Report to senior management: Investing in Turkey

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Guidance for AC3908 Assignment 2 16/17
The assignment should be around 2000 words but there are no extra marks/penalties if your word
count is more or less than this. The idea of a word count is to set an expectation for how much time
and effort should go into this assignment.
The structure I expect is that of a professional report. That could mean quite a few things but I’ve
tried to clarify below. The idea is that this document is going to be left on your bosses desk and
they’re a very busy person so it needs to be detailed but concise.
Some reminders of what I suggested you could include in your analysis of each of the questions:
1. Be presented in a professional manner. (10 marks)
These are the ‘formatting’ marks. I expect:
 A cover sheet
 A Terms of Reference (a brief introduction to the purpose of the report)
 An Executive Summary (KEY conclusions for each of the sections)
o The best way to think of an Exec Summary is that the reader shouldn’t need to look
at anything else – it has your key messages that they must read
o So it will have a comment from each of the sections:
 Key background info
 Key opportunity
 Key risk for that opportunity
 Best way to manage that key risk
 A clear section for each of the elements described below

2. Provide some relevant background information on the country. (10 marks)
The key word here is ‘relevant’. Your comments must be relevant to the analysis you’ve included. I
would think about sections 3,4,5 before you do this introduction. If you’re going to comment on
pharmaceuticals as a potential growth opportunity then it might be worth mentioning that industry
in your country history, for example.
3. Report briefly on the key identified investment opportunities in the country (20 marks)
Hopefully these shouldn’t be too hard to find. You need to search for growth areas in your country
(surely these must be good things to consider investing in).
You need to explain why you think they’d be good things to invest in however. How long would you
expect the growth to last? Do you think the market would be easy to break into? How do you think
they should take advantage of the opportunity (acquisition, organic growth, joint venture…)
It would be better to highlight a couple of potential opportunities and analyse them in detail than try
to list out lots of possibilities with no detailed commentary.
4. Analyse the key risks associated with investing in this country. (30 marks)

Risks is a very big subject and so you should probably analyse the country using the methods we’re
going to cover in class and then select some areas that you think will be of most concern to
companies attempting to break into this particular country.
The risks need to be specific to the opportunities that you’ve identified.
I would analyse the country first and then see which points seem to relate most to the opportunities.
Those should be the ones that go into your report. Don’t include every possible risk – include the
most important ones.
5. Identify some approaches to managing the risks associated with investing in the country.
(30 marks)
For each risk you’ve identified you need to give an idea of the method(s) that could be employed to
reduce the concerns.
Remember risk just means that we don’t know what the profit from the opportunity will actually be.
How could we make our profit more certain?

A report will score well if you
 Link each section – section 2 is based on section 3. Section 4 is based on section 3. Section 5
reviews ways to manage the points from section 4
 Are detailed but concise. Your boss is very busy and so needs a document that gives specific
advice efficiently.
 Are very explicit in the Exec Summary. If your boss hasn’t got time to read everything, is
this section enough for them to be aware of your key ideas?

As always if you have any questions then let me know and if you want me to look at a draft then just
send it to me. I might have to limit the number of drafts you send me at this time of year but there’s
no harm in asking for help!

Description

Turkey is chosen as the country in which our company has not established its operations. Through this report, Turkey is reviewed to determine its effectiveness as a new market for the company. The report confirms that despite the numerous challenges that Turkey faced in 2016, the country reported its high rate of FDI as December the same year. The cause of this surging rate is attributed to the opportunities such as the liberal legislation after the 2016 reforms, availability of skilled labor, and the country’s strategic location. These opportunities present benefits of a free economy to venture, a strong labor pool, and an efficient place to for the company to reach out to a larger market. However, through a PESTEL analysis, this report identifies different risks such as the political risk, security risk, interest risk, currency risk, cultural risk, and cost risks which may hinder a successful expansion into Turkey. The report proposes different approaches such as hedging, insurance, and undertaking market research to help in managing these risks and maximize the returns of the company in Turkey.