”

“Koç Holding Strategy Into Action”

Presented ByDaniel Highton Hitesh Deepak

Tizza MandaVivek ShahSusan Ireri

Contents & FrameworkElements and Presentation Structure

1.Turkish economy/ Koç Background.

2.Strategic Leadership.

3.Knowledge, Technology and Information.

4.Sustainable Business.

5.Global Strategy.

6.Strategy into Action

7.Conclusion and Recommendations.

8. Questions.

Turkish Economy Overview &Turkish Economy Overview & Selected Indicators Selected Indicators

Turkey is ranked 6Turkey is ranked 6thth largest economy in Europe. largest economy in Europe.

Ranked 16Ranked 16thth in the top Global economies of the world. in the top Global economies of the world.

GDP increase GDP increase -5.7% 2001-5.7% 20014.7% in 20074.7% in 20072004 being highest growth rate of 9.4%2004 being highest growth rate of 9.4%

Turkey reduced inflation levels from 66% increase in 2001 to 8.8% Turkey reduced inflation levels from 66% increase in 2001 to 8.8% in 2008.in 2008.

Large population; young dynamic, educated.Large population; young dynamic, educated.

Good geographical position.Good geographical position.

Turkish business groups show that they maintain diversification Turkish business groups show that they maintain diversification which is generally unrelated.which is generally unrelated.

Economic DownturnEconomic Downturn There was a financial crises in 1994 and 2001 due to a deficit in There was a financial crises in 1994 and 2001 due to a deficit in

budget.budget.

2001 saw dramatic changes in the economic system i.e. 2001 saw dramatic changes in the economic system i.e. favourable banking regulations reforms. favourable banking regulations reforms.

-Faster than other EU countries. -Faster than other EU countries.

-Favourable credit terms for entrepreneurs to establish -Favourable credit terms for entrepreneurs to establish business i.e. tight fiscal policy, use of Istanbul chamber of business i.e. tight fiscal policy, use of Istanbul chamber of commerce to promote economic development through the commerce to promote economic development through the Turkish subcontracting and partnership exchange and Turkish subcontracting and partnership exchange and promoting promoting women in entrepreneurship.women in entrepreneurship.

This ties in with sustainability especially at This ties in with sustainability especially at Koç Koç , learning from the , learning from the past and setting up forms of weathering further crises. past and setting up forms of weathering further crises. KoçKoç are are cautious of the risks they take before entering new markets.cautious of the risks they take before entering new markets.

Different Cultural Perspectives from Different Cultural Perspectives from where we stand….where we stand….

Hofstede considers that a nation’s cultural values are more significant than an organisation’s values. This affects the strategies of any organisation.

KoKoçç Holding Holding The Koç family is a Turkish dynasty of business people founded by The Koç family is a Turkish dynasty of business people founded by

Vehbi Koç in 1926. Vehbi Koç in 1926.

Koc Holding ranks among the 60 largest publicly traded companies in Koc Holding ranks among the 60 largest publicly traded companies in Europe and 200 largest companies in the world continuously Europe and 200 largest companies in the world continuously outperforming growth rates of Turkey.outperforming growth rates of Turkey.

In 2008 In 2008 Koç Holding wasKoç Holding was ranked 172nd on the Fortune 500 global ranked 172nd on the Fortune 500 global company rankings. company rankings.

Holds 79% of market share in Turkey.Holds 79% of market share in Turkey.

Largest distribution network**. Largest distribution network**.

Remuneration is linked to share performance of the company.Remuneration is linked to share performance of the company.

Collective family control brings greater alignment of interest thus Collective family control brings greater alignment of interest thus greater performance. Anderson & Reeb (2003) state that US family greater performance. Anderson & Reeb (2003) state that US family business achieve greater revenues.business achieve greater revenues.

Ownership structure is diffused at Ownership structure is diffused at KoçKoç increasing their success. increasing their success.

Core KoCore Koçç Sectors Energy, Automative, Consumer Sectors Energy, Automative, Consumer durables and Financedurables and Finance

Strategic LeadershipStrategic Leadership Professor Rob Goffee defines leadership as “the ability to Professor Rob Goffee defines leadership as “the ability to

excite people to higher levels of performance by inspiring, excite people to higher levels of performance by inspiring, energising and lifting people to levels of performance that energising and lifting people to levels of performance that they may not have achieved without the presence of they may not have achieved without the presence of leadership” .leadership” .

KoKoç has used Leadership as a strategic change management ç has used Leadership as a strategic change management tool tool to increase the organisations sustainability, efficiency and profitability.

Remuneration is used as a motivational tool by strongly Remuneration is used as a motivational tool by strongly linking it to their performance culture. linking it to their performance culture.

Their approach on leadership is based on their founder Vehbi Their approach on leadership is based on their founder Vehbi KoKoç “I prosper with my country”. This is also seen in their ç “I prosper with my country”. This is also seen in their business sustainability issues. (to be discussed later)business sustainability issues. (to be discussed later)

KoKoç ç has adopted a corporate governance form of leadership has adopted a corporate governance form of leadership where there is separation of powers. The chairman makes where there is separation of powers. The chairman makes sure strategic objectives of the organisation are being sure strategic objectives of the organisation are being implemented whereas the CEO oversee the operations of the implemented whereas the CEO oversee the operations of the organisation.organisation.

Strategic Leadership at KoStrategic Leadership at Koçç The most important asset at KoThe most important asset at Koç is Human capital. Theç is Human capital. The

relationship between workers and leaders is seen as a core value. relationship between workers and leaders is seen as a core value. Goffee and Jones (2006) outline leadership as situational, non-Goffee and Jones (2006) outline leadership as situational, non-hierarchical, relational and more what we do with other people hierarchical, relational and more what we do with other people than to other people.than to other people.

In terms of decision making KoIn terms of decision making Koçç has a centralised Leadership has a centralised Leadership style. The holding company gives the subsidiaries strategic style. The holding company gives the subsidiaries strategic targets and it is up to subsidiaries to decide how to meet these targets and it is up to subsidiaries to decide how to meet these targets which is the bottom up approach; -Bass (1985) targets which is the bottom up approach; -Bass (1985) Transformational leadership impacts on followers motivation, Transformational leadership impacts on followers motivation, morale and performance.morale and performance.

KoKoçç retains staff through training and development. Bush (2003) retains staff through training and development. Bush (2003) argued that an intellectually stimulated leader stimulates argued that an intellectually stimulated leader stimulates followers to be creative and innovative and to challenge their own followers to be creative and innovative and to challenge their own beliefs and values as well as those of the organisation. They beliefs and values as well as those of the organisation. They encourage followers to work things out on their own and engage encourage followers to work things out on their own and engage in problem solving. in problem solving.

??Ko??Koç has different leadership styles there is no consistency ç has different leadership styles there is no consistency between the holding company and the different subsidiaries??between the holding company and the different subsidiaries??

Knowledge, Technology and InformationKnowledge, Technology and Information

Definition Knowledge, Technology and information aims to address

critically strategic systems development and organisational issues. It is important to create a strategy to satisfy the organisation’s information requirements within the context of business objectives and strategy.

Koçs systems development strategy Koçs systems development strategy attaches a high level of importance to information technology as an organisational asset. The IT strategy is aligned to the business strategy to create a differential competitive advantage.

KTI is a critical success factor for Koç’sKoç’s organisational success.

Research & Development is important because it improves product competition in terms of innovation e.g. Beko

Nielsen and Michailova (2007) state that the key asset of Nielsen and Michailova (2007) state that the key asset of the present is knowledge and in the future it is likely to the present is knowledge and in the future it is likely to be continuous and timely innovation based on effective be continuous and timely innovation based on effective management of knowledge assets. management of knowledge assets.

Knowledge, Technology and InformationKnowledge, Technology and Information In terms of Knowledge management KoIn terms of Knowledge management Koç has a large ç has a large

database but is not exploiting information to its full database but is not exploiting information to its full potential.potential.

KoKoç has a large distribution network which depends ç has a large distribution network which depends on economies of scale. on economies of scale. KoKoç’sç’s database database is used to cross is used to cross sell to guarantee a leading position. sell to guarantee a leading position. KoKoç has different ç has different systems running across its subsidiaries. Some systems running across its subsidiaries. Some systems are shared across the organisation others are systems are shared across the organisation others are not.not.

It is vital that KoIt is vital that Koç’s Knowledge, Technology and ç’s Knowledge, Technology and Information strategy should be aligned to the Information strategy should be aligned to the overarching business objectives and goals. overarching business objectives and goals. “Alignment should be tightest in processes that are “Alignment should be tightest in processes that are considered critical to each firms strategic focus” considered critical to each firms strategic focus” (Tallon, 2008, p. 227). (Tallon, 2008, p. 227).

Technology should be used to identify gaps, monitor Technology should be used to identify gaps, monitor changes in financial markets, changes in stock levels changes in financial markets, changes in stock levels and to benchmark.and to benchmark.

Nonaka and Takeuchi (1995) highlight the use of Nonaka and Takeuchi (1995) highlight the use of information as a flow of messages. Organisations are information as a flow of messages. Organisations are successful because they contend and are innovative. successful because they contend and are innovative. Organisations create new knowledge and use it to Organisations create new knowledge and use it to produce successful products and technologies.produce successful products and technologies.

Knowledge Technology and Knowledge Technology and Information Tools usedInformation Tools used

Koc has a Corporate website (Koc has a Corporate website (www.koc.com.tr) which ) which is of strategic importance. The website is used as a is of strategic importance. The website is used as a branding tool to improve the reputation and imagebranding tool to improve the reputation and image of the organisation maximising visitor sales of the organisation maximising visitor sales conversions, return visits, and customer loyalty. conversions, return visits, and customer loyalty.

KoKoç has mç has more patent applications through R&D ore patent applications through R&D focus. Grundig Elektronik was the first Koç Group focus. Grundig Elektronik was the first Koç Group company to obtain R&D Center Certificates. This company to obtain R&D Center Certificates. This has enabled Kohas enabled Koç toç to enjoy clear novelty and enjoy clear novelty and logistical advantages.logistical advantages.

Information technology is used as communication Information technology is used as communication tool to support tool to support KoKoç s sustainability strategy of ç s sustainability strategy of being open and transparent. being open and transparent. KoKoç uses informatory ç uses informatory documents, meetings, circulars, announcements documents, meetings, circulars, announcements and presentations as required by the Capital and presentations as required by the Capital Markets Regulations. Press releases are also used Markets Regulations. Press releases are also used in the printed or visual media. in the printed or visual media.

Koç.net is the first service provider a and most Koç.net is the first service provider a and most widely used provider in Turkey;widely used provider in Turkey; Koc.net is highly Koc.net is highly flexible, secure and operates at a high speed. flexible, secure and operates at a high speed.

Knowledge, Technology Information Continued

Every year Koç Group companies file over 200 patent Every year Koç Group companies file over 200 patent applications. Arçelik, Grundig Elektronik, Ford Otosan and applications. Arçelik, Grundig Elektronik, Ford Otosan and Tofafl are always in the forefront of the Turkish patent Tofafl are always in the forefront of the Turkish patent league. More than half of the patent applications made league. More than half of the patent applications made from Turkey to the World Intellectual Property from Turkey to the World Intellectual Property Organization are made by Koç Group companies.Organization are made by Koç Group companies.

Business Sustainability

• What is Sustainability ?• “Meeting the needs of

the present without compromising the ability of future generations to meet their own needs." -Washington State Department of Ecology

Definition of Company & similarities

• Sustainability has been there since beginning...

• According to L.H. Haney, ' A company is an artificial person created by law having separate legal entity with a perpetual succession and common seal' .

• Based on Indian Mythological belief system

• Individual Life Cycle v/s Collective (Group) Life Cycle

• End v/s Continuity• Objective v/s Subjective Ideology

So what does Business Sustainability Mean?• Or in other words we can say it aims is to act as ethically as

possible in business approach. If you look after your Shareholders, clients, staff & customers then you gain positive long relations , high motivation and support. Although the aspects have different weightings, profit being top. An approach of moral excellence increases the probability of forging Indefinite and successful relations and revenues.

• So Business Sustainability should be: A pro-active approach to ensure the long-term viability

and integrity of the business by optimizing resource needs, reducing environmental, energy or social impacts, and managing resources while not compromising profitability.

Objective vs Subjective WorldObjective Reality

Scientific facts

Decisions based on Facts

Decision are analysed based on models & charts assumptions.

External proofs are needed.

Accuracy is Demanded

Leadership skills like Flexibility, Decisiveness inclusiveness is demanded.

Subjective Reality

Quality of acceptance is needed (what people want).

Nothing is 100% its not absolute.

Feelings, Faith is needed for change and or initiation.

Real Leaders stories (who are weak yet determined)

Metaphors, poetry, stories are told.

Internal experiences needed, you can’t prove it but feel it.4

Concluding with some wise words..

“Then I say the earth belongs to each… generation during its course, fully and in its own right. The second generation receives it clear of the debts and encumbrances, the third of the second, and so on. For if the first could charge it with a debt, then the earth would belong to the dead and not to the living generation. Then, no generation can contract debts greater than may be paid during the course of its own existence.”

-Thomas Jefferson, September 6, 1789

Triple Bottom Line based Analysis of Koç

With reference to Elkington (1997) the triple bottom line involves the simultaneous pursuit of economic prosperity, environmental quality and social equity. Companies aiming for sustainability need to perform not against a single financial bottom line but against the triple bottom line.

First Bottom Line weakness: More transparency needed on Website in

terms of information for all Investors including Shareholders.

Profitability Targets are unreasonable for next Accounting year even though single digit operating profit margins been achieved across various companies of this conglomerate for previous years.

Triple Bottom Line Continued… Second Bottom Line weakness: Equality of wages should be brought in to complete the

Equal Employment opportunities system that has been implemented in the company for both genders.

More Women participation is needed at Senior Level based on their leadership Skills and Field of Expertise based on objective targeting like 1/3 representation minimum.

Company has not explored the opportunities from Ex. convicts, Drug Addicts, Orthopedically and or physically handicaps, Under privileged Women etc.

Nothing has been mentioned regarding socially vulnerable groups like mentally challenged people from society, underprivileged groups from minorities if any.

Triple Bottom Line continued…

Third Bottom Line Weakness:

Major shift in policy is needed on things like Green Energy resources as it has not been mentioned anywhere Wind Power Energy, Solar Power run batteries, Rice Boilers for efficient energy use.

Major investment is needed in new fields just like philanthropic work of Late Mr. Vehbi Koç but to protect the environment like Tree Plantation, Sanitation Works & Recycling of Various wastes has not been mentioned.

Dumping of Toxic wastes from Major energy based companies (to protect the environment from damage) is not mentioned.

Global Strategy and GlobalisationGlobal Strategy and Globalisation Financial Financial Energy Energy Automotive Automotive Consumer GoodsConsumer Goods

Global Success Global Success Survival Survival Domestic Market Domestic Market

sustainability sustainability

(www.Koc.com)

Global Strategy Global Strategy We aspire to strengthen the We aspire to strengthen the Turkish economy from which we Turkish economy from which we derive our own strength.derive our own strength.I would like to express a guiding I would like to express a guiding principle of our Group with these principle of our Group with these words: words:

““This is my code: I live and prosper This is my code: I live and prosper with my country. As long as with my country. As long as democracy exists and thrives, so do democracy exists and thrives, so do we. We shall do our utmost to we. We shall do our utmost to strengthen our economy. As our strengthen our economy. As our economy prospers, so will democracy economy prospers, so will democracy and our standing in the world.” and our standing in the world.” 

Vehbi Koç (2010) Vehbi Koç (2010) www.koc.comGuborro & O’Boyle (2003)Guborro & O’Boyle (2003)

Global Strategy Porters 5 Forces Global Strategy Porters 5 Forces Model (1980)Model (1980)

KOC & SWOTStrengths Geographical CapitalismFuture Eligible to Work DemographicGlobal Trade ExperienceEnergy CorridorGood Capital reservesStrong Financial Market Value of Currency Compared to West Strong Market Expansion Market Diversity

Weaknesses Potentially maintaining competitive

edge.Potential globalization RevenuesLevels of CSR (Sustainability)

Opportunities Further R & D InvestmentStrong EU RelationsOpportunities of Globalization Global Opportunities Positive Demographic futureFurther Investment Culturally diverse industries (Retail Supermarkets)

Threats Increasing competitionLabour Price HikesMore feasible through China and IndiaConflict in Cultural DivideChamber of Commerce Influence

Strategic Diversity

Issues in Implementation-Strategic Drift

DirectionChoice

Implementation

ActivitiesPurposeProgress

Change in nature, size, potential of sectors and segments

Loss of internal confidence

Loss of external confidence,

reputation

New costs

become apparent

change of chief executive, top management

Takeover/merger

Preference, choice, opportunity

Lack of clarity

Internal blockages, rivalry

Central Strategy Implementation Issues:Programmes, budgets, procedures, facilitators

Programmes (comprehensive, selective, incremental) provide action orientation and include restructuring programme, advertising programme, training programmes, reporting procedures, IT programmes, etc.

Budgets need to support the programme – and require annual plans to which resources are allocated.

Procedures need to be developed to ensure consistency and alignment.

Facilitators – are managers matched with strategy? How is change resistance minimised? How will staff be motivated? What are reward and incentive plans?

Other Issues in Implementation

Opportunity versus capability match Balance between focus, flexibility and

purpose Familiarity versus pioneering mix Cumulative learning Structure, systems and style mix of the

organisation Levels of investment and financiers Culture and shared valuesSource: Pettinger,R (2004) Contemporary Strategic Management. Palgrave.

Critical analysisCritical analysis No relations with customers and vendors.No relations with customers and vendors.

Strategic planning needs to be more risk Strategic planning needs to be more risk adverse.adverse.

Further diversification to emerging Further diversification to emerging economies.economies.

More philanthropy in the field i.e. NGO More philanthropy in the field i.e. NGO Groups associated with Ex convicts, Drug Groups associated with Ex convicts, Drug Addicts, Handicaps (Orthopadically, Addicts, Handicaps (Orthopadically, Physically) Physically)

KoKoç’sç’s Future Strategy Future Strategy Expand further. Take more risks as not taking full advantage of opportunistic Expand further. Take more risks as not taking full advantage of opportunistic

buyouts i.e. Further expansion of Banking and retail Sector etcbuyouts i.e. Further expansion of Banking and retail Sector etc

Invest in civil amenity sectors i.e water, sanitation and infrastructure.Invest in civil amenity sectors i.e water, sanitation and infrastructure.

Review subsidiaries to find out key performing entities to obtain synergies from Review subsidiaries to find out key performing entities to obtain synergies from this. this.

In terms of business ethics. KoIn terms of business ethics. Koçç needs to adopt a more active and inclusive needs to adopt a more active and inclusive approach in terms of Business sustainability. Koapproach in terms of Business sustainability. Koçç needs to invest more in the needs to invest more in the environment.environment.

Flexible management strategy that can respond quickly to changes in the Flexible management strategy that can respond quickly to changes in the environment.environment.

Manage stocks very well i.e. energy and food.Manage stocks very well i.e. energy and food.

Monitor change in financial markets and should be flexible in adjusting their Monitor change in financial markets and should be flexible in adjusting their financial mechanisms in relation to changes in the marketsfinancial mechanisms in relation to changes in the markets

Have realistic contingency plans.Have realistic contingency plans.

Consideration of the implementation of new technology such as common IT Consideration of the implementation of new technology such as common IT platforms such as the extranet.platforms such as the extranet.

KoKoç ç strategy into action Cont’dstrategy into action Cont’d In terms of data storage we can come up with an extranet In terms of data storage we can come up with an extranet

form of communication to get cohesive benefits from shared form of communication to get cohesive benefits from shared information.information.

Have mechanisms to allow low level staff to embark on Have mechanisms to allow low level staff to embark on innovation.innovation.

Invest in Islamic banking further east.Invest in Islamic banking further east.

Review performance of other companies within the industry Review performance of other companies within the industry on a regular basis.on a regular basis.

If If KoKoç wants to obtain a competitive advantage they must be ç wants to obtain a competitive advantage they must be faster and outperform others by managing key assets. faster and outperform others by managing key assets. Companies that understand and actively manage the process Companies that understand and actively manage the process of designing, developing and advancing effective Knowledge of designing, developing and advancing effective Knowledge Management Systems (KMSs) are likely to, in the words of Management Systems (KMSs) are likely to, in the words of Heinrich v. Pierer, (Siemens CEO) “e-outperform competition Heinrich v. Pierer, (Siemens CEO) “e-outperform competition and become leaders of the economy.and become leaders of the economy.

Enforce Strategic Leadership which involves ability to Enforce Strategic Leadership which involves ability to envision, anticipate, support and maintain flexibility.envision, anticipate, support and maintain flexibility.

KoKoç ç strategy into action Cont’dstrategy into action Cont’d Considering the differing nature of the subsidiaries within the Considering the differing nature of the subsidiaries within the

conglomerate a broad level of differing technologies and knowledge bases conglomerate a broad level of differing technologies and knowledge bases are required to fulfill the diversity of the holding company i.e.Finance are required to fulfill the diversity of the holding company i.e.Finance sector will depend on Technology Automative sector will depend on sector will depend on Technology Automative sector will depend on Knowledge base.Knowledge base.

KoKoç should dç should define problems and issues.efine problems and issues.

KoKoç should dç should determine processes used to resolve problems and issues.etermine processes used to resolve problems and issues.

KoKoç should sç should set time-scales for achievement.et time-scales for achievement.

KoKoç should gç should gather information to clarify issues.ather information to clarify issues.

KoKoç should iç should identify critical success factors.dentify critical success factors.

KoKoç should dç should define and evaluate courses of action.efine and evaluate courses of action.

KoKoç should cç should choose the preferred alternative.hoose the preferred alternative.

KoKoç should sç should select the preferred means of implementation and assessing the elect the preferred means of implementation and assessing the consequences of this.consequences of this.

Strategic advantage through Innovation

MechanismOffer novelty products and services

Novelty process

Complexity

Legal protection of IP

Robust design

Rewriting rules

Strategic advantageUnique offering

Offering faster, lower cost, more customised

Offering something others find difficult to offerLicensing or fee advantage

Offering a platform on which other generations can be builtOffering something that represents a completely new product or process making the old ones redundant

ExamplesFirst Walkman, pen, digital cameraPilkington float glass,Internet banking, Amazon booksRolls Royce aero enginesDrugs – eg. Zantac

Boeing 737

Typewriters vs PCs, electric vs gas

KoKoç’s future Leadership Strategyç’s future Leadership Strategy

Distributed leadership is primarily about leadership practice rather than leaders, Distributed leadership is primarily about leadership practice rather than leaders, leadership roles, or leadership functions. Simply, leadership practice isleadership roles, or leadership functions. Simply, leadership practice is   notnot  a a function of what a leader knows and does. From a distributed perspective, function of what a leader knows and does. From a distributed perspective, leadership practice takes shape in theleadership practice takes shape in the  interactionsinteractions  of people and their situation, of people and their situation, rather than from therather than from the  actionsactions  of an individual leader. (Spillane, 2004).of an individual leader. (Spillane, 2004).  

Interdependence- Interdependence- having a mutual understanding and reciprocal relationship having a mutual understanding and reciprocal relationship with two or more members of the organisation as opposed to being dependant with two or more members of the organisation as opposed to being dependant and not relaying or having any expectations of any other members.and not relaying or having any expectations of any other members.

Coordination- “Coordination- “managing dependencies between activitiesmanaging dependencies between activities “Malone and Malone and Crowston (1994, p.90)Crowston (1994, p.90)

Distributed Leadership, therefore, is seen an integral part of the daily activities Distributed Leadership, therefore, is seen an integral part of the daily activities and interactions of everyone across the enterprise, irrespective of position. The and interactions of everyone across the enterprise, irrespective of position. The more members across the organization exercise their influence, the greater the more members across the organization exercise their influence, the greater the leadership distribution. leadership distribution. 

Why Distributed Leadership at Koc: Leadership has to be distributed. It is not a Why Distributed Leadership at Koc: Leadership has to be distributed. It is not a choice but ho well it is done and enabled. It works and is shown to be better. The choice but ho well it is done and enabled. It works and is shown to be better. The call for a more collectively-embedded notion of leadership has arisen from call for a more collectively-embedded notion of leadership has arisen from research, theory and practice that highlights the limitations of the research, theory and practice that highlights the limitations of the traditional‘leader-follower’ dualism that places the responsibility for leadership traditional‘leader-follower’ dualism that places the responsibility for leadership firmly in ‘The hands of the leader’ and represents the ‘follower’ as somewhat firmly in ‘The hands of the leader’ and represents the ‘follower’ as somewhat passive and subservient. Instead, it is argued that: ‘leadership is probably best passive and subservient. Instead, it is argued that: ‘leadership is probably best conceived as a group quality, as a set of functions, which must be carried out by conceived as a group quality, as a set of functions, which must be carried out by the group’ (Gibb, 1954, cited in Gronn 2000: 324).the group’ (Gibb, 1954, cited in Gronn 2000: 324).

Review Position of KoReview Position of Koçç and and SabanciSabanci

Sabancı Holding was founded by Hacı Ömer Sabancı. Sabancı Holding was founded by Hacı Ömer Sabancı. Sabanci is the largest industrial and financial Sabanci is the largest industrial and financial conglomerate in Turkey by profit. The holding is owned at conglomerate in Turkey by profit. The holding is owned at about 75% by the Sabancı family, one of Turkey's about 75% by the Sabancı family, one of Turkey's wealthiest families. The remaining 25% is listed on the wealthiest families. The remaining 25% is listed on the Istanbul Stock Exchange.Istanbul Stock Exchange.

KoKoçç is a bigger company than Sabanci as it operates in is a bigger company than Sabanci as it operates in 34 sectors with 73,000 employees and Sabanci in 17 34 sectors with 73,000 employees and Sabanci in 17 sectors with 52,000 employees.sectors with 52,000 employees.

However in 2009 total assets for Sabanci were 74 Billion However in 2009 total assets for Sabanci were 74 Billion dollars while total assets for Kodollars while total assets for Koçç were , 44 Billion dollars were , 44 Billion dollars..

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www.koc.com.tr www.sabanci.com

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