Koc Holding Case Study Essay examples

937 Words4 Pages
Koc Holding: Arcelik White Goods

Prepared by: Alex Sagastume

10/3

Which Countries are involved in this case? Describe the diplomatic relations between those countries? Are there any trade agreements, policies, sanctions, political circumstances, or diplomatic issues which would impact management’s decision to enter the market?
There are several countries involved in this case; specifically Turkey, Germany, France, and the UK are all countries in which products under the Arcelik, or Beko brand are being sold. Turkey, being a secular country established in 1923, has the advantage of being very neutral and so there is no trade tension between any of the countries it does business with.
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What are the cultural considerations, which may impact the overall business strategy?
Turkey has the advantage of being a secular country; this in a sense makes them very neutral. Without the problems you see in other surrounding countries with extremely corrupt governments, trade can be as painless as possible. With the Turkish Government establishing good trade relations with other countries only the market culture is to be considered. For example, the difference between Germany and the UK. Germany has a need for Arceliks products to be of higher quality and thus of a certain value, once the price drops to much it will not be bought. It was noted that a reputation in Germany would need to be established in order to thrive. In the UK the strategy was different and prices were lower due to the fact that the culture demands things at lower prices regardless of reputation etc. These two differences can be attested to cultural implications from each country. Germany being a more developed country with more wealth, has a higher standard of living and therefore have the luxury of choosing only the best products for new homes. These types of markets will be harder to break into, due to an un established reputation.
What are the cultural considerations within the company and specific management team?
KOC Holding’s company has had

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