Koc Case Study

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Koç Holding: Arçelik White Goods (Case No. 2) I. Problem statement: How much KOC Holding emphasis should place on international sales & which geographical markets to concentrate on; II. Alternatives: • Status Quo. Do not do anything. • Building technological capabilities and organizational adaptation . • Developing international marketing capabilities and distribution networks. III. Analysis: 1. Status Quo. Do not do anything different. If nothing is done, the company would be subject to many geopolitical & macro economic challenges that were facing Turkey. From the case study, it was stated that the Turkish government had agreed to a phased program of tariff reductions with the European Community. Turkish tariffs on…show more content…
Recommendation: My recommendation is a combination of both alternatives. could Plan of Action: From reading, it becomes apparent that Arçelik Company was determined to become a major player in the global white goods industry. Yet there was still debate in the company regarding how much emphasis to place on international sales & which geographical markets to concentrate. I believe that it was time for the company to take an aggressive approach when it comes to upgrading production platforms. Upgrading the platform to a better technology and efficient processes, should have an impact on the production line that can process different models without any special tooling up time or pauses in the production flow. An upgraded technology would position the company not as a “new comer” in international market but as a needed force to drive innovation. Company should leverage some of its domestic strengths to expand internationally. The company could either open new stores internationally or apply a targeted acquisitions of foreign competitors strategy to enter new markets and reinforce technological and productive capabilities. The company should start Exporting on an opportunistic basis to use the production surplus of the company in neighboring countries especially in Middle East and North Africa, to eventually become a core element of the company growth strategy. Furthermore, The company should invest heavily in upgrading its manufacturing quality and productivity to
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