-Basic%20transformation%20points%20in%20Turkish%20economy%20beginning%20from%201980s.%20%20-Main%20characteristics%20of%20the%20firms%20which%20have%20joined%20with%20upgrading%20activities.%20%20-Information%20about%20upgrading%20samples,%20namely,%20Boyner,%20Mavi%20Jeans,%20Zorlu%20Group%20and%20Ko - PowerPoint PPT Presentation

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-Basic%20transformation%20points%20in%20Turkish%20economy%20beginning%20from%201980s.%20%20-Main%20characteristics%20of%20the%20firms%20which%20have%20joined%20with%20upgrading%20activities.%20%20-Information%20about%20upgrading%20samples,%20namely,%20Boyner,%20Mavi%20Jeans,%20Zorlu%20Group%20and%20Ko

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Motherland Party lost many councils and mayors in the municipal election of 1988; ... Nergis (OEM Producer for 34 global name) Gap, Timberland, JCPenny, Sears, Zara, ... – PowerPoint PPT presentation

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Title: -Basic%20transformation%20points%20in%20Turkish%20economy%20beginning%20from%201980s.%20%20-Main%20characteristics%20of%20the%20firms%20which%20have%20joined%20with%20upgrading%20activities.%20%20-Information%20about%20upgrading%20samples,%20namely,%20Boyner,%20Mavi%20Jeans,%20Zorlu%20Group%20and%20Ko


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PERIODIZATION OF TURKISH ECONOMY
  • 1981-1989
  • Structural Adjustment Programs,
  • Export-oriented development model,
  • Export promotions,
  • Regulated foreign exchange rate,
  • Controls on capital inflows,
  • Severe wage suppression,
  • Domestic demand suppressions to create exportable
    surplus,
  • Golden age for garment exporters, rise of
    Anatolian Tigers,
  • 1989
  • Severe suppression of wage incomes via hostile
    measures against organized labor reached its
    economic and political limits by 1988
  • Motherland Party lost many councils and mayors in
    the municipal election of 1988
  • Real wages in manufacturing increased by 90 from
    1988 to 1991
  • When wage level increased, foreign demand for
    Turkish products (especially the products of
    labor intensive sectors) has diminished. Thus,
    the foreign money coming from the exports has
    reduced.
  • Turkish economy needed additional sources as
    money flows in foreign exchange to pay foreign
    loans
  • The solution came from the hot money flows by
    national and international players
  • Turkey opened up its domestic asset markets to
    global financial competition in 1989 initiated
    with the elimination of controls on foreign
    capital transactions and the declaration of
    convertibility of the Turkish Lira
  • The Central Bank lost its control over the
    exchange rate and the interest rate as policy
    instruments
  • The rentier activities have climbed, and the time
    to earn money from the money, the degradation of
    productive activities has started

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THE FEATURES OF UPGRADING FIRMS IN TURKEY
  • The upgrading firms in Turkey are OEM and
    full-packaging producers for the global buyers
    from the beginning.
  • All samples of upgrading in Turkey joined with
    retailing activities,
  • All samples interested in rentier activities and
    all has their own banks or credit cards to carry
    out their financial portfolios, which facilitate
    firms resistance to the financial crises.
  • All samples constructed new factories or join new
    network relations with cheap labor countries,
    like Romania, Russia, Poland, South Africa,China
    etc.
  • All samples of the upgrading firms in Turkey
    catch the quality standards of the leading firms
    of central countries in their production but make
    price competition.
  • Skilled-educated peoples (engineers, architects
    and designers) labor cost was felt down after
    the crises of 1994, 1998, 2000 and 2001 and
    these people entered into high competition to
    have a job or to save their jobs, which provided
    the necessary conditions for technological
    upgrading, functional upgrading, OEM and OBM
    production.
  • Upgrading in white goods/household articles as
    well as retailing activities has different
    features by necessitating merge and acquisition
    among firms.

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THE FIRMS WHICH ARE OEM EXPORTERS CONNECTED WITH
UPGRADING IN TURKEY
  • FIRMS OEM BUYERS
  • Boyner Benetton
  • Nergis (OEM Producer for 34 global name) Gap,
    Timberland, JCPenny, Sears, Zara,
  • MarksSpencer, etc
  • Erak (Mavi) Levis, Calvin Clain, Guess, Esprit
  • Sarar Hugo Boss
  • Koç Ford, Fiat, Alfa Romeo, AEG, Siemens,
    Bosch,
  • LG, Allianz, Iveco, Deutz, G.E., etc.
  • Zorlu Hitachi, JVC, Toshiba, Hotpoint (GDA),
    and GE.

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RETAILING ACTIVITIES
  • FIRMS RETAILERS
  • Boyner Beymen, Çarsi, NetWork, Altinyildiz,
  • Orka Damat-Tween
  • Erak (Mavi) Mavi
  • Sarar Ipekyol, Gurmen, Ramsey, SilkCashmere
  • Koç Migros-Turk, Ramstore, Tansas, Koçtas,
    Arçelik (Blomberg, Elektra Bregenz, Tirolia,
    Arctic, Flavel, Leisure), Beko, Demirdöküm,
  • Avis, Biletix,Avaturk, Bilkom, Kangurum,
    Koç.net, Tani, Ultra KabloTV, etc.
  • Zorlu Vestel, Veseg, Linens (Korteks, Taç)

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FINANCIAL RENTIER ACTIVITIES
  • FIRMS FINANCIAL ACTIVITIES
  • (In1995 nearly half of the total profits of the
    largest 500 firms in Turkey were from
    non-operational sources)
  • Boyner Advantage Card (partnership with
    Finansbank but in 2002 sold its consumer
    finance operations to HSBC Bank),
  • Bofis (a new company for financial
    activities).
  • Erak (Mavi) MaviCard
  • Koç . Koçbank, parnership with UnidoCredito
    Italiano,
  • Yapi ve Kredi Bankasi, Koç Yatirim,
  • Koç Finans Hizmetleri, Koç Portföy, Koç
    Faktoring,
  • Koç Lease, Koç Allianz Sigorta
  • Zorlu Denizbank, DenizInvestment Securities,
  • ExpressInvestment Securities, DenizLeasing,
    DenizFactoring, Anadolu Kredi Karti,
    Intertech, DenizBank AG Vienna

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NEW FACTORIES IN CHEAP LABOR COUNTRIES
  • FIRMS FACTORIES
  • Boyner distinguished its production and
    retailing department in 1997 to utilize from
    the cheap
  • labor or any subcontractor in the world.
  • Koç RUSSIA A washing machine factory
  • ROMANIA A TV factory
  • CHINA DD Heating Company
    (Demirdöküm and Chung
  • Mei partnership)
  • Zorlu RUSSIA A new washing machine
    factory in August 2005
  • A new refrigerator factory in October
    2005
  • A television plant in Alexandrov in
    December 2002
  • SOUTH AFRICA A Garment
    Factory
  • ROMANIA A Garment Factory

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THE NEW BRAND HEGOMONY AS AN ENTRANCE BARRIER
SAME QUALITY BUT LOW PRICE
  • Any third world producer which makes an entrance
    into the global markets needs to offer lower
    prices as a competition tool.
  • MaviJeans or NetWork sell their products almost
    1/3 price level of Levis or the Guess in
    European markets. (60-70/150-200 is the price
    competition ratio)
  • Koç and Zorlu offer good quality and cheap white
    products for middle and low income groups in
    European market.

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MERGE AND ACQUISITION IN PRODUCER DRIVEN SECTORS
AND RETAILING ACTIVITIES
  • FIRMS MERGE AND ACQUISITION
  • Koç Ford, Fiat, Siemens, Magneti Marelli, Chung
    Mei, Grundig,
  • Shell, Petkim
  • Migros, Tansas, Promodes
  • UniCredito Italiana, Allianz, Yapi ve Kredi
    Bankasi.
  • Zorlu Hitachi, JVC, Toshiba, Hotpoint (GDA), GE,
  • Denizbank, Vestel

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