Essay about Vodaphone Turkey

1629 Words Jun 4th, 2015 7 Pages
Managing Corporate Turnarounds

Spring 2015

Vodaphone Turkey

Javier Munoz

31 March 2015

Word Count: 1511

Executive Summary

Vodafone Group acquired Turkish operator Telsim for $4.5bn in December 2005. Vodafone Group identified the Turkish telecommunication market as ideal for investment citing strong growth potential over the long term. However, it quickly became apparent that Vodafone Turkey had not properly anticipated the challenges associated with building a profitable company within this particular market. The acquisition of Telsim brought with it an outdated network infrastructure and a reputation for moderate service quality which did not command respect within the Turkish market. Rival
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Vodaphone Turkey needed to be ready to leverage these advancements in technology.
What should be Serpil’s order of priority? What should her priorities be on day one, over the first two weeks and over the next four weeks after that?
The focus from day one should be on understanding the core problems that have led to the demise of this strong international company within Turkey. Serpil must work towards developing a “customer-centric” business plan to guide the company into prominence within the growing Turkish market. This plan should involve a restructure of management personnel from the ‘bottom up’ of the organization drawn from Turkish society. These personnel would be in a strong position to focus on the young population destined to be future customers. This strategy would ensure sustainable growth over the long term. On “day one” a plan must be implemented to upgrade the technology infrastructure to deliver optimal customer experiences across the value chain to both current and new customers.
Within the first two weeks it would be necessary to gain control of cash flow. The prospects for Vodaphone’s industry are positive and cash usage should be leveraged in a manner that is proportional to market growth rate. Serpil will need to identify “non-core” business operations and outsource these operations as necessary. These “non-core” business operations might include supply chain and other

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