WHAT EXTERNAL AND INTERNAL FACTORS AFFECT ORGANIC FOOD SECTOR?

Abstract

The aim of this study is to analyse the external and internal factors affecting organic food industry in Turkey. Organic food industry used to be a niche market segment where one can only find it at particular food section or retailers. But in the late 1980s, organic food demand has grown tremendously. This study used the framework suggested for the purpose of analysing the organic food industry in the Turkey. Based on the macro environment framework, the model used the PESTLE analysis and besides; SWOT analysis tends to be more product specific as an individual or an entity conducts this analysis based on that products. SWOT analysis helps to interpret the findings of the PESTLE analysis to determine the business’s strengths and weaknesses, and opportunities and threats. It is important, as a part of the internal focus, to conduct the SWOT analysis prior to completing organic food industry plan.

In this study, firstly, at the macro-environment level for organic food industry, we have discussed about the PESTEL mode, which is useful for management to run an analysis on the environment the company is sitting in. Lastly, at the organic food sector level, we investigate the SWOT analysis model. The model is powerful as it matches both the internal as well as external factors in the analysis. By considering the situation inside the organization, the model suggests how a company can exploit opportunity in the external environment.