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.
Please inform us (
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), if you have or know other cases on Turkish companies.
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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