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Part 1: Cases Published Through the Department of Management

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UNLUTERCIHI.COM - SELECTED BY FAMOUS PEOPLE, BUT NOBODY ELSE? -  BOUN-ENT-0001

As Unlutercihi (from Turkish Unlu - somebody famous - and tercih - selection) hit its 10th month in the market, the negative growth trend in sales the team experienced during the summer months did not seem to change for the better. Discussions over the partnership structure between the stakeholders were inconclusive, yet meetings were being set with potential investors. When the entrepreneurs were challenged about the partnership structure, their response was that the issue was currently under discussion and a common ground could be found if the investors decided to join in.

Written by: Aysegül Kuyumcu and Stefan Koch

ÜNLÜ -  START - UP TO BANK ON -  BOUN-LEA-0001

It was late morning in May 2006. Mahmut Ünlü, the 39-year-old co-founder and CEO of investment banking and brokerage firm Dundas Ünlü, was on his way to his Maslak office. He had just gotten out of a scenic breakfast meeting near the Bosphorus with Martin Botha, Managing Director of South Africa’s Standard Bank, who had signaled their interest in investing in the company. While such an investment seemed essential to survive in the fierce competition recently materialized in the Turkish market, Ünlü was not sure if it was worth compromising the firm’s autonomy. Since its foundation in 1996, Dundas Ünlü had reached the most critical turning point it had encountered, and in Mahmut Ünlü’s words, “everything was at stake.”

Written by: Gozem Guceri Ucar and Oguzhan Aygoren

Part 2: Cases (Co-)Authored by Members of the Department of Management

RAPID TRANSFORMATION IN TURBULENT TIMES AT TELETAS - 2004 http://www.thecasecentre.org/ Reference no. 304-391-1

This case is based on the experience of Teletas, a large Turkish telecommunications equipment manufacturer, and a nationwide leader in research and development efforts. This company was founded by the initiative of the Turkish government and was later privatised as a large corporation. The aim of the case study is to follow the evolution of a small research and development division into a large business by highlighting the strategic moves of its management. In the process of growth, the company has fended off challenges ranging from government intervention in business decisions to steering the company through tech-sector downturns. The first two sections describe the establishment of Teletas. Then a detailed explanation of its business moves bringing the company to its post-privatisation position is presented. The developments are then associated with productivity and profitability. Finally, the company's products, its competitive environment and research and development efforts are detailed to shed light on how these factors affected the business model. The teaching note was written by Murat Kural.

Written by: Güven Alpay and Murat Kural

BUILDING A NEW CORPORATE IMAGE AT ARCELIK - 2004 http://www.thecasecentre.org/ Reference no. 504-089-1

This case delineates the most significant brand image transformation project in the history of Turkish business. Arcelik, the largest Turkish white goods manufacturer, had grown to a considerable size in the international markets (especially in Europe), reaching 19 million households around the world. An export orientation, along with a well-executed acquisition strategy had served the company well. However, Arcelik's top management felt that the company's image did not truly reflect the transformed corporate identity, with a greater emphasis on innovation and creativity, beyond the traditional values of reliability and continuous presence in its key markets. Therefore, Arcelik embarked upon a risky, but potentially very rewarding exercise: building a new corporate image. Although few people wanted to risk losing Arcelik's top place in the customers' minds, this case illustrates how Arcelik eventually succeeded in aligning its corporate image with its contemporary values. The teaching note was written by Verda Ergin and Pinar Enberker.

Written by: Mustafa Dilber, Verda Ergin and Pinar Enberker

DEVELOPING CIVIL SOCIETY: A CORPORATE SOCIAL RESPONSIBILITY PROJECT: ARGE CONSULTING - 2004 http://www.thecasecentre.org/ Reference no. 704-010-1

This case outlines one of the most successful corporate social responsibility projects ever undertaken in Europe. ARGE Consulting, a boutique strategy consulting firm based in Istanbul, Turkey, has mobilised internal and external resources and built lasting partnerships in order to improve the managerial capacities of civil society organisations in Turkey. Called 'Developing Civil Society', the project disseminated the notions of volunteerism, management quality, and good governance among corporations, government institutions, and non-government organisation (NGO) managers, leading to the first ever National Quality Award for NGOs in Europe. The case provides a framework for companies to determine how they may best use their expertise and connections to produce such results.

Written by: Arzu Iserisay et al.

GARANTI BANK IN THE NEW MILLENNIUM- 2004 http://www.thecasecentre.org/ Reference no. 304-393-1

This case outlines the strategic position of Garanti Bank, one of the largest private banks in Turkey, as it entered the new millennium. By the end of 2000, the Bank had undergone a massive restructuring and was looking for ways to create synergies through partnerships and succeeding in new competitive frontiers, such as on-line banking. The new CEO had set ambitious objectives and the Bank seemed on course to attain those in due time. However, a financial crisis shocked the Turkish economy in 2001, leading to significant losses in the Turkish banking sector. Dogus Holding, the parent company of Garanti Bank, found itself having to react to the new situation by achieving greater savings and merging a smaller bank with Garanti Bank. A proposed strategic partnership with an Italian Bank, Intesa, was about to be completed when September 11 caused great uncertainty in the world economy, leading Intesa to put a hold on the deal, which was shelved indefinitely as a result. An underlying theme throughout the case is the need for financial businesses in emerging countries to be proactive in their strategies and react quickly to changes in the macro and microeconomic environment. In the text, the Turkish banking sector is introduced first, followed by a detailed explanation of how Garanti Bank has improved its competitive position in the past decade, going through a re-engineering process. The case ends with the Bank's position as it adjusted to the post-crisis situation. The teaching note was written by Barbaros Uygun.

Written by: Güven Alpay and Barbaros Uygun

DATASEL: CREATING AN EFFECTIVE SOFTWARE DEVELOPMENT SYSTEM - 2004 http://www.thecasecentre.org/ Reference no. 904-035-1

This case deals with how DataSel, a medium-sized IT (information technology) company operating in Turkey, has confronted and tackled a variety of business challenges stemming from the environment and from within the company itself. The company's reliance on the government as a major customer for systems solutions put unusual burdens on DataSel, which had to contend with extreme uncertainty (eg large scale IT projects being cancelled at short notice) and the small but volatile size of the Turkish IT market in its segments of healthcare and e-commerce (especially in banking). DataSel had to find ways to cope with these unusual challenges in an industry where pressure for speed and effectiveness was constantly increasing thanks to global competition. The first section of this case provides the strategic motives of the company along with recent major achievements in its field of operations. The next section looks at the slowdown period from an organisational perspective while the following section provides elements of opportunity within the company's reach. The final section describes the steps taken to address the organisational weaknesses.The teaching note was written by Ozgur Demirci and Erdal Buyuk

Written by: Nesrin Okay, Özgür Demirci and Erdal Büyük

THE COLLAPSE OF DEMIRBANK - 2004, http://www.thecasecentre.org/Reference no. 104-082-1

This case outlines the process that eventually led to the bankruptcy of Demirbank, one of the top 10 private banks in Turkey. In December 2000, the State Deposits and Insurance Fund (SDIF), the government agency charged with intervening in bank failure situations, announced that the management and all the rights of Demirbank AS were taken over by the Fund due to the weak financial position of the Bank and its negative impact on the Turkish financial sector. It was a teaching, but dramatic lesson for the bank, which had been the sixth in the sector in asset size in 1998. A famous Turkish industrialist family had spent years developing Demirbank and invested huge amounts of money into restructuring their banks through progress and training. They were very passionate about growing and making their banks one of the biggest 500 banks of the world and becoming the model bank of their country in the international arena. They enlarged their activities outside the borders of the country either through 100% ownerships or through strategic partnerships. However, an inability to implement the fundamental aspects of financial risk management, especially in an economy that was quite vulnerable and trying to recover from crisis, ended their business and the investments they had carried for nearly half a century. The case opens with a detailed exposition of the Turkish banking sector as it came out of the 1990s with hopes of leaving behind its crisis-ridden past. Demirbank's position within the sector is traced and events leading to its collapse are chronicled. The teaching note was written by Tugba Gucum and Oguz Akandil.

Written by: Metin Ercan, Tugba Gücüm and Oguz Akandil

IMPROVING CUSTOMER SERVICE AT KAMA FOREIGN TRADING- 2004,http://www.thecasecentre.org/ Reference no. 604-054-1

This case traces the journey towards higher quality of a service business, Kama Foreign Trading, in Turkey. The company's growth in the areas of procurement, technical assistance, logistics, financing and customer complaint handling have necessitated that a more systematic attention be paid to the issue of service quality. The case illustrates the action plan implemented by Kama to reach its goal of being a competitive company in the service sector. The first section provides a background on the current state of the service sector and how quality concepts apply to a service business. The second section explains how Kama has embraced these principles through an action plan involving a restructuring process with the assistance of consultants and the application of the new version of the quality assurance system, ISO 9000-2000. This restructuring focuses on the work-flow both inside and outside of the company, how each process is performed, and tries to identify corrective actions in each process. Finally the study highlights the potential difficulties in adapting to such drastic change. The teaching note was written by Sirri Eker.

Written by: Güven Alpay and Sirri Eker

TRANSFORMATION AT OYAK GROUP - 2004, http://www.thecasecentre.org/Reference no. 304-392-1

This case describes the key elements of transformation at OYAK Group, a diversified business group in Turkey. OYAK is actually a complex organisation, which was founded as an Army Pension Fund but later became a diversified holding. It is active in many industries, including automotive production (with Renault of France) and banking, among others. In the process of Turkey's integration into the world economy, OYAK found it increasingly necessary to modernise its management practices and strategies. An examination of the steps taken by OYAK's revolutionary CEO, Dr Coskun Ulusoy, reveals insights into the cornerstones of OYAK's transformation into a dynamic business group. An underlying theme throughout the case is the need for businesses in emerging countries to be proactive in their strategies. In the text, activities of OYAK Pension Fund are outlined first. Then OYAK Group's businesses and its strategic transformation are described. The case ends with words from new CEO, Coskun Ulusoy, which shed light on the future plans of the Group. The teaching note was written by Mustafa Semizoglu.

Written by: Özer Ertuna and Mustafa Semizoglu

STRATEGIC LAUNCHING OF A NEW ANTIBIOTIC BY LILLY ILAC - 2004, http://www.thecasecentre.org/Reference no. 504-088-1

This case outlines the strategic launch of a new pharmaceutical product by a multinational company in Turkey. Lilly Pharmaceuticals subsidiary, Lilly Ilac, decided to launch a new antibiotic called Lorabid. The global headquarters of Lilly had withdrawn its support for the product on profitability grounds only months before the launch decision in Turkey, so this launch would be a difficult one, especially considering the fact that Lilly already had an antibiotic on the market that could be negatively impacted by the launch of this new product. Setting up a new structure called a Launch Advisory Board and implementing innovative methods for the important launch, Lilly executives knew how to make the product a success in Turkey and position the new product in a way that would avoid cannibalisation of the other antibiotic in the company's portfolio. Utilising methods such as sales simulations, launch events featuring popular public figures and analysing sophisticated research about the opportunities for the drug, the company achieved satisfying results. This marketing case details a complex launch process. The first section explains the organisational infrastructure specifically designed for the launch. The second section describes the launch plan and the third section explains in detail the market research conducted prior to the product launch. The teaching note was written by Yalcin Trana.

Written by: Muzaffer Bodur and Yalcin Trana

INITIAL PUBLIC OFFERING OF TURKCELL - 2004,http://www.thecasecentre.org/ Reference no. 104-083-1

This case delineates the initial public offering (IPO) of the largest telecommunications company in Turkey. Founded by a large business group in Turkey, Turkcell had gained a large share of the market for mobile telecommunications in Turkey and was rapidly expanding into neighbouring countries. In the year 2000, at a time when companies in the information technology and telecommunications industry were valued at historical peaks, Turkcell decided to go ahead with a simultaneous listing of its shares on the Istanbul and New York Stock Exchanges. Although the IPO initially seemed like a success from a financial point of view, it later disappointed its investors. The case proposes some possible reasons regarding the poor performance of the IPO. The first section introduces the reader to the telecom industry in the world. The second section goes on to describe the mobile telecom industry in Turkey, where Turkcell mainly operates. The third section is devoted to outlining Turkcell's operations, followed by a section on the IPO process of the company. The final section discusses why the IPO did not turn out to benefit its new investors in line with expectations. The teaching note was written by Fulya Sunar.

Written by: Mine Ugurlu and Fulya Sunar

E-GOVERNMENT IN TURKEY: INTEGRATING TAX OFFICES - 2004, , http://www.thecasecentre.org/

Reference no. 904-034-1

This case outlines the scope and significance of a large-scale e-government project implemented throughout Turkey. Devised as a strategic systems tool in the Turkish tax system, project 'VEDOP' transformed the way government carried out its work and resulted in tremendous advantages for its users: civil servants, businesses and individuals. An underlying theme throughout the case is the need for a holistic approach in designing a complete systems solution, rather than individual solutions for different government departments. The teaching note was written by Jasmin Traub.

Written by: Jasmin Traub and Irem Nuhoglu

DEVELOPMENT OF ALKENT ISTANBUL 2000: THE FIRST SATELLITE TOWN IN TURKEY- 2004, http://www.thecasecentre.org/ Reference no. 804-047-1

This case describes the birth and growth of a new concept in property development in Turkey. Alarko Group, known for its experience in construction and engineering work around Turkey and neighbouring countries, has come up with the idea of building a satellite town in the commercial heart of Turkey, the city of Istanbul inhabited by over ten million residents. The company spotted an opportunity in the property market's upscale segment where buyers appreciated not only the features of the property, but also the way of life that comes with living in a quiet, gated suburb community. The case begins with a brief history of the parent holding company and the construction subsidiary. The following sections describe the specific project in more detail, from start to finish. Market research, sales and financing methods are discussed in detail, as well as particular services associated with creating a residential community. The teaching note was written by Harun Moreno.

Written by: Harun Moreno and Güven Alpay

 

Part 3: Other Cases on Turkey

 

Rebranding Godiva: The Yıldız Strategy - January, 2015, https://hbr.org/product/rebranding-godiva-the-yldz-strategy/515059-PDF-ENG

This case concerns Yildiz Holding's acquisition of Godiva Chocolatier from its previous owner, Campbell Soup, and its strategy in preserving Godiva's "made in Belgium" brand position. Provenance Paradox, a problem faced by companies in emerging countries trying to establish their brands in developed markets, had not become a problem for Yildiz Holding. After patiently waiting five years and seeing the company not performing as desired, Murat Ülker, the chairman of Yildiz, decides to change the management structure and encourage rethinking brand positioning, channels, and communications in the U.S. market. How was the Godiva brand affected by the execution problems of previous management? Why did Godiva succeed in international markets while it declined in the U.S.? What were the implications of the change in marketing strategy to Godiva's brand image?

Turkcell - September, 2014, https://hbr.org/product/turkcell/715009-PDF-ENG

This case centers around the shareholder dispute between three major shareholders of Turkcell, and how its management vied against increasing regulatory intervention and market competition in the absence of a fully-functioning board. The battle for control of the Turkish telecom giant led to several years in which the company could not hold annual shareholder meetings, renew its board of directors, or pay dividends, and lacked a board-approved operating budget. Nevertheless, it maintained its majority market share and was the only telecom player with positive EBITDA in the market. What were the implications of this dispute for Turkcell's broad ambitions? How would the continuing battle affect management, talent, and the company's financial performance?

Turkey - A Work in Progress? - August 01, 2012, https://hbr.org/product/turkey--a-work-in-progress/713018-PDF-ENG

For the past 10 years, Turkey has grown its real GDP at about 6% annually. This came after a huge debt crisis in 2001-02, wherein Turkey had to borrow $16 billion from the IMF and comport with its difficult conditionality. Today, Turkey is a middle-income country in search of an effective development strategy. It tends to run high inflation with a devalued currency, despite massive capital inflows and a huge current account deficit. At home, the government has carefully managed between Islamicization, democracy and secularism. And abroad, it deals with a difficult neighborhood-Syria, Iran, Iraq, and Israel (not to mention Russia, Europe and the USA). Prime Minister Erdogan is trying to rewrite the Constitution before 2014, when the next election occurs.

Doing Business in Turkey - September 2012, http://www.hbs.edu/faculty/Pages/item.aspx?num=43166

In a rather flat international business environment characterized by shrinking markets and economic turmoil, Turkey promoted itself as one of the safe havens for investments. Led by the strong domestic demand of a young population, the country had tripled its GDP between 2002 and 2011, and had kept growing by 8.6% in 2011. Thanks to its central location "between the East and the West" and its access to 1.5 billion customers in its region, as well as to its "healthy" state of public finances and reduced government debt, Turkey had by 2012 become the 13th most attractive investment country in the world. As a result, many foreign companies considered setting up shop in Turkey, weighing whether the opportunities would outweigh the difficulties that doing business in emerging markets sometimes brought with it, such as an unpredictable regulatory and tax environment or the presence of a large informal sector. London-based beverages firm Diageo had been facing that same debate in February 2011 when it had to decide whether or not to buy Turkey's leading spirits producer and distributor Mey Icki. The deal would establish Diageo as a leading industry player, but it also bore risks. The case describes Turkey's economy, history, political context, and its business culture, and discusses some of the key opportunities and challenges for foreign players in the Turkish market.

TA Energy (Turkey): A Bundle of International Partnerships- June 28, 2007 https://hbr.org/product/ta-energy-turkey-a-bundle-of-international-partnerships/807175-PDF-ENG

Stimulates discussion of entrepreneurship in emerging economies, especially for entrepreneurs returning to their home countries to start businesses with global technologies and partners. Focuses on the partnership tensions between global firms and local family-dominated conglomerates. Addresses new venture financing in an asset-intensive business through the assembly of strategic contrasts. More broadly, highlights the opportunities and challenges for returnee entrepreneurs.

Akbank Part A: A Crisis Is a Terrible Thing to Waste - January 27, 2010, https://hbr.org/product/akbank-part-a-a-crisis-is-a-terrible-thing-to-waste/HKS117-PDF-ENG

Changes in the external environment and internal responses to these changes demonstrate the impact of government policies and administration on the strategic and tactical options for businesses - government decisions can produce unanticipated threats as well as provide unforeseen opportunities for businesses. This case looks at the provision of financial services both when a banking system is weak and inefficient and when it is liquid, solvent, and highly competitive, seen through the lens of Akbank's adaptation to the evolution of Turkey's banking sector. Of special interest are the effects on financial depth and financial inclusion of a commercial bank's efforts to align its internal capabilities with external opportunities. The film component (available soon) gives one a deeper understanding of both Turkey and Akbank in 2008, to better appreciate the context of Akbank's strategic and operational options. It portrays the dynamism of Turkey and Akbank, as well as both Akbank biases and beliefs of potential customers that might lead to missed opportunities in the provision of financial services for low income households and family businesses.

Akbank Part B: It's a Young Country - January 27, 2010

https://hbr.org/product/akbank-part-b-its-a-young-country/HKS118-PDF-ENG

Changes in the external environment and internal responses to these changes demonstrate the impact of government policies and administration on the strategic and tactical options for businesses - government decisions can produce unanticipated threats as well as provide unforeseen opportunities for businesses. This case looks at the provision of financial services both when a banking system is weak and inefficient and when it is liquid, solvent, and highly competitive, seen through the lens of Akbank's adaptation to the evolution of Turkey's banking sector. Of special interest are the effects on financial depth and financial inclusion of a commercial bank's efforts to align its internal capabilities with external opportunities. The film component (available soon) gives one a deeper understanding of both Turkey and Akbank in 2008, to better appreciate the context of Akbank's strategic and operational options. It portrays the dynamism of Turkey and Akbank, as well as both Akbank biases and beliefs of potential customers that might lead to missed opportunities in the provision of financial services for low income households and family businesses.

Akbank: Credit Card Division - December 12, 2008, https://hbr.org/product/akbank-credit-card-division/909M02-PDF-ENG

The Turkish financial sector has been developing rapidly and often unpredictably, offering an ideal backdrop to carry out an industry analysis in the dynamic environment of an emerging market. Akbank, one of the leading private Turkish banks, has been successful in taking advantage of the new opportunities that appeared in the credit card sector as a result of post-crisis restructuring of the financial services industry in the early 2000s. Launched in late 2001, Akbank's Axess credit card quickly gained a significant market share of 15 per cent and was popular with both customers and merchants. At the same time, the attractive margins in this sector have sparked many local and foreign competitor entries. Setting a sustainable strategy for the next few years is complicated by the change in the political, macro-economic and competitive environment. The new government leading the country since 2002 has improved overall stability in Turkey, which created both opportunities and threats for Akbank's business. The opportunities included an improved banking system and increasing customer disposable income, while the market for credit cards was not yet saturated. However, threats may come from unpredictable actions that banking authorities could implement and increasing competition from both local and international players. The dynamic nature of the banking industry in an emerging market provides a comprehensive case to anchor a discussion about developing flexible strategy in a changing environment. The purpose of the Akbank case is to help students develop environmental analysis skills. It is designed to be used in a strategy course at an undergraduate or graduate level. Additionally, it may be used in a marketing course to illustrate issues related to loyalty programs or in an international business course to illustrate the impact of environmental uncertainty on managerial decision-making.

Garanti Bank: Transformation in Turkey (Abridged)- 2002, https://hbr.org/product/garanti-bank-transformation-in-turkey-abridged/302117-PDF-ENG

Discusses the complete transformation and turnover in every division of Garanti Bank. Describes the multiple change projects managed and cross-cultural issues confronted during the 1990s and the organizational challenge of transforming Garanti Bank into one of Turkey's premier financial institutions.

  TESCO IN TURKEY - 2012, http://www.thecasecentre.org/  , Reference no. 312-096-1

The case focuses on UK-based retailer Tesco's strategies in the Turkish market. It discusses Tesco's international ventures and elaborates on some of the strategies that it followed in the non-UK markets. Tesco entered Turkey in 2003 by acquiring the Kipa Kitle Pazarlama Ticaret ve Gida Sanayi AS (Kipa) chain of supermarkets and operated under the name Tesco Kipa. It started operating hypermarkets and then introduced other format stores in the country. It opened Tesco Express stores which were smaller than hypermarkets, and sold a wide range of food products. To cater to the needs of shoppers who preferred to shop at open air shops and small mom-and-pop stores called bakkals, Tesco Kipa opened smaller stores called supermarkets. It also operated through Kipa Extra stores, which were larger than hypermarkets. Tesco Kipa initially operated in the Izmir region and later expanded to other regions. It localized its operations by offering products preferred by the local people. In spite of its best efforts, Tesco did not manage to become one of the leading players in the market and its market share was at just 1% as of 2011. With Tesco closing its stores in Japan due to poor performance, analysts opined that it might also exit Turkey soon. However, Tesco continued to expand in the country and acquired Ardas Supermarket chain in November 2011. It remained to be seen if Tesco would be able to succeed in the market or would make an exit.

'POZITIF' BRINGING MUSIC TO TURKEY - 2012, http://www.thecasecentre.org/, Reference no. 312-104-1

The POZITIF case provides a fascinating look at an entrepreneurial success story in a difficult market- bringing live Western music styles like jazz, reggae, blues etc to Turkey. An environment with almost no previous tradition or visible market for the product that wanted to be introduced and full of further obstacles proved to be on closer examination full of opportunities for the first entrepreneurs that dared to move ahead. Founded with almost zero capital, POZITIF is now among the best-known music organization and distribution companies of the world. The case can be used to teach basic strategy issues like the nature of value creation, industry and capabilities analysis etc as well as the impact of national environments on innovations. It includes analyses of the Turkish economic environment, POZITIF's past, present and possible future expansion strategies as well as the important aspects of the music business worldwide.

LIPTON TEA IN TURKEY: INFUSING A REAL FLAVOUR OF SUSTAINABILITY - http://www.thecasecentre.org/ 2012, Reference no. SMU-12-0038

This case study discusses the initiatives taken by Unilever, one of the world's leading fast moving consumer goods companies, to promote sustainability by using the example of Lipton Tea in Turkey. In November 2010 Unilever launched the ambitious ‘Unilever Sustainable Living Plan', committing to a ten year journey towards sustainable growth that would touch every point of the value chain - taking responsibility not only for its own direct operations with its suppliers and distributors, but also for how the consumers would use its brands. Lipton Tea, the world's largest tea brand, was the first Unilever brand to partner with Rainforest Alliance (TM) in May 2007 to obtain certification that its tea came from sustainable farms. What made Lipton's sustainability strategy particularly impressive was that it had defied the traditional approach of introducing sustainable products as a niche brand in the market targeted towards the sensitive customer. Instead the company adopted a large-scale mainstream approach, planning that by 2015, all the tea in Lipton teabags would be sourced from Rainforest Alliance (TM) Certified farms, and by 2020, every kilogram of Unilever tea would be sourced sustainably. In July 2011, Unilever Turkey launched the ‘Sustainable Tea Agriculture' project with an aim that consumers in Turkey would soon be able to buy Lipton tea bearing the Rainforest Alliance (TM) seal on the pack. The final objective was that by 2018, all Lipton teas sold in Turkey would be sourced from Rainforest Alliance (TM) Certified farms. This case describes the measures taken so far to achieve the above initiative, and also the challenges that were expected in convincing Lipton Tea consumers and supply chain collaborators of the real value proposition of such sustainability efforts. Through this case, students would be exposed to the concept of sustainability, and to the many factors that have made it become so important for companies, particularly the large multi-nationals, to commit to such initiatives.

TURKEY: SECURING STABILITY IN A ROUGH NEIGHBORHOOD - 2005, http://www.thecasecentre.org/ Reference no. 9-704-045

After suffering years of volatility and crises, Turkey desperately sought macroeconomic and political stability in an ever-worsening region of the world. In the short term, Turkey had to repay its debt, which amounted to more than 80% of GDP. By January 2004, Turkey had entered the final stages of the IMF's latest $17 billion loan program. Each review required that Turkey meet specific goals of monetary control (eg, reducing inflation), restructuring the banking sector, reforming the public sector, and increasing privatization. The country's long-term goal, joining the European Union, would be reached only if the EU's required criteria were met. Elected in November 2002 and the first absolute majority in Parliament in 15 years, the AKP party promised to meet both IMF and EU requirements. Although his AKP party had Islamic roots, Prime Minister Erdogan planned to prove that Turkey was a stable, secular democracy. After Turkey met the EU's requirements, the question remained: Would the EU's ?Christian club? accept a Muslim Turkey?

TURKEY: BETWEEN ATATURK AND ISLAM?- 2011, http://www.thecasecentre.org/Reference no. 211-034-1

The case is an update of Turkey 2004, which received a prize from The Case Centre. It reviews the history, politics, business system, foreign policies of Turkey in a global setting. This case is part of a rolling series of country cases on emerging markets. Each case is approached in one of a number of ways: if I teach policy process, we start with the whop-the key players, their rationale, the tools they use to promote their interests/purposes; the outcomes, and the feedbacks. If the focus is on the business system, I look at the culture, institutions and structure of the business system, in the context of the the state, the country's material conditions, and perceived history; and the physical and ideational external worlds.

THE SHANGRI-LA BOSPHORUS HOTEL: EXTENDING THE FAMED SHANGRI-LA HOSPITALITY TO TURKEY - 2014, http://www.thecasecentre.org/ Reference no. SMU-14-0009

The case is set in May 11, 2013, when the Shangri-La Bosphorus Hotel in Istanbul was inaugurated. The Hong Kong-based Shangri-La Hotels and Resorts was Asia Pacific's leading luxury hotel group and globally regarded as one of the finest hotel ownership and management companies. The group had opened its first deluxe hotel in Singapore in 1971, and over the next 40 years or so had grown into a chain of 82 hotels and resorts throughout Asia Pacific, North America and the Middle East, with an inventory of over 34,000 rooms. In 2009, Shangri-La ventured into Europe, opening the first Shangri-La hotel in Paris. Its entry into Turkey was the group's second foray into the European market. There had been many challenges in launching the hotel. This included delays in the completion of the project, and also putting together a team that could deliver the customer service Shangri-La was renowned for. On-going retention and development of the employees too was recognised as a key challenge. The Shangri-La brand was not very well known in the highly competitive Turkish and neighbouring markets, and so brand awareness had to be enhanced. How should Shangri-La Bosphorus be positioned against its competitors, such as the Four Seasons and the Kempinski? In the long-term, what would drive the growth of the hotel, such that it would become the top choice for travellers to Istanbul? Over and above, the financial viability of the Bosphorus project was of key importance to the group and its partners. How would it be possible for the group to break-even in the shortest possible time? Through this case, students would have an opportunity to understand the challenges that the Shangri-La Group faced when it entered new markets, where the brand was not well known. Students will learn to explain marketing and positioning strategies, and also use key concepts in calculating break-even for a new hotel.

TURKEY'S ECONOMY: THE TURNAROUND MIRACLE - 2005 http://www.thecasecentre.org/ Reference no. 205-037-1

Modern Turkey was founded by Mustafa Kemal, the father of the Turks, after the First World War. Under his leadership, Turkey adopted secularism and democracy, and embraced legal, social and political reforms. After his death in 1938, the predominant feature of Turkey's politics was the considerable power enjoyed by its military. The military successfully staged three coups (between 1960 and 1980), effectively destabilising Turkey's political and economic environment. In addition to the unstable political scenario, the country's growth and development were further hampered by four major crises that hit Turkey, between 1989 and 2002, destroying its financial structure. After each crisis, Turkey borrowed heavily from the International Monetary Fund (IMF), making the country one of the Fund's largest debtors. In such conditions, the Justice and Development Party (AKP) came to power in November 2002. This case study highlights the banking, judicial, tax and social reforms implemented by the Prime Minister Recep Tayyip Erdogan of the AKP, and the seemingly miraculous turnaround of the Turkish economy under his leadership. This case also provides scope for discussing the challenges that Turkey must overcome to sustain its growth in the future.

VALUATING RYANAIR'S EXPANSION TO TURKEY: AN APPLICATION OF DISCOUNTED CASH FLOWS (CASE A) AND REAL OPTIONS (CASE B) http://www.thecasecentre.org/ Reference no. 107-039-4

This case deals with the valuation of a corporate expansion scenario into new markets. This problem is applied to the airline industry: to a hypothetical move by Ryanair into Turkey if Turkey were to join the EU (European Union) (which would alter the regulatory framework for EU airlines interested in servicing the Turkish market). The case offers different levels of valuation complexity. Part (A) uses a static discounted cash flow valuation, net present value (NPV). It also elaborates on the cost of capital and shows how the certainty equivalent valuation works. Real data from the airline industry is used. These static valuations are used as a platform for further analysis in part (B), which introduces real option valuation. The spreadsheets provided with the case contain pre-set formulae with stochastic processes for specific variables that capture most uncertainty in the airline industry. An environment of high uncertainty and managerial flexibility can make real options very valuable as management can take advantage of opportunities (call options) or cut losses (put options) when more information becomes available over time. The case shows how Monte Carlo simulation works and how real options can be built into spreadsheets. The case is conceptually challenging but does not require technical knowledge on stochastics, simulation or real options. A supplement '107-039-4' is available to accompany the case. A teaching note supplement '107-039-9' is available to accompany the teaching note.

TURKCELL: THE ONLY TURK ON WALL STREET - 2004 http://www.thecasecentre.org/ Reference no. 904-063-1

he Turkcell case deals with the complex issue of the fast growing telecommunication market in Turkey. The case highlights some major challenges facing Turkcell, including over-taxation of the mobile communication industry and the threat of new competitors, both internally and externally. The case covers the background of modern Turkey and the history of telecommunications in Turkey. It also presents aspects of the company's short life since its formation in 1994, including being the first Turkish company ever listed on the NYSE (New York Stock Exchange). The case objectives are: (1) to discuss how a market leader needs to think strategically to maintain leadership; (2) to examine the 2001 economic crisis in Turkey; (3) to review the telecommunications industry and to highlight the importance of observing competitors; (4) to examine the marketing success of Turkcell so that customers are retained; and (5) to research opportunities and threats for Turkcell in the telecommunications industry. This case was sponsored by the Indiana University CIBER Case Collection

VEHBI KOC AND THE MAKING OF TURKEY'S LARGEST BUSINESS GROUP - 2001 http://www.thecasecentre.org/ Reference no. 9-811-081

The case describes the creation of Turkey's largest business group by Vehbi Koc. The foundation of this group in the interwar years, and its subsequent diversification into many industries, including automobiles, household goods, and services, are analysed. The case serves as a vehicle to explain why diversified business groups are so important in emerging markets such as Turkey. It explores the role of market imperfections, government policies, and entrepreneurial ambition in their creation, as well as the organizational challenges posed by managing such diversified firms owned by a family. Much of the firm's growth came from licensing and joint venture agreements with multinational firms that were unable, or unwilling, to invest directly in Turkey because of political risk and government restrictions. The case ends in 1988, when the founder has received a report from the management consultancy Bain calling for the firm to reduce the range of activities it undertakes because of the competitive challenges resulting from the liberalization of the Turkish economy.

ARCELIK HOME APPLIANCES: INTERNATIONAL EXPANSION STRATEGY - 2008 http://www.thecasecentre.org/ Reference no. 9-705-477

The Turkish home appliances firm Arcelik is revisiting its growth strategy. Options for growth include continuing to promote currently owned brands in international markets, acquiring new brands, expanding original equipment manufacturer or private-label contracts, and / or diversifying into other businesses within Turkey. Details Arcelik's position within various markets and relevant features of the home appliances industry.

VESTEL: IMPROVING DISTRIBUTION MANAGEMENT AND 3PL RELATIONS - http://www.thecasecentre.org/ Reference no. 604-016-1

Vestel Durable Goods Marketing is the domestic distribution company of Vestel, the largest television producer in Europe and one of the major white goods producers in Turkey. The case describes Vestel Durable Goods Marketing's initiative to improve its distribution system by implementing an advanced planning and optimisation system, Manugistics. The case also depicts how this new system is used to redesign its pricing strategy with Vestel's 3PL provider, Horoz Logistics, and the effects of this system on Vestel's relationship with Horoz Logistics. Vestel's proposal for a strategic alliance with some of its competitors on distribution planning is also presented. The case can be used to address several important topics: (1) the complexity of logistic network design and management problems (along with a quantitative exercise to illustrate this to students); (2) the story of a detailed implementation of a supply chain planning tool (Manugistics) and its novel use in pricing; (3) the relationship between a company and its 3PL provider illustrating various incentive issues, power, and trust dynamics; (4) strategic alliances in logistics along with associated information sharing issues; and (5) an example illustrating the impact of the local context, Turkey, on supply chain management issues.

FIBA FACTORING SME MARKET ENTRY - 2013 http://www.thecasecentre.org/ Reference no. 513-022-1

Oya Yuksel, the general manager of Fiba Factoring, one of the biggest factoring firms in Turkey is about to decide whether to enter into the small and medium enterprise (SME) market. The company has been operating with big firms and the firm does not have any experience in dealing with smaller scale enterprises. The case provides a background information for a financial sector in a high growth emerging country such as Turkey. The case provides a discussion environment for students to analyse the risks and rewards of entering into a new market and SWOT analyses. The students are expected to pick and formulate best entry strategies. Teaching objectives of the case are: to familiarise students with the growth considerations in relatively mature and risky markets in emerging economies, provide a hands on experience on strengths, weaknesses, opportunities and threats (SWOT) analysis, expose students to new market entry decisions. The case has been successfully used with graduate and undergraduate business school students. Typically, it can be used in executive MBA programs as part of strategic analysis or marketing research courses as well as marketing or strategy electives for advanced level undergraduates.

TEMSA: A TIME OF CRISIS - 2006 http://www.thecasecentre.org/ Reference no. 606-029-1

TEMSA, a manufacturer of different size coaches and light trucks, is going through a major crisis due to the economic recession in the country. There are inventories of both finished vehicles and WIP (work in progress) and the expected domestic demand in the next year is extremely low (50 units). To cut expenses the company may need to stop production and lay off personnel. Rigorous evaluation of the alternative strategies that will help the company survive the situation is needed. Since the domestic demand is almost zero TEMSA needs to target more stable markets like Europe. However, TEMSA works under the Mitsubishi license, which presents restrictions. An alternative is to consider entering the European market independently from Mitsubishi. TEMSA already had a favourable experience in Europe with its midi-bus Euro Prestij. It may consider marketing Safari, a new TEMSA brand coach, in Europe but making such a move independently from Mitsubishi presents a challenge. This case aims to highlight the main aspects of a resource based operations strategy that will lead TEMSA to survive the crisis in the short run and reach and operate in more stabilised markets in the long run.

OTOYOL MOTOR COMPANY - 2009 http://www.thecasecentre.org/ Reference no. 9B09M053

Otoyol Motor Company, a large commercial vehicle manufacturer, is on the verge of being liquidated by its shareholders. Despite all efforts to maintain its competitive position, the company has been caught in a downward spiral. Erosion of its first mover advantages, shifts in industry core competencies and changes in consumer preferences have depreciated the company's value proposition and deteriorated its market share. Utilizing empirical data, this case illustrates the evolution of the commercial vehicle industry in Turkey, changes in industry conditions, and competitive strategies employed by the incumbent and its Japanese rivals in various life cycle stages. Puppy dog ploy, market penetration, product strategy, long term market share acquisition stratagems employed by challengers, and the incumbent's counter moves are chronicled.

ALARA AGRI: FRESH CHERRY PRODUCTION - 2009 http://www.thecasecentre.org/ Reference no. 9B09D004

Alara Agri, based in Bursa, Turkey, is one of the world's foremost cherry and fig producers. The president and chief executive officer (CEO) was concerned about a recurring capacity problem at the end of the process where cherries were packed. On some of the plant's conveyor belts, piles of cherries of one size waited to be packed while other belts had too few cherries to keep workers busy, and thus delayed order fulfillment. Diverting excess cherries from a busy line to an underutilized line was not an option as cherries were sorted by size. One solution the CEO had considered was to build another processing line at a cost of US$2 million, although he thought a better solution may be achieved by changing the process or reconfiguring the flow of the machine. The CEO wondered how best to improve capacity with the equipment they already had. To aid in his decision, he examined corporate data with regards to revenues and production figures, incoming cherries received in tonnes, expected size distribution of cherries, and the plant layout and packaging options.

AKBANK: CREDIT CARD DIVISION - http://www.thecasecentre.org/ Reference no. 9B09M002

The Turkish financial sector has been developing rapidly and often unpredictably, offering an ideal backdrop to carry out an industry analysis in the dynamic environment of an emerging market. Akbank, one of the leading private Turkish banks, has been successful in taking advantage of the new opportunities that appeared in the credit card sector as a result of post-crisis restructuring of the financial services industry in the early 2000s. Launched in late 2001, Akbank's Axess credit card quickly gained a significant market share of 15 per cent and was popular with both customers and merchants. At the same time, the attractive margins in this sector have sparked many local and foreign competitor entries. Setting a sustainable strategy for the next few years is complicated by the change in the political, macro-economic and competitive environment. The new government leading the country since 2002 has improved overall stability in Turkey, which created both opportunities and threats for Akbank's business. The opportunities included an improved banking system and increasing customer disposable income, while the market for credit cards was not yet saturated. However, threats may come from unpredictable actions that banking authorities could implement and increasing competition from both local and international players. The dynamic nature of the banking industry in an emerging market provides a comprehensive case to anchor a discussion about developing flexible strategy in a changing environment. The purpose of the Akbank case is to help students develop environmental analysis skills. It is designed to be used in a strategy course (eg to accompany Chapters 4 and 5 of Crossan, Fry and Killing (2006) 'Strategic Analysis and Action') at an undergraduate or graduate level. Additionally, it may be used in a marketing course to illustrate issues related to loyalty programs or in an international business course to illustrate the impact of environmental uncertainty on managerial decision-making.

TURKISH AIRLINES: GLOBALLY YOURS BALANCING GROWTH, PROFITABILITY AND QUALITY- 2012 http://www.thecasecentre.org/ Reference no. 612-011-1

  This case describes the rapid growth of Turkish Airlines which has been accompanied by profit growth and quality improvements. The main questions in the case are whether this growth can be sustained, how/where the airline should grow, and whether the high quality targets set by management are compatible with this growth strategy. The case provides an example for a successful service company where the strategic service vision or strategic fit in operations can be illustrated. The case shows a positive feedback between growth and cost as well as quality driven by scale economies. This is in part due to a hub and spoke system, and also due to a newer fleet with a young pool of employees. The critical role played by location choice as one of the operating strategy decisions of a company, is emphasized by the role the Istanbul hub plays in the success formula of Turkish Airlines. Outstanding quality is an important dimension of Turkish Airlines' strategy, and is shown to depend on excellence in processes, on partnerships, on assets (like planes), and employees. The case provides a good example to emphasize the critical role human resources play for services. The relationship between network growth, fleet development, costs and revenues is further illustrated with a quantitative Exercise in Part B of the case.

  SMARTBITES (A) - 2012 http://www.thecasecentre.org/ Reference no. 9-813-074

  The case describes a Turkish brother-sister team who are evaluating the option of acquiring and operating a franchise of a US bakery/cafe in turkey. They are comparing this option to that of simply starting a similar business.

  VESTEL ELECTRONICS: TRANSITION INTO THE LEADING TV MANUFACTURER - 2005 http://www.thecasecentre.org/ Reference no. 605-015-1

  Vestel Electronics, Manisa, Turkey, has evolved from a local television manufacturer in early 1990s to a global player in less than 10 years. Vestel is now the third largest global TV manufacturer, and operates the largest single location TV assembly facility in the world, with a capacity of 12 million units per annum. Vestel's equal emphasis on delivery performance and cost, along with its customisation capabilities, has contributed to its transition into a global player. The case provides an analysis of Vestel's operations and growth strategies in the 2000-2005 period, and then focuses on Vestel's strategic plans for 2005-2010. The management team recognises that the challenges are now quite different, and developing the 2005-2010 strategic plan would require analysis of a number of exciting new options

  BUENA VISTA GO HOME HEALTHY HOSPITAL: A BED CAPACITY PLANNING CASE STUDY - 2012 http://www.thecasecentre.org/ Reference no. 612-034-1

  The Oncology Department of a University Hospital located in Izmir Turkey, has the task of increasing their bed capacity to satisfy the needs of their patients and to improve the quality of its service. In 2003, the Turkish government introduced a health reform where private health provision could be authorized alongside state provision. Nowadays, it is possible to find private patients together with state patients in the same hospital ward. Therefore, the aim of this case study is to illustrate how to pose and solve bed capacity planning problems under these circumstances. Students will be asked to: 1) understand hospital bed capacity problems 2) identify the main elements of the problem; decision variables, objective and constraints 3) pose the problem in its canonical form 4) analyze the problem solution using Microsoft excel 5) analyze the results found and be able to make decisions based on them. The teaching notes link the theoretical constructs to the case study. They also provide all the information necessary for the lecturer to be able to present the case study and its solution in a clear manner. This case was used during one MSc course receiving positive feedback from students. This case is intended for Master's students who have an operations management background or basic knowledge in operations research.

  GOLDAS: QUALITY IS A FACT - 2004 http://www.thecasecentre.org/ Reference no. 9B04M075

  Goldas is a Turkish-based manufacturer and exporter-importer of gold jewelry. The company is looking at expanding the number of retail stores and increasing revenues through export and its overseas stores. The international relations director must decide what to do first: increase the number of retail stores or increase revenues, and must factor the financing and production issues for each.

  THE PRIVATIZATION OF ANATOLIA NATIONAL TELEKOM: GENERAL INSTRUCTIONS FOR ALL SIMULATION PARTICIPANTS - 2001 http://www.thecasecentre.org/ Reference no. 9-801-431

  Anatolia National Telekom is a multiparty negotiation simulation patterned after the Turkish government's aborted attempt to privatize its state-owned telecommunications monopoly, Turk Telekom, in late 1997. Provides participants with an opportunity to identify and negotiate complex issues related to the valuation and sale of a state-owned enterprise in an emerging market. Members of each negotiating team are valuing a 20% equity stake being offered by three 'selling' teams to three prospective 'buying' teams representing different types of foreign investors. May be used with: (9-801-432) 'The Privatization of Anatolia National Telekom: ANT Confidential Instructions'; (9-801-433) 'The Privatization of Anatolia National Telekom: BOW Confidential Instructions'; (9-801-434) 'The Privatization of Anatolia National Telekom: CORA Confidential Instructions'; (9-801-435) 'The Privatization of Anatolia National Telekom: EUTEL Confidential Instructions'; (9-801-436) 'The Privatization of Anatolia National Telekom: NALI Confidential Instructions'; (9-801-437) 'The Privatization of Anatolia National Telekom: TAD Confidential Instructions'; (9-801-438) 'The Privatization of Anatolia National Telekom: Note on Valuation of Privatizing Enterprises in Emerging Markets'.

  CHERRIES WITH CHARM: TURKEY'S ALARA AGRI - 2009 http://www.thecasecentre.org/

Reference no. 9B09A019

  The chief executive officer (CEO) and owner of Alara Agri, a major Turkish cherry and fig producer, wants to convince retailers in Belgium and Germany (and, later, other parts of Europe) to change cherries from a bulk product to a higher-end luxury product packaged in small carry bags. The move from bulk to small packages has been highly successful in the United Kingdom where retailers reduced waste and increased margins. The German and Belgian retailers are resisting the change, claiming greater price sensitivity in their consumer base. The CEO thinks he needs a detailed test marketing plan to offer to selected retailers.

  TAKING CHARGE AT DOGUS HOLDING (A) - 2002  http://www.thecasecentre.org/ Reference no. 9-402-009

Describes 37-year-old Ferit Sahenk's challenges in taking over his father's traditionally managed $14 billion Turkish conglomerate in a period of economic instability. Leading the large holding company into the 21st century will require the establishment of a more institutionalized structure as opposed to the highly personal style of Ferit's father as he grew the company over the past 50 years. Addresses issues of how to establish credibility as the company's new leader, how to motivate his board members to participate more in the company decisions, how to manage in a period of increasing international competition and Turkey's political and financial instability, and the complexities of succession in family-owned businesses.

  DOGUS GROUP: WEIGHING PARTNERS FOR GARANTI BANK - 2008 http://www.thecasecentre.org/ Reference no. 9-709-401

  In August 2005, the leadership of Turkey's Dogus Group considered opportunities for its flagship enterprise, Garanti Bank, to partner with a foreign financial institution. The case describes the Turkish banking industry and Garanti Bank's position within it, and asks students to consider whether partnership makes sense for Garanti and, if so, which bidder it should select.

  AKIN ONGOR'S JOURNEY - 2006 http://www.thecasecentre.org/ Reference no. 9-306-072

  A retired bank CEO, one of Turkey's most admired leaders, wants to start a leadership institute to develop emerging leaders in the eastern Mediterranean region. Describes his biography and values, the models he established for excellent financial performance and corporate social and environmental responsibility at the bank, and his attempt to partner with an American university to establish the institute. His first approach did not work; what should he do now?

  MANAGING OUTSOURCING: THE CHRMS PROJECT OF THE TURKISH MINISTRY OF HEALTH - 2008  http://www.thecasecentre.org/ Reference no. 909-022-1

  In 1997, the Turkish Ministry of Health began work on the Core Health Resource Management System (CHRMS) project. The Ministry contracted with Siemens-Nixdorf and the Turkish software firm Likom to carry out the project, scheduled to be completed in 1999. By 2002, CHRMS was still not complete, and Likom left the partnership. This vignette case, which includes four discussion questions, looks at issues arising when all aspects of a project are outsourced and / or subcontracted, including questions of cultural differences.

SOMPACK: IF YOU CAN'T BEAT THEM, JOIN THEM? - 2010 http://www.thecasecentre.org/ Reference no. 9B10M071

This case considers attempts by a Turkish manufacturer of cosmetics packaging to trade off quality for cost, in order to compete with the influx of low-cost products from China. It describes the challenges faced by SomPack management in their effort to survive in the face of low-cost Chinese competition as well as the credit crisis. The company had grown because of its focus on quality and customer relations, but had to slash costs first in response to foreign competition and then again due to the global credit crisis. The case discusses many facets of the company's strategy: (1) company efforts at automation to reduce labour costs in conjunction with their efforts to reduce product quality for parts that were to have automated assembly; (2) use of cheaper raw material that required specialized equipment; (3) use of cheaper costs in conjunction with their efforts to reduce product quality for parts that were to have automated assembly; (4) use of cheaper raw material that required specialized equipment; (5) use of cheaper machines that were not acceptable to customers who required high-quality manufacturing; (6) implementation issues with a lower-cost ERP system; and (7) attempts at outsourcing certain components. Decisions to reduce the quality of either processes or products must be made with great care: even though they are meant to be short-term survival measures, they can create significant short-term disruptions apart from potential long-term problems, such as making the company less attractive as a supplier to customers who may still prefer quality and service over cost.

ZER: THE POWER OF COOPERATION - 2014 http://www.thecasecentre.org/ Reference no. 614-016-1

The case provides a detailed look at a cooperation-based business model implemented by Zer Central Services to organise collective procurement for media, direct indirect materials and services, and logistics for group companies. The main drivers for this business model are benefiting from the economies of scale generated by the collective power of the companies, supporting the procurement divisions at the companies, optmising the supply chain for a group of companies, and also managing supplier relations. Zer's revenue model is based on sharing the benefits for the initial period of a project and switching to a service agreement where it receives a service fee. Due to relying mainly on service fees, the company is in search of new ways to increase its profitability and to grow. There are many issues to be considered to expand the business: Which sectors, what type of companies should be targeted? How will the suppliers react if Zer increases its purchasing power even more? What are the economical, legal, operational limits to this business model? How can the trust among cooperating companies be established? Can Zer handle the operational burden if it expands rapidly? The case provides a setting to discuss procurement process in supply chains and different strategic options for a cooperation-based business model. It can be used in an Executive MBA or MBA course on operations management, supply chain management, or operations strategy and also in executive education programs. It is also suitable for an advanced undergraduate course on supply chain management.

GLOBAL MARKET OPPORTUNITY IN THE OLIVE OIL INDUSTRY: THE CASE OF BASER FOOD - 2003 http://www.thecasecentre.org/ Reference no. NAC2226

  Altay Ayhan, Sales and Marketing Director of Baser Food, one of Turkey's largest olive oil exporters, had to decide where future growth was going to come from. While consumers in the domestic market were familiar with the product and had a tradition of consumption, there was stiff competition and the prolonged economic crisis was forcing consumers to switch to cheaper edible oils. Global markets, such as the US and Australia, were attractive since olive oil consumption was increasing partly thanks to the industry's strong promotion of the product's health benefits. However, the costs associated with entering these markets, gaining distribution access and building the support of retailers and customers were huge. Moreover, for a small company like Baser, the consequences of an incorrect decision could prove very expensive. Ayhan first had to determine whether to stay domestic or go global. If he decided to go global, country selection was his next challenge.

 TRITORTRIC - 2006 http://www.thecasecentre.org/ Reference no. 9B07M008

This case looks at the issue of whether an investment bank should invest in Tritortric, a privately held Turkish company specializing in white goods. Tritortric is planning an expansion in Europe either as OEM (original equipment manufacturer) or through the acquistion of an existing European brand. Students will evaluate the attractiveness of Tritortric as a company and to provide guidance related to the mode of international expansion. This case also allows a broader discussion of how a company from an emerging country can compete against companies, brands from a developed one.

VEHBI KOÇ AND THE MAKING OF TURKEY'S LARGEST BUSINESS GROUP (B) - http://www.thecasecentre.org/ Reference no. 9-815-078

The case builds on the earlier A case which described the origins of the Turkish business group established by Vehbi Ko before 1988. This case takes the story forward to 2012 as the Ko group was led by Vehbi's son Rahmi followed by his grandson Mustafa. It explores both the professionalization of the management, and a radical restructuring of the business portfolio as the group refocused on five core sectors. The case also examines the start of the group's globalization strategy which was focused on the white goods affiliate Arçelik.

FINANSBANK 2006 - 2008 http://www.thecasecentre.org/ Reference no. 9-208-108

  How do financial policy requirements and benefits of ownership concentration affect the need for and process of corporate restructuring? This case provides students with an opportunity to analyze the restructuring of a Turkish multinational business group by way of a merger. Finansbank AS is a bank headquartered in Turkey with additional operations in Holland, Switzerland, Russia, Romania, and Ukraine. It was founded by Husnu Ozyegin in 1987, and in April 2006, the National Bank of Greece (NBG) offered to buy part of the bank. Students can consider which factors contributed to Finansbank's growth and success. In order to then assess the terms of NBG's offer, they can evaluate given valuations of the bank and analyze why the proposed deal is structured so that Ozyegin retains a stake and buys back the non-Turkish operations. Students can also consider the offer from the perspective of minority shareholders.

 The Transformation of Mudo,2015

 https://hbr.org/product/the-transformation-of-mudo/416015-PDF-ENG

After 16 years in management consulting, Barış Karakullukçu left to become the CEO of Mudo in 2012, one of the best-known names in Turkey's retail industry. She was tasked with leading Mudo's transition from a family business to a more institutionalized, corporate structure and ensuring a smooth handover of the company from the first to the second-generation owner. As CEO, she makes a series of difficult decisions to transform the company. She develops a new performance management system, reengineers most of the operations, and replaces 80% of the management team including several C-level executives. Two years later, the impact on operations is positive, however the company's profitability continues to struggle. Karakullukçu must decide how best to move forward. While the founder seeks rapid and opportunistic growth, Karakullukçu believes that the company should stabilize its cost structure and limit expansion plans.

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Part 1: Cases Published Through the Department of Management

 

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RAPID TRANSFORMATION IN TURBULENT TIMES AT TELETAS – 2004 Reference no. 304-391-1

This case is based on the experience of Teletas, a large Turkish telecommunications equipment manufacturer, and a nationwide leader in research and development efforts. This company was founded by the initiative of the Turkish government and was later privatised as a large corporation. The aim of the case study is to follow the evolution of a small research and development division into a large business by highlighting the strategic moves of its management. In the process of growth, the company has fended off challenges ranging from government intervention in business decisions to steering the company through tech-sector downturns. The first two sections describe the establishment of Teletas. Then a detailed explanation of its business moves bringing the company to its post-privatisation position is presented. The developments are then associated with productivity and profitability. Finally, the company's products, its competitive environment and research and development efforts are detailed to shed light on how these factors affected the business model. The teaching note was written by Murat Kural.

Written by: Güven Alpay and Murat Kural

BUILDING A NEW CORPORATE IMAGE AT ARCELIK – 2004 Reference no. 504-089-1

This case delineates the most significant brand image transformation project in the history of Turkish business. Arcelik, the largest Turkish white goods manufacturer, had grown to a considerable size in the international markets (especially in Europe), reaching 19 million households around the world. An export orientation, along with a well-executed acquisition strategy had served the company well. However, Arcelik's top management felt that the company's image did not truly reflect the transformed corporate identity, with a greater emphasis on innovation and creativity, beyond the traditional values of reliability and continuous presence in its key markets. Therefore, Arcelik embarked upon a risky, but potentially very rewarding exercise: building a new corporate image. Although few people wanted to risk losing Arcelik's top place in the customers' minds, this case illustrates how Arcelik eventually succeeded in aligning its corporate image with its contemporary values. The teaching note was written by Verda Ergin and Pinar Enberker.

Written by: Mustafa Dilber, Verda Ergin and Pinar Enberker

DEVELOPING CIVIL SOCIETY: A CORPORATE SOCIAL RESPONSIBILITY PROJECT: ARGE CONSULTING – 2004 Reference no. 704-010-1

This case outlines one of the most successful corporate social responsibility projects ever undertaken in Europe. ARGE Consulting, a boutique strategy consulting firm based in Istanbul, Turkey, has mobilised internal and external resources and built lasting partnerships in order to improve the managerial capacities of civil society organisations in Turkey. Called 'Developing Civil Society', the project disseminated the notions of volunteerism, management quality, and good governance among corporations, government institutions, and non-government organisation (NGO) managers, leading to the first ever National Quality Award for NGOs in Europe. The case provides a framework for companies to determine how they may best use their expertise and connections to produce such results.

Written by: Arzu İşerisay et al.

GARANTI BANK IN THE NEW MILLENNIUM- 2004 Reference no. 304-393-1

This case outlines the strategic position of Garanti Bank, one of the largest private banks in Turkey, as it entered the new millennium. By the end of 2000, the Bank had undergone a massive restructuring and was looking for ways to create synergies through partnerships and succeeding in new competitive frontiers, such as on-line banking. The new CEO had set ambitious objectives and the Bank seemed on course to attain those in due time. However, a financial crisis shocked the Turkish economy in 2001, leading to significant losses in the Turkish banking sector. Dogus Holding, the parent company of Garanti Bank, found itself having to react to the new situation by achieving greater savings and merging a smaller bank with Garanti Bank. A proposed strategic partnership with an Italian Bank, Intesa, was about to be completed when September 11 caused great uncertainty in the world economy, leading Intesa to put a hold on the deal, which was shelved indefinitely as a result. An underlying theme throughout the case is the need for financial businesses in emerging countries to be proactive in their strategies and react quickly to changes in the macro and microeconomic environment. In the text, the Turkish banking sector is introduced first, followed by a detailed explanation of how Garanti Bank has improved its competitive position in the past decade, going through a re-engineering process. The case ends with the Bank's position as it adjusted to the post-crisis situation. The teaching note was written by Barbaros Uygun.

Written by: Güven Alpay and Barbaros Uygun

DATASEL: CREATING AN EFFECTIVE SOFTWARE DEVELOPMENT SYSTEM – 2004 Reference no. 904-035-1

This case deals with how DataSel, a medium-sized IT (information technology) company operating in Turkey, has confronted and tackled a variety of business challenges stemming from the environment and from within the company itself. The company's reliance on the government as a major customer for systems solutions put unusual burdens on DataSel, which had to contend with extreme uncertainty (eg large scale IT projects being cancelled at short notice) and the small but volatile size of the Turkish IT market in its segments of healthcare and e-commerce (especially in banking). DataSel had to find ways to cope with these unusual challenges in an industry where pressure for speed and effectiveness was constantly increasing thanks to global competition. The first section of this case provides the strategic motives of the company along with recent major achievements in its field of operations. The next section looks at the slowdown period from an organisational perspective while the following section provides elements of opportunity within the company's reach. The final section describes the steps taken to address the organisational weaknesses.The teaching note was written by Ozgur Demirci and Erdal Buyuk

Written by: Nesrin Okay, Özgür Demirci and Erdal Büyük

THE COLLAPSE OF DEMIRBANK – 2004, Reference no. 104-082-1

This case outlines the process that eventually led to the bankruptcy of Demirbank, one of the top 10 private banks in Turkey. In December 2000, the State Deposits and Insurance Fund (SDIF), the government agency charged with intervening in bank failure situations, announced that the management and all the rights of Demirbank AS were taken over by the Fund due to the weak financial position of the Bank and its negative impact on the Turkish financial sector. It was a teaching, but dramatic lesson for the bank, which had been the sixth in the sector in asset size in 1998. A famous Turkish industrialist family had spent years developing Demirbank and invested huge amounts of money into restructuring their banks through progress and training. They were very passionate about growing and making their banks one of the biggest 500 banks of the world and becoming the model bank of their country in the international arena. They enlarged their activities outside the borders of the country either through 100% ownerships or through strategic partnerships. However, an inability to implement the fundamental aspects of financial risk management, especially in an economy that was quite vulnerable and trying to recover from crisis, ended their business and the investments they had carried for nearly half a century. The case opens with a detailed exposition of the Turkish banking sector as it came out of the 1990s with hopes of leaving behind its crisis-ridden past. Demirbank's position within the sector is traced and events leading to its collapse are chronicled. The teaching note was written by Tugba Gucum and Oguz Akandil.

Written by: Metin Ercan, Tuğba Gücüm and Oğuz Akandil

IMPROVING CUSTOMER SERVICE AT KAMA FOREIGN TRADING- 2004, Reference no. 604-054-1

This case traces the journey towards higher quality of a service business, Kama Foreign Trading, in Turkey. The company's growth in the areas of procurement, technical assistance, logistics, financing and customer complaint handling have necessitated that a more systematic attention be paid to the issue of service quality. The case illustrates the action plan implemented by Kama to reach its goal of being a competitive company in the service sector. The first section provides a background on the current state of the service sector and how quality concepts apply to a service business. The second section explains how Kama has embraced these principles through an action plan involving a restructuring process with the assistance of consultants and the application of the new version of the quality assurance system, ISO 9000-2000. This restructuring focuses on the work-flow both inside and outside of the company, how each process is performed, and tries to identify corrective actions in each process. Finally the study highlights the potential difficulties in adapting to such drastic change. The teaching note was written by Sirri Eker.

Written by: Güven Alpay and Sirri Eker

TRANSFORMATION AT OYAK GROUP – 2004, Reference no. 304-392-1

This case describes the key elements of transformation at OYAK Group, a diversified business group in Turkey. OYAK is actually a complex organisation, which was founded as an Army Pension Fund but later became a diversified holding. It is active in many industries, including automotive production (with Renault of France) and banking, among others. In the process of Turkey's integration into the world economy, OYAK found it increasingly necessary to modernise its management practices and strategies. An examination of the steps taken by OYAK's revolutionary CEO, Dr Coskun Ulusoy, reveals insights into the cornerstones of OYAK's transformation into a dynamic business group. An underlying theme throughout the case is the need for businesses in emerging countries to be proactive in their strategies. In the text, activities of OYAK Pension Fund are outlined first. Then OYAK Group's businesses and its strategic transformation are described. The case ends with words from new CEO, Coskun Ulusoy, which shed light on the future plans of the Group. The teaching note was written by Mustafa Semizoglu.

Written by: Özer Ertuna and Mustafa Semizoğlu

STRATEGIC LAUNCHING OF A NEW ANTIBIOTIC BY LILLY ILAC - 2004, Reference no. 504-088-1

This case outlines the strategic launch of a new pharmaceutical product by a multinational company in Turkey. Lilly Pharmaceuticals subsidiary, Lilly Ilac, decided to launch a new antibiotic called Lorabid. The global headquarters of Lilly had withdrawn its support for the product on profitability grounds only months before the launch decision in Turkey, so this launch would be a difficult one, especially considering the fact that Lilly already had an antibiotic on the market that could be negatively impacted by the launch of this new product. Setting up a new structure called a Launch Advisory Board and implementing innovative methods for the important launch, Lilly executives knew how to make the product a success in Turkey and position the new product in a way that would avoid cannibalisation of the other antibiotic in the company's portfolio. Utilising methods such as sales simulations, launch events featuring popular public figures and analysing sophisticated research about the opportunities for the drug, the company achieved satisfying results. This marketing case details a complex launch process. The first section explains the organisational infrastructure specifically designed for the launch. The second section describes the launch plan and the third section explains in detail the market research conducted prior to the product launch. The teaching note was written by Yalcin Trana.

Written by: Muzaffer Bodur and Yalçın Trana

INITIAL PUBLIC OFFERING OF TURKCELL – 2004, Reference no. 104-083-1

This case delineates the initial public offering (IPO) of the largest telecommunications company in Turkey. Founded by a large business group in Turkey, Turkcell had gained a large share of the market for mobile telecommunications in Turkey and was rapidly expanding into neighbouring countries. In the year 2000, at a time when companies in the information technology and telecommunications industry were valued at historical peaks, Turkcell decided to go ahead with a simultaneous listing of its shares on the Istanbul and New York Stock Exchanges. Although the IPO initially seemed like a success from a financial point of view, it later disappointed its investors. The case proposes some possible reasons regarding the poor performance of the IPO. The first section introduces the reader to the telecom industry in the world. The second section goes on to describe the mobile telecom industry in Turkey, where Turkcell mainly operates. The third section is devoted to outlining Turkcell's operations, followed by a section on the IPO process of the company. The final section discusses why the IPO did not turn out to benefit its new investors in line with expectations. The teaching note was written by Fulya Sunar.

Written by: Mine Uğurlu and Fulya Sunar

Part 2: Cases (Co-)Authored by Members of the Department of Management


E-GOVERNMENT IN TURKEY: INTEGRATING TAX OFFICES - 2004, , http://www.thecasecentre.org/

Reference no. 904-034-1

This case outlines the scope and significance of a large-scale e-government project implemented throughout Turkey. Devised as a strategic systems tool in the Turkish tax system, project 'VEDOP' transformed the way government carried out its work and resulted in tremendous advantages for its users: civil servants, businesses and individuals. An underlying theme throughout the case is the need for a holistic approach in designing a complete systems solution, rather than individual solutions for different government departments. The teaching note was written by Jasmin Traub.

Written by: Jasmin Traub and İrem Nuhoğlu

DEVELOPMENT OF ALKENT ISTANBUL 2000: THE FIRST SATELLITE TOWN IN TURKEY- 2004, Reference no. 804-047-1

This case describes the birth and growth of a new concept in property development in Turkey. Alarko Group, known for its experience in construction and engineering work around Turkey and neighbouring countries, has come up with the idea of building a satellite town in the commercial heart of Turkey, the city of Istanbul inhabited by over ten million residents. The company spotted an opportunity in the property market's upscale segment where buyers appreciated not only the features of the property, but also the way of life that comes with living in a quiet, gated suburb community. The case begins with a brief history of the parent holding company and the construction subsidiary. The following sections describe the specific project in more detail, from start to finish. Market research, sales and financing methods are discussed in detail, as well as particular services associated with creating a residential community. The teaching note was written by Harun Moreno.

Written by: Harun Moreno and Güven Alpay

Part 3: Other Cases on Turkey

Rebranding Godiva: The Yıldız Strategy - January, 2015, https://hbr.org/product/rebranding-godiva-the-yldz-strategy/515059-PDF-ENG

This case concerns Yildiz Holding's acquisition of Godiva Chocolatier from its previous owner, Campbell Soup, and its strategy in preserving Godiva's "made in Belgium" brand position. Provenance Paradox, a problem faced by companies in emerging countries trying to establish their brands in developed markets, had not become a problem for Yildiz Holding. After patiently waiting five years and seeing the company not performing as desired, Murat Ülker, the chairman of Yildiz, decides to change the management structure and encourage rethinking brand positioning, channels, and communications in the U.S. market. How was the Godiva brand affected by the execution problems of previous management? Why did Godiva succeed in international markets while it declined in the U.S.? What were the implications of the change in marketing strategy to Godiva's brand image?

Turkcell - September, 2014, https://hbr.org/product/turkcell/715009-PDF-ENG

This case centers around the shareholder dispute between three major shareholders of Turkcell, and how its management vied against increasing regulatory intervention and market competition in the absence of a fully-functioning board. The battle for control of the Turkish telecom giant led to several years in which the company could not hold annual shareholder meetings, renew its board of directors, or pay dividends, and lacked a board-approved operating budget. Nevertheless, it maintained its majority market share and was the only telecom player with positive EBITDA in the market. What were the implications of this dispute for Turkcell's broad ambitions? How would the continuing battle affect management, talent, and the company's financial performance?

Turkey - A Work in Progress? - August 01, 2012, https://hbr.org/product/turkey--a-work-in-progress/713018-PDF-ENG

For the past 10 years, Turkey has grown its real GDP at about 6% annually. This came after a huge debt crisis in 2001-02, wherein Turkey had to borrow $16 billion from the IMF and comport with its difficult conditionality. Today, Turkey is a middle-income country in search of an effective development strategy. It tends to run high inflation with a devalued currency, despite massive capital inflows and a huge current account deficit. At home, the government has carefully managed between Islamicization, democracy and secularism. And abroad, it deals with a difficult neighborhood-Syria, Iran, Iraq, and Israel (not to mention Russia, Europe and the USA). Prime Minister Erdogan is trying to rewrite the Constitution before 2014, when the next election occurs.

Doing Business in Turkey - September 2012, http://www.hbs.edu/faculty/Pages/item.aspx?num=43166

In a rather flat international business environment characterized by shrinking markets and economic turmoil, Turkey promoted itself as one of the safe havens for investments. Led by the strong domestic demand of a young population, the country had tripled its GDP between 2002 and 2011, and had kept growing by 8.6% in 2011. Thanks to its central location "between the East and the West" and its access to 1.5 billion customers in its region, as well as to its "healthy" state of public finances and reduced government debt, Turkey had by 2012 become the 13th most attractive investment country in the world. As a result, many foreign companies considered setting up shop in Turkey, weighing whether the opportunities would outweigh the difficulties that doing business in emerging markets sometimes brought with it, such as an unpredictable regulatory and tax environment or the presence of a large informal sector. London-based beverages firm Diageo had been facing that same debate in February 2011 when it had to decide whether or not to buy Turkey's leading spirits producer and distributor Mey Icki. The deal would establish Diageo as a leading industry player, but it also bore risks. The case describes Turkey's economy, history, political context, and its business culture, and discusses some of the key opportunities and challenges for foreign players in the Turkish market.

TA Energy (Turkey): A Bundle of International Partnerships- June 28, 2007 https://hbr.org/product/ta-energy-turkey-a-bundle-of-international-partnerships/807175-PDF-ENG

Stimulates discussion of entrepreneurship in emerging economies, especially for entrepreneurs returning to their home countries to start businesses with global technologies and partners. Focuses on the partnership tensions between global firms and local family-dominated conglomerates. Addresses new venture financing in an asset-intensive business through the assembly of strategic contrasts. More broadly, highlights the opportunities and challenges for returnee entrepreneurs.

Akbank Part A: A Crisis Is a Terrible Thing to Waste - January 27, 2010, https://hbr.org/product/akbank-part-a-a-crisis-is-a-terrible-thing-to-waste/HKS117-PDF-ENG

Changes in the external environment and internal responses to these changes demonstrate the impact of government policies and administration on the strategic and tactical options for businesses - government decisions can produce unanticipated threats as well as provide unforeseen opportunities for businesses. This case looks at the provision of financial services both when a banking system is weak and inefficient and when it is liquid, solvent, and highly competitive, seen through the lens of Akbank's adaptation to the evolution of Turkey's banking sector. Of special interest are the effects on financial depth and financial inclusion of a commercial bank's efforts to align its internal capabilities with external opportunities. The film component (available soon) gives one a deeper understanding of both Turkey and Akbank in 2008, to better appreciate the context of Akbank's strategic and operational options. It portrays the dynamism of Turkey and Akbank, as well as both Akbank biases and beliefs of potential customers that might lead to missed opportunities in the provision of financial services for low income households and family businesses.

Akbank Part B: It's a Young Country - January 27, 2010

https://hbr.org/product/akbank-part-b-its-a-young-country/HKS118-PDF-ENG

Changes in the external environment and internal responses to these changes demonstrate the impact of government policies and administration on the strategic and tactical options for businesses - government decisions can produce unanticipated threats as well as provide unforeseen opportunities for businesses. This case looks at the provision of financial services both when a banking system is weak and inefficient and when it is liquid, solvent, and highly competitive, seen through the lens of Akbank's adaptation to the evolution of Turkey's banking sector. Of special interest are the effects on financial depth and financial inclusion of a commercial bank's efforts to align its internal capabilities with external opportunities. The film component (available soon) gives one a deeper understanding of both Turkey and Akbank in 2008, to better appreciate the context of Akbank's strategic and operational options. It portrays the dynamism of Turkey and Akbank, as well as both Akbank biases and beliefs of potential customers that might lead to missed opportunities in the provision of financial services for low income households and family businesses.

Akbank: Credit Card Division - December 12, 2008, https://hbr.org/product/akbank-credit-card-division/909M02-PDF-ENG

The Turkish financial sector has been developing rapidly and often unpredictably, offering an ideal backdrop to carry out an industry analysis in the dynamic environment of an emerging market. Akbank, one of the leading private Turkish banks, has been successful in taking advantage of the new opportunities that appeared in the credit card sector as a result of post-crisis restructuring of the financial services industry in the early 2000s. Launched in late 2001, Akbank's Axess credit card quickly gained a significant market share of 15 per cent and was popular with both customers and merchants. At the same time, the attractive margins in this sector have sparked many local and foreign competitor entries. Setting a sustainable strategy for the next few years is complicated by the change in the political, macro-economic and competitive environment. The new government leading the country since 2002 has improved overall stability in Turkey, which created both opportunities and threats for Akbank's business. The opportunities included an improved banking system and increasing customer disposable income, while the market for credit cards was not yet saturated. However, threats may come from unpredictable actions that banking authorities could implement and increasing competition from both local and international players. The dynamic nature of the banking industry in an emerging market provides a comprehensive case to anchor a discussion about developing flexible strategy in a changing environment. The purpose of the Akbank case is to help students develop environmental analysis skills. It is designed to be used in a strategy course at an undergraduate or graduate level. Additionally, it may be used in a marketing course to illustrate issues related to loyalty programs or in an international business course to illustrate the impact of environmental uncertainty on managerial decision-making.

Garanti Bank: Transformation in Turkey (Abridged)- 2002, https://hbr.org/product/garanti-bank-transformation-in-turkey-abridged/302117-PDF-ENG

Discusses the complete transformation and turnover in every division of Garanti Bank. Describes the multiple change projects managed and cross-cultural issues confronted during the 1990s and the organizational challenge of transforming Garanti Bank into one of Turkey's premier financial institutions.

 

TESCO IN TURKEY - 2012, http://www.thecasecentre.org/  , Reference no. 312-096-1

The case focuses on UK-based retailer Tesco's strategies in the Turkish market. It discusses Tesco's international ventures and elaborates on some of the strategies that it followed in the non-UK markets. Tesco entered Turkey in 2003 by acquiring the Kipa Kitle Pazarlama Ticaret ve Gida Sanayi AS (Kipa) chain of supermarkets and operated under the name Tesco Kipa. It started operating hypermarkets and then introduced other format stores in the country. It opened Tesco Express stores which were smaller than hypermarkets, and sold a wide range of food products. To cater to the needs of shoppers who preferred to shop at open air shops and small mom-and-pop stores called bakkals, Tesco Kipa opened smaller stores called supermarkets. It also operated through Kipa Extra stores, which were larger than hypermarkets. Tesco Kipa initially operated in the Izmir region and later expanded to other regions. It localized its operations by offering products preferred by the local people. In spite of its best efforts, Tesco did not manage to become one of the leading players in the market and its market share was at just 1% as of 2011. With Tesco closing its stores in Japan due to poor performance, analysts opined that it might also exit Turkey soon. However, Tesco continued to expand in the country and acquired Ardas Supermarket chain in November 2011. It remained to be seen if Tesco would be able to succeed in the market or would make an exit.

'POZITIF' BRINGING MUSIC TO TURKEY - 2012, http://www.thecasecentre.org/, Reference no. 312-104-1

The POZITIF case provides a fascinating look at an entrepreneurial success story in a difficult market- bringing live Western music styles like jazz, reggae, blues etc to Turkey. An environment with almost no previous tradition or visible market for the product that wanted to be introduced and full of further obstacles proved to be on closer examination full of opportunities for the first entrepreneurs that dared to move ahead. Founded with almost zero capital, POZITIF is now among the best-known music organization and distribution companies of the world. The case can be used to teach basic strategy issues like the nature of value creation, industry and capabilities analysis etc as well as the impact of national environments on innovations. It includes analyses of the Turkish economic environment, POZITIF's past, present and possible future expansion strategies as well as the important aspects of the music business worldwide.

LIPTON TEA IN TURKEY: INFUSING A REAL FLAVOUR OF SUSTAINABILITY - 2012, Reference no. SMU-12-0038

This case study discusses the initiatives taken by Unilever, one of the world's leading fast moving consumer goods companies, to promote sustainability by using the example of Lipton Tea in Turkey. In November 2010 Unilever launched the ambitious ‘Unilever Sustainable Living Plan', committing to a ten year journey towards sustainable growth that would touch every point of the value chain - taking responsibility not only for its own direct operations with its suppliers and distributors, but also for how the consumers would use its brands. Lipton Tea, the world's largest tea brand, was the first Unilever brand to partner with Rainforest Alliance (TM) in May 2007 to obtain certification that its tea came from sustainable farms. What made Lipton's sustainability strategy particularly impressive was that it had defied the traditional approach of introducing sustainable products as a niche brand in the market targeted towards the sensitive customer. Instead the company adopted a large-scale mainstream approach, planning that by 2015, all the tea in Lipton teabags would be sourced from Rainforest Alliance (TM) Certified farms, and by 2020, every kilogram of Unilever tea would be sourced sustainably. In July 2011, Unilever Turkey launched the ‘Sustainable Tea Agriculture' project with an aim that consumers in Turkey would soon be able to buy Lipton tea bearing the Rainforest Alliance (TM) seal on the pack. The final objective was that by 2018, all Lipton teas sold in Turkey would be sourced from Rainforest Alliance (TM) Certified farms. This case describes the measures taken so far to achieve the above initiative, and also the challenges that were expected in convincing Lipton Tea consumers and supply chain collaborators of the real value proposition of such sustainability efforts. Through this case, students would be exposed to the concept of sustainability, and to the many factors that have made it become so important for companies, particularly the large multi-nationals, to commit to such initiatives.

TURKEY: SECURING STABILITY IN A ROUGH NEIGHBORHOOD - 2005, Reference no. 9-704-045

After suffering years of volatility and crises, Turkey desperately sought macroeconomic and political stability in an ever-worsening region of the world. In the short term, Turkey had to repay its debt, which amounted to more than 80% of GDP. By January 2004, Turkey had entered the final stages of the IMF's latest $17 billion loan program. Each review required that Turkey meet specific goals of monetary control (eg, reducing inflation), restructuring the banking sector, reforming the public sector, and increasing privatization. The country's long-term goal, joining the European Union, would be reached only if the EU's required criteria were met. Elected in November 2002 and the first absolute majority in Parliament in 15 years, the AKP party promised to meet both IMF and EU requirements. Although his AKP party had Islamic roots, Prime Minister Erdogan planned to prove that Turkey was a stable, secular democracy. After Turkey met the EU's requirements, the question remained: Would the EU's ?Christian club? accept a Muslim Turkey?

TURKEY: BETWEEN ATATURK AND ISLAM?- 2011, Reference no. 211-034-1

The case is an update of Turkey 2004, which received a prize from The Case Centre. It reviews the history, politics, business system, foreign policies of Turkey in a global setting. This case is part of a rolling series of country cases on emerging markets. Each case is approached in one of a number of ways: if I teach policy process, we start with the whop-the key players, their rationale, the tools they use to promote their interests/purposes; the outcomes, and the feedbacks. If the focus is on the business system, I look at the culture, institutions and structure of the business system, in the context of the the state, the country's material conditions, and perceived history; and the physical and ideational external worlds.

THE SHANGRI-LA BOSPHORUS HOTEL: EXTENDING THE FAMED SHANGRI-LA HOSPITALITY TO TURKEY - 2014, Reference no. SMU-14-0009

The case is set in May 11, 2013, when the Shangri-La Bosphorus Hotel in Istanbul was inaugurated. The Hong Kong-based Shangri-La Hotels and Resorts was Asia Pacific's leading luxury hotel group and globally regarded as one of the finest hotel ownership and management companies. The group had opened its first deluxe hotel in Singapore in 1971, and over the next 40 years or so had grown into a chain of 82 hotels and resorts throughout Asia Pacific, North America and the Middle East, with an inventory of over 34,000 rooms. In 2009, Shangri-La ventured into Europe, opening the first Shangri-La hotel in Paris. Its entry into Turkey was the group's second foray into the European market. There had been many challenges in launching the hotel. This included delays in the completion of the project, and also putting together a team that could deliver the customer service Shangri-La was renowned for. On-going retention and development of the employees too was recognised as a key challenge. The Shangri-La brand was not very well known in the highly competitive Turkish and neighbouring markets, and so brand awareness had to be enhanced. How should Shangri-La Bosphorus be positioned against its competitors, such as the Four Seasons and the Kempinski? In the long-term, what would drive the growth of the hotel, such that it would become the top choice for travellers to Istanbul? Over and above, the financial viability of the Bosphorus project was of key importance to the group and its partners. How would it be possible for the group to break-even in the shortest possible time? Through this case, students would have an opportunity to understand the challenges that the Shangri-La Group faced when it entered new markets, where the brand was not well known. Students will learn to explain marketing and positioning strategies, and also use key concepts in calculating break-even for a new hotel.

TURKEY'S ECONOMY: THE TURNAROUND MIRACLE - 2005 Reference no. 205-037-1

Modern Turkey was founded by Mustafa Kemal, the father of the Turks, after the First World War. Under his leadership, Turkey adopted secularism and democracy, and embraced legal, social and political reforms. After his death in 1938, the predominant feature of Turkey's politics was the considerable power enjoyed by its military. The military successfully staged three coups (between 1960 and 1980), effectively destabilising Turkey's political and economic environment. In addition to the unstable political scenario, the country's growth and development were further hampered by four major crises that hit Turkey, between 1989 and 2002, destroying its financial structure. After each crisis, Turkey borrowed heavily from the International Monetary Fund (IMF), making the country one of the Fund's largest debtors. In such conditions, the Justice and Development Party (AKP) came to power in November 2002. This case study highlights the banking, judicial, tax and social reforms implemented by the Prime Minister Recep Tayyip Erdogan of the AKP, and the seemingly miraculous turnaround of the Turkish economy under his leadership. This case also provides scope for discussing the challenges that Turkey must overcome to sustain its growth in the future.

VALUATING RYANAIR'S EXPANSION TO TURKEY: AN APPLICATION OF DISCOUNTED CASH FLOWS (CASE A) AND REAL OPTIONS (CASE B)  Reference no. 107-039-4

This case deals with the valuation of a corporate expansion scenario into new markets. This problem is applied to the airline industry: to a hypothetical move by Ryanair into Turkey if Turkey were to join the EU (European Union) (which would alter the regulatory framework for EU airlines interested in servicing the Turkish market). The case offers different levels of valuation complexity. Part (A) uses a static discounted cash flow valuation, net present value (NPV). It also elaborates on the cost of capital and shows how the certainty equivalent valuation works. Real data from the airline industry is used. These static valuations are used as a platform for further analysis in part (B), which introduces real option valuation. The spreadsheets provided with the case contain pre-set formulae with stochastic processes for specific variables that capture most uncertainty in the airline industry. An environment of high uncertainty and managerial flexibility can make real options very valuable as management can take advantage of opportunities (call options) or cut losses (put options) when more information becomes available over time. The case shows how Monte Carlo simulation works and how real options can be built into spreadsheets. The case is conceptually challenging but does not require technical knowledge on stochastics, simulation or real options. A supplement '107-039-4' is available to accompany the case. A teaching note supplement '107-039-9' is available to accompany the teaching note.

TURKCELL: THE ONLY TURK ON WALL STREET - 2004 Reference no. 904-063-1

he Turkcell case deals with the complex issue of the fast growing telecommunication market in Turkey. The case highlights some major challenges facing Turkcell, including over-taxation of the mobile communication industry and the threat of new competitors, both internally and externally. The case covers the background of modern Turkey and the history of telecommunications in Turkey. It also presents aspects of the company's short life since its formation in 1994, including being the first Turkish company ever listed on the NYSE (New York Stock Exchange). The case objectives are: (1) to discuss how a market leader needs to think strategically to maintain leadership; (2) to examine the 2001 economic crisis in Turkey; (3) to review the telecommunications industry and to highlight the importance of observing competitors; (4) to examine the marketing success of Turkcell so that customers are retained; and (5) to research opportunities and threats for Turkcell in the telecommunications industry. This case was sponsored by the Indiana University CIBER Case Collection

VEHBI KOC AND THE MAKING OF TURKEY'S LARGEST BUSINESS GROUP - 2001 Reference no. 9-811-081

The case describes the creation of Turkey's largest business group by Vehbi Koc. The foundation of this group in the interwar years, and its subsequent diversification into many industries, including automobiles, household goods, and services, are analysed. The case serves as a vehicle to explain why diversified business groups are so important in emerging markets such as Turkey. It explores the role of market imperfections, government policies, and entrepreneurial ambition in their creation, as well as the organizational challenges posed by managing such diversified firms owned by a family. Much of the firm's growth came from licensing and joint venture agreements with multinational firms that were unable, or unwilling, to invest directly in Turkey because of political risk and government restrictions. The case ends in 1988, when the founder has received a report from the management consultancy Bain calling for the firm to reduce the range of activities it undertakes because of the competitive challenges resulting from the liberalization of the Turkish economy.

ARCELIK HOME APPLIANCES: INTERNATIONAL EXPANSION STRATEGY - 2008 Reference no. 9-705-477

The Turkish home appliances firm Arcelik is revisiting its growth strategy. Options for growth include continuing to promote currently owned brands in international markets, acquiring new brands, expanding original equipment manufacturer or private-label contracts, and / or diversifying into other businesses within Turkey. Details Arcelik's position within various markets and relevant features of the home appliances industry.

VESTEL: IMPROVING DISTRIBUTION MANAGEMENT AND 3PL RELATIONS - Reference no. 604-016-1

Vestel Durable Goods Marketing is the domestic distribution company of Vestel, the largest television producer in Europe and one of the major white goods producers in Turkey. The case describes Vestel Durable Goods Marketing's initiative to improve its distribution system by implementing an advanced planning and optimisation system, Manugistics. The case also depicts how this new system is used to redesign its pricing strategy with Vestel's 3PL provider, Horoz Logistics, and the effects of this system on Vestel's relationship with Horoz Logistics. Vestel's proposal for a strategic alliance with some of its competitors on distribution planning is also presented. The case can be used to address several important topics: (1) the complexity of logistic network design and management problems (along with a quantitative exercise to illustrate this to students); (2) the story of a detailed implementation of a supply chain planning tool (Manugistics) and its novel use in pricing; (3) the relationship between a company and its 3PL provider illustrating various incentive issues, power, and trust dynamics; (4) strategic alliances in logistics along with associated information sharing issues; and (5) an example illustrating the impact of the local context, Turkey, on supply chain management issues.

FIBA FACTORING SME MARKET ENTRY - 2013 Reference no. 513-022-1

Oya Yuksel, the general manager of Fiba Factoring, one of the biggest factoring firms in Turkey is about to decide whether to enter into the small and medium enterprise (SME) market. The company has been operating with big firms and the firm does not have any experience in dealing with smaller scale enterprises. The case provides a background information for a financial sector in a high growth emerging country such as Turkey. The case provides a discussion environment for students to analyse the risks and rewards of entering into a new market and SWOT analyses. The students are expected to pick and formulate best entry strategies. Teaching objectives of the case are: to familiarise students with the growth considerations in relatively mature and risky markets in emerging economies, provide a hands on experience on strengths, weaknesses, opportunities and threats (SWOT) analysis, expose students to new market entry decisions. The case has been successfully used with graduate and undergraduate business school students. Typically, it can be used in executive MBA programs as part of strategic analysis or marketing research courses as well as marketing or strategy electives for advanced level undergraduates.

TEMSA: A TIME OF CRISIS - 2006 Reference no. 606-029-1

TEMSA, a manufacturer of different size coaches and light trucks, is going through a major crisis due to the economic recession in the country. There are inventories of both finished vehicles and WIP (work in progress) and the expected domestic demand in the next year is extremely low (50 units). To cut expenses the company may need to stop production and lay off personnel. Rigorous evaluation of the alternative strategies that will help the company survive the situation is needed. Since the domestic demand is almost zero TEMSA needs to target more stable markets like Europe. However, TEMSA works under the Mitsubishi license, which presents restrictions. An alternative is to consider entering the European market independently from Mitsubishi. TEMSA already had a favourable experience in Europe with its midi-bus Euro Prestij. It may consider marketing Safari, a new TEMSA brand coach, in Europe but making such a move independently from Mitsubishi presents a challenge. This case aims to highlight the main aspects of a resource based operations strategy that will lead TEMSA to survive the crisis in the short run and reach and operate in more stabilised markets in the long run.

OTOYOL MOTOR COMPANY - 2009 Reference no. 9B09M053

Otoyol Motor Company, a large commercial vehicle manufacturer, is on the verge of being liquidated by its shareholders. Despite all efforts to maintain its competitive position, the company has been caught in a downward spiral. Erosion of its first mover advantages, shifts in industry core competencies and changes in consumer preferences have depreciated the company's value proposition and deteriorated its market share. Utilizing empirical data, this case illustrates the evolution of the commercial vehicle industry in Turkey, changes in industry conditions, and competitive strategies employed by the incumbent and its Japanese rivals in various life cycle stages. Puppy dog ploy, market penetration, product strategy, long term market share acquisition stratagems employed by challengers, and the incumbent's counter moves are chronicled.

ALARA AGRI: FRESH CHERRY PRODUCTION - 2009 Reference no. 9B09D004

Alara Agri, based in Bursa, Turkey, is one of the world's foremost cherry and fig producers. The president and chief executive officer (CEO) was concerned about a recurring capacity problem at the end of the process where cherries were packed. On some of the plant's conveyor belts, piles of cherries of one size waited to be packed while other belts had too few cherries to keep workers busy, and thus delayed order fulfillment. Diverting excess cherries from a busy line to an underutilized line was not an option as cherries were sorted by size. One solution the CEO had considered was to build another processing line at a cost of US$2 million, although he thought a better solution may be achieved by changing the process or reconfiguring the flow of the machine. The CEO wondered how best to improve capacity with the equipment they already had. To aid in his decision, he examined corporate data with regards to revenues and production figures, incoming cherries received in tonnes, expected size distribution of cherries, and the plant layout and packaging options.

AKBANK: CREDIT CARD DIVISION - Reference no. 9B09M002

The Turkish financial sector has been developing rapidly and often unpredictably, offering an ideal backdrop to carry out an industry analysis in the dynamic environment of an emerging market. Akbank, one of the leading private Turkish banks, has been successful in taking advantage of the new opportunities that appeared in the credit card sector as a result of post-crisis restructuring of the financial services industry in the early 2000s. Launched in late 2001, Akbank's Axess credit card quickly gained a significant market share of 15 per cent and was popular with both customers and merchants. At the same time, the attractive margins in this sector have sparked many local and foreign competitor entries. Setting a sustainable strategy for the next few years is complicated by the change in the political, macro-economic and competitive environment. The new government leading the country since 2002 has improved overall stability in Turkey, which created both opportunities and threats for Akbank's business. The opportunities included an improved banking system and increasing customer disposable income, while the market for credit cards was not yet saturated. However, threats may come from unpredictable actions that banking authorities could implement and increasing competition from both local and international players. The dynamic nature of the banking industry in an emerging market provides a comprehensive case to anchor a discussion about developing flexible strategy in a changing environment. The purpose of the Akbank case is to help students develop environmental analysis skills. It is designed to be used in a strategy course (eg to accompany Chapters 4 and 5 of Crossan, Fry and Killing (2006) 'Strategic Analysis and Action') at an undergraduate or graduate level. Additionally, it may be used in a marketing course to illustrate issues related to loyalty programs or in an international business course to illustrate the impact of environmental uncertainty on managerial decision-making.

TURKISH AIRLINES: GLOBALLY YOURS BALANCING GROWTH, PROFITABILITY AND QUALITY- 2012 Reference no. 612-011-1

 

This case describes the rapid growth of Turkish Airlines which has been accompanied by profit growth and quality improvements. The main questions in the case are whether this growth can be sustained, how/where the airline should grow, and whether the high quality targets set by management are compatible with this growth strategy. The case provides an example for a successful service company where the strategic service vision or strategic fit in operations can be illustrated. The case shows a positive feedback between growth and cost as well as quality driven by scale economies. This is in part due to a hub and spoke system, and also due to a newer fleet with a young pool of employees. The critical role played by location choice as one of the operating strategy decisions of a company, is emphasized by the role the Istanbul hub plays in the success formula of Turkish Airlines. Outstanding quality is an important dimension of Turkish Airlines' strategy, and is shown to depend on excellence in processes, on partnerships, on assets (like planes), and employees. The case provides a good example to emphasize the critical role human resources play for services. The relationship between network growth, fleet development, costs and revenues is further illustrated with a quantitative Exercise in Part B of the case.

 

SMARTBITES (A) - 2012 Reference no. 9-813-074

 

The case describes a Turkish brother-sister team who are evaluating the option of acquiring and operating a franchise of a US bakery/cafe in turkey. They are comparing this option to that of simply starting a similar business.

 

VESTEL ELECTRONICS: TRANSITION INTO THE LEADING TV MANUFACTURER - 2005  Reference no. 605-015-1

 

Vestel Electronics, Manisa, Turkey, has evolved from a local television manufacturer in early 1990s to a global player in less than 10 years. Vestel is now the third largest global TV manufacturer, and operates the largest single location TV assembly facility in the world, with a capacity of 12 million units per annum. Vestel's equal emphasis on delivery performance and cost, along with its customisation capabilities, has contributed to its transition into a global player. The case provides an analysis of Vestel's operations and growth strategies in the 2000-2005 period, and then focuses on Vestel's strategic plans for 2005-2010. The management team recognises that the challenges are now quite different, and developing the 2005-2010 strategic plan would require analysis of a number of exciting new options

 

 

BUENA VISTA GO HOME HEALTHY HOSPITAL: A BED CAPACITY PLANNING CASE STUDY - 2012 Reference no. 612-034-1

 

The Oncology Department of a University Hospital located in Izmir Turkey, has the task of increasing their bed capacity to satisfy the needs of their patients and to improve the quality of its service. In 2003, the Turkish government introduced a health reform where private health provision could be authorized alongside state provision. Nowadays, it is possible to find private patients together with state patients in the same hospital ward. Therefore, the aim of this case study is to illustrate how to pose and solve bed capacity planning problems under these circumstances. Students will be asked to: 1) understand hospital bed capacity problems 2) identify the main elements of the problem; decision variables, objective and constraints 3) pose the problem in its canonical form 4) analyze the problem solution using Microsoft excel 5) analyze the results found and be able to make decisions based on them. The teaching notes link the theoretical constructs to the case study. They also provide all the information necessary for the lecturer to be able to present the case study and its solution in a clear manner. This case was used during one MSc course receiving positive feedback from students. This case is intended for Master's students who have an operations management background or basic knowledge in operations research.

 

GOLDAS: QUALITY IS A FACT - 2004 Reference no. 9B04M075

 

Goldas is a Turkish-based manufacturer and exporter-importer of gold jewelry. The company is looking at expanding the number of retail stores and increasing revenues through export and its overseas stores. The international relations director must decide what to do first: increase the number of retail stores or increase revenues, and must factor the financing and production issues for each.

 

THE PRIVATIZATION OF ANATOLIA NATIONAL TELEKOM: GENERAL INSTRUCTIONS FOR ALL SIMULATION PARTICIPANTS - 2001 Reference no. 9-801-431

 

Anatolia National Telekom is a multiparty negotiation simulation patterned after the Turkish government's aborted attempt to privatize its state-owned telecommunications monopoly, Turk Telekom, in late 1997. Provides participants with an opportunity to identify and negotiate complex issues related to the valuation and sale of a state-owned enterprise in an emerging market. Members of each negotiating team are valuing a 20% equity stake being offered by three 'selling' teams to three prospective 'buying' teams representing different types of foreign investors. May be used with: (9-801-432) 'The Privatization of Anatolia National Telekom: ANT Confidential Instructions'; (9-801-433) 'The Privatization of Anatolia National Telekom: BOW Confidential Instructions'; (9-801-434) 'The Privatization of Anatolia National Telekom: CORA Confidential Instructions'; (9-801-435) 'The Privatization of Anatolia National Telekom: EUTEL Confidential Instructions'; (9-801-436) 'The Privatization of Anatolia National Telekom: NALI Confidential Instructions'; (9-801-437) 'The Privatization of Anatolia National Telekom: TAD Confidential Instructions'; (9-801-438) 'The Privatization of Anatolia National Telekom: Note on Valuation of Privatizing Enterprises in Emerging Markets'.

 

CHERRIES WITH CHARM: TURKEY'S ALARA AGRI - 2009 Reference no. 9B09A019

 

The chief executive officer (CEO) and owner of Alara Agri, a major Turkish cherry and fig producer, wants to convince retailers in Belgium and Germany (and, later, other parts of Europe) to change cherries from a bulk product to a higher-end luxury product packaged in small carry bags. The move from bulk to small packages has been highly successful in the United Kingdom where retailers reduced waste and increased margins. The German and Belgian retailers are resisting the change, claiming greater price sensitivity in their consumer base. The CEO thinks he needs a detailed test marketing plan to offer to selected retailers.

 

TAKING CHARGE AT DOGUS HOLDING (A) - 2002  Reference no. 9-402-009

Describes 37-year-old Ferit Sahenk's challenges in taking over his father's traditionally managed $14 billion Turkish conglomerate in a period of economic instability. Leading the large holding company into the 21st century will require the establishment of a more institutionalized structure as opposed to the highly personal style of Ferit's father as he grew the company over the past 50 years. Addresses issues of how to establish credibility as the company's new leader, how to motivate his board members to participate more in the company decisions, how to manage in a period of increasing international competition and Turkey's political and financial instability, and the complexities of succession in family-owned businesses.

 

DOGUS GROUP: WEIGHING PARTNERS FOR GARANTI BANK - 2008 Reference no. 9-709-401

 

In August 2005, the leadership of Turkey's Dogus Group considered opportunities for its flagship enterprise, Garanti Bank, to partner with a foreign financial institution. The case describes the Turkish banking industry and Garanti Bank's position within it, and asks students to consider whether partnership makes sense for Garanti and, if so, which bidder it should select.

 

AKIN ONGOR'S JOURNEY - 2006 Reference no. 9-306-072

 

A retired bank CEO, one of Turkey's most admired leaders, wants to start a leadership institute to develop emerging leaders in the eastern Mediterranean region. Describes his biography and values, the models he established for excellent financial performance and corporate social and environmental responsibility at the bank, and his attempt to partner with an American university to establish the institute. His first approach did not work; what should he do now?

 

MANAGING OUTSOURCING: THE CHRMS PROJECT OF THE TURKISH MINISTRY OF HEALTH - 2008  Reference no. 909-022-1

 

In 1997, the Turkish Ministry of Health began work on the Core Health Resource Management System (CHRMS) project. The Ministry contracted with Siemens-Nixdorf and the Turkish software firm Likom to carry out the project, scheduled to be completed in 1999. By 2002, CHRMS was still not complete, and Likom left the partnership. This vignette case, which includes four discussion questions, looks at issues arising when all aspects of a project are outsourced and / or subcontracted, including questions of cultural differences.

SOMPACK: IF YOU CAN'T BEAT THEM, JOIN THEM? - 2010 Reference no. 9B10M071

This case considers attempts by a Turkish manufacturer of cosmetics packaging to trade off quality for cost, in order to compete with the influx of low-cost products from China. It describes the challenges faced by SomPack management in their effort to survive in the face of low-cost Chinese competition as well as the credit crisis. The company had grown because of its focus on quality and customer relations, but had to slash costs first in response to foreign competition and then again due to the global credit crisis. The case discusses many facets of the company's strategy: (1) company efforts at automation to reduce labour costs in conjunction with their efforts to reduce product quality for parts that were to have automated assembly; (2) use of cheaper raw material that required specialized equipment; (3) use of cheaper costs in conjunction with their efforts to reduce product quality for parts that were to have automated assembly; (4) use of cheaper raw material that required specialized equipment; (5) use of cheaper machines that were not acceptable to customers who required high-quality manufacturing; (6) implementation issues with a lower-cost ERP system; and (7) attempts at outsourcing certain components. Decisions to reduce the quality of either processes or products must be made with great care: even though they are meant to be short-term survival measures, they can create significant short-term disruptions apart from potential long-term problems, such as making the company less attractive as a supplier to customers who may still prefer quality and service over cost.

ZER: THE POWER OF COOPERATION - 2014 Reference no. 614-016-1

The case provides a detailed look at a cooperation-based business model implemented by Zer Central Services to organise collective procurement for media, direct indirect materials and services, and logistics for group companies. The main drivers for this business model are benefiting from the economies of scale generated by the collective power of the companies, supporting the procurement divisions at the companies, optmising the supply chain for a group of companies, and also managing supplier relations. Zer's revenue model is based on sharing the benefits for the initial period of a project and switching to a service agreement where it receives a service fee. Due to relying mainly on service fees, the company is in search of new ways to increase its profitability and to grow. There are many issues to be considered to expand the business: Which sectors, what type of companies should be targeted? How will the suppliers react if Zer increases its purchasing power even more? What are the economical, legal, operational limits to this business model? How can the trust among cooperating companies be established? Can Zer handle the operational burden if it expands rapidly? The case provides a setting to discuss procurement process in supply chains and different strategic options for a cooperation-based business model. It can be used in an Executive MBA or MBA course on operations management, supply chain management, or operations strategy and also in executive education programs. It is also suitable for an advanced undergraduate course on supply chain management.

GLOBAL MARKET OPPORTUNITY IN THE OLIVE OIL INDUSTRY: THE CASE OF BASER FOOD - 2003 Reference no. NAC2226

 

Altay Ayhan, Sales and Marketing Director of Baser Food, one of Turkey's largest olive oil exporters, had to decide where future growth was going to come from. While consumers in the domestic market were familiar with the product and had a tradition of consumption, there was stiff competition and the prolonged economic crisis was forcing consumers to switch to cheaper edible oils. Global markets, such as the US and Australia, were attractive since olive oil consumption was increasing partly thanks to the industry's strong promotion of the product's health benefits. However, the costs associated with entering these markets, gaining distribution access and building the support of retailers and customers were huge. Moreover, for a small company like Baser, the consequences of an incorrect decision could prove very expensive. Ayhan first had to determine whether to stay domestic or go global. If he decided to go global, country selection was his next challenge.

 

TRITORTRIC - 2006 Reference no. 9B07M008

This case looks at the issue of whether an investment bank should invest in Tritortric, a privately held Turkish company specializing in white goods. Tritortric is planning an expansion in Europe either as OEM (original equipment manufacturer) or through the acquistion of an existing European brand. Students will evaluate the attractiveness of Tritortric as a company and to provide guidance related to the mode of international expansion. This case also allows a broader discussion of how a company from an emerging country can compete against companies, brands from a developed one.

VEHBI KOÇ AND THE MAKING OF TURKEY'S LARGEST BUSINESS GROUP (B) - Reference no. 9-815-078

The case builds on the earlier A case which described the origins of the Turkish business group established by Vehbi Ko before 1988. This case takes the story forward to 2012 as the Ko group was led by Vehbi's son Rahmi followed by his grandson Mustafa. It explores both the professionalization of the management, and a radical restructuring of the business portfolio as the group refocused on five core sectors. The case also examines the start of the group's globalization strategy which was focused on the white goods affiliate Ar elik.

FINANSBANK 2006 - 2008 Reference no. 9-208-108

 

How do financial policy requirements and benefits of ownership concentration affect the need for and process of corporate restructuring? This case provides students with an opportunity to analyze the restructuring of a Turkish multinational business group by way of a merger. Finansbank AS is a bank headquartered in Turkey with additional operations in Holland, Switzerland, Russia, Romania, and Ukraine. It was founded by Husnu Ozyegin in 1987, and in April 2006, the National Bank of Greece (NBG) offered to buy part of the bank. Students can consider which factors contributed to Finansbank's growth and success. In order to then assess the terms of NBG's offer, they can evaluate given valuations of the bank and analyze why the proposed deal is structured so that Ozyegin retains a stake and buys back the non-Turkish operations. Students can also consider the offer from the perspective of minority shareholders.

 The Transformation of Mudo,2015

 https://hbr.org/product/the-transformation-of-mudo/416015-PDF-ENG

After 16 years in management consulting, Barış Karakullukçu left to become the CEO of Mudo in 2012, one of the best-known names in Turkey's retail industry. She was tasked with leading Mudo's transition from a family business to a more institutionalized, corporate structure and ensuring a smooth handover of the company from the first to the second-generation owner. As CEO, she makes a series of difficult decisions to transform the company. She develops a new performance management system, reengineers most of the operations, and replaces 80% of the management team including several C-level executives. Two years later, the impact on operations is positive, however the company's profitability continues to struggle. Karakullukçu must decide how best to move forward. While the founder seeks rapid and opportunistic growth, Karakullukçu believes that the company should stabilize its cost structure and limit expansion plans.

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