Reference no: EM133298034
Case Study: Geography, Location and Landscape
Turkey
The large Turkish peninsula connects the continents of Europe and Asia. The Black Sea, the Mediterranean Sea, and the Aegean Sea all surrounding Turkey. The Bosporus Seaway is where Istanbul, the largest city in Turkey, is situated. The city is split between Asia and Europe. Mount Ararat, the tallest mountain in Turkey, has two peaks, with Great Ararat rising to a height of 16,945 feet (5,165 metres) (National Geographic, 2022). Turkey serves as a natural "Energy Bridge" between important oil and gas producing regions and significant consumption markets due to its strategic location (WorldAtlas, 2022). The distance separating Turkey and Canada is 8837 kilometres (5491 miles). Turkey and Canada may be reached by air travel in 9 hours and 49 minutes, with an average speed of 900 km/h (Canadaab, 2022). Shipping by boat takes longer. An ocean freight can take 20 to 45 days (Shipafreight, 2022). In Turkey, 100 of the more than 200 ports are international. The use of ocean transportation makes it easy to transport goods and products internationally to and from Canada. The ports are important to the global markets and international trade?in the Middle East, North Africa, Mediterranean, Europe, the Central Asian Republics, as well as North America and the Far East. It is linked to more than 100 foreign ports, which makes it essential to the trade and economy of southern and southeast Turkey (Tracking Docket, 2022).
Indonesia
Indonesia is by far the largest and most diverse archipelago on Earth, with a surface area of 1,904,569 sq. km. and a key location between the Pacific and Indian Oceans. It is made up of over 17,504 islands, more than 7,000 of which are uninhabitable. The more substantial islands, such as Sumatra, Java, Kalimantan (which makes up two-thirds of Borneo), Sulawesi, and Irian Jaya, are highly mountainous, with some peaks reaching 12,000 feet. On the main Indonesian Islands, there are several mountains that are heavily forested and have volcanic history. East of Java, on Irian Jaya, are the mountains with the highest altitudes (more than 16,000 feet) (WorldAtlas, 2022). Indonesia has 154 ports, 49 are the largest ports in Indonesia (BanSar, 2022). However, given their inability to handle the heavy flood of shipments, many of Indonesia's ports are considered as being ineffective and out of date. These are Indonesia's three largest seaports, which are dispersed throughout the country (Kargo, 2017). The distance between Canada and Indonesia is 12886 kilometres, or 8007 miles. The quickest way to get from Canada to Indonesia is by air (as the bird flies), which takes 14 hours and 19 minutes, traveling at an average speed of 900 km/h (Canadaab, 2022). It will take 50.3 days traveling by sea route. Sea freight shipping from Canada to Indonesia takes 49-53 days ( (Shipafreight, 2022).
Climate
Turkey
It is impossible to speak of an overall climate because of Turkey's geographic circumstances. The weather is moderate in Istanbul and the surrounding area of the Sea of Marmara. Mediterranean-style weather prevails in Western Turkey and along the southern coast. A steppe is a good way to describe the climate of the Anatolian Plateau. While there is more snow in the winter, there is little rain. The Black Sea region has a humid, warm, and rainy environment. It snows continuously from November to the end of April in Eastern and South-Eastern Anatolia, which has a long, harsh winter (Weather&Climate, 2022).
Indonesia
Nearly all of Indonesia's major islands have tropical rainforest climates. A tropical monsoon climate is present in Java as well as several of the smaller islands to Java's east. Tropical weather will nearly always have a strong sun, occasionally heavy rain, and thunderstorms. The number of precipitation days rises along with the intensity of the rain during the monsoon season, which extends from September/October to the beginning of April. Humidity levels are relatively high at the end of the monsoon season (just above 80 percent). It feels very heated and sticky around that time. Almost the entire country of Indonesia enters its dry season in April. Despite the dry season, there is still a brief rainy season in the north and south of Indonesia (Weather&Climate, 2022).
Natural resources
Turkey
By purchasing power parity (PPP), Turkey's GDP ranks 13rd among all countries. More than 20% of the workforce is employed in agriculture, which is the greatest agricultural producer in Europe. Turkish natural resources include both metallic and non-metallic resources (WorldAtlas, 2022). Rice cultivation is becoming more important on the Aegean and Mediterranean coastal lowlands where precipitation is greater and soil and topographic conditions more favourable. In addition to food grain crops, Turkey is an important producer of other crops, such as coffee, tea, and olive oil. Turkey is renowned for its fruits, especially its citrus and apples, which have a strong export market, the Black Sea coastland is also crucial for corn, beans, and sugar beets on a regional scale. The Plateau is a major producer of wheat, barley, hides, skins, and wool, particularly mohair from the Angora goat, which is used to make fine rugs (Geographynotes, n.d). Shale gas reserves in Turkey total about 675 billion cubic metres, particularly in Anatolia and Trace. Hard coal production in Turkey is estimated to be 40% of the country's overall energy. One of Turkey's domestic energy sources is lignite, which has a 15.6 billion tons proven reserve. Turkey has an estimated 83 million tons of iron ore reserves. One of Turkey's greatest reserves of iron ore is found at the Avnik Mine, which is estimated to hold 105 million tons of ore grading 42% iron and 44 million tons of iron metal. Turkey has several copper mines located all around the nation. The Cayeli Mine is one of the biggest copper mines in the nation. It contains an estimated 20 million tons of ore reserves, of which 500,000 tonnes are copper metal. The Murgul Mine has reserves estimated at 40 million tons of ore grading 1.25% copper. Turkey is a significant producer of gold, with 29.5 tons of the metal having been mined nationwide. With an estimated 6-million-ounce gold resource, the Opler Mine is one of the biggest gold mines in both Turkey and the entire world (WorldAtlas, 2022).
Indonesia
A wide range of crops may grow in Indonesia's excellent soils. Coffee, rubber, wood, palm oil, and cocoa are among the commodities that Indonesia is a significant exporter to the global market; tea, sugar, copra, spices, and tobacco are to a lesser extent produced there. Large-scale exploited mineral reserves sustain the mining industry, which is one of the largest in the nation. Natural gas and crude oil account for most of the country's exports of minerals. Coal, nickel, bauxite, gold, tin, copper, and other minerals are also important exports (WorldAtlas, 2022). By the year 2020, Indonesia's proven oil reserves amounted to about 2.4 billion barrels, or about 0.1% of the total world oil reserves. The Indonesian economy once depended heavily on the oil industry, but due to its limited supply, it has recently lost some of its importance (Statista, 2022). One of the world's top producers of liquefied natural gas is Indonesia. The country possesses recognised natural gas reserves worth 67.5 trillion standard cubic feet inside its borders, as well as probable reserves worth an estimated 12 trillion standard cubic feet (WorldAtlas, 2022). There is a total of 12.9 billion tons of indicated reserves and 4.2 billion tonnes of confirmed reserves of coal in Indonesia. There are 15 billion tonnes of copper is confirmed deposits in the Grasberg and Ersberg regions, which are home to most of the country's copper resources. In terms of worldwide copper production, the nation is currently ranked fifth. The country is a significant exporter of the mineral and is estimated to have proven tin reserves totalling 740 million tons. Bauxite reserves totalling 396 million tons have been found in Indonesia, on the island of Bintan in the Kalimantan Barat region. An estimated 12% of the world's nickel deposits, or roughly 367 million tons in proved reserves, are found in Indonesia, one of the world's top producers of nickel. The country presently ranks as the fifth-largest nickel producer in the world. Papua and Kalimantan, which support the timber sector, are home to the greatest tropical forests that may be produced in the region. Excessive forest exploitation has resulted in significant environmental deterioration and huge deforestation (WorldAtlas, 2022).
Population
Turkey
Turkey's population is now growing at a pace of 1.09%, which has been significantly declining each year. In 2022, Turkey's current population is?84.37 million. Turkish people make up 75% of the population overall and Kurdish people make up 18% of the population. The remaining 17% of the population is made up of other ethnic groups ( (World Population, 2022). In general, the population has a high literacy rate of 95.6% as of 2018. The literacy rate for men is over 98%, compared to 92% for women. Urban areas are home to over 70% of the total population. Urbanization is occurring at a pace of 1.7% annually. About 2.13 children are born per woman on average. Nearly 27% of the population is under the age of 14, while 67% of people in the population are between the ages of 15 and 64. Only 6% or so are over 64. With a total life expectancy of 75 years in 2018, the population's median age is 30.9 ( (World Population, 2022). Turkey has a very high human development, scoring 0.82 in 2022 ( (World Population, 2022).
Indonesia
The anticipated population of Indonesia in 2022 is 273.8 million. For 2020, Indonesia's annual growth change will be around 1.07%. This indicates that Indonesia is now adding 2.73 million people annually. Indonesia's economy is concerned about the country's expanding population, which could limit its expansion and advancement. Only 60.8% of people have better access to sanitation than they did five years ago, while 39.2% still don't have better access to sanitary facilities. Nevertheless, Indonesia's overall literacy rate is still quite high at 95.4%, with men having a modest 4% lead over women. Indonesia has more than?300 distinct ethnic and linguistic groups,?although the largest and most dominant in terms of politics are the Javanese at over 40% of the population. Most Indonesians are descended from Austronesian-speaking people. Another major ethnic group are Melanesians who live on the eastern part of the country. Another significant fact concerns the ages of Indonesians, 27.3% of Indonesians were under the age of 14, 66.5% were between the ages of 15 and 64, and just 6.1% were beyond 65 (World Population, 2022). In 2019, rural areas were home to 44% of the country's population. In Indonesia, the proportion of people living in rural areas has been falling during the past ten years, while the proportion of people living in urban areas has been gradually rising due to better employment opportunities, and high standard of living. (Statista, 2022). Indonesia has a high human development index, scoring 0.718 in 2022 (World Population, 2022).
Language
Turkey
Turkey is a multicultural nation where many distinct ethnic languages are spoken. Turkish, Kurmanji, Arabic, and Zazaki are the four main ethnic languages used in Turkey. Turkish dialects, Balkan, Laz, Armenian, and Circassian languages all have very few native speakers. More than 70% of users speak Turkish, making it the most popular ethnic language. Additionally, Crimean, Georgian, Kabardian, Bosnian, Albanian, Adyghe, and Tatar are among the immigrant languages that are most often spoken in Turkey. Interactions with the West and foreigners have influenced the growth of foreign languages in Turkey. Commonly spoken foreign languages in Turkey include English, German, and French. Among foreign languages, English has a greater audience. These languages are taught in Turkish schools as elective courses alongside other foreign languages like Italian. The inclusion of a foreign language in the curriculum improves the nation's ability to interact with foreign organisations and countries when trading (WorldAtlas, 2022).
Indonesia
One of the primary languages used in Indonesia is the Indonesian language. As stated in Article 35 of the Indonesian Constitution, the language of Indonesia is also constitutionally acknowledged as the nation's official language. One of Indonesia's most widely spoken languages, Javanese is primarily spoken by Javanese people on the island of Java. ? In Indonesia, Sundanese is a second widely spoken language. West Java and Banten are the primary usage areas for Sundanese.?Musi, a form of Malay, is also?one of the additional languages spoken in Indonesia (Sawe, 2017).
Religion
Turkey
The only Muslim nation without a declared religion is Turkey. Christianity, Judaism, and Ashkenazim are the other three major religions in the nation. Islam can be split into Sunni Islam, Alevi Shia Islam, Ja'fari Shia Islam, and Alawi Shia Islam. In Turkey, where an estimated 65% of the population practises Sunni Islam, it is thought to be the majority religion. It is crucial to remember that the Turkish government lists this as the dominant religion. People who identify as "other Islam" make up about 13% of Turkey's total population. Also, 7% of Turks identify as atheists or agnostics. An estimated 6% of Turks describe themselves as "spiritual but not religious." In Turkey, 4% of Muslims are Shias. Other minorities with estimated populations in Turkey are Judaism, Tengrism, and Yezidism, Armenian, Latin Catholic, and Orthodox ( (WorldAtlas, 2022). Only the Armenians, Rum Orthodox Christians (Greeks), and Jews are still recognised as minorities in Turkey. This means that other non-Muslim groups and ethnic minorities, like Alevis, Assyrians, Circassians, Kurds, Laz, and Roma, are not recognized by the government, which restricts their ability to exercise some political and cultural rights. Even recognized minorities are unable to fully enjoy their rights because Turkey only upholds those provided by the Lausanne Peace Treaty (signed in 1923 between Turkey and the Allied forces following World War I) (Minority Rights, 2022).
Indonesia
The majority of Muslims in Indonesia, which has the world's largest Muslim population overall, practise Sunni Islam. In Indonesia, 86.5% of the population is Sunni Muslim. Islam is one of Indonesia's five official religions.7% of Indonesians practise Protestantism. One of Indonesia's five official religions is Protestantism. There is a sizeable Protestant community in the Tana Toraja, North Sulawesi, and Papua regencies. One of Indonesia's five recognised religions is Roman Catholicism. 2.9% of the total population is represented by it. The provinces of Papua, East Nusa Tenggara, and West Kalimantan are home to most Indonesia's Catholics. Hinduism, one of the official religions of Indonesia, is practised by 1.7% of the population. With 83% of Indonesia's population being Hindu, the province of Bali is the religion's heartland. No other province has a Hindu population greater than 4%. The country's fifth recognised religion is Buddhism. The percentage is 0.7%. In Indonesia today, Jakarta and a few other areas are home to most Buddhists. Only one million persons in the country practise Shia Islam, with the majority living in Jakarta, the country's capital, making only 0.4% of the total population ( (WorldAtlas, 2022). There are 400,000-500,000 Ahmadi Muslims worldwide. Hard-line Muslims who follow Islam may view the Ahmadiyya movement as heretical. Following the highest Islamic organisation in the nation's 2005 heretical declaration of Ahmadiyya and a government edict prohibiting them from proselytising in 2008, attacks and persecution of Ahmadiyya believers have increased in Indonesia. Another minor Muslim group, Gerakan Fajar Nusantara (Gafatar), which incorporates elements of both Christianity and Islam, has seen an increase in threats. Its membership is estimated to be 55,000. The Indonesian government banned Gafatar in March 2016, which was followed by a wave of riots, evictions, and detentions ( (Minority Rights, 2022). There are 400,000-500,000 Ahmadi Muslims worldwide. Hard-line Muslims who follow Islam may view the Ahmadiyya movement as heretical. Following the highest Islamic organisation in the nation's 2005 heretical declaration of Ahmadiyya and a government edict prohibiting them from proselytising in 2008, attacks and persecution of Ahmadiyya believers have increased in Indonesia. Another minor Muslim group, Gerakan Fajar Nusantara (Gafatar), which incorporates elements of both Christianity and Islam, has seen an increase in threats. Its membership is estimated to be 55,000. The Indonesian government banned Gafatar in March 2016, which was followed by a wave of riots, evictions, and detentions ( (Minority Rights, 2022).
Culture
Power Distance:
Turkey ranks highly on this factor (score of 66), which indicates the following: Dependent, hierarchical, with frequently inaccessible superiors, and where the ideal employer is a father figure. Managers depend on their supervisors and the regulation since power is centrally located. The expectation of employees is that they will be given instructions. Control is anticipated, and managers are treated with formality. While compared to Canadian culture, which had a score of 39 on this category, is characterised by interdependence among its citizens and an emphasis put on equality. The absence of overt status and/or class distinctions in society also reflects this. The hierarchy in Canadian organisations is set up for convenience, superiors are easily reachable, and managers rely on certain employees and teams for their competence, which is typical of other cultures with low scores on this dimension. Managers and employees frequently consult one another and openly exchange knowledge. Canadians enjoy a simple sharing of information when communicating.
Indonesia ranks highly in this category (score of 78), which indicates that the following describe Indonesian style: dependence on hierarchy, uneven rights between those in power and those who are not, superiors' inaccessibility, leaders' directiveness, management's control, and delegation. Managers rely on their teams' compliant behaviour and the concentration of power. Employees anticipate being given instructions on what to acompelish and when. People respect managers for their position and expect them to exercise control. Negative feedback is buried, and communication is veiled. High Power Distance also means that Indonesian co-workers would anticipate unambiguous direction from the supervisor or manager; this is the traditional Guru-Student type of dynamic that is applicable to Indonesia. The obvious, widespread, and uneven difference may come as a surprise to Westerners.
Question: Based on the answers listed above, summarize the major challenges, benefits, and costs to your imaginary Canadian company considering entering each country's market. Which market poses the biggest challenge to you from the standpoint of strategic management? In what ways are the challenges similar and in what ways are they different? Finally, which country would you select and why?