain disruption. Protection of supply chains needs to also be a priority of government. Therefore, this paper suggests how involvement in supply chain management by a stable government in Turkey would help minimize disruption and make supply chains in the country much more productive and efficient.
Highlights
This study investigates the strategies manufacturing companies in Turkey, both domestic and foreign, are taking to secure their supply chains considering the uncertain political environment in the country
Paralleling this research, the paper investigates how supply chains into and out of Turkey have been severely disrupted as a result of political unrest
Chain disruption is increasing amongst trading nations as they become more complex as a result of their global expansion
Summary
This study investigates the strategies manufacturing companies in Turkey, both domestic and foreign, are taking to secure their supply chains considering the uncertain political environment in the country. Political uncertainty has already had an impact on the economy best exemplified by decreasing demand and the lira under pressure. President Erdogan’s AKP party failed to gain an outright majority in the June elections in 2015, it did regain a majority in the November 2015 election. Political instability and slowing Foreign Direct Investment (FDI) still remain. Bureaucracy in Turkey is complex, which is challenging for companies, this will hopefully change when, and if, the country becomes a member of the European Union. Chains are becoming longer (global) and more complex increasing the propensity for disruptions threatening their efficiency and cost effectiveness. Political unrest has proven to be a major disruptor of supply chains
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