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                    <text>2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo

An Analysis of the Contents of the Studies Carried Out on the Relationship
between the Strategy and the Performance of the Organization
Orhan BATMAN
Sakarya University,
Faculty of Economics and Administrative Sciences
Department of Tourism Management
orhanbatman54tr@hotmail.com
Ġzzet KILINÇ
Düzce University
Akçakoca School of Tourism and Hotel Management
izzetkilinc@duzce.edu.tr
Muammer MESCĠ
Düzce University
Akçakoca School of Tourism and Hotel Management
muammermesci@duzce.edu.tr

Abstract: The aim of this research is to analyze the methodology used in the papers that deal
with the relationship between strategy and business performance in the last decade. In this
context; it is intended to determine the fields of study on which the papers focus, the research
methods and data collection techniques used and the findings achieved, and to compare and
contrast the findings obtained with the methods of research used. In this research, a qualitative
research method was used and the data were acquired through literature review. The data
acquired were put to content analysis and they were analyzed within the theoretical framework
formed in accordance with the objectives of the research. The main restriction of the research is
that the academic papers only in the data bases of Emerald and Sciencedirect were included in
the research. Within this, 15 papers in both data bases mentioned were reviewed. The findings of
the research indicate that the papers reviewed have been published in 10 different academic
journals and they focus on 6 different fields. Furthermore, quantitative research methods were
used in 11 of total 15 papers whereas qualitative research methods were used in 4 of them.
Questionnaire technique was chosen to collect data in the papers in which quantitative research
methods were used. On the other hand, while literature review was mainly preferred in the
papers in which qualitative research methods were used, case method was used in one of them.
The results of the research point out that the papers have similar findings although they have
used different methods, and it has been found out that there is a positive relationship between
strategy and business performance in the consequence of each paper.

Key Words: Strategy, performance, methodology.

Introduction
Strategic management is an understanding which has focused on the organization‘s continuing its life and
providing superiority in competition. Due to this, it is true and important to handle and explain the concepts of
―performance‖ and ―performance evaluation‖ with the approach of strategic management. The organizations should
develop their strategies and evaluate to what extent they have fulfilled their strategies in order to continue their
existence. The success measure in the market where the organizations operate is to obtain profitability above the
average. Performance evaluation is an important means in finding out whether the organizations have achieved this
profitability or not or to what extent they have achieved (Pongatichat &amp; Johnston, 2008).
Today the rapid and intensive environmental changes and uncertainties affect the sector structures and the
dynamics of the organizations, the organizational process and functions, the market structures directly. These
interactions may cause the organizations to disappear in the area they operate in by affecting their performance and
profitability. Because of this, performance and performance evaluation systems are very important for the

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�2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo

organizations. Performance evaluation systems make important contributions to the organizations especially in
coping with the problems they will have in competing, continuing the operations and growing (Kilinc &amp; et al., 2009).
These contributions can also increase the number of the studies carried out on strategy and performance evaluation
(Dyson, 2000).
There has been a dramatic change in the last two decades due to the nature of competition. Quality, intense,
flexibility and cost have appeared to be important competition elements. In this period, the performance evaluations
based on the traditional finance started to lose importance. At that time, new performance evaluation systems were
developed by the researchers as a result of the studies carried out (Bititci &amp; et al., 2001). For instance, the traditional
performance evaluation process in the organizations was done in three ways. These were the turn over of the sales
involving the financial evaluations, the turn over of the investment and the turn over of the properties. Today it is
seen that there are non-financial evaluation systems beside the financial evaluation systems. Non-financial evaluation
systems are handled with a strategic view and used to complete the missing parts of the traditional evaluations and to
increase ―the firm value‖ of the organizations (Jusoh, 2008; Kilinc &amp; et al., 2010).

The Concepts of Strategic Management and Performance Evaluation
Strategy is the process of determining the basic aims and goals of an organization and producing the
supplies that are essential to achieve these aims (Chandler, 1962). For Mirze &amp; Ulgen (2005), strategy is a whole of
long-termed dynamic decisions which study the actions of the competitors, which focus on an end and which are
made to achieve certain aims. According to Hitt &amp; et al. (2005), strategy means targets planned to improve the basic
core of the organization and to obtain a competition advantage and procedures followed to reach these targets. Lee
and Carter (2005) describe strategy as a plan which the organization makes to show how it will fulfill its mission and
vision.
For Mintzberg (1996), strategy is a multidimensional concept which includes the dynamics such as plan,
maneuver, behavior form, point of view and positioning against the competitors. The main purpose of the strategy is
to get an advantage against the competitors and to make it sustainable. Strategic management changes the strategy
concept into a management understanding. According to Ansoff (1965), strategic management is an active process
which guides the organization on how it can fulfill its aims. Teare and Boer (1996) describe strategic management as
the process related to the development of ―ideal‖ management systems for an active organization. For Aktan (2007),
strategic management is a means which leads the organizations in the competition environment to what they can do,
what strategies they should follow so as to compete with their competitors. Johnson and Scholes (1993) explain that
the strategic management is the procedures followed to make the inner and outer environment analyses, to collect
information, to make decisions, to make implementations by gathering the references and to evaluate the results in
order that the organization can obtain sustainable competition superiority in the long term.
Performance in general is a concept which qualitatively and quantitatively determines an output obtained as
a consequence of a planned and aimed activity (Percin, 2008). For Atakus (2006), performance is a comparison. He
states that something that can not be measured will not be compared. Therefore, the concept of performance should
be explained clearly for a good comparison. Kanj (2002) defines the performance evaluation as the methods which
are used to perform the functions of the organization perfectly and to improve them. Beamon and Balcik (2008) say
that performance evaluation is a form of evaluation made to measure the efficiency and validity of the functions of
the organizations. Each organization has certain objectives and functions. The basic function of the business
management is to bring the aims and objectives of the organization to the highest level possible. Performance
evaluation determines to what extent the organization has reached this level (Akal, 2000). The contributions of
performance evaluation can be listed as follows (Dilek, 2009):
 It enables the strategies of the organization to be supported, to be understood better and to be assimilated
 It makes contributions to the implementation of the strategies easily and making decisions about the
management
 It enables to make a map of developments and changes in the organization so that the organization can have
a dynamic structure which can renew itself
 It enables the organization to increase its productivity and efficiency
Performance evaluation systems are effective in developing strategies which are arranged according to the new
environment conditions and which aim to fulfill the objectives instead of non-functional strategies developed before
(Jusoh &amp; Parnell, 2008).

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�2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo

Method
This study aims to investigate the contents of the studies carried out on finding out the relationship between
the strategy and the performance of the organization in the last decade by taking the methods used in these studies as
a basis. Thus, it is the main objective of this study to determine the new tendency related to this subject. Within this,
the fields where the articles focus on, the research methods and data collection techniques used and the findings they
obtained will be found out and comments will be made on the findings.
The data used in the study were obtained through literature review. At this stage, the focus was which
academic articles would be examined and their being original. The data collected were analyzed through content
analysis in the theoretical fragment formed according to the objectives of the research. The basic limitation of the
study is that only the articles published in emerald and science direct databases were involved in it. Due to this,
fifteen articles published in both databases were evaluated. In addition, two things – obtaining the data easily and
checking them- were considered essential in respect of the reliability of the research process.

Findings
The papers involved in the population of the study and the basic findings obtained from these papers have been
shown systematically in Table 1.

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�2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo

Author(s)
And Year

Bititci &amp;
et al.,
2001

Hitt A. &amp;
et al.,
2001

Pehrsson,
2001

Mc Adam
&amp; Bailie,
2002

Ruiz &amp; at
el.,
2002

The Aim of the Study
To find out the relationships
of the quantitative models
affecting the performance by
taking the performance
evaluation studies published
before as a basis

To study the effect of human
capital on the performance
of the organization

To study the effect of
environmental changes on
the strategic performance
evaluations of the
organizations
To study the relationship
between the strategies of the
organizations and the
performance evaluation.
Plus, to search for the role of
the improvement models for
the organization.
To determine the effect of
the market, product and
production factors when the
organizations use the
differentiation strategies in
order that the organizations
can grow more in the foreign
market
To examine the relationship

The Basic
Method Used

Qualitative
Research

The Method
for Data
Collection

Literature
Review

Analysis
Techniques
Used
The
Analysis of
Dynamics
and
Sensitivity

Content

Production
Field

Findings
It makes suggestions about the quantitative
models used in the performance evaluation
system, which strategic productions should
be made for the organizations and giving
alternative strategic decisions.

The
Magazine in
Which the
Article was
Published
International
Journal of
Production
Economics

Quantitative
Research

Questionnaire
Technique

Correlation
Analysis

Human
Resources

Two conclusions were reached in the
study: First, there is an indirect
relationship between human capital, the
performance of the organization and the
strategy. Second, there is an effective
relationship between the supplies and the
strategy.

Qualitative
Research

Literature
Review

Sample Case
Technique

Production
Field

It states that organizations can obtain high
performance by developing optimum
strategies.

Management
Decision

Production
Field

It has been determined that strategy has an
important effect on performance
evaluation. Besides, it is thought that
evaluations, evaluation structures and
strategy are a complicated and dynamic
structure and this situation is criticized in
the study.

International
Journal of
Operations&amp;P
roduction
Management

International
Marketing
Review

International

Qualitative
Research

Literature
Review

Sample Case
Technique

Quantitative
Research

Questionnaire
Technique

Statistics
with
Multiple
Variables,
T-Test,
Regression
Analysis

Production
Field

It has been pointed out that the factors
such as market, production and
organization are important elements in the
extension of the organization in the foreign
markets. In addition, it has been found out
that these factors have an important effect
on the performance of the organization.

Quantitative

Questionnaire

Statistics

Production

The needs of the employees working in the

177

Academy of
Management
Journal

�2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo

Kathuria
&amp; Porth,
2003

Bourne &amp;
at el.,
2003

Bednall &amp;
Valos,
2005

Megicks,
2007

Enticott
&amp;
Walker,
2008

Pehrsson,
2008

Chau,

between the functional
strategy of the organization
and the characteristic of the
strategy management.
To study how important the
approach based on the
supplies is in finding out the
performance and
competence of the
organization.

Research

Qualitative
Research

Technique

with
Multiple
Variables,
T-Test,

Literature
Review

Field

Production
Field

Questionnaire
Technique

Statistics
with
Multiple
Variables,
ANOVA,
Tamhane‘s
T2

Production
Field

Quantitative
Research

Questionnaire
Technique

Factor
Analysis,
Correlation

Production
Field

Quantitative
Research

Questionnaire
Technique

Correlation,
Regression
Analysis

Service
Organizati
ons

Statistics
with
Multiple
Variables,
ANOVA,
Correlation

Production
Field/
Service
Organizati
ons

To study the contribution of
the strategy to searching for
marketing in a certain area
and with the purpose of
gaining profit.

Quantitative
Research

To examine the effect of
small-scaled retailers and the
strategies developed at
different levels .on the
organization performance
To study the effect of the
relationships between the
performances of the
organizations which have a
social responsibility and
sustainable management on
the organizations.
To find out the effect of
strategy implementations
which have a crucial role in
setting value in the foreign
markets on the organization.

Quantitative
Research

Questionnaire
Technique

To explain the relationship
among the efficiency of the

Qualitative
Research

Literature
Review

Production
Field

178

organization should be considered in order
to evaluate the relationship between
strategy and management at the functional
level together.
In this paper it has been determined that
the approach based on supplies has an
important influence on the organizations.
The approach based on supplies enables
the organizations to see their supplies and
competence.
This paper has shown that knowledge,
internal policies and searching for the
market are the factors that increase the
market performance of the organizations.
Besides, it has been found out that these
factors are related with the strategies
developed by Miles, Snow and Porter.
This paper states that, at the functional
level, the strategies implemented in the
organizations at different levels have a
great influence on the performance of the
organization.
In this research paper, it is mentioned that,
in order to reach high performances
determined by the organizations, the
organizations need not only the strategy
but also the sustainable management and
the support of the shareholders. In
addition, there is an indirect relationship
between sustainable management and
sustainable performance.
The organizations require product
differentiation for making products and
setting a value in the foreign markets.
Also, the performances of the
organizations which meet the expectations
of the customers will increase.
Strategic performance management, the
performance of the organization and team

Journal
of Operations
&amp;Production
Management
International
Journal of
Operations&amp;P
roduction
Management
International
Journal of
Productivity
Performance
Management

Management
Decision

Business
Strategy and
the
Environment

European
Business
Review
Team
Performance

�2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo

Sum
2008

Parnell &amp;
Dent,
2009

Gunby,
2009

Fantazy
&amp; at el.,
2009

organization, the
performance of the
organization, the team
strategy and the strategic
performance management.

strategy exist at the operational or medium
level and upper level. The efficiency can
be interpreted as the phenomenon of
strategic team performance management.
Production
Field/
Service
Organizati
ons

This paper states that there are different
views about the performance of the
Quantitative
Questionnaire
ANOVA
organization and chance factor. Managers
Research
Technique
claim that bad situations are related to the
chance factor.
It has been found out that the organizations
which do not have the purpose of making
profits are affected by the policies and
To find out what kind of a
changes in the process of developing
relationship there is between
Factor
Service
Quantitative
Questionnaire
strategy due to environmental conditions.
the strategy developing
Analysis,
Organizati
Research
Technique
This paper mentions that there is not an
process and the performance
Correlation
ons
important change in the performances of
of the organization.
the employees in the strategy developing
process of the organizations which aim or
do not aim to make profits.
This study suggests that performance has a
great influence on flexibility and flexibility
has a great influence on strategy. Making
new products, providing flexibility and
To examine the relationship
Structural
improving the supplies are essential for the
between performance,
Quantitative
Questionnaire
Production
Equality
customers, whereas the limit of the
strategy and flexibility in the Research
Technique
Field
Modeling
flexibility, creating new products,
chain organizations.
improving the supplies and time are the
most important investment factors for the
organizations which want to develop new
strategies
Table 1: The Studies Carried Out On the Relationship between the Strategy and the Performance
To study the relationships
between performance and
strategic factors in strategic
management schools.

179

Management

Management
Decision

Management
Decision

Supply Chain
Management:
An
International
Journal

�Discussion and Results
In the recent years, the studies on the relationship between strategy and performance evaluation have
mostly concentrated on the evaluation. The strategies determined by the organizations should be evaluated with
correct criteria. Besides, organizations need to determine their strategies correctly. The organizations which do
not determine their strategies correctly fail to improve their performances. In order to find out to what extent the
organizations have reached the strategies they have determined, analyses should be made through correct
evaluation systems. Misleading evaluation systems can not find out how successful the organization is in
achieving the goals and objectives that it has determined before.
The other thing is that the functions in the organization should be arranged according to the strategies.
Organizations must develop the competence and authority which are necessary to perform the functions
determined before. In addition, correct decisions should be made in order to perform the functions successfully.
The basic findings results that have been obtained with this research have been discussed below.
When the aims of the studies are considered, it has been seen that the common subjects dealt with are
the factors which are essential for the organizations to grow in the foreign markets, the relationship between
strategy and management, the effects of environmental conditions on the performance of the organization,
determining the competence of the organization and finding out the relationship between the strategy and the
performance of the organization. Among the studies carried out with different purposes, Bititci &amp; et al. (2001) –
the relationship between the quantitative models affecting the performance- and Hitt and et al. (2001) – the direct
and indirect effects of the human capital on the performance of the organization- appear to be the most
important. It has been found out that the researchers have involved the relationship between the strategy and
performance indirectly in their studies with different purposes. One of the most important deficiencies in these
studies is that they have not explained at what level this relationship is. The other deficiency is that the
techniques used in these studies have not been mentioned sufficiently in the evaluation of the relationship
between strategy and performance.
When the basic methods are considered, it is seen that five of these studies have used the qualitative
research method and ten of them have used the quantitative research method. It has been found out that while the
qualitative research method was preferred in the early 2000s, the quantitative research method was preferred in
the later years. That the quantitative research method was used more in the studies can be interpreted as meaning
that the researchers had a rationalist understanding. The reason why the qualitative research method was
preferred less can be that the process of this research is troublesome and takes too much time and that the
researchers do not know how to search and analyze the data. However, there is no paper in which both methods
have been used together among the papers which form the population of the research. The use of both methods
in the new studies which will be done in this field can be important in respect of the results to be obtained.
The papers were also examined in respect of the analysis techniques and it has been found out that
sample case technique was used in the studies based on the qualitative research method, whereas statistics with
multiple variables, ANOVA, Tamhane‘s T2, Correlation, Regression, Structural Equality Modeling and Factor
Analyses techniques were preferred in the studies based on the quantitative research method. It has been
determined that the analysis techniques suitable for the purpose of the research were preferred in the studies.
Different from the analysis techniques used in the studies, Bititci and et al. (2001) used the analysis of dynamics
and sensitivity and Fantazy and et al. (2009) used the structural equality modeling. The structural equality
modeling is briefly the combination of the factor analysis and the regression analysis.
The content being analyzed, it is understood that the studies were carried out in the fields of production
and service. Today it is essential that the outputs produced by the organizations and the inputs they have been
using be evaluated in respect of quality and quantity related to the sectors that the organizations operate in.
Among the studies, the study prepared by Hitt A. and et al. in 2001 on human resources is different from the
others. In this paper, the researchers came to the conclusion that human capital had an influence on the strategy
and the performance of the organization.
When the data collecting method is considered, it is seen that the researchers benefited from the
literature review and the questionnaire technique. While the literature review was preferred as the data collecting
method in the studies with the qualitative research method, the questionnaire technique was used in the studies
with the quantitative research method. It is understood that secondary resources were preferred in the studies
because the researchers could use fewer references, do periodic studies and make compare and contrast. It was
found out that the researchers who preferred the questionnaire technique had used it in order to collect data in a
wider area.
Related to the magazine in which the studies were published, the magazine preferred the most by the
authors is Management Decision (4) and International Journal of Operations &amp; Production Management (3)
follows this magazine. It is seen that there is an important relationship between the magazine preferred and the
subject of the studies. It was found out that the researchers evaluated the subjects they had searched for
according to the concept of the magazine which they published their papers in.

�2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo

The common result of the findings obtained from the studies is that there is a relationship between the
strategy and the performance of the organization in a great deal. The hypotheses suggested in the studies were
either accepted or rejected according to the analyses. The interesting point is that the aims determined in the
studies seem to support the results of the studies. Among the studies examined, the study prepared by Parnell and
Dent (2009) differs from the others in that they explained the negative events the managers faced with the
chance factor. The authors stated that there was a direct relationship between the performance of the organization
and the chance factor and the chance had an important effect on the operational results of the organization. The
other different study is the one carried out by Fantazy and et al. (2009). It mentions that information system and
technology usage are important factors so as to improve the performance of the organization. The information
and technology; in other words, core supplies the organizations have are important in that they show the
competition power of the organizations. It is seen that the organizations today will improve their performances
and achieve the success above the sector average by developing different strategies such as differentiation,
focusing, cost based…..etc. The deficiencies in the studies result from the fact that it is not clear to what extent
the relationship between the strategy and performance evaluation is effective on the other facilities that the
organization provides.

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Pehrsson, A. (2008). Value adding in foreign markets A three-country study of associations of strategy and performance.
European Business Review. 20 (1), 20-35.
Perçin, M. ( 2008). ĠĢletmenin Örgüt Yapısının ĠĢgörenlerin Örgütsel Bağlılığına Etkisine ĠliĢkin Bir AraĢtırma,
YayınlanmamıĢ Doktora Tezi, Selçuk Üniversitesi, Sosyal Bilimleri Enstitüsü, Isparta.
Pongatichat, P., &amp; Johnston, R. (2008). Exploring strategy-misaligned performance measurement. International Journal of
Productivity and Performance Management, 57 (3), 207-22.
Ruiz, M. F., Gonzalbez, N. L. &amp; Moreno, R. F. (2002). Foreign expansion strategy and performance. International Marketing
Review. 19 (4), 348-368.
Teare, R. &amp; Boer, A. (1996). Strategic Hospitality Management: Theory and Pratice for the 1990s, Fourth Edition, London:
Cassell, Educational Limited.
Vinh, S. C. (2008). The relationship of strategic performance management to team strategy, company performance and
organizational effectiveness. Team Performance Management. 14(3/4), 113-117.

182

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MESCİ, Muammer</text>
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                <text>The aim of this research is to analyze the methodology used in the papers that deal  with the relationship between strategy and business performance in the last decade. In this  context; it is intended to determine the fields of study on which the papers focus, the research  methods and data collection techniques used and the findings achieved, and to compare and  contrast the findings obtained with the methods of research used. In this research, a qualitative  research method was used and the data were acquired through literature review. The data  acquired were put to content analysis and they were analyzed within the theoretical framework  formed in accordance with the objectives of the research. The main restriction of the research is  that the academic papers only in the data bases of Emerald and Sciencedirect were included in  the research. Within this, 15 papers in both data bases mentioned were reviewed. The findings of  the research indicate that the papers reviewed have been published in 10 different academic  journals and they focus on 6 different fields. Furthermore, quantitative research methods were  used in 11 of total 15 papers whereas qualitative research methods were used in 4 of them.  Questionnaire technique was chosen to collect data in the papers in which quantitative research  methods were used. On the other hand, while literature review was mainly preferred in the  papers in which qualitative research methods were used, case method was used in one of them.  The results of the research point out that the papers have similar findings although they have  used different methods, and it has been found out that there is a positive relationship between  strategy and business performance in the consequence of each paper.</text>
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                    <text>2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo

Tourism Policy and Planning in Context Of The Sustainable Development
Furkan BALTACI
Akdeniz University Alanya Faculty of Business, Turkey
fbaltaci@akdeniz.edu.tr
Abstract:Competitiveness have become more important for developed or developing
countries in today‘s globalized world economy. For a country to be succesfull in both
national and international markets is related how efficient they use economics resources.
Competitiveness degree of countries is a positive function of providing opportunities for
source of revenue for citizens, improving the quality of life, increasing employment
opportunities fort he reduction of unemployment etc… To progress on a strable manner on
the factors we stated will be possible with composing a sustinable economy. Tourism
activities can be used for providing a sustinable economy. It is seen as an undeniable fact
that tourism provides employment, acces foreign Exchange, investment opportunities,
regional and national development for economies of countries.
This study will expose the role of tourism for Bosnia – Herzegovina‘s economy growth in a
sustainable way. Also it will be determined that what kind of policies they should follow to
have more shares from global tourism market.
Key Words: Sustainable, Sustainable Development, Tourism Policy Planning.

1.

Introduction

Sustainable development lies at the hearth of the new Goverment‘s policies. It means achieving a balance
between three broad objectives-maintenance of economic growth, protection of the environment and prudent use of
natural resources, and social progress which recognized the needs of everone. Goverments hav efor many years used
the key economic inditacotors to develop and monitor their economic policies. The new challenge for statisticians is
to develpo a package of meaningful national indicators to monitor and report on our progress towards the broder
concept of sustainable develpoment, and to highlight the key issues and objectives.

2.

Sustainable Development

It is possible to see numerous of articles and reports on sustainable development. Sustainable development
can be defined in technical terms as a development path along which the maximisation of human well-being for
today‘s generations does not lead to declines in future well-being. There sustainable development was defined as a
development that ―meets the needs of the present without compromising the ability of future generations to meet
their own needs‖.This definition suggests the need to balance two concerns, one having to do with present, or
intragenerational needs and the other having to do with future, or inter-generational needs(WCED,1987). Attaining
this path requires eliminating those negative externalities that are responsible for natural resource depletion and
environmental degradation. It also requires securing those public goods that are essential for economic development
to last, such as those provided by well-functioning ecosystems, a healthy environment and a cohesive society.
Sustainable development also stresses the importance of retaining the flexibility to respond to future shocks, even
when their probability, and the size and location of their effects, cannot be assessed with certainty(OECD,2001).
Most important purpose of the development is provide that human goodness and mindkind reach to his
maximum capacity. Leaders of developed and developing countries, civilian society organizations, development
experts and international aim organizations are agree that about the sustainable development can be achieved by four
factors. These factors are healty and improving economy which attuned to changes of the age, revenues of the
country is distrubitioned between the citizens, a politic system and effective leaddership which to guarantee human
rights and freedom, an economic policy which consider that environment protect(Çelik,2006).
Sustainable development enormously important for developing country. If we consider that changes on
conditions of the internatioanl competition and international companies affect the basic establishments like
AB,OECD,WTO etc. by lobby(Türkel) , we can understand this very well.

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�2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo

Because of developing countries discover the new way fort he globalmarketing. So, From day to day,
conditions of competition get difficult for developed country. This conditions cause that come up against developed
country, to encounter. For example, lose the their market share.
It is possible that if a country want to have bigger share in global market, it must follow and use new
technology and have a strong economy. These factors are necessitate a good economic policy plannig.

3.

Economic Case in Bosnia-Herzegovina

Bosnia-Herzegovina economy based on energy, metal, forest products and mining sector. Foremost two
advantages of these sektors; they have high competition power and can bring lots of investors to aera.
The interethnic warfare in Bosnia and Herzegovina caused production to plummet by 80% from 1992 to
1995 and unemployment to soar. With an uneasy peace in place, output recovered in 1996-99 at high percentage
rates from a low base; but output growth slowed in 2000-02. Part of the lag in output was made up in 2003-08 when
GDP growth exceeded 5% per year. However, due in large part to the global economic crisis, GDP fell by about 3%
in 2009, exports fell 24%, and unemployment - as officially reported - rose above 40%(gia.gov).
In First three quarter of 2004, The Bosnia-Herzegovina Goverment‘s revenue increased %13,2 and it
attained 569 millions $. But, this rate is under the budget‘s targets and growth in industry is continue(FERB,2005).
We examined Bosnia-Herzigovina Economy on the table.
a.

Competitiveness Indicator 2000-2008

Competitiveness is become most important for developing and developed counyries global world
economy of today. Countries can be succesfull directly proportional with their resources use productive or not.
Countries would like to know that their advantage and disadvantage as far as other countries in international global
markets(TCCC, 2010).

Real effective exchange rate (REER) developments indicate stable (based on relative consumer prices) to
improving (based on relative unit labor costs) external competitiveness of BiH that has underpinned its growing
export market shares. A closer look at the evolution of unit labor cost shows a decline in employment, while output
and wages have been increasing. At the same time, BiH‘s export structure has shifted toward higher-value added
manufacturing goods. The growth of the more capital-intensive export sector ―metal and aluminum‖ implies an
upward shift in the capital-labor ratio over time. This argues for caution in interpreting the otherwise positive trends
in competitiveness based on labor cost indicators(World Economic Forum 2009-2010).

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�2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo

b.

Gross Wages and GDP per Employee
(Wages and labor productivity appear to be in line with neighboring countries)

Source: International Monetary Fund
Gross wages and GDP per employee indicator shows B.H‘s sub-par performance relative to
neighboring countries. According to members of private sectors, key factors impeding FDI and higher access of
companies to foreign markets include:

Political instability,

Complicated and ―expensive‖ bureaucracy,

Lack of clear vision for economic development,

Corruption and weak legislative framework,

Poor quality control(World Economic Forum,2010)
These indicators shows B.H haven‘t got sufficient competition. It is clear that B.H make a move for get
strong between the it‘s neighbour.
c.

Employment and Unemployment Indicator
2003

2004

2005

2006

2007

2008

(Percentage change)
Employment
Labour force (end-year)

0,8

1,6

0,5

9,6

1,6

-0,6

Employment (end-year)

-1

0,2

2,1

4,3

4,5

4

43,2

40,6

(In per cent of labour force)
Unemployment (end-year)

42,1

42,9

42

44,8

All of the developing counties have same problems. One of these problems is unemployment.
Employment and unemployment indicator shows B.H face to serious unemployment problem too. When we look at
the indicator, we can see Unemployment rate is %42,1 in labour force in 2003. This rate recedes to %40,6 in 2008.
Unemloyment rate is decreased by %2,1 from 2003 to 2008. B.H a country which AB‘s candidate an this rate is not
sufficient for E.U standarts.

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�2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo

d.

Inflation Developments Indicators (2006-2009)

Sources: BiH authorities; and IMF staff calculations.
AB standarts necessitate mono division‘s inflation rate. If we look at the figure from this
perpective, we can suppose that B.H fulfils AB‘s inflation rate. But, wages and inflation figure show real state.
Decrease on the inflation was triggered by decrease on the wages.
All of these figure show that B.H have an uneven economy. Because of high unemployment rates,
low wages, sectors which need to progress etc., B.H needs to new employment and revenue areas.

4.

Tourism Potential Of Bosnia-Herzegovina

There are 393 hotels,motels, hostels ,pensions and 24,402 capacity of beds in Bonia-Herzegonia in
2009(for eleves months). Lots of hotels,motels,hostels and pensions are existing in Bosnia-Herzegovina Federation.

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�2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo

Source: Turkey Devolopment Bank(2010)
2007

2008

Capasity Of Building In
Tourism Sector.

2009

Piece

Piece

Hotels

169

179

5.9

Motels

95

95

0.0

Pensions and Hostels

50

61

22.0

Others

30

34

13,3

Total

344

369

7.3

Room Numbers(Total)

10,667

Bed Numbers(Total)

22,149

Ġncrease
or
decrease(%)

11,064

3.7

23,015

3.9

Piece

Ġncrease
or
decrease(%)
1

89
1
06
6
2
3
6
3
93
1

5.6

11.6

1.6

5,9

6.5
6.1

1,737
2

6.0

4,402

Tourists Arrivals And Change Rates

When we look at the tourist arrival and change rates figure, we can monitör increase of tourist arrivals
regularly. But, tourist arrivals rate declined %-6 in 2009. This declined resulted from global economic crisis.

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�2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo

Tourism Revenue and change rates per years
Years
Tourism Revenue
Change Rates(%)
(Million $)
2003
404
2004
507
25,5
2005
557
9,9
2006
658
18,1
2007
798
21,3
Tourism revenue of B.H increased regularly. The biggest increase rate can be watched in 2004(%25).
Sectoral Growth Rate of Hotels and Restaurants and GDP

Sectoral growth rate of hotels and restaurants followed an uneven path. We can watch taht The biggest
rate in 2006(%20) and the smallest rate in 2007(%-20). But, sectoral growth and GDP rates increased from 2007 to
2009(%30).
Tourism Indicators of B.H And Neighbouring Countries
Room Numbers
Bed Numbers
Overnight
visitors
(X1000)
Nights(X1000)
Tourism Revenue
(Million $)

B.H
10,789

Croatia
76,078

Montenegro
17,965

Serbia
24,023

Austria
285,558

Macedonia
7,214

22,442
306

163,171
9,307

42,778
984

52,547
696

646,915
20,766

17,124
3,903

1337
798

56006
9,576

7294
457

7329
1,011

100645
21,292

2018
219

Figure of tourism indicator show me that B.H have low rates and competition power for tourism
between the it‘s rival country.

5.

Tourism Types in Bosnia-Herzegovinia

Bosnia-Herzegovinia tourism based on natural and cultural tourism. Especially, winter sports, thermal,
SPA and ecological tourism, hunting and nature sports are very important for B.H toursim sector. Besides, country
have a seashore for 25 km to Adriatic Sea in Neum city.

6.

Tourism Policy And Planning for Sustainable Development in Bosnia-Herzegovina

An Effective tourism policiy and planning will be benefit to the B.H Economy. Because, tourisim is now a
major area of academic, goverment, industry and public concern. While it is now an oft-citied truism that is the

584

�2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo
world‘s largest industry, tourism is significant not just because of its size in terms of the number of people travelling,
how many people it employs, or how much Money it brings into a destinations(Hall,2008).
a.

What Is The Planning?
Planning is a tradinational and basic human activity(Dredge and Jenkins,2007). According to Gleeson
and Low(2000), planning is a dialectical concept rather than an ―analytical‖ one. An analiytical concept is one
that can be perfectly and finally defined in such a way that we can know what it is and what ist is not. A
dialectical concept,on the other hand, ,s one that overlaps with other concepts an deven eith its
opposite.It(planning),s a concept, like ―justice‖ or ―democracy‖ or ―money‖, crucially important for social life,
but one that can never be pinned down in a unique, perfectly encompassing definition.

b.

What Is The Policy?

Defining policy is not wasted efford. Clarifying what policy is, even if it is done from perpectives,
provides a means for people to enderstand what it is we are talking about, examining or researching. If such concepts
were not clarified, it wolud not be possible for us to refer to any particular disciplines or fields of study and for
bodies of knowledge to be developed. One could not developed a philosophy or set of principles for policy analysis
if one could not define policy(Dredge and Jenkins,2007).
c.

Sustainable Development in Bosnia Herzegovina and tourism

The speed and extent of the economic transformations associated with toursim devlopment, together with
the social and territorial changes consequent upon this, area by now familiar subject in tourism. Such transformations
are epitomised by the sequence of changes in the social construction of the Costa del Sol as a tourism destination,
and the territorial recognisation associated with this(Barke and France,1996;Marchena,1987). The Costa del Sol was
little more than a ascatter of fishing villages in the 1950s, but by the 1960s it had become a fashinable international
destination, and by the 1970s a mass toursim destinations(Williams and Shaw,1998)
Previously, we mentioned about the issue of B.H economy. B.H can be became a toursim destinations by
an effective tourism policy and planning like Costa del Sol for solve the issues in the B.H Economy. So, B.H
Goverment must to know that disadvantages in tourism sector.
d.

Disadvantage of B.H In Tourism Sector

B.H goverment must apply suggestions in down paragraph for tourism policiy and planning in the context
of sustainable development(Turkey Development Bank,2010);
 Advertisement activities are insufficient. This state ise disadvantage for international tourism market,
 Transport substructure is not sufficient,
 Hotels in the B.H are insufficient according to other Balkan Countries,
 Number of qualified personel is low and insufficient about the quality and quantitiy,
 Others sector which supported the tourism sector need to developt,
 There is insufficiencies about the tourist‘s healt and security,
 Natural, cultural, historical inheritences are defended adequately,
 Nights in the hotels are low too,
 B.H‘s economy depends on other countries‘s economic aims. So, B.H tourism investments become very
hard,
 B.H‘s constitution isn‘t sufficient for tourism investment,
 There is wrong competition in B.H‘s economy,
 There is out of balance revenue in B.H‘s economy,
 B.H‘s competition with the other Balkan countries.
If all of these negatives stats changes from these disadvantage to advantage, B.H will has good tourisim
policiy and planing.

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�2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo

7.

Conclusion

Planning studies must be done for attain the targets which determined previously. National plans must be
prepared attentively for economic development context of the these plans.
Because of we see low indicators of tourism sector and economy, we can understand that B.H. haven‘t
sufficiet tourisim and economic policy and plannig. If B.H goverment would like the sustainable development for
it‘s economoy, urgently they must determine policy and planning of economy and tourism sector.
B.H goverment will have been obtained very well tourism policy and plannig when they determined which
they enter tourism markets. So, first of all B.H goverment overwiev it‘s tourism resources and advantage in tourism
sector.
After the tourism resources and advantage was determined in tourism sector, B.H goverment must began
to intensive advertisement activities all of the target markets, encourage tourism investments and infrastructure,
follow the activities which his rivals in the tourism sector, etc.
Unemploymnet, low wages, nights and competition power, depends on the aims of other countries of
issues can be solved by new ways, policy and planning. Exactly, we understand that importance of tourism sector
for B.H‘s sustainable development.

References
Barke,M and France,L.(1996).‖The Costa
pain.Wallingford.CAB International:.p.343-375

del

Sol‖,in

M.Barke,

J.

Towner

and

M.T.Newton(eds).Tourism

In

Çelik,Y.(2006).Hacettepe Sağlık Ġdaresi Dergisi.V.9.N.1
Definitions
and
Notes:
Economy
–
overview(https://www.cia.gov/library/
(https://www.cia.gov/library/
publications/theworldfactbook/docs/notesanddefs.html?countryName=Bosnia%20and%20Herzegovin&amp;countryCode=bk&amp;region
Code=eu" \l "2116"\o)
OECD.(2001).―Sustainable Development:Critical Issues‖.Policy Brief(2 Policy Brief).
Dredge,D.&amp;John J.(2007).Tourism Planning and Polic.Fabulous Printers.Australia.p.4.8.
Foreign economic relations boards.(2005).‖Bosna Hersek Ülke Bülteni.p.2-3
Gleeson,B&amp;N,Low,(200).Australian Urban Planning:New Challenges.New Agendas.Allen and Unwin.Sydney.p.12
Hall,C.M.(2008).‖Toursim Planning Policies,Processes and Relationships‖.Pearson Education Limited,England.p.1.
IMF Country Report.(2008),.Bosnia and Herzegovina: 2008 Article IV Consultation—Staff Report; Public Information Notice on
the Executive Board Discussion; and Statement by the Executive Director for Bosnia and Herzegovina. No. 08/327 October 2008
Washington, D.C.p.11
Marchena, M.(1987).Territorio y Tourismo en Andalucia.Sevilla:Junta de Andalucia.Direction General to tourismo.
MinibaĢ,T.(1960).Sürdürülebilir Kalkınma ve Etkileri.Ġstanbul Üniversitesi Ġktisat Fakültesi.
Turkish Cypriot Chamber of Commerce.(2010)

.‖North Cyprus Competition Report 2009-2010‖.p.4

Williams,A.M.&amp;Gareth S.(1998).Tourisim &amp; Economic Development.John Wiley &amp; Sons Ltd.England.p.1
Turkey Development Bank.(2010). Sector Reports of the Bosnia-Herzegovina.Tourism Report.Ankara.
World Commission on Environment and Development.(1987),‖Our Common Future‖.Oxford
University Press.Oxford.(See: http://www.worldinbalance.net/pdf/1987-brundtland.pdf)
World Economic Forum, Competitiveness Report 2009-2010.p.7

586

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                    <text>2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo

Analysis Of The Factors Affecting The Women’s Cosmetics Consumption In
Terms Of Sustainability
Ercan BALDEMĠR
Muğla University
Faculty of Economics and Administrative Science
Turkey
ebaldemir@hotmail.com
Funda KAYA
Muğla University
Faculty of Economics and Administrative Science
Turkey
fundaky@yahoo.com
Abstract: Women‘s effort to seem more beautiful may as older as the beginning of the
history. Though ―beauty‖ concept varies from culture to culture, the use of cosmetics became
almost a global consumption behavior. The reason is that ―beauty‖ products fulfill the inner
desires, fantasies and dreams of women. In addition to the widespread use of the cosmetics by
women, some of that kind of products causes various debates concerning sustainability
because of the factors as non-natural, non-recyclable or tested on animals etc. Moreover a
growing number of companies are looking to recognize the role of sustainability as an integral
part of their marketing strategy. Therefore, the study aims at examining the factors, including
alcohol, hypoallergenic and UV protection, which are expected to stimulate women‘s
cosmetics consumption and the level of customer knowledge of women for cosmetics on the
basis of logit regression model.
Key Words: Consumer Behavior, Sustainability, Women Cosmetics, Logit Regression Model

Introduction
Diversification of consumption customs increasingly is one of the most explicit outcomes of economic
development and industrialization. As disposable income increases, the budget which individuals devote to their
consumption increases; moreover, satisfaction and happiness come by consumption becomes dramatically significant
in their lives (Hayta, 2009:145).
Besides, nowadays the relation between consumption and sustainability is often discussed. According to
Schaefer (2005) sustainable development is perhaps the most significant and the most difficult problem currently
facing marketing. Moreover, cosmetic industry is one of the most arguable fields in terms of sustainability. For
example, during the nineteenth century, chemicals were used to replace more expensive natural ingredients making
the cosmetics more widely used, but nowadays the health aspect of consumers is changing this trend involving an
increased interest related to some factors as natural ingredients, skin protection, hypoallergenic and not tested on
animals so on (Dimitrova et al., 2009:1155 ). Several companies, which pay attention to this trend, have developed
advertising campaigns to project environmentally conscious corporate images and promote cosmetic products.
Despite the fact the common assumption that marketing and sustainability are set for a head on collusion because
marketing is about selling more while sustainability is about consuming less, these two concepts have something
offer to each other (Chartered Institute of Marketing, 2007). Sustainable marketing which has been defined by
Charter et al. (2006) as ―creating, producing and delivering sustainable solutions with higher net sustainable value
while continuously satisfying customers and other stakeholders‖ explains the offer between marketing and
sustainability. As such marketing can be seen to recognize the key role of consumers as decision makers in moving
towards sustainability, studying the current behavior of women consumers of cosmetics can provide important clues.
To increase sustainable patterns of consumption it is important to understand more about how consumers
arrive at their purchasing decision (Jones et al., 2008:127). Therefore, this study aims at exploring the relation

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�2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo

between the demographic attributes of women respondents and the levels of their sustainable cosmetics consumption.
With the data acquired from women consumers, some solutions are recommended for companies in order to make
more sustainable marketing decisions.

Literature Review
Sustainable consumption has appeared in literature with the 21st agenda item, which is about sustainable
development action plan, of World Summit carried out in Rio in 1992. As a result of Rio Summit, ―to alter the
consumption customs of individuals for ensuring the sustainable development and minimizing the damaging effects
of human on ecology is a great struggle of human being‖ was concluded. To understand the factors affecting
consumer behavior is a right starting point for ensuring sustainable development and consumption (Hayta, 2009:144145). In this manner, the sustainable consumption substantially focuses on conscious consumer behavior. McDonald
and Oates (2006) argue that it is easier to encourage sustainable buying behavior in fast moving consumer goods,
such as cosmetics.
Cosmetics industry is one of the most discussed fields regarding ecology and sustainability (Prothero, 1995;
Prothero, 1996; Johri and Sahasakmontri, 1998; Dimitrova et al., 2009). During the last years, the cosmetic industry
has dramatically diversified its managerial and marketing orientation towards customer requirements due to the
growth in response to the customer trends towards healthier lifestyle and requirements for natural cosmetics
(Dimitrova et al., 2009:1156). Johri and Sahasakmontri (1998) found that many companies, foreign and national,
have adopted programs to deploy technologies and market products that minimize the extent of environmental
damage of cosmetics. For example, The Body Shop and Oriental Princess have adopted a wide range of policies and
practices as part of sustainable marketing of cosmetics in Thailand (Johri and Sahasakmontri, 1998:278).
Customer knowledge level of the cosmetic consumers is one of the key factors affecting the sustainable
consumption. Dimitrova et al. (2009) assumes customer knowledge management as an innovative approach, which
studies both marketing tools and managerial practices, in order to achieve coordination between knowledge of the
customers and the learning of the companies about a product, especially for cosmetics. The authors found natural
aroma, high quality, hydration, skin protection, medical advice, long lasting, good promotion, hypoallergenic and not
tested on animals are the most important motivating factors for the customers in Bulgaria, Montenegro and Italy in
choosing cosmetics products (Dimitrova et al., 2009:1158). Furthermore, they agree that the customers are motivated
to make use of successful united promotional mix for the ecological and sustainable cosmetics created by TV,
internet and journals related to grooming products (Dimitrova et al., 2009:1164). According to Guthrie et al. (2008),
a well-developed and established brand name is also a good motivator in the cosmetics industry.
The cosmetic products are criticized frequently regarding tests on animals. Although these kinds of tests are
applied more on plant tissues, testing cosmetics on animals have not ended (Altug, 2009:61). Some cosmetic
companies position themselves on this issue both to show how they act ecologically and to contribute for sustainable
consumption. For example, Body Shop have declared that they have campaigned for years to bring about a ban on
testing cosmetics on animals and declared that they are among the few companies to comply with the stringent
requirements of the internationally recognized Humane Cosmetics Standard (http://www.thebodyshopusa.com/beauty/against-animal-testing).
At the present time, many of the materials used in production are non returnable, but in recent years
recycling economy have begun to take disposable economy‘s place and this substantially provides the minimization
of pollution and energy utilization of society. Moreover, recyclable products will provide a base for the sustainable
economy of future (Brown et al., 1998:47-50). To use recyclable materials and recyclable packages in the production
process point to the green marketing. It is also possible to mention the green marketing of cosmetics. According to
Johri and Sahasakmontri (1998), the Body Shop follows green marketing approach in its business policies and
practices. All packaging is made of recycled materials, such as paper and plastic, demonstrates how the company is
going green (Johri and Sahasakmontri, 1998:269).
As it is mentioned above, the cosmetic industry is so vulnerable to criticism regarding sustainability.
Although marketing is often seen as the antithesis of the concept of sustainability in many ways, it is obvious that
they can work for each other. The way of it is marketing sustainable cosmetics. To pursue sustainable marketing
actions, the behavior of cosmetic consumers need to be analyzed.

Research Method
In the study, the proposed investigation of the cosmetic consumers‘ behavior and their sustainable
consumption is based on the logit regression model, which modules different customer variables Xj (the set of

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�2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo

questions) with some principal data. The reason to use the logit model is that it is useful to sift out those important
factors for the women consumers, which influence their sustainable consumption behavior and stimulate the increase
of cosmetics purchasing. According to Koseva and Kaneva (2000), because of the specification of the variables with
index (j), weak scales are needed to be used, of the so-called ―significant numbering difference‖. This method is
using literally based results or distinction, such as ―yes‖ or ―no‖. In this study, women respondents are kindly asked
to distinct the factors affecting their cosmetics consumption as ―I care‖ or ―I do not care‖. Such a statistical
methodology presents a part of a general evaluation of the factorial influence of different, and independent statistical
scales, over their definitions. The main question of the study is:
RQ: How the demographic attributes (independent variables) of women cosmetic consumers are related to
the factors (dependent variables) affecting sustainable consumption of them?
The universe of the study is the women consumers aged from 21 to 65 who are living in Mugla Province
Center,
totally
29.880
women
(http://report.tuik.gov.tr/reports/rwservlet?adnksdb2=&amp;report=turkiye_il_ilce_yasgr.RDF&amp;p_il1=48&amp;p_ilce1=1532
&amp;p_kod=3&amp;p_yil=2009&amp;p_dil=1&amp;desformat=html&amp;ENVID=adnksdb2Env). The sample size of 21-65 aged women
is determined by the formula below (Miran, 2003:142-143):

n

Np(1  p)
( N  1) 2  p(1  p)

The sample size calculated:

29.880 * 0.5 * 0.5
 393
(29.880  1) * (0.02551) 2  0.5 * (1  0.5)





To conduct logit regression model, 392 women respondents aged from 21 to 65 years are kindly requested
to fill in the questionnaire provided which includes some items adopted from Dimitrova et al. (2009). The rest of the
items were acquired from a focus group discussion carried out with women consumers of cosmetics. The reason for
choosing 21-65 aged women consumers is that the assumption of this range falls into the majority period; moreover,
there is no compromise among social scientists about the sub-periods related to age of human (http://www.epsikoloji.com/forum/showthread.php?270-Yeti%FEkinlik-d%F6nemi).

Findings and Discussion
Table I identifies the demographics (age, occupation, educational level, marital status, income, living
quarter) of the 392 women respondents.

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�2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo

Age

Freq.

Percent

Cum.

21-29

176

44.90

44.90

30-39

104

26.53

71.43

40-49

71

18.11

89.54

50-59

32

8.16

97.70

60-65

9

2.30

100.00

Occupation

Freq.

Percent

Cum.

Retired

26

6.63

6.63

Worker

24

6.12

12.76

Officer

132

33.67

46.43

Housewife

55

14.03

60.46

Self-employed

51

13.01

73.47

Student

68

17.35

90.82

Private Sector

36

9.18

100.00

Educational Level

Freq.

Percent

Cum.

Primary School

42

10.71

10.71

High School

110

28.06

38.78

Bachelor

200

51.02

89.80

Postgraduate

40

10.20

100.00

Marital Status

Freq.

Percent

Cum.

Married

226

57.65

57.65

Single

166

42.35

100.00

Income

Freq.

Percent

Cum.

0-1000 TL

166

42.35

42.35

1000-2000 TL

163

41.58

83.93

2000-over TL

63

16.07

100.00

Living Quarter

Freq.

Percent

Cum.

Urban

222

56.63

56.63

Rural

170

43.37

100.00

Table I: The demographic attributes of women respondents
As it is shown in Table I; 21-29 aged, officer, bachelor degree, married, 1000-2000 TL income and city
dweller women constitute the majority of respondents in the study.
The demographics of women respondents are analyzed based on logit regression in terms of cosmetics
including alcohol as the dependent variable in the equation, Table II is reached. According to logit model likelihood
statistics, R-squared, which shows the explanatory power of the model, is found 0.0332. Ozer (2004) states that Rsquared statistics ranges between 0-1, and R-squared in this range has enough power to explain the factor (at Table
II. cosmetics including alcohol).

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�2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo

Factor I

Coef.

Std.Err.

z

P&gt;|z|

(95% Conf. Interval)

Bachelor

.3630314

.2761627

1.31

0.189

.9043003

.1782374

Postgraduate

.66131

.4128811

1.60

0.109

1.470542

.147922

30-39

.6948538

.3098879

2.24

0.025

.0874847

1.302223

40-49

.645027

.3667354

1.76

0.079

-.0737613

1.363815

Private Sector

.9483088

.6348338

1.49

0.135

-.2959426

2.19256

Constant

1.215664

.2449706

4.96

0.000

.7355305

1.695798

Table II: The relation between demographics of respondents between cosmetics including alcohol
By examining the data obtained, the model that clarifies the observations best is chosen as a final logit
model in terms of cosmetics including alcohol. Table II shows that bachelor and postgraduate degree, 30-49 aged,
working in private sector women form the best logit model regarding cosmetics including alcohol. The probability of
bachelor and postgraduate women‘s notice about alcohol-include cosmetics respectively 0.36 and 0.66 more
compared to others (primary and high school degree women). It is possible to say that mid-age women (30-49) notice
alcohol-include cosmetics respectively 0.69 and 0.64 more than the young and old cosmetic consumers. The women
working in private sector cares cosmetics whether to include alcohol possibly 0.94 more than the other groups as
retirees, officers, workers, and students so on.
Factor II

Coef.

Std.Err.

z

P&gt;|z|

(95% Conf. Interval)

Bachelor

1.138652

.5843049

1.95

0.051

-.0065646

2.283868

Urban

.8702247

.5594443

1.56

0.120

-.226266

1.966715

Student

.6261938

1.30

0.192

-2.043421

.4112137

Single

.8161036
.8161036
-1.619258

.7563434

-2.14
1.30

0.032

-3.101663

-.1368516

Constant

3.571052

.6234572

5.73

0.000

2.349098

4.793006

Table III: The relation between demographics of respondents between hypoallergenic cosmetics
As it is shown at Table III, bachelor degree, single students whose living quarter is urban is found
significant regarding hypoallergenic cosmetics. Having bachelor degree is significant at 0.05 levels and 1.13 more
probable to notice hypoallergenic cosmetics than other educational levels. The students with a significance level of
0.19 are 0.81 more probable to notice while consuming hypoallergenic cosmetics. In this point, this can be concluded
that the students are more concerned about their facial image because as Craik (1993) argues cosmetics assist one in
completing an overall look. Moreover, marital status shows a negative relation between notice of hypoallergenic
cosmetics even if it is significant at 0.03 level.

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�2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo

Factor III

Coef.

Std.Err.

z

(95% Conf. Interval)

1.88

P&gt;|z
|
0.176

Postgraduate

.950704

1.074508

-1.155293

3.056701

Urban

.7638016

.4801071

1.59

0.112

-.177191

1.704794

Student

1.1595

.7028292

1.65

0.099

-.2180197

2.53702

Housewife

-1.005884

.7311068

-1.38

0.169

-2.438827

.4270594

2000-over

1.286201

1.052996

1.22

0.122

-.7776329

3.350035

Constant

3.166364

.5431155

5.83

0.000

2.101877

4.230851

Table IV. The relation between demographics of respondents between UV protection cosmetics
Table IV indicates the demographics as educational level, living quarter, occupation and income constitutes
a significant logit model regarding UV protection cosmetics. Postgraduate women consumers notice cosmetics to
have UV protection 0.95 more probably than other educational degrees with 0.17 significance level. This is an
expected result because the customer knowledge of cosmetics consumers should increase as educational level
increases. Furthermore, the probability of city-dweller women to consume UV protection cosmetics at 0.11
significance level is 0.76 more than women who live in rural. As in the logit model of Factor II, students are 1.15
more probable than others to consume cosmetics with UV protection. In contrast to the student respondents, the
probability of housewives is 1 less than the other groups with significance level of 0.16. As the price of UV
protection cosmetics tend to be more than those are not, women consumers whose income is 2000 and above are 1.28
more probable the other income groups where the significance level is calculated 0.122.
In addition to the cosmetics including alcohol, hypoallergenic cosmetics and UV protection, data obtained
from women respondents regarding the cosmetics tested on animals and recyclable cosmetics, but significant logit
models cannot be reached. This result may indicate that respondents with different demographics do not notice these
sustainable attributes of cosmetics while making decisions.

Conclusion
Cosmetic industry is a growing market not only for women consumers but also men. Besides the huge
growing rates of the industry year to year, the debates about sustainable consumption, which deals with the damages
of human on ecology and the health of their own, and marketing of cosmetic products continue.
In the study, three sustainable factors (including alcohol, hypoallergenic and UV protection) are examined
based on logit regression model. The relations between these factors and demographics of women respondents are
calculated to show how different groups behave sustainable in consumption of cosmetics. To learn to what extent
cosmetic consumers behave sustainable gives important clues for developing better sustainable marketing strategies
for companies.
The limitation of the study arises from generalizing the cosmetic products in one category. Normally, the
cosmetics mostly refers to make-up segment, but cosmetic products includes some sub-segments like baby care, bath
and shower products, deodorants, hair care, oral hygiene, fragrances so on. Therefore, analysis of factors affecting
the sustainable consumption for each cosmetic segment separately is needed. Despite the cosmetics mainly refer to
women consumers; there is a growing market of men‘s cosmetics. For this reason, the future studies are needed to
examine men consumers of cosmetics regarding sustainable consumption.

References
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Brown, L.R.; Flavin, C. and Postel, S. (1998). Gezegenimizi Kurtarmak, Tübitak-Tema Vakfı Yayınları, Çeviren Sinem Gül,
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Institute
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uk/cim/ser/html/knoFactFile.cfm?KCTopicID=F64FBC16-620E-4E20-9A8E37B29C5
E8A62&amp;objectID=EBB9A439-2D4941D4-BFCC958FC2779216
Craik, J. (1993). The Face of Fashion: Cultural Studies in Fashion, Routledge, London.
Dimitrova, V., Kaneva, M. and Gallucci, T. (2009). Customer Knowledge Management in the Natural Cosmetics Industry,
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Guthrie, M., Kim, H. and Jung, J. (2008). The Effects of Facial Image and Cosmetic Usage on Perceptions of Brand Personality,
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Eğitim Fakültesi Dergisi, Cilt.10, Sayı.3, Aralık, 143-151.
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Jones, P., Hill, C., Comfort, D. and Hillier, D. (2008). Marketing and Sustainability, Marketing Intelligence and Planning, Vol.26,
No.2, pp.123-130.
Koseva, D. and Kaneva, M. (2000). Enterprise Statistics, Steno, Varna.
McDonald, S. and Oates, C. (2006). Choosing to be sustainable: tracing complex decisions, available at:
www.sustainabletechnologies.ac.uk/final%20pdf/Project%20Innovation% 20Briefs/Innovation%20Brief%207.pdf
Miran, B. (2003).Temel Ġstatistik, Ege Üniversitesi Basımevi, Ġzmir.
Ozer, H. (2004). Nitel DeğiĢkenli Ekonometrik Modeller, Nobel Yayın Dağıtım, Ankara.
Prothero, A. (1995). Methodology Decision Making for Environmental Research in the Cosmetics and Toiletries Industry,
Proceedings, 24th European Marketing Academy Conference, Paris, pp.939-952.
Prothero, A. (1996). Environmetal Decision Making: Research Issues in the Cosmetics and Toiletries Industry, Marketing
Intelligence and Planning, 14/2, pp.19-25.
Schaefer, A. (2005). Some Considerations Regarding the Ecological Sustainability of Marketing Systems, Electronic Journal of
Radical Organization Theory, Vol.9, pp.1-12.
http://www.thebodyshop-usa.com/beauty/against-animal-testing
http://report.tuik.gov.tr/reports/rwservlet?adnksdb2=&amp;report=turkiye_il_ilce_yasgr.RDF&amp;p_il1=48&amp;p_ilce1=1532&amp;p_kod=3&amp;p
_yil=2009&amp;p_dil=1&amp;desformat=html&amp;ENVID=adnksdb2Env
http://www.e-psikoloji.com/forum/showthread.php?270-Yeti%FEkinlik-d%F6nemi

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                <text>Women‘s effort to seem more beautiful may as older as the beginning of the  history. Though ―beauty‖ concept varies from culture to culture, the use of cosmetics became  almost a global consumption behavior. The reason is that ―beauty‖ products fulfill the inner  desires, fantasies and dreams of women. In addition to the widespread use of the cosmetics by  women, some of that kind of products causes various debates concerning sustainability  because of the factors as non-natural, non-recyclable or tested on animals etc. Moreover a  growing number of companies are looking to recognize the role of sustainability as an integral  part of their marketing strategy. Therefore, the study aims at examining the factors, including  alcohol, hypoallergenic and UV protection, which are expected to stimulate women‘s  cosmetics consumption and the level of customer knowledge of women for cosmetics on the  basis of logit regression model.</text>
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                    <text>2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo

The Effects of the Children Under 8 Years Old on Their Families’ Food
Purchasing Decision
Ercan BALDEMĠR
Muğla University
Faculty of Economics and Administrative Science
Turkey
ebaldemir@hotmail.com
Aytekin FIRAT
Muğla University
Faculty of Economics and Administrative Science
Turkey
aytekinfirat@mu.edu.tr

Ali Naci KARABULUT
Muğla University
Faculty of Economics and Administrative Science
Turkey
ankarabulut@mu.edu.tr
Funda KAYA
Muğla University
Faculty of Economics and Administrative Science
Turkey
fundaky@yahoo.com

Abstract:Family factor, one of the social factors affecting the purchasing behavior, is regarded to
be the most important factor giving direction to the purchasing decisions. In every period of the
life, the consumption patterns of an individual cannot be isolated from his/her family‘s
consumption patterns.
The reason why the present study is limited to the foods is that children are the direct consumers
of foods and foods have an important portion in the consumption expenditures of families. And the
reason why an upper age limit (8 years old) is set up for the study is that this age is considered to
be transition to having purchasing decisions on their own.
In the field work, food purchasing was divided into sub-categories because the study aims to
reveal the extent to which children affect purchasing decisions in each sub-category. Moreover,
for each sub-category, other factors that can affect the purchasing decisions and that are not related
to children were also investigated, in this way, the real influence of the children is expected to be
found.
As purchasing decision is a qualitative data with two possibilities, there can be many independent
variables that have the potential for affecting dependent variable; therefore, here ―sequenced logit
model‖ will be used to evaluate the findings of the study.
Keywords: Food, Purchasing Decision, Family, Child, Under 8 Years

1. Introduction
Contemporary view of marketing aims to maximize sum of the long-term profits in terms of their current
value rather than maximize the immediate profit of an organization (Islamoğlu,2002:8). That is, the contemporary

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view of marketing aims to have long-term sustainable targets rather than have great profits by selling a lot in a short
time. In this respect, one of the major objectives of marketing is to provide organizations with sustainable strategies
and competitive advantage.
Basically, the science of marketing is interested in finding ways of meeting consumers‘ desires and needs in a
timely and satisfying manner. Marketing managers should primarily know the target market and consumers of this
market, develop proper marketing strategies for the target population and take the correct decisions to design an
appropriate ground for production, pricing and distribution activities which are called the components of marketing
(Karabulut,1981:4).
For marketers, knowing consumers means determining all the internal and external factors affecting
purchasing decisions and clearly understanding consumers‘ desires and needs. This is only possible by knowing the
social and cultural milieu where the consumers grow up and live and determining the factors affecting the decisions
taken in this environment. This also makes the subdivision of the market possible. However, during the division of
the market, it may not be very easy to know the consumers and locate them according to their desires and needs in
the market because there are many factors simultaneously affecting the behaviors of the consumers. This leads to
confusion and makes it difficult to predict the behaviors. Hence, there are some models developed to provide
managers with explanatory and real information by approaching consumer behaviors through more holistic
viewpoint.
The oldest and well-known of these models is the model developed by psychologist Kurt Lewin. The model
proposed by Lewin to explain consumer behaviors is important as it served the function of a pioneer for the other
models. According to this model, human behavior develops under the influence of both personal and environmental
factors and this is called ―black box model‖ or ― stimulus-response model‖ in the literature. The model is illustrated
in figure 1 (Ġslamoğlu and AltunıĢık,2008:23).

Figure 1: Kurt Lewin‘s ―black box model‖
As can be seen in the model, the center where the consumer makes purchasing decision is called ―black box‖.
It is not exactly known how the black box functions and decisions are made. As every individual exhibit a unique
structure, the function of the black box varies from one person to another because many different factors intervene
with the decision making process and they do not have the same impact on everybody (Ünlüönen and
Tayfun,2003:4).
In order to make the model clearer, the model developed by Kotler to explain the consumer‘s decision
making process is given below in figure 2:

Marketing Other
stimuli
stimuli

Buyer’s

Product
Price
Place
Promotion

Cultural
Social
Personal
Psychological

Economic
Technological

Political
Cultural

characteristics

Buyer’s
decision process
Problem recognition
Information search
Evaluation of alternatives
Purchase decision
Postpurchase behavior

Buyer’s
decisions
Product choice
Brand choice
Dealer choice
Purchase timing
Purchase amount

Figure 2: Kotler‘ Purchasing Decision-making Model
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As can be seen in Kotler‘s model, the factors determining the characteristic of the consumer‘s purchasing
decision are cultural, social, personal, and psychological factors (Kotler,2000:161). And each factor may have a
direct influence, either positive or negative, on the consumer‘s purchasing decision. This makes the consumer
behaviors difficult to understand and hence, many studies focused on explanation of the consumer behaviors. The
aim of the present study is to investigate the effects of children usually not making their own purchasing decisions on
the family‘s purchasing decisions.
As known, family factor, one of the social factors, is considered to be the most important social factor giving
direction to purchasing decisions. Family consisting of mother, father, and children is a unit having functions of
money earning and spending and it is the most influential and developed social group. In every period of the life, the
consumption patterns of an individual cannot be isolated from his/her family‘s consumption patterns
(Karaosmanoğlu,1995:26).
In this line, during the purchasing decision-making process, family members may assume different roles
(starter, imposing, decision maker, and user). A purchaser of a product and its user may be different family members.
The roles assumed in this process should be well understood (Çakır, 2006:2) because each family member having
different roles in the family affects the purchasing decisions in different ways. In particular, child‘s effect in family
decisions is located among the social factors as a family factor and may affect the purchasing decision of the
consumer in different manners.
Children mostly assume the roles of starter and imposer in purchasing of many different goods and services.
With the changing living conditions, the weight of children in decision-making process as decision-makers is
increasing. With women entering business life, the impacts of children on decisions have increased. The children
whose mothers are working assume the greater portion of their mothers‘ decision-maker role in many purchasing
decisions, that is, they assume greater responsibility in decision-making process. Moreover, as children are more
open to marketing messages and there is a lack of affection on the part of parents for their children due to their busy
business lives, and as parents want to fill in this gap by giving more responsibility and right to say to their children,
the relative influence of children on purchasing decisions is getting stronger (Çakır, 2006:132).
Children as consumers represent an important segment of the population in terms of guiding purchasing
decisions. Due to its hugeness and power, this segment constitutes an important segment for marketers (Gunter and
Furnham, 1998:173). In this respect, the main purpose of the study is to reveal the influence of children on their
parents‘ purchasing decisions.

2. Literature Review
In relation to consumer behaviors, the relation between children and marketing system started to gain
importance in late 80s (McNeal and Yeh, 1990:32). With the recognition of the importance of children as consumers,
marketing researchers felt greater need to develop more effective methods to reach children. For this purpose, it is
seen necessary to understand what children are interested in, what they want and how they behave.
In a normal purchasing process, children and the other members of the family are in a mutual interaction.
While, on the one side, children‘s desires and needs guide the family‘s purchasing decisions, families, on the other
side, play an important role in the socialization of their children as consumers. Children learn to make decision by
being affected by their families‘ consumer identity (Karaca et al.,2007:236). Media, particularly television
advertisements, play an important role in the socialization of children (i.e. participating in consumption activities) as
consumers by getting them to learn how to make decisions. The reasons which make television advertisements so
influential on children are that the children do not know the difference between advertisements and other television
programs, and they are not aware of the advertisements‘ aim of persuasion. Therefore, many children are defenseless
against the exploitative purposes of advertisements (Gunter and Furnham, 1998:102). These can also be included
among the reasons leading researchers to look for the effects of children on purchasing decisions. The study by Poper
and Shah (2007) revealed results supporting these assumptions. The study reported that 9 out of 10 children want to
buy when they see something new in television advertisements (Roper and Shah, 2007:723). Another study by AC
Nielsen Zet (1999) revealed the effects of children and young people on purchasing decisions and brand selection.
The study also reported that when the families go shopping together with their children, consumption of 82% of the
families increases. Moreover, the study argued that the effects of children on total consumption and brand selection
are great. When the issue is considered in relation to marketing and especially advertisement, children can be called
as target population. In many of the advertisements targeting adults, advertisers include factors that may draw the
attention of children (Çakır, 2006:133).

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According to another study carried out in 2000, the children lack the questioning skills possessed by adults;
they have limited information and skill to evaluate causal relations, they focus on here and now, they do not have
inclination to take others‘ opinions into consideration and they mostly focus on themselves and they want
momentary sense of satisfaction (McNeal, 2000: 40 – 96)
A study carried out in 2008 administered a questionnaire to the mothers with children in Vilnius/Lithuania
and found that the children are most influential on their mothers‘ decisions to buy sweets and chocolate and these
are followed by clothes, holiday plans, restaurant, audio and video, drinks, car and house furniture (Dickius and
Medeksiene, 2008:109).
There is a similar trend in our country. The findings of a study investigating the effects of advertisements on
children seem to support these findings. The findings of the study revealed that majority of the children in 04-13 age
group like advertisements, they think that they are believable, and they want to take the places of the children
appearing in the advertisements. Among the advertisements, toy and food advertisements are the most influential on
children. Most of the parents think that advertisements negatively affect children‘s imagination, creativity, and
consumption patterns; they make children more extravagant and encourage them to adopt bad feeding habits (Karaca
et al., 2007:247).
Another study carried out in Ġstanbul in 2006 revealed that the effects of children in purchasing process are
not related to the price of the thing but direct usefulness of it for children. However, when the effects of children on
purchasing decisions for similar products were investigated, it was found that the children are more influential on
purchasing decisions for cheaper products. Children are more influential on decisions relating the products they
themselves use than the one relating the products of common use. When it comes to the products purchased for the
common use of the family, again the children have greater impacts on the purchasing of cheaper and lower risk
goods (Aygün, 2006:50).
There is a paper presented in 9th International Marketing Trends Congress held in Venedik on 20-23 February
2010 and this paper seems to be summarizing what has been told so far. According to this study, in Italian food
industry, children are thought to have effects in four different dimensions and different strategies are followed for
each of them. According to this, children may be included in different markets by marketers: 1. Primary Market, 2.
Secondary Market, 3. Influence Market and 4. Future Market. In relation to these different target groups; children‘s
characteristics, and typical age groups, and who the target is in the family for marketers and marketing strategies for
these groups are presented in the following table (IRONICO, 2010:11):

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Children as…

Characteristics

Typical
groups

Primary Market

Children have acquired the basic
knowledge and skills to
autonomously conduct a
purchase act.

School
Children

Secondary
Market

Children are dependent upon
adults since they do not possess
the cognitive and motor skills to
autonomously fulfil their
consumer needs or the basic
knowledge and skills to
autonomously conduct a
purchase act.
Even though children do not
possess the basic knowledge and
skills to autonomously conduct a
purchase act, they are able to
influence the consumer choices
of the family by expressing their
needs and asserting their
preferences.
Corporations invest into longterm
activities aimed at
encouraging the brand loyalty of
children as the consumers of
tomorrow in a lifetime
relationship marketing view.

Newborns;
preschool
children

Parents

Preschool
and school
children

Children and
parents

Gift in pack, transtoying,
advergaming,
licensing, co-marketing,
fantasy testimonials,
miniaturization, dual
messaging.

Preschool
and school
children

Children and
parents

Gift in pack, transtoying,
advergaming,
licensing, co-marketing,
fantasy testimonials,
miniaturization, dual
messaging.

Influence
Market

Future Market

age

Target of the
marketing
strategy
Children

Marketing
and
communication
strategies
Gift in pack, transtoying,
advergaming,
licensing, co-marketing,
fantasy testimonials,
miniaturization.
Gatekeeping.

Source: Ironico, 2010:11

Table 1: Marketing Strategies for Children
The above-mentioned studies help determine the scope, purpose, hypotheses and limitations of the present
study.

3.

Research Methodology

In the field research, food purchasing was divided into sub-categories such as fresh vegetables and fruit, milk
and dairy products, convenience food, liquors and soft drinks etc. and in this way, it was aimed to determine the
effects of children on each sub-category. Moreover, for each sub-category, other factors that can affect the
purchasing decisions and that are not related to children were also investigated, in this way, the real influence of the
children was expected to be found. The reason why the present study was limited to food and drinks are as follows:
-

-

Food and drinks are the products directly consumed by children. Young children have a tendency to meet
their immediate needs hence they consume great amount of sweet and chocolate (Gunter and Furnham,
1998:35).
Food constitutes an important portion of the consumption expenditures of a family. According to the
results of Household Consumption Expenditure Survey carried out by DĠE in 1994, food expenditures
constitute 28.5% of all the consumption expenditures and take the first place among the expenditure
categories (Institute of Statistics, 1999: 356-361).

The reason why an upper age limit (8 years old) is set up for the study is that this age is considered to be
transition to having purchasing decisions on their own (McNeal, 2000: 17). The reference study for this was carried
out in America in 1987. The results of this study empirically show that 100% of the 7 year old children have
previously made independent decisions while shopping with their parents and 80% of them have lived independent
shopping experience (Lunt and Furnham,1996:35). After children become 8 years old, their independent shopping
habits gain continuity hence their participation in consumption gains a different dimension.

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In line with the purpose of the present study, a questionnaire form was developed and used to collect data. In
the questionnaire, there 7 items related to demographics, 2 items aiming to solicit the children‘s participation patterns
in purchasing, and 2 items where determining factors are defined about child‘s insistence to his/her parents and
parents‘ considering about child‘s health. As those 2 factors will supply ordered datum which has 5 possibilities (0:
not affecting, 1: a few affecting, 2: affecting, 3: very affecting and 4: totally affecting) and there are many different
independent variables that can affect the dependent variable, the findings of the study were evaluated and interpreted
through ―ordered logit model analysis‖.

4. Survey Findings and Conclusions
The distribution of the demographic features obtained through face-to-face administration of a questionnaire
to 204 participants having children aged 0-8 and making food expenditures is presented in Table 2.
Variable
Number of
Percentage
Variable
Number of
Percentage
People
People
Age
Income Level
22≤x≤27
29
%14.22
x&lt;1000 TL
32
%15.76
28≤x≤33
66
%32.35
1000≤x≤2000
94
%46.31
34≤x≤39
63
%30.88
2001≤x≤3000
57
%28.08
40≤x≤45
38
%18.63
3001≤x≤5000
19
%9.36
46≤x
8
%3.92
5000&lt;x
1
%0.49
204
%100
204
%100
Total
Total

Sexuality
Male
Female

79
125

%38.73
%61.27

Total

204

%100

Educational
Status
Primary School
Secondary School
High School
University
Postgraduate
Total

34
24
75
55
16
204

%16.67
%11.76
%36.76
%26.96
%7.84
%100

Table 2: Demographic Findings
In order to find out the extent to which the families are affected from their children while making their food
purchasing decisions, the participants were asked how much they are affected from the following two factors while
making their purchasing decisions;
Factor-1: As a result of children‘s being affected by advertisements and environmental factors, their becoming
insistent on buying something,
Factor-2: while making purchasing decisions, paying attention to prodcuts‘ impacts on children‘s health.
The extent to which the participants attach importance to these two factors while making their food
purchasing decisions is presented in table 3;

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�2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo

Factor-1
Not Affecting

Number
People
62

of

Percentage

Factor-2

%30.39

Not Affecting

Number of
People
12

Percentage
%5.88

A Few Affecting

36

%17.65

A Few Affecting

16

%7.84

Affecting

38

%18.63

Affecting

29

%14.22

Very Affecting

35

%17.16

Very Affecting

40

%19.11

Totally Affecting

33

%16.18

Totally Affecting

107

%52.45

Table 3: Frequency Tables for Factor 1 and 2
In order to find out whether the extent to which the participants are affected from these factors varies
depending on their demographic features while making their purchasing decisions, dummy variables for ordered
variables such as age, gender, marital status, educational status, and the number of the children who are 8 years old
or under were formed and then by using ordered logit analysis, the effects of these variables on these two factors
were measured.
The ordered logit analysis revealed that there is no significant impact of the independent variables of age of
the parents, gender, marital status, and income level on the first factor. However, effects of factor vary depending on
the educational level of the parents and the age group of the children possessed.
Factor 1
Child between 0-2
Child between 2-4
Child between 4-6
Child between 6-8
Secondary sc.
High sc.
University
Postgraduate

Coef.
-.2314801
.6821392
1.314124
1.07787
.1948002
1.118461
.7050328
-.7040728

Std. Err.
.3692538
.3856109
.3970187
.3674885
.5453462
.4424027
.5037245
.7050288

z
-0.63
1.77
3.31
2.93
0.36
2.53
1.40
-1.00

P&gt;z
0.531
0.077
0.001
0.003
0.721
0.011
0.162
0.318

[95% Conf.
-.9552043
-.0736443
.5359813
.3576059
-.8740586
.2513681
-.2822491
- 2.085904

Interval]
.492244
1.437923
2.092266
1.798134
1.263659
1.985555
1.692315
.6777582

Table 4: Ordered Logit Analysis for Factor 1
As can be seen in Table 4, except for those having children aged 0-2, the parents having children under 8
years old are affected from the 1st factor which is the insistence of the children in their food purchasing decisions.
This finding seems to support the McNeal‘s argument that age 2 is the stage where children start to make request
with signs and words as presented Stages of Consumer Behaviour Development Table (McNeal, 2000: 17).
Moreover, this finding indicates that only participants who are high school or university graduates are
significantly affected from factor 1, yet, the participants who have primary school or post-graduate education are not
significantly affected. That is, the participants having high school, two-year degree and university education pay
greater attention to their children‘s preferences and demands in their food purchasing decisions.
This may be interpreted as the participants having less than high school education do not give their children
right to say in their food purchasing decisions. However, when the results of the ordered logit analysis are examined,
a different finding is obtained for those having post-graduate education;

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�2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo

Factor 2
Secondary sc.
High sc.
University
Postgraduate

28≤x≤33
34≤x≤39
40≤x≤45
46≤x
1000≤x≤2000
2001≤x≤3000
3001≤x≤5000
5000 &lt; x

Coef.
.0744801
.1562653
.4588567
-1.117541
-.295486
.8163078
. 3062561
.9782211
. 3181982
.3630866
1.052949
-1.626117

Std. Err.
.5361029
.4488761
.5088667
.7925455
.4358705
.5183029
.5634005
.8863009
.4288602
.5199831
.6979224
1.941669

z
0.14
0.35
0.90
-1.41
- 0.68
1.57
0.54
1.10
0.74
0.70
1.51
-0.84

P&gt;z
0.890
0.728
0.367
0.159
0.498
0.115
0.587
0.270
0.458
0.485
0.131
0.402

[95% Conf.
-.9762623
-.7235157
-.5385037
-2.670901
-1.149777
-.1995473
-.7979887
-.7588966
-.5223524
-.6560616
-.3149542
-5.431719

Interval]
1.125223
1.036046
1.456217
.43582
.5588045
1.832163
1.410501
2.715339
1.158749
1.382235
2.420851
2.179485

Table 5: Ordered Logit Analysis for Factor 2
As can be seen in table 5, there is a significant relation between having post-graduate education and the extent
to which the participants are affected from factor 2. That is, the participants having post-graduate education pay
significantly less attention to the benefits of the food products for the health of their children when compared to the
other participants with other educational levels.
This is because the participants having post-graduate education attached lower scores to this factor for the
sub-product groups including artificial additives such as processed meat and milk, read-to-eat and frozen foods, chips
and drinks than the other participants. When we look at the mean score for this factor, we can see that the
participants having post-graduate education seem to attach less importance to this factor but they attach greater
importance to factor 2 for food groups considered to be very important for health such as meat and meat products
and fresh vegetables and fruit than the other participants.
According to the findings concerning factor 1, the participants having post-graduate education are less
affected from their children‘s insistence and they are more questioning about the benefits and harms of foods for
health. Hence, while making food purchasing decisions, these people are less affected from the direct or indirect
influences of their children and they make more rational decisions.
As a result of the present study, which was carried out to investigate the affects of the children who are 8
years old or under on their parents‘ purchasing decisions, it can be argued that, except for the children aged 0-2, the
children under 8 years old have direct influences on their parents‘ purchasing decisions. Moreover, education status
of the families, their income levels, and the extent to which children are affected from advertisements have direct
influences on purchasing decisions. Though the ability of the children under 8 years old to make decisions is
questionable, the present study shows that children have direct influences on the purchasing decisions for the
products they like and this influence may appear in different forms.

5. References
AYGÜN, Ġ., 2006. Çocukların Ailede Satın Alma Kararları Üzerine Etkileri ve Bir Uygulama, Gebze Yüksek Teknoloji Enstitüsü
SBE, Yüksek Lisans Tezi, Gebze.
ÇAKIR, E., 2006. Satın Alma Kararlarında Çocukların Rolleri, Gazi Üniversitesi, SBE Üretim Yönetimi ve Pazarlama Bilim
Dalı, YayınlanmamıĢ Yüksek Lisans Tezi, Ankara.
DICKIUS, V., MEDEKSĠENE, E., 2008. A Child Impact on Parent‘s Purchasing Decision, Vilnius University International
Business School, Ekonomika ir vadyba: aktualijos ir perspektyvos, 2008- 4 (13), Vilnius.
GUNTER B., FURNHAM A., 1998. Children As Consumers: A Psychological Analysis Of The Young People's Market,
Routledge, London.,
IRONICO, S., 2010. Marketing and communication strategies aimed at children in the Italian food sector: a consumer learning
perspective, 9th International Marketing Trends Congress, Venice.
ĠSLAMOĞLU, A.H., 2002. Pazarlama Ġlkeleri, Beta Yayınevi, Ġstanbul.

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ĠSLAMOĞLU, A.H. ve R. ALTUNIġIK. 2008. Tüketici DavranıĢları, Beta Yayınevi, Ġstanbul.
KARABULUT, Muhittin. 1981. Tüketici DavranıĢı, Minnetoğlu Matbaacılık, Ġstanbul.
KARACA, Y., A. PEKYAMAN, ve H., GÜNEY. 2007. Ebeveynlerin Televizyon Reklam Ġçeriklerinin Çocuklar Üzerindeki
Etkilerini Etik Açıdan Algılamalarına Yönelik Bir AraĢtırma, Afyon Kocatepe Üniversitesi, SBE Dergisi, Cilt:9, Sayı 2, Aralık.
KARAOSMANOĞLU K. 1995. Tüketici Satın Alma Karar Sürecinde Marka Etkinliğinin Ölçümlenmesi: Genç Giyim Üzerine
Bir Uygulama, DEU, SBE ĠĢletme ABD, YayınlanmamıĢ Doktora Tezi, Ġzmir.
KOTLER, P. .2000. Marketing Management, Prentice Hall Internatıonal Inc., Upper Sadle River, New Jersey.
LUNT P. Ve A. FURNHAM. 1996. Economic Socialization, The Economic Beliefs and Behaviours of Young People, Edward
Elgar Publishing, Cheltenham UK.
McNEAL, J.U. 2000. Children as Consumers of Commercial and Social Products, Pan-American Health Organisation,
Washington.
McNeal, J.U., Yeh, C-H. (1990), "Taiwanese children as consumers", European Journal of Marketing, Vol. 24 No.10.
Roper, S. &amp; Shah, B 2007, 'Vulnerable Consumers: The Social Impact of Branding on children', Equal Opportunities
International, vol. Vol. 26, No.7.
ÜNLÜÖNEN, Kurban ve Ahmet TAYFUN. 2003. Turistlerin Yerli Halkın Tüketim DavranıĢlarına Etkileri Üzerine Ampirik Bir
ÇalıĢma, Muğla Üniversitesi, Sosyal Bilimler Enstitüsü Dergisi, Sayı 10, Bahar.
T.C. BaĢbakanlık DĠE, ―Hanehalkı Tüketim Harcamaları Anketi 1994‖, 1999, Ankara, s.356-361.

444

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FIRAT, Aytekin
KARABULUT, Ali Naci
KAYA, Funda</text>
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                <text>Family factor, one of the social factors affecting the purchasing behavior, is regarded to  be the most important factor giving direction to the purchasing decisions. In every period of the  life, the consumption patterns of an individual cannot be isolated from his/her family‘s  consumption patterns.  The reason why the present study is limited to the foods is that children are the direct consumers  of foods and foods have an important portion in the consumption expenditures of families. And the  reason why an upper age limit (8 years old) is set up for the study is that this age is considered to  be transition to having purchasing decisions on their own.  In the field work, food purchasing was divided into sub-categories because the study aims to  reveal the extent to which children affect purchasing decisions in each sub-category. Moreover,  for each sub-category, other factors that can affect the purchasing decisions and that are not related  to children were also investigated, in this way, the real influence of the children is expected to be  found.  As purchasing decision is a qualitative data with two possibilities, there can be many independent  variables that have the potential for affecting dependent variable; therefore, here ―sequenced logit  model‖ will be used to evaluate the findings of the study.</text>
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                    <text>2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo

The Future of Union for Mediterranean in terms of Regional Cooperation
Tufan BAL and Metin ÇAKMAK
Department of Agricultural Economics, The Faculty of Agriculture,
Suleyman Demirel University
32260, ISPARTA

Mesut ALBENĠ
Department of Economics, The Faculty of Economics and Management,
Suleyman Demirel University
32260, ISPARTA

Ali BERK
Ministry of Agriculture and Rural Affairs
Strategy Development Board
Department of Strategic Management
ANKARA

Abstract: The Euro-Mediterranean Partnership, formerly known as the Barcelona Process,
was re-launched in 2008 as the Union for the Mediterranean at the Paris Summit for the
Mediterranean in July. The Partnership now includes all 27 member states of the European
Union, along with 16 partners across the Southern Mediterranean and the Middle East.
A Union for European with countries in the Mediterranean region seeks to promote
accelerated economic growth. The aim of re-launching is to infuse a new vitality and to raise
the political level of the strategic relationship between the EU and its southern neighbors. In
this context, six priority projects are also identified in this meeting. Main focus of the Union
for the Mediterranean is to deal with energy, security, counter-terrorism, immigration and
trade. Creation of a Euro-Mediterranean free-trade area will also impact on the environment
and agriculture in the region. This paper reviews the literature and statistically evaluates the
future of Union for Mediterranean in terms of regional cooperation.

Introduction
The Mediterranean has experienced significant improvement in its economic situation since the start of the
Barcelona Process. The main components are sustained growth, beginnings of structural differentiation in trade and
more FDI. Moreover, MPCs have introduced many reforms, in particular with respect to social policies. This has
paved the way for real progress in terms of education, health, life expectancy and quality of life.
However, having spread across the world, the crisis represents an unprecedented challenge. In fact, since the
end of the Cold War, the initiatives for the Mediterranean have been numerous but none has reached its objectives so
far. It is worth assessing the value of the Mediterranean Union proposal and examining the reactions it provoked in
key countries. We have selected several of them. On the European side, Southern European countries (other than
France) and Germany seem particularly concerned. Of the nonmembers, we have decided, on the one hand, to
concentrate on Tunisia and its North African neighbors, and on the other, on Israel. The various EC, and later on, EU
initiatives, such as the Global Mediterranean Policy of 1972, the Renovated Mediterranean Policy of 1990, the EuroMediterranean Partnership within the framework of the Barcelona Process in 1995, and the New European
Neighborhood Policy of 2003, have sought to make the Mediterranean region an area of peace, stability and
prosperity.
All these policies were supposed to promote the stabilization of the region through the virtues of free trade.
More recently, Europe requested its Mediterranean partners to adhere to its system of values, particularly to
democracy and the rule of law; in exchange for which Europe proposed to share the prosperity of its liberal
economy. It also promised to those countries that most rapidly implemented the new Neighborhood policy that they
could benefit, at least partly, from the ―four liberties‖. However, these diverse propositions have convinced neither
the Southern and Eastern Mediterranean countries, which were reluctant to undertake rapid political and social
change (except the singular case of Israel), nor the European countries that did not tend to boost direct investments

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and technological transfers. Furthermore, the on-going Israeli-Palestinian conflict has complicated attempts at
cooperation, finally leading the process of partnership towards a political deadlock
Finally, in the European Council of March 13-14, 2008 held in Brussels, the initiative (which the ―Appel de
Rome‖ had apparently construed as a Franco-Spanish-Italian demarche) was brought to the attention of the other EU
members as a common Franco-German endeavour, in view of the final decisions on content and shape that are to be
taken in the Euro-Med summit that France will hold in Paris on July13-14, 2008. Although the EU members took
good note of the Franco-German initiative, it has not been officially approved.5 The Presidency Conclusions of the
Brussels Council are very general and refer to the issue in extremely broad terms in a very brief annex, inviting ―the
Commission to present to the Council the necessary proposals for defining the modalities of what will be called
‗Barcelona Process: Union for the Mediterranean‘ ‖.6
The Marseille ministerial conference of 2000 should still be seen as a turning point in the Barcelona
Process. After four years of negotiations, the Partners admitted at this conference that they had been unable to
establish a common ground. The Northern Partners had called upon the Southern countries, in particular the Arab
Partners, to promote political reforms on the assumption that such reforms would strengthen long-term security in the
area. This demand was, however, perceived by the Southern Partners as a threat to their domestic stability.
Furthermore, the EMP, despite its declaratory policy in favour of a solution to the Arab-Israeli conflict, was unable
to do anything substantial to address a conflict that the Southern Partners regard as a major threat to their security. In
the Arab view, the EMP was intended to meet the EU‘s security requirements, while neglecting their own. This is
why the Arabs considered the EMP unsuited for security cooperation and requested an EMP essentially aimed at codevelopment within the context of a broad diplomatic dialogue.
In Marseille, the Partners proved unable to reconcile these opposing views, but nonetheless decided to retain
the EMP as a broad framework for diplomatic dialogue and cooperation and to continue to work together in this
partnership. Since the turn of the century, the EMP has been affected by three strategic changes, namely: (a) the
September 11, 2001 terrorist attacks in the United States, and the ensuing global war on terrorism launched by the
US administration; (b) the enlargement of the EU into Eastern Europe in 2004; (c) the increase in immigration
towards the EU from the Mediterranean shores and of migrants travelling across the Mediterranean from more
distant areas. With the latest enlargement, the EU decided to pursue one single policy towards all its neighbours,
whether in the east or the south – the European Neighbourhood Policy (ENP). This decision largely amputated the
second pillar of the Barcelona Process and has focused the Commission‘s efforts on the ENP. Consequently, there
have been a number of changes in the EMP profile: the relative weight of the political dialogue within the
Partnership has become far more significant; the role of EU governments has become more important than that of the
Commission, the regional dimension has substantially weakened to the advantage of bilateral relations; important
economic goals, such as the free trade area, remain part of the EMP, but their implementation depends to a large
extent on the ENP as well; the network of Association Agreements are de facto more functional to the ENP than the
EMP. Despite the assumption that the EMP and the ENP will be complementary and mutually supportive, the EMP
looks seriously diminished and somehow depleted. Today, the EMP is essentially an intergovernmental forum.
Ironically, it focuses on the field – political and security dialogue – in which it proved least effective and cohesive.
As a result, the early EMP agenda lost itself and something new is urgently needed.

Members of the European Union

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Other members

Observer members

�2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo

The Euro-Mediterranean Partnership, formerly known as the Barcelona Process, was re-launched in 2008 as
the Union for the Mediterranean at the Paris Summit for the Mediterranean in July, with the new network of relations
endorsed at the Marseille Meeting of the Euro-Mediterranean Ministers of Foreign Affairs in November. The
Partnership now includes all 27 member states of the European Union, along with 16 partners across the Southern
Mediterranean and the Middle East.
This re-launching aimed to infuse a new vitality into the Partnership and to raise the political level of the
strategic relationship between the EU and its southern neighbours. While maintaining the acquis of its predecessor,
the Barcelona Process, the Union for the Mediterranean offers more balanced governance, increased visibility to its
citizens and a commitment to tangible, regional and trans-national projects.
Some of the most important innovations of the Union for the Mediterranean include the rotating copresidency with one EU president and one president representing the Mediterranean partners, and a Secretariat based
in Barcelona that is responsible for identifying and promoting projects of regional, sub-regional and transnational
value across different sectors.
The Union for the Mediterranean has also identified six priority projects which are at the heart of the of
Partnership‘s efforts, including projects for:
 the de-pollution of the Mediterranean Sea;
 the establishment of maritime and land highways;
 civil protection initiatives to combat natural and man-made disasters;
 a Mediterranean solar energy plan;
 the inauguration of the Euro-Mediterranean University in Slovenia;
 and the Mediterranean Business Development Initiative focusing on micro, small and medium-sized
enterprises. (http://ec.europa.eu/external_relations/euromed/index_en.htm)

The EuroMed Partnership
In November 1995, following a European Council decision, a Euro-Mediterranean Conference of Foreign
Affairs Ministers was held in the Spanish city of Barcelona. It marked the launch of the Euro-Mediterranean
Partnership, also known as the Barcelona Process for short, after the name of the city in which the decision was
taken. It was the EU's first comprehensive policy for the region.
The Barcelona Declaration agreed at this meeting laid down the foundations of a new regional relationship,
aiming at achieving peace, stability and growth in the Mediterranean Partner Countries. It covers political, economic
and social cooperation and represents a turning point in Euro-Mediterranean collaboration. Another key aspect of the
process is to achieve a Free Trade Area by 2010.
The Partner Countries participating in the Barcelona Process are now part of the European Neighbourhood
Policy (ENP) developed in 2004, following the enlargement of the EU, in order to avoid the emergence of new
dividing lines in Europe. The ENP complements and reinforces the Barcelona Process on a bilateral basis, through
Action Plans agreed with the Partner Countries that take into account their specific needs and characteristics.
The policy is financed through the European Neighbourhood and Partnership Instrument (ENPI), managed
by EuropeAid that is charged with turning policies taken on a political level into actions on the ground.
A new impetus was given to the Euro-Mediterranean Partnership in 2008 through the Union for the
Mediterranean launched in Paris on July 13th.

The Main Players
The 27 EU Member States and 9 Mediterranean Partners (Algeria, Egypt, Israel, Jordan, Lebanon, Morocco,
Occupied Palestinian Territory, Syria and Tunisia) participate in the Euro-Med process.
Libya maintains an observer status since 1999, while at a meeting in Lisbon in November 2007 the EuroMed Foreign Affairs Ministers welcomed Albania and Mauritania to the Partnership. The European Council held in
December of the same year also welcomed these two countries, in its Conclusions.
Cyprus, Malta and Turkey are three countries that were part of the Barcelona Process at its launch.
However, Cyprus and Malta joined the EU in 2004, while in December 1999 at the Helsinki European Council,
Turkey became a candidate country for EU accession and is now in accession talks.
The Foreign Affairs Ministers oversee the development of the Partnership. They meet periodically to
monitor the application of the Barcelona Declaration and define actions. More lately, and particularly in 2007 and

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2008, there has been an increase in the number of meetings of ministers in other priority fields, including
Employment and Labour, Trade, Culture, Information Society, Economy and Finance and Education.

Trade
Increased trade is another key resource. The EU is the main trading partner of the Mediterranean countries
in both goods and in services. More than 50% of trade in the region is with the EU and for some countries the EU is
the destination for 70% of exports. The EU is the largest direct foreign investor, the first source of tourists, and the
biggest aid donor.
The EU gives duty free access to all industrial goods originating in the Mediterranean countries while these
countries are progressively dismantling their tariffs on imports of EU industrial goods.
Euro-Mediterranean trade relations are healthy and growing, according to DG Trade figures. Total exports
to the EU have grown by an average 10% a year since 2000, imports from the EU have increased by 4% since 2000
and total trade with the EU was €127bn in 2007 – some 5% of total EU external trade.
One important objective of the Partnership is the creation of a Mediterranean Free Trade Area by 2010, with
substantially liberalised trade both between the EU and the Mediterranean region, and between the Southern
Mediterranean countries themselves. (http://www.enpi-info.eu/mainmed.php?id=340&amp;id_type=2)

References
Barbé Esther, Mestres i Camps Laia, Soler i Lecha Eduard, ―La politica mediterránea de Espaða: entre el Proceso de Barcelona y
la Politica Europea de Vecindad‖, Revista CIDOB d‘Afers Internacionals, No. 79-80. December 2007.
Bauchard Denis, L‘Union Méditerranéenne : un défi européen, Politique étrangère, No.1, 2008, pp.51-64.
Brauch Hans-Günther, ―From Confidence to Partnership-Building Measures in Europe and the Mediterranean: Conceptual and
Political Efforts Revisited,‖ in: Hans-Günther Brauch, Antonio Marquina, Abdelwahab Biad (eds.), Euro-Mediterranean
Partnership for the 21st
Century, Houndmills: Macmillan 2000.
Brussels European Council, Presidency conclusions. March 13-14 2008. Collinson Sarah, Security or Securitisation? Migration
and the Pursuit of Freedom, Security and Justice in the Euro-Mediterranean Area, EuroMeSCo, No. 19, November 2007,
www.euromesco.net Commission Non-Paper on the Barcelona Process: Union for the Mediterranean, no date indicated.
Conférence de presse conjointe de Mme Angela Merkel, Chancelier de la République
Fédérale d‘Allemagne et de M. Nicolas Sarkozy, Président de la République, March 3, 2008,
on the web site of the French Republic Presidency. Conférence de presse de M. Nicolas Sarkozy, Président de la République, lors
du Conseil Européen de Bruxelles, Jeudi 13 mars 2008, on the French Repuclic Presidency web site.
Conférence organisée par l‘IFRI, Paris le 11 mars 2008 : les interventions de Nouira Chékib, président de l‘Institut Arabe des
Chefs d‘Entreprises, Tunis et Abouyoub Hassan, ambassadeur itinérant du Maroc.
Daguzan Jean-François et autres, « Quelle Union Méditerranéenne ? » Géoéconomie, n°42, été 2007, Choiseul, Paris.
Déclaration finale du sommet européen, Bruxelles 13 et 14 mars 2008. Deutschlandradio Kultur, „Brok lehnt Sarkozy Vorstoss
zur Türkei ab―, 8 June 2007.
El Pais, La nueva paradoja francesa, Que pretende Sarkozy con su Union Mediterranea?, July 15 2007.
Emerson, Michael, Making Sense of Sarkozy‘s Union for the Mediterranean, CEPS Policy Brief, No.155, March 7 2008. Emerson
Michael, et Tocci Nathalie, ―A little clarification, please, on the Union of the Mediterranean‖, CEPS, 8 June 2007.
Escribano Gonzalo, y Lorca Alejandro, La Uniñn Mediterránea: una uniñn en busca de proyecto, Real Istituto Elcano, Working
Paper No. 13, Madrid, March 3, 2008, www.realinstitutoelcano.org Eurostat/European Commission, Euro-Mediterranean
Statistics, Luxemburg: Office for the
Publications of the EC, 2006.

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Florensa Senén, ―Limites del proyecto de Uniñn Mediterránea:hacia una nueva fase del Proceso de Barcelona‖, Afkar/Ideas,
IEMed, Fall, 2007.

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The Role of Regional Development Agencies in Turkey on Sustainable
Development: Ġzmir Development Agency (IZKA) Case
Ergüder CAN

Dr., Ġzmir Development Agency, Secretary General
erguder.can@izka.org.tr
Filiz MOROVA ĠNELER
Ġzmir Development Agency
Planning, Programming and Coordination Unit, Expert
filiz.morova@izka.org.tr

Abstract: Regional Development Agencies in Turkey have been established in accordance with
the Law on the Establishment, Coordination, and Duties of Development Agencies enacted on
25.01.2006. Objectives of the Agencies can be listed as; improvement of the cooperation among
public, private sector and NGO‘S, ensuring effective usage of resources, stimulating the local
potential, fostering the regional development and ensuring its sustainability, and decreasing the
inter-regional development disparities. While preparing Regional Development Plan of Region,
managing financial and technical support for projects, promoting Region‘s business and
investment opportunities, the agencies have an active role in the sustainable development of the
region. In their objectives, vision, mission and all of its actions, the Agencies works are based on
the eco-planning principles. The purpose of this paper is to focus on the experience of ĠZKA,
which has been established in accordance with the Cabinet Decision (No. 2006/10550 and dated 6
June 2006)based on the Law on the Establishment, Coordination and Tasks of the Development
Agencies. The vision of the Agency is ―A forerunner and effective agency in sustainable local
development, with international reputation.‖, and the mission of the Agency is ―To develop and
implement participative tools which will activate local potential via an overall approach for
Ġzmir‘s sustainable development.‖ This paper will cover the case of activities of the Ġzmir
Development Agency in the scope of Ġzmir Regional Development Plan which has the
―sustainable development‖ as major principle. Renewable energy, resource conservation, cleaner
production and eco-efficiency are some of the objectives for Ġzmir Region‘s strategic priorities. As
well as the related objectives of the regional plan, the estimated project based impacts will be
mentioned as a result of the SME Grant Scheme Program which has the priority ―Providing the
increase of usage the environmental friendly techniques and technologies and also in ecoefficiency practices in SMEs‖. The paper will cover best practices about the energy-efficiency and
cleaner-production applications, which are implemented by means of the grant scheme program of
Ġzmir Development Agency.

Introduction
Regional development disparities have been one of the major problems in many countries. Many policies
and tools have been developed and implemented in regions to decrease these development disparities and to achieve
regional development. Various economic, institutional, social and cultural tools including the principles of
sustainable development were used to develop regions. Unlike the policy in the 1950s and 1960s which is to
decrease the regional disparities through government initiatives, today regional development objectives are based on
to gain the global competitiveness and development of all regions. As well as the regional disparities, sustainability
of development is another important issue which regional development agencies have taken into consideration. The
reason is that sustainable development is increasingly accepted as a fundamental objective for public policy and
decision-making in different types of economy and at different levels of intervention such as aggregate, sectoral and
project.
To achieve elimination of the regional development disparities until the EU candidacy process, there are
three major tools directed at the economic development process aimed at eliminating regional disparities in Turkey:
(i) policies and incentives towards the public sector, (ii) incentives to enhance the private sector (iii) regional and

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rural development projects. Implementation of the Southeastern Anatolia Regional Development Project (GAP), the
Zonguldak-Bartın-Karabük Regional Development Project (ZBK), the Eastern Black Sea Regional Development
Plan (DOKAP) and the Eastern Anatolia Project Master Plan (DAP), which were prepared during the past periods,
and the activities for the YeĢilırmak Basin Development Project (YHGP) are continuing. However, excluding the
South East Anatolia Project (GAP), these projects were provided with limited financing opportunities only within the
scope of sectoral allocations.
In addition, a law, ‗The Law on the Establishment, Coordination and Duties of Development Agencies‘,
passed on January 25, 2006 to facilitate and regulate the establishment of Development Agencies (DAs) in NUTS II
regions. Along with the establishment of two new RDAs in Adana-Mersin and Ġzmir NUTS II regions on July 6,
2006 (The Official Gazette, 6/7/2006), the new ones have followed in other regions of the country to decrease the
disparities and to assure development.
As well as being a tool for regional development, the agencies have an important effect on sustainability of
development. As forceful institutions for regional development, RDAs can place the principle of sustainable
development at the hearth of their regional plans. In this way the operational programs based on the regional plan are
implemented by the regional authorities to achieve a sustainable development for the region. To be successful on
managing to provide sustainable development, an integrated approach is the main principle. Therefore regional
development agencies are good tools for this, because of their cooperation and coordination role in region.
The aim of this paper is to analyze the benefits and contribution of the newly established agencies in
Turkey, to regional development. The paper first discusses the regional development agencies as institutional tools
for regional sustainable development. Subsequently it explicates Ġzmir Development Agency and evaluates the
potential contribution to sustainable development of region.

Development Agencies in Turkey
Until 2006, in Turkey, there are not any functional DAs. There is a need for the management of regional
development polices at the local level for many years. The intention for the DAs has been come up in the National
Development and various Regional Development Plans previously. Especially after the 1990s and 2000s State
Planning Organization, National Development Bank along with the Chambers of Commerce and Industry has some
central and local initiatives to establish DAs in Turkey. The main factor, however, that fastens the process for the
establishment of DAs is that Turkey had gone through institutional and legal regulations to achieve harmonization
with EUs regional policy. During EU accession process it has been envisaged that DAs tool has been necessary like
Central and Eastern European Countries.
In accordance with the law (number 5449) DAs are planned to establish in NUTS 2 regions. In this respect
DAs would be strategic and operational institutions for regional development. According to the formulization of the
law, DAs would be supported by central government. ‗The Law on the Establishment, Coordination and Duties of
Development Agencies‖ aims to institute cooperation between the public and private sectors and civil society
organizations in order to mobilize local resources and to institutionalize a regional development mentality.
For achieving this aim, some general activities have been determined for DAs. Parallel to these activities,
DAs provide technical support to the planning studies of local authorities; improve cooperation in between public
sector, private sector and non-governmental organizations. As well as the technical supports and coordination
activities, to achieve regional development objectives, DAs support the activities and projects ensuring the
implementation of regional plan and programmes. Furthermore working for contribution into the improvement of the
capacity of the region concerning the rural and local development in accordance with the regional plans and
programmes and support the projects within this extent is the another activity field for DAs. Before doing these
activities, carrying out researches, or to have them carried out, concerning the determination of resources and
opportunities of the region, acceleration of economic and social development and enhancement of competitiveness,
and to support other researches carried out by other persons, organizations and institutions are the initial steps for
being able to prepare applicable development plans and programs for development of region. According to the
defined strategic plans and programs; to promote, or have them promoted, business and investment facilities of the
region at national and international level, in close cooperation with other related institutions are one of the other
activities of the DAs. Among other activities to support small and medium-size enterprises and new entrepreneurs in
the fields such as management, production, promotion, marketing, technology, financing, organization and labor
force training, by ensuring cooperation with other related institutions.
By covering all these activities, the statutory objectives can be emphasized in five main topics. One of these
is to further economic development and regeneration. Promoting regional business efficiency and competitiveness
and employment is the other main objective for DAs. To enhance the development and application of skills relevant

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to employment is the other objective of DAs where the last main objective is to contribute to sustainable
development (Çuhadar, T., M., 2009)
The most powerful tool of DAs for the development of regions will be a grant scheme managed by them. The
fund for these grant schemes and the budget of the DAs are based on both central and local funds. The budget
composition of DAs is as follows:









Appropriation to be determined by High Planning Council according to the population, development level
and performance measures of each Agency from the residual fund after the shares transferred to local
administrations and funds by tax refunds are deducted from the general budget and tax revenue of the
previous year, and from the transfer allowance to be allocated five per thousand each year,
European Union and other international funds,
Activity revenues,
Over the budget revenues of the previous year, appropriation to be transferred from the current year budget
at the rate of 1 percent for special provincial administrations excluding getting into debt, allocated revenues
and aid items received from the organizations having general, additional and private budgets; for
municipalities; appropriation to be transferred from current year budget at the rate of 1 percent excluding
getting into debt and allocated revenue items.
Appropriation transferred from the current year budget at the rate of 1 percent of previous year final budget
revenues of the chambers of industry and commerce in the region.
Aids and grants provided by national and international institutions and organizations.

Besides the information of budget composition of DAs, it‘s necessary to mention four main components in
organizational structure. The first one is the Development Board. The law tries to improve partnership between the
public and private sectors and the civil society through the Development Board, which has an advisory role. It is
composed of representatives from the public and private sectors, civil society organizations, universities and local
administrations. The composition of the Development Board changes depending on the institutional and
organizational structure and the capacity of regions.
The second main structure is the Executive Board. Chairman of the Executive Board is one of the governors of
the provinces in the region for those NUTS 2 regions that consists of more than one province. Annually the position
shifts to one of the other provinces‘ governor. In NUTS 2 metropolitan regions, Istanbul, Ankara and Ġzmir, the
decision-making organ or the Executive Council of the DA is composed of the governor, the metropolitan mayor, the
president of the Council of the Special Provincial Administration, the president of the Chamber of Industry and the
president of the Chamber of Commerce, as well as three representatives of the private sector and/or civil society
elected by the Development Board.
Secretariat General is responsible for the execution of activities. Secretary General is the superior Chief of
Secretariat General and investment support offices. Secretary General is responsible to the Executive Board.
Investment Support Office that is a part of the Secretariat is mainly designed to be a One Stop Shop for investors.
For each province a Support Office will be established. The working principles of the DAs are defined in regulations
whereas the organizational structure is flexible and can change from one agency to another.
State Planning Organization is defined as the coordinator organization of DAs at central level. It has the
responsibility for defining the regional policy at the central level and coordination evaluation and monitoring of DAs
activities as well as the allocation of grants to DAs.
The establishment process of ĠZKA as the forerunner agency began in July 2006 and ended in December 2006,
recruitment of its personnel. The reason of selecting Ġzmir is the previous initiatives for the establishment of DAs in
those regions.

Development Agencies and Sustainable Development
As mentioned before, the DAs in Turkey has an active role in regional development, thanks to their budget
and strong administrative competence. Being effective in regional development incurs some liabilities; that is DAs
should correspond to national and international development strategies. Recent years have seen a growth in interest
in integrating environmental, social and economic policy through policies for sustainable development (Bond, R.,
Kirkpatrick, C., Lee, N., Curran, J., Francis, P., 2000)
The concept of sustainable development has been incorporated into policy statements at a variety of spatial
scales with a view towards ensuring compatibility between economic development and the environment (Gibbs, D.,

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1998). From a regional perspective there have been moves to make sustainability a central theme of regional
development policy. At the international and national level the policies inspired by United Nation‘s agenda 21,
European Union‘s Renewed Sustainable Development Strategy (2006) and National Climate Change Strategy (20102020) and National Development Plan (2007-2013) influence also regional strategies.
When we look at the main functions of DAs one of the most important function is to make regional
development plans and strategies for their regions. After conducting the socio-economic need analysis for the region,
DAs coordinate and operate the preparation of the regional development plan considering the needs of region and
national strategies.
To be compatible with the strategies, to be able to protect the cultural and natural sources and rationalize the
use of the resources in regions, the principles of sustainable development are adopted to the regional plans. Also
according to Gibbs (1999) this approach helps the regions to provide theirs economy to attain a competitive edge and
a stronger market position in long term. Overall it also accords with Pepper‘s opinion (1999) which claims that ―the
impression is that environmental protection is relevant to development because high quality natural environments are
a prerequisite to attract inward investment, high value employment and tourist activity‖.

Ġzmir Development Agency
The historical, cultural, geographical, social and economic advantages of Ġzmir all together constitute a
perfect environment for investors. The city is a welcoming region in all aspects, considering its physical, social and
economic advantages.
As of 2008, Ġzmir is the 3rd largest city in Turkey with its population of 3,795,978 following Ġstanbul and
Ankara. It reflects higher levels of population density and urban population compared to national average but at the
same time, the city is also a region of vast and fertile green fields, river basins and mountains, coastal lands which
provide a wide range of social, cultural and economic dynamism for the city.
According to several studies held by public and private institutions such as State Planning Organization or
International Competitiveness Research Institute, Ġzmir is the 3rd most developed and competitive city in Turkey.
The developed and competitive nature rises not only from the city‘s physical and historical advantages but also from
its highly skilled human capital.
Among these properties of the region, the initiatives and the capacity for institutionalization, partnership
and cooperation affected the decision of selecting Ġzmir as the pilot region for DA development at the central level.
ĠZKA officially started its actions in July 2006. The coordination activities were held by State Planning
Organization. Firstly Executive Board was called to meet to start the activities. The Executive Board Members are
Governor of Ġzmir, Ġzmir Metropolitan Municipality Mayor, The President of the Special Provincial Administration
Board, The Executive Board Presidents of Ġzmir Chamber of Commerce and Aegean Region Chamber of Industry.
The organizations represented in the Development Board were chosen by the Executive Board Members of ĠZKA.
Out of 100 total members, from Public Organizations composition of the Development Board is 30 members and 70
members from NGO‘s, private sector and Universities. The three other Board Members were selected among the
Development Board Members by voting procedure. Aegean Region Development Foundation Executive Board
President, Aegean Young Businessman Association Executive Board President and Chambers of Craftsmen and
Tradesmen Association Executive Board President were the elected members.
The Secretary General was chosen in September 2006 and all recruitment process was completed in December
2006. The corporate identity of ĠZKA was prepared. The organization structure of ĠZKA was determined after three
months. A functional organizational structure was accepted which matches better with grant scheme mechanism. The
departments are (Figure 1):






Planning, Programming and Coordination,
Program Implementation
Monitoring and Evaluation
Investment Support Office
Administrative Office

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�2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo

Investment
Support Office

Administration
Office

Figure 1: The Organizational Structure of ĠZKA
There are 28 experts in different areas and seven support staff was recruited. The 3.5 year-old-IZKA has defined
the following as its core values and operational codes in all of its activities:







Participation
Innovation
Impartiality
Transparency
Reliability
Efficiency

The vision of ĠZKA is ―A forerunner and effective Agency in sustainable local development with an
international reputation‖ where the mission is ―to develop and implement participative tools which will mobilize
local potentials within an overall approach for İzmir’s sustainable development”.

Ġzmir Development Agency and Regional Sustainable Development
By analyzing the vision and mission, it can be easily seen that sustainable development will be a key
element underpinning all activity of ĠZKA. As well as ĠZKA, which is coordinator and catalyst regional organization
all partners in region has a responsibility to ensure that economic, social and environmental development go hand in
hand. ĠZKA has an approach that economic wellbeing is concerned with growth, but not at any cost. In consequence
ĠZKA has the duty of providing sustainable development of the region by means of the regional development plan,
which defines the framework for the regional operations of other institutions. Therefore after completing the works
about institutionalization, so far ĠZKA has immediately conducted the Ġzmir Socio-Economic Needs Analysis and
completed the draft of 2009-2013 Ġzmir Regional Development Plan.
The preparatory works of Plan were started as of the beginning of 2008 based on the participation principle.
Thus, in the first place, the stakeholder analysis was made in order for the stakeholders to be defined who would take
part in the preparatory works of the regional plan and following this analysis, nearly 500 stakeholders including the
corporations represented by the members of the Development Board were determined. Afterwards, both by SWOT
analysis and by organizing various workshops and working groups based on participation as to determine sectoral
and thematic development axes, priorities and targets, the regional plan was tried to have the maximum
participation. Besides, the Current Situation Analysis, which presents the current situation of Izmir concerning
development, was maintained. All the activities in question are the preparatory works forming the bases of the plan.

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While preparing the plan there were decided to the principles of the plan. 2009 – 2013 Izmir Regional
Development Plan has three basic principles, one of which is the sustainable development. At that point it is
necessary to mention the all principles of plan to understand the nature of it.
Equality and Social Inclusion is one of the principles. Here social inclusion refers to the access of the
individuals to the education, health, culture, employment etc. areas of the social sphere and it also stands for their
condition of being active in these areas. The exercises aimed at social inclusion include policies that will eliminate
the discrimination triggered by disadvantages (disability, poverty, etc.), especially the abovementioned ones, in the
social sphere and the social exclusion. The Plan adopts the social inclusion as a general principle in all processes
within the scope of the anticipated priorities and targets.
Participation is the other principle of the plan. Participation, which refers to the condition of changing the
resolution processes by the ways of dialogue, representation and authorization, is one of the basic principles of the
Plan.
And as it‘s mentioned before Sustainable Development is the other important principle of the Plan. And it is
explained in plan document in such a way that it‘s a process in which all the economic, financial, commercial and
industrial policies are harmonized in order to make growth sustainable in terms of (i) economic, (ii) social and (iii)
environmental perspectives. In this context, when forming the priorities and targets in the plan, the sustainable
development principles are important.
Via the prepatory Works of the Plan, the vision of 2009 – 2013 Izmir Regional Development Plan has been
decided as, ―Developing and Growing, Innovative Ġzmir‖. 2009 – 2013 Izmir Regional Development Plan has
accepted the following 3 as the main objectives and these objectives is strengthening the vision




Ensuring Competitiveness by Increase of Efficiency &amp; Capacity
Raising the Standard of Living
Realizing Protection and Effective Use of Natural &amp; Cultural Entities

As it can be easily seen, development includes protection of nature and cultural entities where there is a will to
accelerate it by increasing efficiency.
After mentioning the vision, and main objectives of the plan, now it‘s the time to declare the strategic
development axes.
These are;
Competitiveness for Enterprises; which aims the competitiveness and growth of businesses; providing
efficiency, quality and innovation in production, thus increase in national and international market share. One of the
strategic priorities of these axes is Increasing Clean Production Applications in SMEs.
The second axes is Employment and Social Integration, which aims strengthening social integration by
expanding employment opportunities and improving employment conditions, and also by developing services aimed
towards social inclusion with education and health services at the lead.
The third ax is named as Sustainable Environment, which aims to provide the preservation of environment
and improvement of environmental quality while continuing economical activities.
And the last axes is Strengthened Infrastructure and Superstructure and has the purpose of accelerating the
economical and social development of Ġzmir by improving the transportation, urban, environmental, social, cultural
and informational infrastructures.
Among these axes and their strategic priorities it is necessary to focus the items, which are related to the
principles of sustainable development.
Ġzmir‘s population increase rate is observed to be at high levels. As a matter of fact, while in the last 82
years Turkey‘s population increased 5 times, Ġzmir‘s population increased 7 times. On the other hand, the wide range
of varieties in economical activities clearly strikes the eye. As result of all these, rapid exhaustion of natural
resources and the pollution created by the wastes caused by production and consumption bring important
environmental problems and thus render the subject of environmental sustainability critical. In the environment axis
of the National Sustainable Development Report presented at the United Nations World Summit on Sustainable
Development, the subjects of ―elimination of deficits on infrastructure and waste disposal facilities; development of
clean production technologies, environment-friendly production and consumption forms which do not harm
resources, environment management and quality safety systems; and realizing national energy saving and demand
stability‖ have been emphasized. Within the period passed, the importance of environment is highlighted with the
principle stated as ―It is essential to preserve natural and cultural assets and environment with an approach taking

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later generations into consideration‖ within the 9th National Development Plan, a growth based on sustainable
development principles is emphasized with the era of 9th Development Plan. Furthermore, the reduction of emissions
of CO2 and other greenhouse gases has become an obligation according to Kyoto Protocol, and within the 9th
Development Plan certain aims have been defined stating necessary actions shall be taken regarding reducing
greenhouse gas emissions. It is essential that the year 2014 limit values defined within the framework of the
Regulation of Air Quality Assessment and Management are realized, and precautions required by the EU Integrated
Environment Approximation Strategy and Kyoto Protocol are taken within the region. As concentrated upon by the
national approach, in the Region also the issues of; management of natural resources such as water basins and
sensitive ecosystems, climate change and energy, the necessity of handling the relationship between productionconsumption and environment in the axis of approximation and reduction, and sustainable waste management are
highlighted (ĠZKA, 2009).
As well as these issues, also the cleaner production was defined as a main tool of the plan to achieve
sustainable development. The reason is that the pollution caused by dense industrial activities and production
processes is one of the important environmental threats in Ġzmir. The water amount recycled and utilized back in
industry should be increased. As well as the water amount, because of being an industrialized region, industrial
electric consumption per capita is 133% above Turkey value in Ġzmir. Utilization of techniques and technologies that
will provide with reduction of energy usage in industry and energy saving policies will contribute to reduction of
industrial energy consumption in Region. Moreover, while the ratio of hazardous industrial waste to total industrial
waste is 6.8% throughout Turkey, this ratio is 10.2% in Ġzmir. In this subject, it is aimed to decrease the use of
hazardous chemicals by substitution.
Moreover utilization ratio of environmental management systems that reside within clean production
approach and aim to minimize industrial development‘s adverse effects on environment is significantly low in the
region. Actualizing clean production applications in enterprises will be beneficial both environmentally and
economically by increasing the efficiency in production process. Considering also the effects of environmental
management on product designs, selection of products providing input for processes, wide frame, integrating
management processes that encompass the utilization of techniques and/or technologies in production processes, and
global trends; it will contribute to increasing the competitiveness of enterprises. On the other hand, there are various
directives in this subject regarding preventing industrial pollution and chemical substance usage within European
Union‘s (EU) legislation. Although there are directives already adjusted and adopted, within the harmonization
process there will be various other regulations that shall necessitate the industrial enterprises to make some
preparations. It is important that enterprises make necessary enterprises regarding clean production applications
within this preparation period. It is essential that clean production and eco-efficiency applications towards industrial
and agricultural activities, with textile, leather, food processing and chemistry sectors coming foremost, are
embraced in region.
As well as the sustainable environment axis, there are some key sectors defined by the stakeholders in the
region. these are;
 High-Tech Industries
 Tourism
 Renewable energy
 Logistics
 Agro-Industry
Here, among these sectors, high-tech industries include the environmental technologies and energy, where
renewable energy is supporting the sustainable development of the region.
Energy is one of the significant inputs of development. In our country that is at the brink of development;
meeting the energy demand increasing in parallel to the developments in technology, the requirement of providing
environmental, social and economical sustainability, the obligation of reducing CO2 and other greenhouse gas
emissions due to Kyoto Protocol increases the need towards renewable energy resources. Renewable energy policies
has gained importance on international platform; the European Union has set the goals of meeting 20% of the energy
demand from renewable energy resources and increasing energy efficiency by also 20% until 2020, and utilizing
renewable energy in all buildings until 2018. Due to EU policies being effective on our country due to harmonization
process and more importantly for the global purpose of increasing energy demand security, the goal of ―maximally
increasing the share of local and renewable energy resources within the production system‖ has en set under the title
of ―energy infrastructure‖ within the context of 9th Development Plan. In the context of this goal, utilization of the
renewable energy potential in Ġzmir carries importance at national-scale. In terms of variety of energy resources,
Ġzmir employs many opportunities and natural resources waiting to be utilized. The region has a renewable,
environment-friendly energy resource potential such as solar energy and bioenergy, and especially wind energy and

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�2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo
geothermal energy. Considering wind energy potential, Ġzmir comes at the 3 rd place nationwide. 36% of the installed
power throughout Turkey including those activated at year 2008 resides at Ġzmir. However this power has been
obtained by utilizing only 1% of the theoretical potential. Ġzmir province is considerably rich in wind energy with the
theoretical capacity of 11,815 MW; the total amount of energy that can be generated via this potential is higher than
the total electricity generation of Aegean Region. On the other hand, the region has a rich potential also in terms of
geothermal energy. The variety in the temperatures of geothermal resources found at the region enables a wide range
of utilization areas. The potentials in Seferihisar (35 MWe), Dikili (30MWe), and Balçova (5MWe), has such
temperatures that enable electricity generation. Also, while regarding domestic heating there is a potential residence
equivalent of 212,000, only 11% of this potential is being utilized. On the other hand, only 3% of the 19,000 decare
greenhouse heating potential is used. Furthermore, although the potential for health tourism exists in 8 districts that
are geothermal fields, current utilization is mostly limited to Balçova, Çesme and Dikili districts. In this region of
considerable advantages regarding biomass energies, solar energy also outstands as an energy source to be used. It is
observed that the energy consumption in Ġzmir is approximately 54% above Turkey average value, and the
consumption has increased by 15% in the last two years. Renewable energy sector is important for the region for the
purposes of contributing to the increase in the country energy supply security, utilizing local potentials, and aiding
the development of Ġzmir in the direction of sustainable development principles (ĠZKA, 2009).

Experience Cases on Regional Sustainable Development
In previous part of the paper, the relation between ĠZKA, Regional Plan and principles of Sustainable
Development has been explained. Now, in this part of the paper, some activities of ĠZKA related to this relation will
be mentioned.
In brief, as a new development agency, in 2009, ĠZKA has realized three investment projects, which amount
to approximately 40 million US dollars, creating 750 new job opportunities. ĠZKA also have some grant scheme
programs. In 2008, Agency ran two different programs, one of which was for SMEs, and the other one for social
development. In the SMEs program, ĠZKA has awarded 98 projects with a total of approximately 8.5 million Euros,
where in the social development program, 71 projects were awarded a total of nearly 6 million Euros.
At the moment, ĠZKA is working on 3 strategies for Ġzmir, which are;
• City marketing
• Clustering and
• Innovation
Moreover, ĠZKA will launch 2 different grant scheme programs. One will be on agriculture and rural
development. The other one will be on tourism and environment infrastructure.
Among these basis activities, it is essential to mention the SME‘s grant scheme program. The program
mainly had the purpose to improve the competitiveness of the SMEs by increasing the efficiency and the capacity.
Related to the sustainable development principles of the plan, this program had the priority which was to provide the
increase of the use of the environmental friendly technologies and renewable energy and application of cleaner
production. The objectives of this priority are;
 Optimizing the processes by reducing the use of raw materials, energy and water to increase the
environmental performance of the SMEs
 Providing the energy efficiency in SMEs
 Providing the production and consumption of renewable energy
In this part some cases related to the projects which have applied to the program, will be mentioned. First
one is the Project which aims the recycling the wastes of olive oil process. As a result of this Project 10 ton/year
waste olive oil can be recycled. On the other hand, one olive oil firm has completed the procedures related to the
Environmental Management System (ISO 14001). The other one is to build a wastewater treatment plant which
provides reuse of wastewater in marble production. Thanks to this Project 60% of water saving can be achieved.
Providing the reuse of polyvinyl chloride sheet particles in plastic industry is another Project sample. A success
example is a Project in metal industry. In this Project environmental friendly chrome free chemicals are substituted
with hexavalent chromium. Another Project in metal industry is recovery of metal filings. Decomposition of the
packaging waste in its source is another Project which provides sustainable waste management in industry. The
implementation of these projects lasts and after finishing the program the environmental impacts of the program can
be analyzed, but in this step it can be shown two examples related to the energy efficiency projects.
One of these is a Project implemented in food industry. There is an activity, which provides the increase in
production efficiency by means of automation in production line. Investment cost for this Project is 32,500 Euro,
where an automation system is implemented. There isn‘t any operation cost for the activity of the Project. Annual

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�2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo

energy saving costs 3,500 Euro where the payback period is 11 years. The other Project is implemented in machine
industry. In the Project, production efficiency is increased via the use of environmental friendly technology instead
of conventional machine. For this Project the investment cost is 200,000 Euro, and there isn‘t any operation cost. The
cost of annual energy saving is 20,000 Euro in this Project, where the payback period is 9 years.
As can be seen, IZKA has importance on providing the sustainable development and region vision. But of
course not only the activities and budget of ĠZKA, but also other institutions‘ activities based on the regional plan
can provide an integrated sustainable regional development in the region.

Conclusion
In this paper we have argued the possible effects of regional development agencies on sustainable
development of the region. While discussing, the case was Ġzmir Development Agency with its planning and
programming experiences including the principles of sustainable development.
The experiences tell that sustainability is a renewed interest in developing, which is supported by means of
international and national strategies. Where regional planning is a new concept in Turkish National Policy, the
integration of sustainable development to this new regional planning policy requires new planning techniques from
different disciplines (Counsell, D., Haughton, G., 2006).
The paper summarizes that the principles of sustainable development has now been assimilated in to the
core of ĠZKAs regional planning processes and practices. But while doing that, it is clear that a need to a regional
sustainable development policy and frameworks appears. This framework should integrate the development axes
included in the regional plan, which also contains the sectoral objectives. In future, as well as the national sustainable
development strategy, there can be also the regional sustainable development strategies as a result of a demand for an
entire integration of it to regional development strategies. This can also standardize the approach for all regional
development agencies in Turkey.
In this time period, regional development agencies are new organizations in Turkey. As the most
experienced agency in Turkey, ĠZKA has consideration for regional sustainable development by means of its tools
such as regional development plan and grant scheme programs. The sustainable development principles have taken
place in the core of the plan. Use of renewable energy, resource conservation, cleaner production and eco-efficiency
are the key issues related to the plan that can be operated. At that point, after the end of the programs, the effects of
these operations will be evaluated. As well as the results mentioned in this paper, the results of this evaluation will
give to the policy makers an idea about the effects of regional development agencies on sustainable development.

References
Bond, R., Kirkpatrick, C., Lee, N., Curran, J., Francis, P. (2000). Impact assessment for sustainable development unit: Integrated
impact assessment for sustainable development: case studies and some preliminary conclusions. IDPM, University of Manchester;
EIA Centre, University of Manchester; School of Development Studies, University of East Anglia
Counsell, D., Haughton, G. (2006). Sustainable development in regional planning: The search for new tools and renewed
legitimacy. Journal of Geoforum, 37 (2006) 921–931.
Çuhadar, T., M., (2009). Investment Support Offices in Turkey: A Case Study on Turkish RDA‘s., First International Conference
on Management and Economics, 2008, Epoka University Center of European Studies, Tirana, Albenia, Volume 2.
Gibbs, D. (1998). Regional development agencies and sustainable development. Journal of Regional Studies, 32 (4), 365-368
Gibbs, D. (1999). Ecological modernization, regional economic development and regional development agencies. Journal of
Geoforum, 31 (1), 9-19.
ĠZKA, (2009). 2009-2013 Ġzmir Regional Development Plan Draft, Ġzmir.
Pepper, D. (1999). The integration of environmental sustainability considerations into EU development policy: A case study of
the LEADER initiative in the west of Ireland. Journal of Environmental Planning and Management , 42 (3), 167–187.

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�</text>
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                <text>The Euro-Mediterranean Partnership, formerly known as the Barcelona Process,  was re-launched in 2008 as the Union for the Mediterranean at the Paris Summit for the  Mediterranean in July. The Partnership now includes all 27 member states of the European  Union, along with 16 partners across the Southern Mediterranean and the Middle East.  A Union for European with countries in the Mediterranean region seeks to promote  accelerated economic growth. The aim of re-launching is to infuse a new vitality and to raise  the political level of the strategic relationship between the EU and its southern neighbors. In  this context, six priority projects are also identified in this meeting. Main focus of the Union  for the Mediterranean is to deal with energy, security, counter-terrorism, immigration and  trade. Creation of a Euro-Mediterranean free-trade area will also impact on the environment  and agriculture in the region. This paper reviews the literature and statistically evaluates the  future of Union for Mediterranean in terms of regional cooperation.</text>
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                    <text>2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo

Legal and Financial Regulations to Create New Investment
Opportunities in Macedonia
Fehmi AĞCA
Dr., International Balkan University,
International Relations and Law, Scopje, Macedonia.
fagca2001@yahoo.com
Engin DEMĠREL
Dr., International Balkan University,
International Economic Relations, Scopje, Macedonia.
edemirel@mail.com

Abstract: As a small, open economy, Macedonia continues to take active steps to attract
foreign direct investment (FDI). The country has enacted legislation that not only ensures an
equal footing for foreign investor‘s vis-à-vis their domestic counterparts, but also provides
numerous incentives to attract such investment. The legal system in Macedonia is undergoing
substantial reforms. However, it is still slow, inefficient, lacking the adequate resources, and
sometimes subject to political pressures and corruption. Enforcement of the law and upholding
of contracts is inconsistent and not always impartial. This paper examines the legal changes in
Macedonia and its effect on FDI from the historical perspectives and forecast on strategic
management changes simplifying the administrative decisions on investment. New legal and
administrative regulations on investment incentives for FDI and business regulations will
provide a new momentum for the economic development of this EU candidate state.
Keywords: FDI, financial and legal regulations, institutional capacity

Introduction
Strategic priorities and goals of the Government of the Republic of Macedonia are follows; increasing
competitiveness on a constant basis, higher employment rate, fostering foreign and domestic investments,
strengthening the Public-Private Partnership and empowering the administrative capacities. The maintenance of
macroeconomic balance and stability of the national economy, based on sustainable economic growth, mainly by
encouraging the domestic investments and attracting foreign investments, as well as the increased level of the public
investments. (2009 - 2011 Public Investment Program)
The Government of the Republic of Macedonia emphasizes the priority of creating conditions and
prerequisites for successful implementation of Stabilization and Association Agreement with the European Union,
the Agreement with the World Trade Organization (WTO) and the Central European Free Trade Agreement
(CEFTA). These agreements, together with the concluded contracts, i.e. free trade agreements with other countries in
the region and in wider frames, are solid grounds for increasing the economic cooperation abroad, restructuring the
economy and thus the total development.
Understanding the role and function of law in the international business environment is a critical skill for
the international manager. Only by understanding the range of issues and the elements and characteristics of the legal
system, and by developing a clear knowledge of who will be the key decision-maker in the legal environment, the
international manager can avoid the traps and being of unknowledgeable in a globalized economy. (Hunter and
Shapiro, 2008)
Official reports confirm that Macedonia has made important progress in the economic stability and its
macro economic system. The inflation and budgetary deficit have reached comparative level with EU. However, the
base for product growth has not been ensured. The budget is dependant from foreign investments; the private sector
is weak and the foreign investments level is low.(Sela, 2008)
During the last crisis, IMF and World Bank arrangements partially substituted the lack of broad based
consensus for the transition reforms. Due to falling output and increasing unemployment and poverty, the authorities

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�2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo

were not able to create compensating mechanisms for the transition period losers. A major weakness exists because
of the weak institutional framework and especially the lack of the firm rule of law. Despite considerable support of
the reforms by the international financial institutions, the inflows of private capital and foreign direct investment
were low, while export growth was stagnant. Due to the delayed transition and high social costs there is widespread
public feeling of ―reform fatigue‖. (Petkovski, Bishev, 2004)
According to evaluation of the legal system in Macedonia done by IMF in 2003, the country does not have
an adequate legal system to effectively enforce contracts. Consequently, big part of the economic decline in
Macedonia is due to improper and corrupt privatization and limiting liberalization reforms, which increase the
amount of rent-seeking activities and create a vicious cycle of politically powerful elite.(IMF, 2003)
Continuous institution building, reforms in the financial and real sectors and the continuation of sound
macroeconomic policies are the only ways for bringing more dynamism into the Macedonian economy. In this
regard, the entrance of the reputable foreign banks has increased the industry‘s efficiency and represented a solid
background for promotion of other sectors‘ restructuring and for acceleration of the economic growth. The process of
EU accession could give additional impetus for accelerating and finalizing the transformation into the modern market
economy.
The most important way for unemployment reduction is economic growth. In principal, lowering
transactional costs and removing barriers to business are crucial for creation of favorable investment climate and
attracting FDI and enhancing exports and investments, as the sources of growth of the gross domestic product and
the employment,

Strengthening the efficiency of public institutions and regulatory agencies.
Market economy depends on functional and efficient institutions. In Macedonia market regulating
institutions are new, understaffed, with moderate experience. The lack of tradition in the regulation by the state and
the inexperience of the Macedonian institutions in this area is a potential serious handicap. The nature of the
privatization process and the inefficient banking system limited the interest of foreign investors in Macedonian
companies and the capital market. It is necessary to accelerate the reforms in the area of the market legitimizing
institutions. In order to create new investment opportunities the following reforms are required;(Macedonia National
Action Plan for employment 2004-2005, 2003)
 Improvement of entrepreneurship at all levels, legal protection of private investment, improvement of business
culture, banking sector development, finalize privatization,
 Improvement of corporate governance, as a precondition for the development of the private sector and growth
of the entire economy,
 The comprehensive policy of Small and Medium Size Enterprises (SMEs) growth, as an instrument for
employment creation.
 Reforms at all levels of the educational system, as the investment in human capital is a precondition for
poverty reduction,
 Reform of public administration, to increase transparency and reduce corruption,
 Reforms in the local self-government, to support the local economic development, through capacity
enhancement of municipalities and by creating local development institutions.

SMEs in Macedonia
Almost all of the companies in Macedonia are registered as small enterprises, employing about 55% of the
employees in the private sector. According to the main activity registered, the majority of businesses are in the
wholesale and retail trade sector (47%), manufacturing sector (13.1%), and the transportation, storage, and
communications sectors (approximately 10%). The largest employer is the manufacturing sector, with 35.6% of the
total number of employees in the private sector.
The Macedonian Government puts a high priority on the development of the SME sector, focusing on
measures and activities to support the development and competitiveness of SMEs, and to improve the business
environment in general.


The strategic framework for support of SME development is defined by the following documents:
The Small Business Development Strategy,

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�2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo





Program on Measures and Activities for the Promotion of Entrepreneurship and Creation of
Competitiveness of the SMEs in the Republic of Macedonia,
The European Charter for Small Enterprises,
The Law on Realization of Handicraft Activities,
The Law on the Agency for Promotion of Entrepreneurship of the Republic of Macedonia.

In order to achieve a higher degree of coordination among the relevant factors, the National Council for
Competitiveness and Entrepreneurship was established as an advisory body to the Government, linking the private
and public sector to improve the climate for entrepreneurship development.
The Agency for Promotion of Entrepreneurship of the Republic of Macedonia is the major player on the
national level for the implementation and coordination of national and international support to the small businesses.
The Agency works in cooperation with various foundations, development centers, centers for technology transfer,
Euro Info centers, as well as private consultants.

Legal aspects for Investment in Macedonia
An increase of FDI inflows is crucial for the catching-up process and international competitiveness of
Macedonia and consequently for the acceleration of the EU integration process. The positive effects on growth and
welfare are being obtained from trade through the liberalization of markets for goods and capital. Positive effects of
foreign direct investment (FDI) for the host country are transfer of technological know-how, implementation of
advanced management structures and modernization of the manufacturing sector to raise the competitiveness of the
economy, facilitating access to western markets and stimulating growth.(Zakharov, KušiĤ, 2003)
The Government of the Republic of Macedonia has introduced the flat rate tax system in 2006. This policy
provided economic stimulus for the private sector in Macedonia and has been welcomed by IMF and independent
experts. (Stojkov, Nikolov, Smilevski, 2008). The main driving forces behind the tax reform were the desperate need
to FDI inflows to solve the problem of high unemployment. In order to provide impetus for vigorous restructuring,
the Government of Macedonia decided to design competitive tax system. Positive experiences from other countries
(Estonia, Lithuania, Latvia, Russia, and Slovak Republic) gave strong justifications for the tax reforms in
Macedonia.
The greatest benefit from the flat rate tax system is the introduction of tax simplicity, replacing the
complexity of tax calculations that taxpayers have to deal with. It seemed unavoidable to envisage lower tax rate as
part of the new tax reform proposals, given the fierce tax competition in the region. Cutting the tax rates and
broadening the tax base hinders the incentives for tax evasion. In return, the fiscal discipline of taxpayers increases
as seen by the improved collection of taxes. As a consequence, Macedonian corporate income tax revenue had been
realised 60% higher than the planned one in the first half of 2008. Despite some calls for radical reforms, the rate of
value added tax (VAT) was not aligned with direct tax rate, because of the substantial risk that tax revenues will fall
dramatically.
Despite the risk of revenue loss, the collection of tax revenues has been surprisingly good. This leads to a
conclusion that Government needs a more methodical data analyses on various taxes that would help in making
forecasts on tax revenues. The survey results indicate that despite the initial success of the tax reform there is still
more to be done in the tax legislation and the preparation of legislative changes. The main conclusions and policy
recommendations are summarized as follows: (Stojkov, Nikolov, Smilevski, 2008)
a. Profitability and liquidity of the companies should not count on further fiscal stimulations, given that statutory tax
rate was decreased from 15% in 2006 to 10% in 2008. Undertaking further reduction of the statutory tax rate could
send a different signal to foreign investors instead of improvement of the business climate itself.
b. The latest data analyses of the tax declarations submitted to the Tax Administration (August 2008) emphasises the
strong performance of Macedonian companies in terms of profitability. The flat tax policy measures have obviously
been justified. Therefore, the flat tax system should continue to be aggressively advertised to potential foreign
investors.
d. Further simplifications should be envisaged in terms of reporting made by taxpayers to the Tax Administration.
Besides, tax administration procedures should be as much as possible simple, precise and with less bureaucracy
involved.

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�2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo

e. A few months after the introduction of the flat system, a new 1.5% tax for small businesses on total income up to 3
million Denars annually has been enacted. A significant percentage of respondents in survey results attached strong
resistance for such conflicting tax policy measures. Elimination or decrease of this tax rate in order to ease the tax
burden for micro businesses must be considered.
f. The survey indicated mixed record for the reinvestment allowance incentive. This uncertainty shows reluctance for
such incentive by the companies that are favoring the previous way of investment allowance. The simplification of
such reinvestment incentive and reduction of the complexity is required in administering it. Another option is to
replace it with more acceptable allowance for the companies, such as the accelerated depreciation for equipment.
g. Tax legislation is subject to changes too frequently. It is necessary to consider a rewording of the texts of the tax
laws and preparing comprehensive texts which could contribute to more precise provisions and avoid further small
and partial changes in the laws. The tax rules in Macedonia should be reconciled to those internationally recognized
rules.
h. The Public revenue office must improve the audit performance and build a reputation of institution subject to less
political influence and less corruptive elements. The politically independent approach would contribute to more
efficient administering of the tax laws and greater capacity to deal with the new challenges of taxation,
communication with other countries' tax authorities and harmonization with the EU Directives.

Free Trade Zones and Technological–Industrial Development Zones (TIDZs)
In Macedonia, the Law on Free Economic Zones was enacted in October 1999. Companies established in
Free Trade Zones, which meet necessary qualification criteria, are entitled to receive the following benefits; (Ernst &amp;
Young, 1999)
 VAT exemption for products sold within the Free Trade Zone, or for products which are imported for
processing and subsequent re-export;
 Profits tax exemption for 10 years;
 Property tax exemption for 10 years;
 General tax exemption on transfers of property and rights between founding parties and companies within
the Free Trade Zone;
 Exemption from paying contributions, taxes and other duties for the utilization of urban land, connection to
the water supply, sewerage, heating, gas and power supply network;
 Land may be leased for up to 50 years, with the possibility of an additional 25 year extension.
Because the EU regulations do not permit the establishment of free trade zones, Macedonian Government
decided to develeop Technological–Industrial Development Zones (TIDZs). These are centers in which highly
productive manufacturing activities are concentrated and new technologies are developed. Macedonia offers
additional incentives for development in the TIDZs, in addition to those normally associated with free economic
zones.
Investors in TIDZs are entitled to personal and corporate income tax exemption for the first 10 years.
Investors are exempt from payment of value added tax and customs duties for goods, raw materials, equipment and
machines. Land in a TIDZ in Macedonia is available under long-term lease for a period of up to 99 years.
Other benefits include completed infrastructure that enables connection to natural gas, water, electricity and
access to a main international road network. Investors are also exempt from paying a fee for preparation of the
construction site. Fast procedures for business activity registration are provided in TIDZ that further reduce the costs
of setting up.
The Government pays special attention to production activities, activities from the information technologies
area, scientific research activity and new technologies with high environmental standards, for which additional
benefits are envisaged in the TIDZs. Investors in TIDZs who operate in these areas are exempt from the liability of a
guarantee for any customs debts.

Foreign Direct Investment
In Macedonia, FDI is permitted in all sectors of the economy, without any restriction. No restrictions are
imposed upon the type of business in which a foreign company can invest, and no limitation is imposed upon the

45

�2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo

amount of capital of a company in Macedonia that can be owned by a foreign person. Foreign companies can freely
participate in privatization.
Foreign investors may receive same business opportunities as those available to local investors, including
the right to operate in the TIDZs. In addition, foreign investors enjoy the same legal and regulatory protection as
domestic ones. In order to conduct business in Macedonia, foreign company can own and acquire buildings, and has
limited rights over immovable property.
In addition to having equal treatment as domestic investors, foreign investors in Macedonia are entitled to
certain incentives, especially with regard to the payment of tax and customs duties. Profits tax reduction is available
for the first three years following registration to companies with more than 20% foreign investment in their share
capital. The potential profits tax reduction is calculated as proportionally to the amount invested by the foreign
company in the new company. Equipment imported as foreign investment in a domestic company is also exempt
from customs duties. There are also tax incentives for research and development expenditures.
Since 2006, Macedonia;
 Introduced a single procedure for trade licenses.
 Formed a Council for Adult Education .
 Established skill Needs Analysis model for short-term labour forecasts in 2006
 Preparation of new law on accreditation in accordance with EC Regulation No.765/2008 is underway.
 By end 2008, nearly 84% of municipalities had completed their cadastral registers-in contrast to only 46%
in 2005.
 Implemented a simplified regime for SMEs and made further analyses for the tax burden.
 Leasing industry is well-developed.(Nolan, 2009)
Since property rights and their enforcement have a big impact on economic outcomes (Yeager, 1999, 33).
Formal institutions have a big impact on economic outcomes. If property rights are not clear, and not easy to enforce,
which is the case in Macedonia, this is a detrimental effect to growth. According to Yeager (1999, 33), the
institutional framework of a nation ultimately determines the transaction costs, and therefore the degree to which an
economy reaches its production and income potential.
Tackling the unemployment requires dynamic economic growth, adequate social policy, and fair
distribution of income and resources. Macedonia, during the transition period has great problems with corruption.
Since corruption is a rent seeking activity, which is a result from poorly defined property rights and non-efficient
legal system, Macedonia needs a better enforcement ability of the laws.
Investment protection and liberalisation are key to successful government strategies to attract FDI. The
private sector also has an important role to play to ensure good governance. In fact, the roles of the public and private
sector were complementary and reinforcing. In the private sector, the accountability of managers, leadership,
business ethics and long-term profitability can all mutually aid efforts by the public sector. Public sector efforts can
focus on the legal and institutional framework for business and investors. An efficient and reliable judiciary, and the
integrity of public administration, are two examples of how the public sector efforts can pave the way for efficient
private sector activity.
All these instruments are part of a broad and comprehensive approach involving all actors in the investment
process. Implementation, monitoring, and peer pressure are key tools for the effective implementation of these
instruments, which can also aid in managing successful governance strategies in both the public and private sectors,
in oreder to increase the investment opportunities in Macedonia.
As a result of a growing interest in Macedonia‘s investment potential, a number of international companies
have started operations in the country, both as agricultural projects and through different types of asset acquisition
and privatization.
Foreign Direct Investments
Year
(in USD million)
2008
598.5
2007
699.1
2006
424.2
2005
97.0
2004
323.0
2003
117.8
2002
105.6
Table1: Foreign Direct Investments (FDI) Flow in Macedonia
Source: National Bank of the Republic of Macedonia

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�2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo

Table 1 shows the total FDI flows in Macedonia between 2002 and 2008. FDI flows have been affected by
the global economic environment and financial crises that begins in 2008. In addition to that government dept crisis
on Greece 2010 will reflect on this economies with the reason of cooperation‘s and mergers between companies.
Table 2 shows that the stocks of FDI in Macedonia by the country investors indicate that Netherlands,
Hungary and Greece are the main portion on privatization and investment flows.
Country
Netherlands
Hungary
Greece
Austria
Switzerland
Slovenia
UK
Germany
Luxembourg
Serbia
Other

% of total FDI stock on Macedonia
16.9
16.6
15.2
9.4
6.6
6.5
4.0
3.4
2.8
2.6
16.0

Table2: Stock of FDI in Macedonia by country of investors, 1997-2007
Source: National Bank of the Republic of Macedonia
Table 3 indicates that manufacturing, transport and communications sectors had the main portion among the
others. These two sectors cover 57 % of the total FDI in Macedonia.
Activity
% of total FDI
stock
Manufacturing
35.6
Transport and Communications
21.3
Financial Intermediation
12.6
Trade and Repair
10.4
Electricity, Gas and Water
6.4
Real Estate and Business Activities
4.2
Construction
3.4
Hotels and Restaurants
2.1
Mining and Quarrying
2.0
Other
0.9
Table 3: Stock of FDI in Macedonia by activity, 1997-2007
Source: National Bank of the Republic of Macedonia
If we analyze the recent years the impact of the crisis on the financial sector has been relatively modest to
date, mainly because banks rely primarily on domestic deposits to fund lending and deposit withdrawals have been
limited. Strengthened banking supervision and adequate regulation have helped to maintain the stability of the sector.
Overall, banks remain well capitalized, including through continued support by overseas parent banks, and
the capital adequacy ratio remained stable at 16.5 per cent after the first quarter of 2009. The public credit bureau
increased its coverage and at the end of 2008 the first privately owned credit bureau was established.
The global financial crisis started affecting the economy in the fourth quarter of 2008, led by a decline in the
output of the metal and textile sectors. The situation deteriorated in the first half of 2009 as industrial production
contracted by 11 per cent compared with a year earlier, while foreign trade dropped sharply and foreign direct
investment (FDI) roughly halved. The growth of GDP was -1.4 per cent in the second quarter of 2009, and
unemployment remains high at about one-third of the workforce. At the same time, external imbalances increased,
forcing the central bank to increase the reference interest rate from 7 to 9 per cent in March 2009 and repeatedly
intervene on the foreign exchange market.
In response to the crisis, in November 2008 the authorities adopted an economic stimulus plan, which
includes a number of fiscal measures such as rebates and write-offs of unpaid social security contributions, a further
lowering of taxes on profits and agricultural incomes and a reduction of some import tariffs. As a result, fiscal policy
has become more expansionary and after being in surplus during most of 2008. In March 2009 the government

47

�2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo
presented a €8 billion investment program for the next seven years, focusing on large infrastructure projects in
energy, transport, environment protection, education and culture.
The economy is likely to fall into recession this year as a result of a sharp drop in industrial output and
exports. A more expansionary policy stance, reflecting the government's anti-crisis measures and the need to
modernize the country's infrastructure, will result in a shift from modest fiscal deficits or surpluses of earlier years to
higher deficits in the near future. The combination of lower exports, falling capital inflows (including FDI) and an
expansionary fiscal policy have increased external risks, especially given the drop in reserves and relatively modest
reserve coverage. These pressures, with weaker remittances, could necessitate a sharp contraction
in imports, triggering a deeper and more prolonged recession.

Privatisation revenues (cumulative, in
per cent of GDP)
Private sector share in GDP (in per
cent)
GDP
Investment/GDP (in per cent)
Government balance
FDI (USD m)
Annual inflation (%)
Unemployment (end year)

2004 2005 2006 2007 2008
13.8 14.3 20.0 20.2 20.6

2009
na

65.0 65.0

70.0

70.0

4.1 4.1
4.0
5.9
4.9
21.4 20.7 21.9 24.2
na
0.4 0.3 -0.5
0.6 -1.0
323.0 97.0 424.2 699.1 598.5
-0.4 0.5
3.2
2.3
8.3
37.2 37.3 36.0 34.9 33.8

-1.6
na
2.8
na

65.0

65.0

na

Table 5: Economic indicators between years 2004-2009
Source:EBRD
On the other hand the recent rise in reserve coverage, as well as the government's commitment to fiscal
discipline should help to mitigate these risks. Continued progress in the EU accession process is an important
condition for the realization of Macedonia's medium-term growth potential.

Conclusion
In order to create new investment opportunities, Macedonian government have realized substantial
institutional reforms and enhanced its legal capacity with the newly adopted regulations. With the implementation of
new regulations to attract more FDI, Macedonia managed to get relatively a higher portion of foreign investment in
comparison with the past.
The last financial crisis adversely affected the investment environment in Macedonia like the other South
Eastern European states. The only way to solve the chronic problem of unemployment is to continue to implement
the reforms decisively. In this sense, the implementation of legal provisions by the competent administrative bodies
of this country has the crucial importance. The financial and economic integrations of the county with the global
markets would also contribute to meet the conditions of the EU accession goal.

References
Hunter Richard J., Shapiro Robert E., (2008) ―A Primer on Important Legal Aspects of the International Business Environment‖,
Journal of Money, Investment and Banking, EuroJournals Publishing, Inc. http://www.eurojournals.com/finance.htm
IMF, (2003), ―Former Yugoslav Republic of Macedonia: Financial System Stability Assessment, including Reports on the
Observance of Standards and Codes on the following topics: Banking Supervision, Payment Systems, Monetary and Financial
Policy, Transparency, and Anti-Money Laundering and Combating of Financing of Terrorism‖, IMF Staff Country Report,
03/374, Washington, DC, 2003.
Macedonia National Action Plan for employment 2004-2005, (2003), Skopje.
Miljovski Jane and Uzunov Vanco, ―International and Regional Economic Integration in South East Europe, The Case of
Macedonia‖.http://www.wiiw.ac.at/balkan/files/Miljovski+Uzunov.pdf (03.05.2010)

48

�2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo

Nolan Alistair, (2009), ―Evaluation of business climate policies in South East Europe Selected results of Investment Reform Index
2009 and SME Policy Index 2009‖.
OECD South Eastern European Corporate Governance Round Table, Ohrid, May (2004), ―Corporate Governance in Macedonia‖,
Skopje, Macedonia.
Petkovski Mihail, Bishev Gligor, (2004), ―Understanding Reforms in Macedonia‖, Skopje.
Public Investment Program of Macedonia 2009-2011, (2009), Skopje, Macedonia.
Stojkov Aleksandar, Nikolov Marjan, Smilevski Borce, (2008) ―Flat Tax Policy Assessment in Macedonia‖, Center for Economic
Analyses (CEA), Scopje.
Ylber, Sela (2008), ―The dinamics of reforms developement in Macedonia and its approach towards European Union‖, First
International Conference on Balkans Studies‖, Editors: Ömer Eroğlu, Güngör Turan, Cemal Baltacı, Nedret Demirci, Muharrem
Gürkaynak, Ferdinand Gjana, Tirana, 07-08 November 2008.
Yeager, Timothy J, (1999) ―Institutions, Transitions, Economies and Economic Development‖
Boulder, CO: Westview Pres.
Zakharov Vladimir, Kusicc Sinisa, (2003), ―The Role of FDI in the EU Accession Process: The Case of the Western Balkans‖,
Madrid.
http://www.investinmacedonia.com/Default.aspx?item=menu&amp;itemid=719&amp;themeid=327

49

�</text>
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DEMİREL, Engin</text>
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                <text>As a small, open economy, Macedonia continues to take active steps to attract  foreign direct investment (FDI). The country has enacted legislation that not only ensures an  equal footing for foreign investor‘s vis-à-vis their domestic counterparts, but also provides  numerous incentives to attract such investment. The legal system in Macedonia is undergoing  substantial reforms. However, it is still slow, inefficient, lacking the adequate resources, and  sometimes subject to political pressures and corruption. Enforcement of the law and upholding  of contracts is inconsistent and not always impartial. This paper examines the legal changes in  Macedonia and its effect on FDI from the historical perspectives and forecast on strategic  management changes simplifying the administrative decisions on investment. New legal and  administrative regulations on investment incentives for FDI and business regulations will  provide a new momentum for the economic development of this EU candidate state.</text>
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                    <text>Determination of Genetic Polymorphism within Güney Karaman
Sheep-Breed via RAPD-PCR Method
Đbrahim Aytekin
Department of Animal Science, Faculty of Agriculture,
Selcuk University, 42075, Konya / Turkey
aytekin@selcuk.edu.tr
Saim Boztepe
Department of Animal Science, Faculty of Agriculture,
Selcuk University, 42075, Konya / Turkey
sboztepe@selcuk.edu.tr
Abstract: Analysis of individual genotypes aims to provide information for
understanding within population genetic parameters such as genetic similarity,
polymorphism and heterozygosity. The aims of this research were to determine the
genetic parameters within Güney Karaman sheep involved in a protection programme of
gene resources by using randomly oligonucleotide primers via Randomly Amplified
Polymorphic DNA (RAPD) method.
Among the primers tested, 10 most suitable ones, in terms of repeatability and
scorability, were used and 1451 DNA fragments were scored. All the RAPD fragments
were determined to be between 600 - 3000 bp in size. From 147 fragments, 133 were
polymorphic (90.48%) and 14 fragments were monomorphic (9.52%). Within
population average genetic similarity (Fragment Sharing Frequency, Fxy) and genetic
distance were calculated as 0.7001 and 0.2991, respectively. The average expected
heterozygosity was estimated as 0.3273 ± 0.1697.
Keywords: Güney Karaman sheep-breed, polymorphism, RAPD-PCR

Introduction
It is of great importance to determine, at DNA level through molecular techniques, the variations
of farm animals that have a huge genetic potential in number and variety, to define them, to prepare
schemes to preserve and develop them to this end. The majority of the sheep in Turkey are composed of
domestic breeds and types that haven’t been refined. Also known as Black sheep, the Güney Karaman
sheep breed is raised in South and south-eastern cities, notably on the Taurus Mountains and looks very
much like Karagül with its fat-tail. Its proportion is rather low in the Turkish sheep population (Öztürk,
2000).
In sheep breeding, genotype confusion has emerged in domestic sheep breeds, which constitute the
gene resources, through a gradual genetic change as a result of selection on the economically important
yields in certain breeds. Consequently, the present gene resources are getting lost, and the continuation of
offspring is put in jeopardy with the risk of these genotypes disappearing. The disappearance of the
domestic breeds means the disappearance of the distinctive traits that they bear. At this stage, it is hard or
impossible to say which of these traits will be required in the future. Also, the possible traits of these gene
resources, which haven’t been identified yet, can be kept available with the survival of these breeds
(Ertuğrul et al., 2005). One of the Turkish domestic breeds, the Güney Karaman sheep is a breed in danger
of extinction. For this reason, the breed involved is brought under protection within the context of
protecting gene resources with the declaration of guidelines for subsidizing animal farming (Rescript No:
2006/9) by the Ministry of Agriculture and Rural Affairs (Anonymous, 2006).
Genetic evaluation has usually started by analysing phenotypes to identify genetic influences,
whereas molecular genetics often begins with known alleles or DNA sequences and then examines their
influence on phenotypes. Eukaryotic genomes show considerable DNA sequence variations
183

�(polymorphisms) between species and among individuals within a species (Beuzen et al., 2000). Studies of
molecular genetics and molecular biology at DNA level have recently come to the fore so as to determine
these variations in individuals and populations. Molecular techniques are utilized for determination of the
genetic makeup of farm animals at DNA level and for selection studies based on a marker in amelioration
studies. It is rather difficult especially in stock raising to detect the genotypes that carry the best alleles by
examining the phenotypes of animals which have an economical value, and that have expensive- and
difficult-to measure quantitative characteristics. In such cases, so as to determine the individuals that carry
the related alleles with DNA markers, intense studies have been conducted in recent years on such
quantitative characters as milk yield, resistance to diseases and fecundity (Schnabel et al., 2005). In the
QTL analysis concerning quantitative characters, quantitative characters are identified in cattle, sheep and
swine for commercial and experimental purposes. The markers that are connected with milk and milk
components yields in dairy cattle, birth weights, horn development and preweaning growth in beef cattle,
fecundity and muscle hypertrophy in sheep have been identified (Davis and DeNise, 1998).
One of the molecular techniques, the RAPD technique (Randomly Amplified Polymorphic DNA)
is based on the amplification of PCR and DNA fragments of randomly spread areas in the genome by
using random primers (9-10 bp). Unlike the other PCR applications, only one primer is used for DNA
production both in the pattern DNA chain and in the complementary chain. It is required that the ratio of G
+ C primers used in RAPD techniques be 50–80% , that they not contain any palindromes and that they
shouldn’t be complementary to each other (Williams et al., 1990; Williams et al., 1993). Compared with
other PCR applications, RAPD method is easy to apply, and more preferable because of its low cost and
high and quick efficiency. Among its advantages are the sufficiency of a minimum and low quality DNA in
nanogram levels and also no prerequisite information regarding DNA sequence. Moreover, the rate of
polymorphism is high (Bowditch et al., 1993; Kantanen et al., 1995; Öz Aydın, 2004). It is reported that the
disadvantages of this technique are low repeatability with different equipment and chemical material, and
low reliability as a result of diverse results in diverse laboratories by diverse researchers. Nevertheless,
RAPD technique is fit for automation under laboratory conditions (Tingey and Tufo., 1993).
Along with its widespread use in molecular biology and in many various areas, the RAPD-PCR
technique is successfully used in many fields, such as the identification of genetic similarity and difference
in livestock, prediction of the genetic relationship between different breeds and ecotypes, identification of
wild species (Lee and Chang, 1994), study of evolution (Stepniak et al., 2002), genetic mapping (Cushwa et
al., 1996), pedigre determination (Cerit, 2001), determining the sex of ovine embryos (Gutiérrea-Adán at al.,
1997), and developing species-related markers. RAPD method have found application in various animal
species, such as cattle and sheep (Kantanen et al., 1995; Cushwa et al., 1996; Tahmoorespur et al., 2003;
Ahmed Ali, 2003; Paiva et al., 2005), goat (Li et al.,2002; Şahin, 2005), turkeys (Smith et al., 1996),
chickens (Smith et al., 1996; Sharma et al., 2001), quails (Sharma et al., 2000), fish (Akhan and Canyurt,
2005), bees (Suazo et al., 1998), horses (Apostolidis, 2001) and pigs (Yen et al., 2001). This has
demonstrated the efficiency RAPD as a potential genetic marker. The studies conducted with the RAPDPCR technique have shown that this method can be successfully used in predicting genetic makeup of
species and intra- and inter-population genetic parameters. This study aims to demonstrate both the
applicability of RAPD-PCR method and to reveal the DNA fingerprints belonging to the population
involved with the aim of identifying, at DNA level, genetic variation of Güney Karaman sheep breed,
which constitutes the recent gene resources.

Material and Method
Animal Material and DNA Isolation

In the context of preservation and protection of gene resources, the blood samples that were taken
from 8 male and 8 female Güney Karaman sheep, which were kept in Bahri Dağdaş International
Agricultural Research and Application Center, were used. For DNA isolation, the blood samples that were
taken from Vena jugularis of the animals by using vacuum blood tubes with sodium citrate were preserved
in cold chain (+4°C), taken to the Molecular Genetic and Biotechnology Laboratory of Faculty of
Agriculture in Selcuk University in the shortest possible time, and were kept at -20°C until DNA isolation
were achieved. DNA isolation kit (Bio Basic Inc., Canada) was used for the purpose of pursuing a method
that wouldn’t yield different results between different blood samples and that consisted of as few
184

�components as possible in DNA isolation. In the study, the DNA concentrations that dissolved in the 100 ul
1xTE buffer solution were read through spectrophotometer, and the concentrations were equalized with
sterile pure water so as to get 20 ng/ul.
PCR Amplification

In the RAPD technique, 10-base primers, some of which had been tried before, were utilized and
10 best efficient primers (18, 19, Op15, Opm10, Opp15, Opq04, Opq06, Ra03, Ra35, Ra59) were chosen
in connection with their monomorphic/polymorphic characteristics and with their productivity of sufficient
number of strips and then used in RAPD analyses.
The PCR protocol was optimized as Şahin (2005) and Ahmed Ali (2003) reported, and PCR
application was carried out. The DNA samples of 1 ul that were obtained as a result of DNA isolation and
that were balanced so as to be 20 ng/ul each were put in PCR tubes. Reactions were triggered in thin-walled
PCR tubes with a volume of 25 ul in total with 1 ul DNA+24 ul mix. The mix for PCR reaction was
prepared with 14.0 ul sterile distilled water, 2.5 ul 10x Buffer pH: 8.5 (48.4 g Tris base, 10.22 ml Glacial
Acetic Acid, 20 ml EDTA pH: 8.0), 2.5 ul 25 mM MgCI2, 4.0 ul dNTPs, (2.5 mM from each), 0.5 ul primer
(50 pmol/ul) and 0.5 ul Taq Polymerase (Taq Bioron 5 U/ul). The PCR applications conducted in Thermal
Cycler (Eppendorf Master Gradient) were exposed to 40 cycles in total- hot start at 94°C for 2 min., at
denaturation level at 94°C for 50 sec., at annealing stage at 32-34°C for 55 sec. and at extension stage at
72°C for 50 sec and final extension at 72°C for 5 min. Some optimizations were made in the heat and
duration units connected to the primers that were used. The RAPD fragments were separated on a 1.5%
agarose gel by electrophoresis. Then it was taken out of the gel solution containing 0.5 µg/ml Ethidium
Bromide, RAPD fragments were viewed in gel documentation system under UV light with the help of
transilluminator. The resulting data were stored in an electronic setting. DNA Moleculer Weight Marker
(100 bp Ladder, AMRESCO) was used as standard to determine the size range of amplified bands (bp) on
which RAPD fragments moved in gel according to their molecule sizes.

Scoring and Statistical Analysis
The photographs related to RAPD fragments were scored on the basis of present/absent (1=present,
0=absent), and data matrix was formed. By using this obtained data matrix, genetic similarity between
individuals, the ratio of polymorphism, the values of heterozygosity were obtained through POPGEN-1.32
pc program, and the dendogram that showed genotypical relation between individuals and PCoA (Principle
Coordinates Analysis) were obtained according to the UPGMA method through NTSYS-2.1 pc (Numerical
Taxonomy and Multivariate Analysis System) program. The genetic similarity between individuals (Fxy)
was calculated using the formula below as defined by Nei (1987).
Fxy = 2 Mxy / (Mx + My)
Fxy: Genetic similarity; Mxy: The number of common RAPD fragments between sheep X and Y,
Mx: The total RAPD fragment number of sheep X, My: The total RAPD fragment number of sheep Y
In calculating the average value of heterozygosity (H), the formula given below was used (Nei,
1987). H=Σh/r; In the formula; r: The number of locus, h: The expected single locus heterozygosity,
which was calculated as; h=1- ΣXi2; In the formula; Xi2: This is the ratio of homozygot genotypes
Where the ratio of polymorphism was calculated with a comparison of the number of observed
polymorphic fragments with the total fragment number.

Results and Discussion
The RAPD-PCR fragments of 16 animals were obtained, using 10 primers. The primers used in the
study and the sequences, melting temperatures (Tm), the size range of fragments (bp), the total fragment
numbers (TFN), fragment numbers (FN), polymorphic fragment numbers (PFN), polymorphism (P%), the
ratios of heterozygosity and standard devision (H±SD), obtained from 16 Güney Karaman breed sheep are
given in Table 1.

185

�Primers
18
19
Op15
Opm10
Opp15
Opq04
Opq06
Ra03
Ra35
Ra59

Sequence (50-30)

Tm

Size range of
fragments (bp)

GGG CTA GGG T
ACC GGG AAC G
GAC GGA TCA G
TCT GGC GCA C
GGA AGC CAA C
AGT GCG CTG A
GAG CGC CTT G
CGA TCG AGG A
AAG CTC CCC G
CGG GCA ACG T
Total
Average

34
34
32
34
32
32
34
32
34
34

700 - 3000
700 - 3000
600 - 3000
800 - 3000
600 - 3000
700 - 3000
600 - 3000
800 - 3000
900 - 3000
900 - 3000

TFN

FN

PFN

116
155
148
124
160
217
160
154
96
121
1451

10
16
17
12
15
18
19
16
8
16
147

9
12
15
12
15
14
19
14
8
15
133

P (%)
90
75
88.23
100
100
77.77
100
87.50
100
93.75
90.48

H±SD
0.3452 ± 0.1405
0.2304 ± 0.1956
0.3158 ± 0.1914
0.4006 ± 0.1527
0.4055 ± 0.1166
0.3104 ± 0.1960
0.3301 ± 0.1440
0.3013 ± 0.1790
0.4121 ± 0.1422
0.2946 ± 0.1571
0.3273 ± 0.1697

Table 1. Some information obtained from 16 Güney Karaman breed sheep with the 10 primers

As can be seen in Table 1, the fragments obtained with the 10-mer primers generally ranged from
600 to 3000 bp. In total 1451 fragments were obtained, of them 673 being in male individuals, 778 being
in females. When the number of fragments obtained from each individual, Opq04 primer is the one which
yielded the highest number of fragments, with 217, and Ra35 is the one that yielded the lowest number of
primers, with 96.
Of the 147 fragments that were obtained with all the primers, 133 were determined to be
polymorphic, and 14 monomorphic. The average polymorphism ratio obtained in the study was found as
90.48%. When all the fragments that could be scored were examined, the Opm10, Opp15, Opq06 and Ra35
primers proved to be the primers with the highest ratio of polymorphism (100%). The lowest polymorphism
ratio (75%) was obtained from the primer 19. The 10 primers that were used and the locus of the individuals
that we studied had a high level of polymorphism, which made it unnecessary to scan more diverse locus.
Cushwa et al. (1996) identified the polymorphism ratio, with RAPD method, to be between 65% and 96%
with a mean 85%, using 53 primers in total from 5 sheep breeds (Coopworth, Merino, Perendale, Romney
and Texel) and from their crossbreds. In a study made with 17 RAPD primers on 5 Iranian sheep breeds
(Arman, Balouchi, Iranblack, Kordi and Karakol), Tahmoorespur et al. (2003) reported that they obtained
10 polymorphic fragments from only three of these primers (Moh-4, Moh-13 and Moh-21) and that they
found the variation within and between the markers used and the 5 Iranian sheep breeds to be rather low,
and that more studies were required with more primers so as to determine, in more details, the relations
within and between sheep breeds. In this study, enough polymorphic fragments (133 pcs.) to exhaustively
evaluate individual genotypes of the RAPD primers that were used in Güney Karaman sheep breed. In
other words, when compared with the Güney Karaman sheep breed (90.48%), the ratio of polymorphism
was seen to be lower in their studies. Paiva et al. (2005) stated that polymorphism ratios in 5 Brasilian hairsheep breeds (Santa Đnes, Rabo Largo, Somali, Morada Nova and Bergamasca) were found as (%) 100,
98.15, 98.15, 94.44 and 90.74, respectively. When compared with these breeds in terms of polymorphism
ratio, it displayed a rate relatively closer to Bargamasca hair sheep, but had a lower value than all the
Brazilian hair sheep. As to primers, in the study made by Ahmed Ali (2003) with 19 RAPD primers in total
for the identification of genetic similarity in Barki, Rahmani, Baladi and Suffolk sheep breeds raised in
Egypt, though the primers no. 18 and 19 yielded no polymorphic fragments, it appeared that they could be
effectively used for the identification of individual genotypes in this study. Similarly, Sharma et al. (2001)
used the Opm10 and Opp15 primers, which were also used in this study, to determine the genetic variation
between White Leghorn, Rhodes Island Red, Red Cornish, White Plymouth Rock and Kadaknath chicken
strains. However, they reported that they couldn’t obtain any polymorphic fragments with Opp15 primers.
In this study, it has appeared that both Opm10 and Opp15 primers could be effectively used for identifying
individual genotypes.
The heterozygosity values in polymorphic locus calculated according to Nei (1987) generally
varied between 0.0615 and 0.5000, and the rate of heterozygosity on the basis of primers was changed to be
between 0.2304 and 0.4121. In general, the average heterozygosity was calculated to be 0.3273 ± 0.1697.
As defined by Stephen et al. (2001), in a study they made with 4 RAPD primers so as to identify the genetic
186

�relations between 5 Tanzanian sheep ecotype, reported that the highest average heterozygosity value was
the Arusha ecotype (0.203) and that the lowest heterozygosity value was in the Dodoma ecotype (0.137).
When compared with these sheep ecotypes in terms of the average heterozygosity value, Güney Karaman
sheep (0.3273) can be said to have a higher value. For this reason, since the higher the heterozygosity value
is in a population, the wider the genetic variety of the population will be, it is understood that Güney
Karaman sheep have a higher genetic variation than 5 Tanzanian sheep ecotypes. Paiva et al. (2005) stated
that heterozygosity values in Snata Ines, Rabo Largo, Somali, Morada Nova and Bergamasca hair sheep by
using 19 RAPD primers were found as 0.3881, 0.3857, 0.4050, 0.3929 and 0.3229, respectively. When
compared with Bergamasca hair-sheep in terms of heterozygosity, Güney Karaman sheep has a little higher
heterozygosity value, but a lower value when compared with other breeds.
As seen in Table 2, K9 and K10 sheep were the individuals genetically closest to each other
(0.8844). The sheep, genetically the most distant from each other were K5 - K7 (0.5646), K5 - K9
(0.5646), and K5 - K15 (0.5646). In this respect, the sheep no K5 can be said to be genetically different
from the rest. The genetic similarity between individuals is estimated to be 0.7009 on average; the genetic
distance 0.2991 on average (Table 2). In the study made by Ahmed Ali (2003), genetic similarities
between Barki, Rahmani, Baladi and Suffolk sheep breeds raised in Egypt were found to be between the
values 0.8190 and 0.9570. When compared with Güney Karaman sheep breed, the genetic similarity in
this study was determined to be higher between 4 Egypth sheep breeds
In Table 2, the genetic similarity values of 16 Güney Karaman sheep breeds were given in terms of
10 RAPD markers.

K1
K2
K3
K4
K5
K6
K7
K8
K9
K10
K11
K12
K13
K14
K15
K16

K1
0.6599
0.6803
0.7959
0.6599
0.7687
0.7687
0.6463
0.7551
0.7483
0.8299
0.7415
0.7211
0.8027
0.7007
0.7347

K2

K3

K4

K5

K6

K7

K8

K9

K10

K11

0.7347
0.6871
0.7415
0.6735
0.6054
0.6327
0.6327
0.6395
0.6395
0.6463
0.5986
0.6667
0.6054
0.6259

0.7483
0.5850
0.6531
0.6259
0.6259
0.7211
0.6871
0.7007
0.7075
0.5918
0.7415
0.6395
0.6190

0.6054
0.8503
0.7687
0.6463
0.8231
0.8299
0.7755
0.7687
0.6395
0.7347
0.7551
0.6939

0.6599
0.5646
0.6735
0.5646
0.5986
0.6939
0.5918
0.7075
0.6531
0.5646
0.6259

0.7687
0.6735
0.7687
0.8027
0.7619
0.7687
0.6803
0.7211
0.7415
0.6531

0.6599
0.7823
0.7347
0.7619
0.8095
0.6803
0.6531
0.7143
0.7211

0.6327
0.6395
0.6667
0.7007
0.8163
0.6395
0.6054
0.6939

0.8844
0.7483
0.7959
0.6122
0.7075
0.7415
0.6667

0.7415
0.7347
0.6190
0.7279
0.7347
0.6735

0.7619
0.7959
0.7687
0.6939
0.7823

K12

K13

K15

0.6803
0.6803 0.7143
0.7415 0.6531 0.6939
0.7075 0.7959 0.7143 0.7075

Table 2. The genetic similarity values of 16 Güney Karaman sheep breeds

187

K14

K16

-

�Figure 1. The UPGMA dendogram of 16 Güney Karaman sheep breeds

At the final stage of the study, the NTSYS-pc out of the RAPD fragments that could be scored and
the genetic relation dendogram on which genotypic variation was displayed were formed through UPGMA
method. As seen in Figure 1, 16 sheep were divided into two main groups, one with K2 and K5 individuals,
and the other with all the other individuals. The individuals that made up the other group apart from K2 and
K5 again were sub-grouped with K8, K13 and K16 out of them and with the remaining individuals. Again
these sub-groups had their own sub-groups within themselves. From the dendogram, it can be seen that the
individuals no K9 and K10 are genetically the closest genotypes. As seen in Table 2 and in Figure 1, the
individuals no K2 and K5, particularly the individual no K5, can be said to be genetically different from
other sheep.

Figure 2. PCoA analysis of Güney Karaman sheep breed in terms of RAPD markers

It can be seen in the PCoA, the three dimensional vectorial analysis, the individuals no K9 and
K10, which are closest to each other in genetic makeup on the dendogram are genetically related.
Genetically the most distant individuals were the individuals no K2 and K5. Again during PCoA analysis,
K8, K13 and K16 individuals as well as the individual no K3 are seen, on the dendogram and in PCoA
analysis, to form a different group, unlike the individuals that constituted the other group outside K2 and
K5.

Conclusion
As a result, it can be said that these 16 individuals, which are representative of Güney Karaman
sheep, has a heterogenous nature and that this genetic variation has the potential use for purposes of
improvement. In this study, the genetic similarity/distance values identified between individuals and the
genetic relation dendogram on which genotypic variation is shown and PCoA analysis have shown that
genotypic variation on individual basis can be obtained through RAPD-PCR method. However, with a
more comprehensive study that will include all Turkish domestic sheep breeds, determination of certain
188

�genetic parameters within and between all sheep breeds that make up the population would be more
informative. Moreover, by making use of the available endemic gene resources, creating populations that
have such characteristics as resistance to diseases and adverse weather conditions would be of great
importance.

Acknowledgments
This research was supported by a master research project from the Coordinatory of Scientific Research
Projects of Selcuk University, Turkey (Project No: 06101029). We are thankful to Bahri Dağdaş International
Agricultural Research and Application Center for providing blood samples.

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190

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Boztepe, Saim</text>
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                <text>Analysis of individual genotypes aims to provide information for  understanding within population genetic parameters such as genetic similarity,  polymorphism and heterozygosity. The aims of this research were to determine the  genetic parameters within Güney Karaman sheep involved in a protection programme of  gene resources by using randomly oligonucleotide primers via Randomly Amplified  Polymorphic DNA (RAPD) method.  Among the primers tested, 10 most suitable ones, in terms of repeatability and  scorability, were used and 1451 DNA fragments were scored. All the RAPD fragments  were determined to be between 600 - 3000 bp in size. From 147 fragments, 133 were  polymorphic (90.48%) and 14 fragments were monomorphic (9.52%). Within  population average genetic similarity (Fragment Sharing Frequency, Fxy) and genetic  distance were calculated as 0.7001 and 0.2991, respectively. The average expected  heterozygosity was estimated as 0.3273 ± 0.1697.</text>
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                    <text>Compressive and Flexural Behavior of Hybrid Use of GFRP Profile
with Concrete
Ferhat Aydın
Technology Faculty, Department of Civil Engineering,
Sakarya University, Sakarya, Turkey
ferhata@sakarya.edu.tr
Mehmet Sarıbıyık
Technology Faculty, Department of Civil Engineering,
Sakarya University, Sakarya, Turkey
mehmets@sakarya.edu.tr

Abstract: Research activities have been taking on place for new construction materials
in order to produce more effective constructions. One of the new technological
materials is Pultruded Glass Fibre Reinforced Plastic (GFRP) materials. High tensile
strength, lightweight and non-corrosive properties allowed GFRP to become a
competitive alternative to traditional structural materials. Having resolved fundamental
manufacturing constraints through the development of the pultrusion process, the mass
adaptation of GFRP sections as primary load bearing elements have been used in a
number of civil engineering applications.
In this study; compressive strength and flexural properties of hybrid use of GFRP
profile with concrete have been investigated. The tests applied on the specimens
including plain concrete, GFRP box profiles and concrete filled GFRP profiles to
demonstrate the advantages and importance of GFRP profiles used in civil engineering
applications.
Keywords: Glass Fiber Reinforced Plastic, Concrete, Hybrid structure, Compressive
properties, Flexural properties

Introduction
The investigations on the technical development have been continuous on the new methodology
and construction materials following to the technological development in the world. The limitation of
classical construction materials can be overcome by using new technological materials. In the continuing
quest for improved performance of structural materials, scientists and engineers strive to improve the
traditional natures or produce completely new one. Composite materials are an example of the latter
category. Within the past five decades there has been a rapid increase in the development of advanced
composites incorporating fine fibres, termed fibre reinforced composites. Due to the high cost of metal and
ceramic matrix composite materials, the majority of composites used in the construction industry are based
on polymeric matrix materials. Fibre-reinforced polymer (FRP) composites are formed by embedding
continuous fibres in a resin matrix which binds the fibres together. Common fibres include carbon, glass,
and aramid fibres while common resins are epoxy, polyester, and vinyl ester resins. The most widely used
FRP composite is glass fiber reinforced plastic (GFRP) composite which is a new generation of structural
materials for civil engineering structures. The GFRP materials have been manufactured using Pultrusion
method.
In the Pultrusion method, a continuous E-glass fibre reinforcement in the form of alternate layers
of randomly oriented mat and layers of unidirectional roving bundles are pulled through a resin
impregnator and then on through a heated die to form continuous prismatic members similar in geometry to
those produced by the steel industry as seen Figure 1.

44

�Figure 1. Examples of Pultruded GFRP profiles (www.strongwell.com. 2005)

Pultruded GFRP profiles have great potential as construction materials, presenting several
advantages when compared with traditional materials, related to the higher strength to weight ratio, the
lower self-weight, the electromagnetic transparency, the possibility of being produced with any crosssection geometry, the easier installation, the lower maintenance requirements and the improved durability
under aggressive environments (Karbhari and Seible, 1999, Keller, 2002). The construction industry
appears to be gradually recognizing the additional benefits offered by these materials. Having resolved
fundamental manufacturing constraints through the development of the pultrusion process, the mass
adaptation of GFRP sections as secondary and primary load bearing elements have been used in a number
of civil engineering applications (see Figure 2).

Figure 2. Examples of structure constructed using pultruded GFRP profiles (www.strongwell.com. 2005)

GFRP profiles have been used in the buildings that exposed to the negative effect of the sea and
chemicals. GFRP materials also used in hybrid bridges and soil improvement systems. GFRP–concrete
hybrid elements have also been developed for new structural systems, combining the directional behaviour,
the lightness and the high mechanical performance of GFRP pultruded profiles with the concrete
45

�compressive strength. The use of concrete-filled fibre reinforced tubes has been used in piles for maritime
structures. The concept of hybrid system was first introduced for bridge systems (Seible, 1996).
Preliminary studies, however, have shown that the design of concrete filled FRP tube bridge girders is
stiffness driven, and that material strength may not be fully utilized. While concrete resists compression
and prevents the failure of the tube due to instability phenomena, the FRP element confines the concrete,
contributing to a strength and ductility increase, and protection from aggressive environment (Snow, 1999).
The results from the tests showed that it is possible to manufacture a fibre reinforced plastic hybrid beam
with concrete that can have excellent stiffness and be able to bear heavy loads (Nordin and Taljstena, 2004).
The alternative use of GFRP pultruded profiles in GFRP–concrete hybrid structural elements has a
very interesting potential. Compressive strength and flexural properties of hybrid use of GFRP profile with
concrete have been investigated to use in construction system to demonstrate the advantages and
importance of GFRP profiles used in engineering applications. The study focused on the specimens
including plain concrete, GFRP box profiles and concrete filled GFRP profiles.

Compressive Tests
Three different groups (C20, C30 and C40) of concrete using Ordinary Portland Cement washed
river sand and crashed aggregate were used in manufacturing the specimens. All specimens were made
from the same delivery of materials (sand, aggregate and cement) and similar manufacturing and curing
procedures were adopted throughout the test program.
Concrete and concrete filled GFRP cube specimens in three groups with six specimens in each
groups, concrete classes were prepared according to the Turkish Standard (TSE 802, 1985). Wall thickness
of 4 mm and cross-section of 100x100 mm GFRP box profile were used to produce concrete filled
specimens (see Figure 3). Portions of fresh mixed concrete were filled in cube mould and the remainder
was filled in GFRP profiles. The specimens were kept in the water for 28 days and then tested to determine
compressive strength according to the Turkish Standard (TS EN 12390-3, 2002). Average compressive
strength and unit weight values are presented in Table 1.

Figure 3: Samples of Compressive Tests

46

�Sample

Concrete Class

Unit Weight
(gr/cm3)

Ultimate Load
(N)

Plain Concrete

C 20

2.33

272383

Compressive
Strength
(N/mm2)
27

Concrete filled
GFRP Profiles

C 20

2.21

328450

33

Plain Concrete

C 30

2.37

393250

39

Concrete filled
GFRP Profiles

C 30

2.27

430480

43

Plain Concrete

C 40

2.41

479816

48

Concrete filled
GFRP Profiles

C 40

2.19

532817

53

Table 1: Results of Compression Tests

Compressive tests outcomes of C20 class specimens showed that the strength of concrete-filled GFRP has
about 22% higher strength when compared with plain concrete. Comparisons between plain concrete and
concrete- filled GFRP profiles average values are given in Figure 4. However; compressive tests outcomes
of C30 and C40 class’s specimens showed that the strength of concrete-filled GFRP has about 10% higher
strength when compared with plain concrete as seen in Figures 5 and 6. Unit weight of concrete was
reduced about 10% as seen in Table 1. The results showed that the hybrid use of GFRP with concrete
increased the compressive strength in three different concrete classes. The outcomes showed that increases
of concrete quality reduce the effect of GFRP profiles. In addition; failure patterns of concrete filled GFRP
profile were examined. Test results showed that all samples were broken from the corner as seen in Figure
7.

Figure 4: Compression results of C20 concrete samples

47

�Figure 5: Compression results of C30 concrete samples

Figure 6: Compression results of C40 concrete samples

48

�Figure 7: Concrete filled GFRP samples failure pattern

Flexure Tests
Concrete and concrete filled GFRP bending specimens in three groups (C20, C30 and C40)
concrete classes were prepared according to the Turkish Standard (TSE 802, 1985). Wall thickness of 4
mm and cross-section of 74x74 mm length of 500 mm (beam’s span 400 mm) GFRP box profile were used
to produce concrete filled bending specimens (see Figure 8). Portions of fresh mixed concrete were filled in
GFRP box section and remainder was filled in same size of mould. The specimens were kept in the water
for 28 days and then tested to determine bending strength according to the Turkish Standard (TS EN
12390-5, 2002). Three point bending tests were performed using universal tensile test machine as shown in
Figure 9. Deflection of plain concrete, plain GFRP box section and concrete filled GFRP profile were
recorded to determine the relative bending of the specimens. The load cell and LVDTs were connected to a
PC via a signal conditioning unit. Measurements were taken at five intervals giving approximately 150 sets
of measurements per test.

Figure 8: Samples of Flexure Tests

49

�Figure 9: Flexure Test with Concrete Filled GFRP Box Profile

After experiments in the load-deflection graphs are formed and the bending strength values of all samples
were calculated by the equation 1. The obtained results have been compared to each with others. Average
bending load and bending strength values are presented in Table 2.
M×y
(1)
I
Where; σ is bending strength, M is bending moment, I is moment of inertia and y is neutral axis distance.

σ=

Bending Strength
(N/mm2)

Plain Concrete

Ultimate Load
(kN)
4.84

Box Profile

11.70

47.17

Concrete Filled GFRP Profiles (C 20)

19.45

28.79

Concrete Filled GFRP Profiles (C 30)

19.07

28.23

Concrete Filled GFRP Profiles (C 40)

21.15

31.31

Sample

7.17

Table 2: Results of Flexure Tests

Tests outcomes of specimens showed that the bending load of concrete-filled GFRP has about four
times and two times higher values when compared with plain concrete and plain GFRP box section
respectively. Comparisons between plain concrete, plain GFRP and concrete- filled GFRP profiles loaddeflection graphs are given in Figure 10-12. The results showed that the hybrid use of GFRP with concrete
increased the bending load capacity in three different concrete classes. In addition; the GFRP box section
protects the concrete and the filled concrete defends the local failure of GFRP profile. Test results showed
that all samples were broken from the corner as similar as compressive samples as seen in Figure 13.

50

�Figure 10: Comparison between beam samples in C20 compressive strength

Figure 11: Comparison between beam samples in C30 compressive strength

51

�Figure 12: Comparison between beam samples in C40 compressive strength

Figure 13: Beam Sample after Flexure Test

Conclusions
High tensile strength, lightweight and non-corrosive properties allowed GFRP to become a competitive
alternative to traditional structural materials. Research activities have been taken in order to produce more
effective constructions materials using hybrid use of pultruded GFRP and concrete. Compressive strength
and flexural properties of hybrid use of GFRP profile with concrete have been investigated. The tests
applied on the specimens including plain concrete, GFRP box profiles and concrete filled GFRP profiles.
The outcomes demonstrate the advantages and importance of GFRP profiles will be used engineering
applications. With respect to the experimental behaviour, the following conclusions have been drawn:
•

Compressive tests outcomes of C20 class specimens showed that the strength of concrete-filled GFRP
has about 22% higher strength when compared with plain concrete. The tests outcomes of C30 and
52

�•

C40 class’s specimens showed that the strength of concrete-filled GFRP has about 10% higher when
compared with plain concrete. The results showed that the hybrid use of GFRP with concrete
increased the compressive strength.
Bending tests outcomes of specimens showed that the bending load of concrete-filled GFRP has about
four times higher values when compared with plain concrete and two times higher than plain GFRP
box section. The results showed that the hybrid use of GFRP with concrete increased the bending load
capacity in all concrete classes. GFRP box section protects the concrete and the filled concrete
protects the local failure of GFRP profile.

•

Compressive and bending test results showed that all samples were broken from the corner of
pultruded GFRP box profiles.

•

There are several structural advantages of hybrid use of pultruded GFRP profiles with concrete,
including the increase of the flexural stiffness, reducing the structures deformability, and the increase
of the structures strength capacity, and preventing the local failure of the GFRP profiles.

References
Nordin H.&amp; Taljstena B. (2004). Testing of hybrid FRP composite beams in bending. Composites: Part B 35 (27–33)
Karbhari VM. &amp; Seible F. (1999). Fiber-reinforced polymer composites for civil infrastructure in the USA. Struct Eng
Int, IABSE 1999;9(4):274–7.
Keller T. (2002). Fibre reinforced polymer materials in bridge construction. In: Towards a better built environment—
innovation, sustainability, information technology, IABSE Symposium, Melbourne (CD-Rom).
Snow RK. (1999). Encapsulation: protecting concrete piles in marine environments. Concr Int, ACI 21(12):33–8.
TS EN 12390-3. (2003). Testing hardened concrete - Part 3 : Compressive strength of test specimens, Türk Standardları
Enstitüsü, Ankara
TS EN 12390-5. (2002). Testing hardened concrete - Part 5: Flexural strength of test specimens, Türk Standardları
Enstitüsü, Ankara
TS 802. (1985). Design Concrete Mixes, Türk Standardları Enstitüsü, Ankara
www.strongwell.com. (2005). web page of Strongwell Company

53

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Sarıbıyık, Mehmet</text>
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                <text>Research activities have been taking on place for new construction materials  in order to produce more effective constructions. One of the new technological  materials is Pultruded Glass Fibre Reinforced Plastic (GFRP) materials. High tensile  strength, lightweight and non-corrosive properties allowed GFRP to become a  competitive alternative to traditional structural materials. Having resolved fundamental  manufacturing constraints through the development of the pultrusion process, the mass  adaptation of GFRP sections as primary load bearing elements have been used in a  number of civil engineering applications.  In this study; compressive strength and flexural properties of hybrid use of GFRP  profile with concrete have been investigated. The tests applied on the specimens  including plain concrete, GFRP box profiles and concrete filled GFRP profiles to  demonstrate the advantages and importance of GFRP profiles used in civil engineering  applications.</text>
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                    <text>Effects of Chicken Manure Application on Olive (Olea europaea)
Growth
Sabriye Atmaca
Akdeniz University Faculty of Agriculture Department of Horticulture Antalya / Turkey
Sara Demiral
Akdeniz University Faculty of Agriculture Department of Horticulture Antalya / Turkey
Salih Ülger
Akdeniz University Faculty of Agriculture Department of Horticulture Antalya / Turkey

Abstract: In this research, the possibilities of use of chicken wastes which have
significant potential in Turkey were investigated in olive orchards. Different doses of
solid and liquid chicken manure wastes were applied to high density planted olive trees
to determine their effects on plant growth and developing. Trunk diameter development
and plant height were measured 3 month cycles during the experiment.

Introduction
The olive tree (Olea europaea L.) originated from Upper Mesopotamia and Southwest Asia,
including a part of South East Anatolia Region of Turkey (Özkaya et al., 2004). Archaeological studies
showed that olive cultivation was started in 4000 BC (Ülger, 2010).
Olive cultivation in the worldwide is made in Mediterranean Basin with 90% and the rest part in
the Latin American countries. Approximately 17 million ton olive is produced from 900 million trees in 9
million hectares of land in the world (Ülger, 2010).
In Turkey, according to 2006 data, approximately 1.8 million tons of olive produced from 650.000
hectares of land (Table 2) and 550.000 tones table olives and 170.000 tons olive oil were obtained from this
production (Ülger, 2010).
High density olive growing, a growing system is made to obtain high-efficiency oil. The system
has also significant advantage in terms of early fruiting of trees (usually in 3 years), reduction of trend of
alternate-bearing, allowing to mechanical harvest, collecting of fruits untouched by hand and quick
processing (Anonymous, 2008).
Fertilization is one of the important factors for fruit growing. Fertilization is essential to obtain
enough growing and yield. Fruit trees remove nutrients from the soil in significant amounts in yearly. If
these removed nutrients can not be substituted the trees show some nutrient deficiency and yield reductions
occur. Necessary nutrient supplements should be made to soil to prevent this situation (Anonymous, 2009).
In the poultry business, juicy chicken manure is an important environment problem due to its bad
smell and overflows of sewage to the environment. Therefore, juicy chicken manure, polluting the
environment should be turned organic fertilizer to use in agriculture. U.S. and European developed
countries solved this problem by the processing of poultry waste to animal feed and fertilizer in years ago
(Dogan, 2003).
Many researches have determined nutrient content of chicken manure. Fresh chicken manure
contents as 51.9% water and 30.8% organic matter, 1.78% N, 1.78% P, 1% K, 1% Na, 0.07% Ca and 1.6%
Mg (Şeker, 2005). Inal et al., (1996) found that the chicken manure had high plant nutrient and they
recommend the chicken manure to be used as fertilizer in agriculture.
In this study, the effects of different doses of solid and liquid forms of processed chicken manure
on tree height and trunk diameter growth in olive (Olea europaea L.) trees were investigated.

150

�Materials and Methods
This study was conducted on 3 years old and 4x1.5 m planted “Gemlik” olive trees in Application
and Research Field of Faculty of Agriculture, Akdeniz University in 2009-2010. Processed solid chicken
manure (PSCM, trade name ORG-M-VIT) and processed liquid commercial manure (PLCM, trade name
KAL) were applied to the trees in the experiment. First 0, 1, 2, 4, 6, 8 kg/tree PSCM (Table 1) were applied
to the olive trees in March and then 150 mL PLCM were applied to these olive trees in March, April, May,
June, July and August (Table 1). Trunk diameter and plant height were measured three months intervals
after application. Tree height was determined from ground level by tape measure and trunk diameter was
measured from 30 cm above the ground level by calliper. The experiment was designed as randomized
block and three replications, and each block has 3 trees.
Applications
Control
2. application
3. application
4. application
5. application
6. application

Application dosages and application dates
0 kg/tree PSCM + 0 PLCM
1 kg/tree PSCM (March) + 150 mL PLCM (March, April, May, June, July, August)
2 kg/tree PSCM (March) + 150 mL PLCM (March, April, May, June, July, August)
4 kg/tree PSCM (March) + 150 mL PLCM (March, April, May, June, July, August)
6 kg/tree PSCM (March) + 150 mL PLCM (March, April, May, June, July, August)
8 kg/tree PSCM (March) + 150 mL PLCM (March, April, May, June, July, August)
Table 1. Used dosages and application time of PSCM and PLCM.

Results and Discussion

The best average tree height developing was obtained from application of 4 kg/tree PSCM in
March +150 mL PLCM in March, April, May, June, July, August. The average height of tree was 121 cm
at first measuring time, and then the average height was reached 186 cm at the fourth measuring time in the
fourth application group trees. The differentiation between the first and fourth measurement was 75 cm.
The average smallest tree height developing was determined in sixth application groups with 24 cm
differentiation (Figure 1).

200
190
Tree height (cm)

180

1. application

170

2. application

160

3. application

150

4. application

140

5. application

130

6. application

120
110
100
1

2

3

4

Time

Figure 1. Average plant height after application of different dosages and application time of PSCM+PLCM

151

�Average trunk diameter and thickness increased depending on time after PSCM+PLCM
application. The strongest and weakest body diameter development were observed with 43.70 and 8.25 mm
respectively in number 4 applications (4 kg/tree PSCM in March + 150 mL PLCM in March, April, May,
June, July, August) and in number 6 applications (8 kg/tree PSCM inMarch+150 mL PLCM in March,
April, May, June, July, August) (Figure 2).
PSCM+PLCM application positively affected trunk and height development of “Gemlik” olive
cultivars. Similarly, positive results were obtained by Polat (2001) in organic lettuce growing, Dogan
(2003) in tomato and cucumber seedlings growing and Şeker (2005) in maize development after chicken
manure application.
Since olive is a perennial plant, the effects of chicken manure may not be seen with one year
results. But one year results showed that some dosages of chicken manure had positive effect in terms of
plant height and trunk development in olive trees.

45

Trunk diameter (mm)

40
1. application
35

2. application
3. application

30

4. application
5. application

25

6. application
20
15
1

2

3

4

Time

Figure 2. Average plant trunk diameter developing after application of different dosages and application
time of PSCM+PLCM

References
Anonymous, 2008. http://www.provedo.com/html/eng/olivo_superintensivo.htm
Anonymous, 2009. Meyve Ağaçlarında Gübreleme, Eğirdir Bahçe Kültürleri Araştırma Enstitüsü, www. 3.
Ulusal Gübre Sempozyumu.
Doğan, D., 2003. Domates ve Hıyar Fidesi Üretiminde Yetiştirme Ortamlarına Katılan Tavuk Gübresinin
Fide Gelişimi ve Kalitesine Etkileri. Ankara Universitesi Fen Bilimleri Enstitüsü Yüksek Lisans Tezi,
Ankara.
Seker, C., Gümüş, I. and Zengin, M., 2005. Mısır Bitkisinin Ilk gelişimine Kompostlaştırılmış Tuzlu Tavuk
Gübresinin Etkisi. S.U. Ziraat Fakültesi Dergisi 19 (37): 113-117.
Inal, A., Sözüdoğru, S. and Erden, D., 1996. Tavuk Gübresinin Içeriği ve Gübre Değeri. Tarım Bilimleri
Dergisi, 2 (3): 45-50.

152

�Ozkaya, M.T., Ergülen, E., Ulger, S. and Ozilbey, N. 2004. Genetic And Biologic Characterization Of
Some Olive (Olea Europaea L.) Cultivars Grown in Turkey. Tarım Bilimleri Dergisi, 10(2):231-236.
Polat, E., Sönmez, S., Demir, H. and Kaplan, M. 2001. Farklı Organik Gübre Uygulamalarının Marulda
Verim, Kalite ve Bitki Besin Maddeleri Alımına Etkileri. Türkiye 2. Ekolojik Tarım Sempozyumu, Antalya,
69-77.
Ulger, S. 2010. Subtropik Iklim Meyveleri (Zeytin) Ders Notu. Yayın no:16, Akd. Univ. Zir. Fak. Basım
Unitesi.

153

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Demiral, Sara
Ülger, Salih</text>
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                <text>In this research, the possibilities of use of chicken wastes which have  significant potential in Turkey were investigated in olive orchards. Different doses of  solid and liquid chicken manure wastes were applied to high density planted olive trees  to determine their effects on plant growth and developing. Trunk diameter development  and plant height were measured 3 month cycles during the experiment.</text>
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                    <text>Strategic Sustainable Development and Creating Strategies from
TOWS Matrix at Kipaş Group
Imran Aslan
The University of Erzincan, Turkey
Business Administration Department
imranaslan@gmail.com, iaslan@erzincan.edu.tr
Ramazan Bozkurt
The University of Erzincan, Turkey
Business Administration Department
rbozkurt@erzincan.edu.tr

Abstract: The aim of this study is to develop new strategies for sustainable development of a
group and to establish a holding from several companies by considering the regulations in the
World Trade, recent developments in textile sector and raising conflicts among stakeholders.
In this study, internal analysis of the group was carried out with interviews and surveys. To
prepare external analysis, the economical situation of Turkey and the World was researched
and categorized under standard PEST categories. Important problems were identified and then
the purposes and objectives of the firm were determined by focusing on opportunities. Later,
SWOT analysis of the group was prepared and most significant factors were chosen. In the
light of these factors, TOWS matrix was prepared to combine external and internal factors of
the enterprise in order to deploy strategies. New organization structure of the group was
determined and presented based on these strategies.

Introduction
Kipaş Group founded 26 years ago when the Turkish textile and apparel sector initiated continuing progress by
joint-venture of two families and now employs more than 4000 workers in different sectors. Kipaş Group, a
leading institution within its sector and renown due to its professionalism, its expertise and its high quality
standards, is a precious member of Turkish Textile Industry whereby it transformed a mere cotton yarn
manufacturing plant over years into a fully-integrated textile manufacturing giant. The companies of the group
which have benefited from incentives of Turkish Textile and apparel sector have been growing very rapidly.
Kipaş Group has been formalized by including numerous subsidiary companies through the reorganization of the
group companies since 2005. It decided to change their management structure considering the recent
developments in textile sector and raising conflicts among stakeholders due to the management system of the
company. The removal of quotas and Chinese effects to world textile were the focus point of researches. The
effects of removal of quotas to Turkish textile were assessed with the premature indicators of Turkey's total export
and import. By taking account of enormity of the group and economical situation, the group was proposed to
establish a holding.

Theoretical Background
The regulations in World Trade oblige the national wide companies to develop new strategies for their
sustainability in the market. However, companies must be aware of their internal and external environments to
identify their advantages and disadvantages in order to develop strategies. Self assessment, which is a structured
internal process to identify strengths and weakness for improvement is used by companies for years. (Higgins, J.
M. and Vincze, J. W., 1991, p.3) Strategies for sustainable development are used to initiate change by learning
and continuous adaption rather than by challenging the existent institutions. Such approach has been named as
step-by-step procedure. (Volkery, 2006, p.2048) Interaction between culture, structure and technology, the
approaches optimization–improvement–renewal and the parties involved are three relevant dimensions of
sustainable development.( L. Jansen, 2003, p.233) The change is unavoidable to keep competitiveness in today's
global market. It is important to use right methods to collect data against resistance and misunderstandings while

769

�doing changes. ( McLean, G. N. P., 2006) Deep changes occur in this era with unexpected results. (Diskienė D.,
et al., 2008, p.376 ) Each organization has a capability or ability initiating, managing and implementing largescale changes in organization structure to improve organization ability for a quick adaptation, flexibility and
innovation. There should be a trade-off between available assets of the firm and its continuous development
requirements for firm-specific capabilities. (Yan, Y. , et al., 2009, p.53) Management systems of the firm use
internal and external information to gain a better strategically competitive position in the market by providing
outstanding services and products. (Phelan, Steven E., 2005)
Many approaches and techniques are used for strategic management processes. It is not directed just a single
functional area of group. All efforts are directed toward the mission and vision of the firm to find the best for the
whole group. (Houben G.,et al., 1999, p.130; Dincer O., 2004; Ketelhohn W., 2006, p.307) Strategic management
requires including both short-term and long-term perspective. Both a vision for the future of the organization and
a focus on its present operating needs must be taken into account. (Gregory G., et al., 2005) Strategy defines
‘Where do you want to go?’ and ‘How do you want to get there? Strategy manages the correlation between
organization and changing environment. Internal and external factors effecting company are identified to form
strategies. There should be a relationship between internal competences and values to firm’s external environment.
(Viljoen, J. and Dann, S., 2003, p.68) There is a challenge for the firms to find the ‘fit’ what the firm does and
what the environment requires. Moreover, it should be ready for the new environment that future may bring. This
environment can be totally different and firm should evolve its capabilities and culture to tackle with new
environment. ( Porter, et al., 2001, p.615) Managers may scan their environment and decide that there are major
changes occurring in their business world to which they have to adapt. Or they might decide, through internal
analysis, that they have the ability to develop a new way of doing business that will redefine the nature of the
business they are in. If change is the order of the day, then two issues need to be addressed: external analysis and
internal analysis. For a change of strategy to work, there must be alignment between internal capability and
external opportunity. This is described as ‘strategic fit’. (Tiwana, Amrit, 1999, p.126)

SWOT (Strengths-Weaknesses-Opportunities-Threats) Analysis
SWOT analysis is a tool for auditing an organization and commonly used for analysing internal and external
environments in order to attain a systematic approach and support for decision making. If it is used correctly, it
can provide a good basis for successful strategy formulation (Hsu-Hsi C. and Wen-Chih H. , 2006). It involves
the design of the organizational structure and control systems necessary to implement the chosen strategy. SWOT
analysis can be conducted before mission and goal statement. (Hax, A.C. and Majluf, N.S., 1991) SWOT
identifies Strengths and Weakness and examines the Opportunities and Threats of an organization. SWOT
analysis suggests that firms that use their internal strengths in exploiting environmental opportunities and
neutralizing environmental threats, while avoiding internal weakness, are more likely to gain competitive
advantages than other kinds of firms (Jay B and William H., 2007).
SWOT analysis is drawn from external and internal environments of the organization to determine the strategic
vision of the firm based on the analysis of shareholders. One can think of a well developed strategic vision in
terms of probing opponents’ weaknesses; withdrawing to consider how to act, given the knowledge of the
opposition generated by such a probing; forcing opponents to stretch their resources; concentrating one’s own
resources to attack an opponent’s exposed position; overwhelming selected markets or market segments;
establishing a leadership position of dominance in certain markets; then regrouping one’s resources, deciding
where to make the next thrust; then expanding from the base thus created to dominate a broader area. The leading
strategy is the best strategy geared towards radical change and creating a new vision in which the firm is a leader
rather than a follower of trends set by others to help managers improve organizational effectiveness and corporate
profitability. (El Sawy, et al., 1988, p.455-460)
The coverage of the SWOT Analysis is determined by the firm’s and competitors’ resources. Major types of
resources are financial, organizational, intellectual, informational, relational, legal, human resources and resources
related with reputation. The coverage can be extended for management information, supply of raw materials and
production process. However, these are more specific titles. In this study, we had also the opportunity to assess the
management information, however, couldn’t examined supply of raw materials and production process. The
technicians of the organization could assess raw materials and production process in the project.

770

�There are several tools such as TOWS Matrix and PEST Analysis that are used in strategic management. Some of
them are used as complementary to SWOT.

TOWS Matrix
TOWS matrix is the essential completing tool. It enhances deploying strategies systemically considering the
relations between Strengths, Weakness, Opportunities, and Threats. The consequences of the internal and external
factors can be replaced in a matrix called TOWS Matrix is shown in Figure 1. TOWS matrix helps to
systematically identify relationships between threats, opportunities, weaknesses and strengths, and offers a
structure for generating strategies on the basis of these relationships. (Weihrich, H., 1982, p-45-66)

TOWS
Matrix

Internal Strengths(S)
1.
2.
3.
Internal Weaknesses
(W)
1.
2.
3.
4.

External Opportunities
(O)
1.
2.
3.
SO

External Threats (T)
1.
2.
3.
ST

Strategies that use
strengths to maximize
opportunities.
WO

Strategies that use
strengths to minimize
threats.
WT

Strategies that minimize
weaknesses by taking
advantage of
opportunities.

Strategies that
minimize weaknesses
and avoid threats

Figure 1: TOWS Matrix (Weihrich, H., 1982)

PEST
PEST analysis, which stands for Political-Economical-Social-Technological, is another complementary tool.
Social environment is another concept that must be evaluated by PEST Analysis. The external environment of any
organization can be analyzed by conducting a PEST analysis. External factors usually are beyond the firm's
control and sometimes present themselves as threats. For this reason, some say that "PEST" is an appropriate term
for these factors. However, changes in the external environment also create new opportunities and the letters
sometimes are rearranged to construct the more optimistic term of STEP analysis. The organization’s environment
is made up from three factors known:
�
The internal environment: staff (or internal customers), office technology, wages, finance etc.
�
The micro - environment: the external customers, agents, distributors, suppliers, competitors etc.
�
The macro - environment: Social-cultural forces, Economic forces, Environmental forces, and
Political (legal) forces.
Macro-environment’s components are known as STEP factors. (Dyson, Robert G., 2004, p.630-641)

771

�Strategic Development and SWOT Analysis
The reorganization of the group was done after internal and external analyses of the firms and observations from
surveys and interviews. From internal and external analysis, SWOT Analysis of the group was carried out. The
details of project were explained to every person from top management during interviews. Everything must be
planned well otherwise desired changes may be resisted and not accepted by persons. It was expected from them
that they evaluate the firm objectively for such a critical project. Moreover, their political considerations were also
taken into account. They were employed by both families. Thus, they support the family that employed them.
Every family desired to get more control over the group.

SWOT Analysis of Kipaş
In this part, strengths, weaknesses, opportunities and threats of Kipaş group are presented in the light of the
internal analysis and external analysis. The strengths and weaknesses stem from the interviews, observations and
results of questionnaire, however, the opportunities and threats are drawn out from external analysis, especially
from SWOT analysis of Turkish textile &amp; apparel industry and removal of quotas. The summary of SWOT
Analysis of the group is shown in Figure 2.

Figure 2: SWOT Analysis of Kipaş Group

Case Study- Application of the TOWS Matrix to KIPAş
Kipaş is a successful company having experienced in great difficulties, but then it has developed strategies that
resulted in an excellent market position in the late 2010s. The TOWS Matrix shown in Figure 3 is focusing on the
crucial period from late 2005 to 2010. The external threats and opportunities pertain mostly to the situation Kipaş
faced in textile sector.

Weaknesses and Threats (WT)
A company with great weaknesses often has to resort to a survival strategy. Kipaş could have seriously considered
the option of a joint operation with Asian firms. Another alternative would have been to make investments in
Asian countries. Although in difficulties Kipaş did not have to resort to a survival strategy because the company
still had much strength. Consequently, a more appropriate strategy was to attempt to overcome the weaknesses
and develop them into strengths. In other words, the direction was toward the strength-opportunity position (SO)

772

�in the matrix shown as Figure 3. Specifically, the strategy is to reduce the competitive threat by developing a
more flexible new R&amp;D department to products individualized textile products .

Weaknesses and Opportunities (WO)
The growing affluence of customers has resulted in customized products. Yet, Kipaş have not had a special brand.
Especially when considering big brands in EU such as Nike or Adidas, in long run kipaş should create a brand
name for aimed markets. Kipaş has many problems with its management system due to two families desires to get
more control over the group, improvements in management systems and human resource department were enable
them to establish a new management style in order to take more favorable decisions more quickly. In order to
minimize the additional costs of logistics, E-business and Logistics departments were opened to decrease the
inventors and increase their selling capabilities. Another weakness at Kipaş was the increasing labor costs in
Turkey when compared low labor cost countries in Asia. Kipaş can increase the effectiveness of production or
make production in low labor cities in Turkey.

773

�Figure 3: TOWS Matrix of Kipaş Group Strengths and Threats (ST)

774

�One of the greatest threats to Kipaş was removal of quotas. To overcome this threat, the qualities of the products
have been improved against cheap and unqualified Chinas’ products. To reduce the threats of removal of quotas,
domestic market against china and others should be protected by decreasing textile production costs and
governments should subsidize that. Moreover, Research and Development Department in domestic and foreign
markets can avoid Chinese effects by producing more individualized products. Labor costs are so low in china.
To meet this threat, Kipas has used its capital not only to make investments in Turkey, but also in low labor
countries. This tactic which was congruent with its general strategy helped to improve the firm’s market position.

Strengths and Opportunities (SO)
In general, successful firms build on their strengths to take advantage of opportunities. Kipaş is no exception.
Throughout this discussion Kipaş 's strengths are shown in Figure 2. These strengths have enabled the company
to open a new Opening Business Development and Planning Department. Eventually the same company's
strengths enabled the firm to investments in GAP region and in energy sector providing many employment
opportunities. In another tactical move, Kipaş is expected to increase its market share in EU by using its
experience in these markets and proximity of Turkey to EU.

Organization Structure of Kipaş
After wide analysis, it showed that there was a need for change and this change must be started from top. Thus,
the old organization structure of the Group was changed by taking into consideration the current needs and future
expectations. The SWOT Analysis and TOWS Matrix were very helpful while designing the structure. It was not
only the decision of project team to change the structure but the decision of two families. Both families must agree
on new structure otherwise conflicts would start again. The main characteristic of the old organization of Kipaş
Group illustrated at Figure 4 was its dual headed structure. Every department and company was directly
responsible to this structure and every decision must be made or approved by chairmen of the board. These
decisions vary from very simple ones such as an official procurement to very extensive ones. Moreover, the single
approve of a chairman was not enough to execute; both of the chairmen had to approve and sign any decision or
document. There were many conflicts between families. There were two individuals, fiscal coordinator and an
internal auditor, who was also directly related to chairmen. The major duty of fiscal coordinator was to assist in
budget preparation and accounting support. The internal auditor was responsible for finding out any factors which
conflict to benefits of the organization. These factors can be action, such as a theft, or worker, such as an insider.
There were 6 functional departments in Kipaş: Finance, Procurement, IT (Information Technology), Accounting,
Sales and Personal Department as shown in Figure 4.

775

�ASSEMBLY
OF PARTNERS

Fiscal
Coordinat
or
Coordinat

1st CHAIRMAN
CHAIRMAN
BOARD

2nd
BOARD

FINANCE

ACCOUNTING

PROCUREMEN
T

SALES

IT

PERSONNEL

Internal
Auditor
Coordina
tor

DEPARTMENT

Bozkurt

Kipaş
Denim
Mills

Kipaş

Mipsan

Erdem
Text.

Teksan

KEAŞ

Pera
App
arel

KAREN

Kipaş
Ginning
Agri.

Kipaş
Insurance

TOYMAR

Figure 4: The old organization structure
In this part, the proposed organization structure shown in Figure 5 and the factors of SWOT analysis in Figure 2
how they affected new design is explained. New organization structure of new holding is designed regarding the
outputs of assessment studies. Strategies deployed from TOWS Matrix analysis in Figure 3 of Kipaş is directly
used in this process.

776

�Figure 5: New Proposed Organization Structure of Holding
Considering the financial and consequently political power of company, it is not so tough to venture in new
sectors. Business Development and Planning is a critical directory that aims to integrate the strategic planning of
the current business as well as evaluating the opportunities for the whole group to assure the sustainability of the
Holding Group in international environment. Duties and responsibilities of each function were prepared. Each
company has his own planning unit that deals with the operational planning which feeds the Holding with
information. Yet, integrating all the operational plans is a necessity not only to improve the effectiveness of the
tactical plans but also to prepare the basis for long-term strategic business plans. For example, denim production
plans and Kipas textile production plans are separately prepared but exportation is handled by Vice President of
External Business. Integration gives the possibility for using the spot or durable opportunities in exportation
besides domestic sales. To perform business development, there is one planning engineer tracing the global
business opportunities in all fields concerning Kipas Holding and informing the decision makers (President and 2
Vice Presidents). He prepares the feasibility reports before presentation. Once an opportunity is found realistic in
the Board, the case is taken as a particular project to be run. Then, the Project Team is established to include the
experts from the field to analyze the business in detail. This department handles the project until the project is
started as:
a) a new function of one of the companies
b) a new company
After that state, it is handled to the General Manager of the Company concerned (existing or new) to continue the
operations. In fact, this function is performed by 1st Chairmen of Board. Business Development and Planning
Department have significant responsibilities for enlargement in energy sector to value the new regulations and
possible demand rise in this sector.
The lack of human resources was considered one of the most important problems of Kipaş. Additionally, our
observations resulted in a consensus on the majority of the inappropriate managers in company, especially, at the
Kahramanmaraş. To compensate this drawback, a robust human resources department is proposed for company.
By this department, the company can also measure the performances of the workers, this was absent at that time.

777

�Creating a brand requires hard, intensive and lots of efforts. However, if the image of brand is set down, then the
company can reach very high yield. The profit margin of the company can increase with creation of this high
value added product. Firstly, the creation of brand requires a vigorous marketing department that would firstly
decide the appropriate promotion process and then keep the sustainability of this brand. Moreover, to improve the
attributes of product and use new technologies in an innovative way, the presence of Research and Development
Department is fundamental. The quality concept of brand is developed by quality departments. Being at the right
point at the right time would be run by E-business and Logistics departments.
EU is an important market for Kipaş and the foreign structure of Kipaş would enhance the activities in this market.
Moreover, with dismiss of quotas, new markets are emerging and the new players would place to these virgin
markets. The shares created in this process would be very easy but after a while, when the markets reach steady
state, to penetrate these markets would not be easy. On the other, the low labor cost countries are threats in this
foggy weather. However, this structure enables Kipaş differ from the companies of these countries by their service
level and product quality. To evaluate these opportunities and eliminate this threat, the foreign part is strictly
proposed
The other threats for Kipaş are increasing customer demands and improvements in competitors. The R&amp;D
(Research and Development) and Quality Departments could be effective to eliminate these threats. The R&amp;D
department focuses on not only the products but also the process and by developing processes of production the
company increases its competitiveness. Quality department works with R&amp;D concurrently for continuous
improvement. This would enable to value Kipaş’s experience in the sector and turn its knowledge assets to added
value.

Conclusion
Noticing the reactions and rapid increasing portion of China’s in the market after removing 40 years quotas since
2005, the developed countries have been taking precautions and China respond to reactions with a little increase
in tax of these sectors. Despite of these recent developments, it is impossible to turn to conditions before 2005
and the revolution in the sector initiated with new rules.
Countries and companies have developed new strategies for the new game. SWOT analysis of Kipaş Group
mainly focused on textile and apparel sector. TOWS Matrix helps to deploy strategies while preparing new
organization chart. A new organization structure was prepared to respond to highly competitive markets. It is
clear that, China and other low labor cost Asian Countries, such as India, have been gained advantage in the
market. However, these regulations would undisputedly increase the competitiveness and in this environment
companies would attempt to differentiate by design. Particularly in clothing, the importance of time to market
would ascend dramatically. Consequently, the importance of proximity to markets such as EU and North
America would intensify, which is an important advantage for both Turkey and Kipaş considering proximity to
E.U. However, Turkish companies and Kipaş are obliged to concentrate on quality and supply chain activities
and establish robust R&amp;D structures to create innovative products and design in short periods to turn over these
opportunities to yield. The yields of vertical growth are uncontroversial and Kipaş is a good instance of this.
Kipaş had all steps of supply chain of textile from cotton apparel. However, just last step of general supply chain
was neglected by Kipas that was retailing. Kipaş must concentrate on last and most value added part of chain.
Creation of own brand is the most important step in this essence. In the light of the developments in EU journey
of Turkey, as a strategy, Kipaş can start its retailing activities in Western Europe, more value-added markets
rather than domestic market. The company has the knowledge, culture and values to implement the
aforementioned strategies and proposed organizing structure.

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