Vehbi Koc Case Study Global Finance
Everett Patterson Jr.
Global Finance
Professor Katherin Martin
WEMBA Cohort 6
3/23/15
Vehbi Koc – Case Study
Discussion Questions:
1. How did Vehbi Koc build his business group after the 1950’s? Why has it been so successful?
2. Is this a sustainable business model after Turkey liberalized from the 1980’s?
3. How did Vehbi Koc form his relationships with international companies?
Vehbi Koc built his business group after the 1950’s by taking advantage of the government’s shift of relying on private firms to drive growth in the Turkish economy. “The government offered firms incentives to enter manufacturing, allocated foreign exchange to promote favored sectors, and gave state contracts to facilitate construction and international trade” (pg.7). Vehbi believed that there would be a large opportunity to do business with American firms, so he sent an agent to the United States to obtain agency contracts with several U.S firms of which he was successful in closing a deal with General Electric (GE). With these new agency deal in place Vehbi established Ram Commercial Corporation (Koc). The GE agreement became the first joint venture deal with a foreign company in Turkey. After the GE deal, Vehbi pursued a business deal with Ford to become Ford’s first dealer assembler which ultimately became Otosan, Turkey’s first assembly company in the automotive sector. Vehbi then pursued additional interests by creating multiple partnerships furniture, refrigerator production, cast iron radiators, construction, gas cylinder manufacturing, electrical cable company, automotive group and other sales companies. In 1963 Vehbi created a holding company as a result of the number of companies he was involved in. These holding companies were organized into four groups: an automotive group, an industry group, a trading group and an LPG group. This holding company was called Koc Holdings and it was comprised of over 29 companies. Vehbi had been successful building his business
Global Finance
Professor Katherin Martin
WEMBA Cohort 6
3/23/15
Vehbi Koc – Case Study
Discussion Questions:
1. How did Vehbi Koc build his business group after the 1950’s? Why has it been so successful?
2. Is this a sustainable business model after Turkey liberalized from the 1980’s?
3. How did Vehbi Koc form his relationships with international companies?
Vehbi Koc built his business group after the 1950’s by taking advantage of the government’s shift of relying on private firms to drive growth in the Turkish economy. “The government offered firms incentives to enter manufacturing, allocated foreign exchange to promote favored sectors, and gave state contracts to facilitate construction and international trade” (pg.7). Vehbi believed that there would be a large opportunity to do business with American firms, so he sent an agent to the United States to obtain agency contracts with several U.S firms of which he was successful in closing a deal with General Electric (GE). With these new agency deal in place Vehbi established Ram Commercial Corporation (Koc). The GE agreement became the first joint venture deal with a foreign company in Turkey. After the GE deal, Vehbi pursued a business deal with Ford to become Ford’s first dealer assembler which ultimately became Otosan, Turkey’s first assembly company in the automotive sector. Vehbi then pursued additional interests by creating multiple partnerships furniture, refrigerator production, cast iron radiators, construction, gas cylinder manufacturing, electrical cable company, automotive group and other sales companies. In 1963 Vehbi created a holding company as a result of the number of companies he was involved in. These holding companies were organized into four groups: an automotive group, an industry group, a trading group and an LPG group. This holding company was called Koc Holdings and it was comprised of over 29 companies. Vehbi had been successful building his business