2. BACKGROUND
Turkey has the particularity of sharing
both the European and the Asian.
Location:
Although Turkey professes to be a strictly is located in the Population:
secular country, Islam shaped the culture southeastern Europe
74.7 Million people
and the Southwestern
and the society since it is practiced by the Asia estimated for 2011
majority of the population. Capital:
Ankara
Different Islamic groups managed to co-
Language:
exist together in tolerance. 90% Turkish.
Other dialects: Religion:
Kurdish, Arabic, 99% Islamic
Circassian, Greek,
Armenian, and
Urban Population: 70% Judezmo.
Rural Population: 30%
Internet Access: 43%
3. HUMAN RESOURCES
(TLL) TURKISH LABOUR LAW: Regulates all Employment
Relationships.
MINIMUM WAGE (MONTHLY): 837 TRY or 474 USD
WORKING HOURS: 45 Hours a Week, and 11 Hours a Day
UNION LAW: All Employees Working Under an Employment
Agreement are Eligible to Become a Member of a Labour Union
MOTIVATION AND TRAINING: Highly Valuated in the Turkish Culture
CORPORATE GOVERNANCE: Rule-Based System of Governance, as
Opposed to a Relationship-Based
4. Business Etiquette
Personal relationship is key to success in the business
Business conversations should be begun from short conversation
• ie: family and soccer, avoiding subjects as religious and politics
People respect punctuality and accuracy
Decision making process is slow and hierarchical
Male earn 3.5 times more than female
• ie: 105th out of 134 countries in equal payment to women
5. PEST
Social
Technology
Politics
• European Union (EU)
accession
Economics •17th largest economy • Success in reducing
•Internet:
• 43% of the
•Accession filled in •GDP :$1.05 poverty households
2005 •Growth: 6.6% In 2011 •28% in2003 to 18% in • 18.6% of them
•Resistance from the 2006 bought goods or
EU to accept due to •GDP: services through
Human right •25.5% agricultural, • Aim to achieve internet in 2011
violations •26.2% industrial, sustained rapid growth
and improving living • 92.4% of enterprises
•48.4% services standard use Internet
• Prime Minister vs • 59.9% of them have
President •Major trade partners: website In 2011
• Difference between
•President – •United States, female and male in •Cellphone:
Ceremonial •China, education • Fast growth in
•Prime Minister – •Russia, • Secondary school: cellphone users
Executive power •Switzerland female:77% vs. • 4M in 2000 to 62M
•Norway male:87% in 2010
•Currency: • Difference between
•Turkish Lira (0.56 urban city and local
USD) city about quality of
health care
6. M&A
Strategic Financial
• More than half of the population are • Fast growth driven by internal
under 28 consumption
• Entrance to the Muslim world • Economist forecast that it will
• Geographic position grow as fast as China and India
• Increasing qualified workforce • Types of Deal
• Key industries for target • Asset vs. Share Acquisition
• Construction, automotive, energy, • Tax Incentives
healthcare and banking • Single digit inflation rate
Regulations Risk
• Unrestricted foreign ownership • Split between the east and west
• Legal framework - EU • Accounting standards vary form company
to company – moving to IFRS
• Customs agreement with the EU
• Volatility in energy prices, due to the
• Little restriction on cash repatriation
dependence on Russia and the middle east
7. INTERVIEW
• Highly individualistic • Hierarchical Organizations
• Short term orientated • Preferred leadership styles:
• Relationships have priorities over pacesetting and authoritative
tasks • Need for Laws and
• Easily forget the past Rules
National Corporate
Culture Culture
Business
Life in
• Traffic jams Norms & • Formal Greeting: hand
Turkey
• Lack of respect – no cues Practices shake
• Normal Greeting: cheek kiss
• Penalty Implies loss of face • Showing of emotions is
and shame accepted
• Muslim society – body is sacred • Conflict is threatening – need to agree
• Settle agreements on paper
• Potable water is an issue
• Work in order to live
8. Cultural Dimensions Recommendations
Team objectives should be aligned with personal
objectives in order to achieve companies results
Achievement
Managers are not expected Even though, the country is
to take risks. Decisions are promoted as a secular one,
Risk Environment in the East Islam should be
made by the Sr.
Management taken into account
Mercer’s Cultural
Dimensions
Communication Rapid improvements and
should be done Communication Perspective technology adoptions are
encouraged
top-down
Power
Do not integrate, Partner with them