DATA ANALYSIS REPORT

Data Analysis Report

Data Analysis Report

Company profile:

Vestel is one of Turkey's largest home and professional appliances manufacturing companies consisting of 18 companies specialised in electronics, major appliances and information technology. Vestel, together with its subsidiary brands such as Techwood, has a significant share in the European market of consumer electronics and home appliances, in particular TV sets.Economic Crisis In recent years' in the ever-changing agenda of Turkey, every issue loses its importance either one day or one week later, but now there is one crucial issue in which Turkey is interested with all of its attention. (Vestell Idris, 2004) This vital issue of Turkey is the economic crisis which came on the scene suddenly in February 2001, after some warnings in November 2000.

CMB (US$mn)

FY08

FY09

Net Sales

3.632

3.002

Exports / Sales

74%

77%

Operating Profit

187

242

EBITDA

329

382

EBITDA margin (%)

9%

13%

Net Earnings

-316

48

Total Assets

2.560

2.521

Shareholders' Equity

574

746

Gross Debt

472

476

Its importance comes from its effect that influenced the whole of Turkey from worker side to employer side. Eventually, Turkey will overcome this crisis too, like the other crises in 1994 and 1989. However, this time we should learn a lesson from our mistakes. In order to learn a lesson we must bring up the causes, and put forth a certain question for consideration: What are the causes of the economic crises in Turkey? First of all, excessive military expenditures and its policy played an essential role in this crisis. In the last 20 years, Turkey's economy has considered the defence important, because of the illegal organizations in the Southeast; PKK, TIKKO, IPDA-C, and DHKP-C, which want to damage and divide Turkey. Main investment and expenditures were dedicated to defending. Although the war in the Southeast ended, Turkey still continues to make great investments for defence and worries about new projects for the future to this end. The Soviet Union tried to do the same, militarizing the economy, in the Second World War, but it was one of the most important things which caused the great economic destruction of the Soviet Union. Therefore, militarizing the economy causes political problems. The militarized economy expands internal tension and hardens the foreign policy by international contacts too. Naturally, it directly affects production, consumption, trade and business. (Vestell Idris, 2004)

Besides military expenditures and its policy, the second main reason for economic crises is the floating currency. Some of the economy experts and politicians supported the transition to the floating currency because of the Brazil example. This floating currency regime was successful in Brazil's economic crisis in January 1999. So Turkey changed its economic policy. But this was a big mistake for Turkey. Contrary to Brazil, Turkey's importation is 25% of its national income; in Brazil this ratio is only 6% . For this reason foreign currency is very crucial for Turkey. The new technology devices like DVD players, VCRs and computer hardware are all imported goods and their prices change according to ...