C566, Issues in International Business Management: Turkey
D496, Foreign Study in Business: Turkey
Summer I, May 14 – June 22, 2013
GENERAL INFORMATION
Instructor:
Yusuf A. Nur, Ph.D.
Assistant Professor
Office:
Office Hours:
Office Telephone Number:
E-Mail Address:
Fax Number:
KO 174P (Main Building)
By appointment
765-455-9254
ynur@iuk.edu
765-455-9348
Required Texts:
1.
Charles Hill, International Business, 9th Edition (McGraw Hill).
2.
Doing Business in Turkey, 2011 (48 pages)
3.
The Turkish Coffee House (posted on Oncourse)
4.
http://www.businessweek.com/articles/2013-04-18/turkish-fashion-designersmake-muslim-style-chic
5.
http://www.globalnegotiationresources.com/cou/Turkey.pdf
6.
Selected articles from The Economist, The Wall Street Journal, The Financial
Times, Business Week, and other business publications like Today’s Zaman, a Turkish
magazine published in English, will be incorporated into the course. Students should get
into the habit of reading the above business publications on a regular basis.
Recommended Reading
1.
White, Jenny, Muslim Nationalism and the New Turks. (3-page review of which
can be used for extra credit)
2. Crescent and Star: Turkey Between Two Worlds, by Stephen Kinzer
3. Turkey – Culture Smart!: The Essential Guide to Customs & Culture, by Charlotte
McPherson
4. Tea Time in Turkey, by Scott Quigley
C566/D496 is a cross-listed graduate/undergraduate course, which provides students with the
opportunity to travel to selected countries in order to gain an in depth and practical
understanding of the macro and micro aspects of doing business in those countries. The broader
goal of the course is to familiarize students with the environmental dynamics that arise when
business activities transcend international borders. A variety of environmental dimensions—
economic, financial, political, legal, and cultural – are examined, with a major focus on the
impact these factors will have on the various types of international business functional operations
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such as marketing, manufacturing, human resources, accounting and finance. Successful
completion of this course should allow students to understand and appreciate the diversity and
complexity of the global environment today’s businesses have to grapple with.
The country chosen for summer 2013 is Turkey. Thus, in addition to the overall goal stated
above, the course will explore aspects of international business management practices in Turkey.
The course will consist of classroom sessions held in Kokomo during which students will be
given an orientation consisting of a discussion of course syllabus and other resources, a lecture
on Turkey given by a guest speaker from Turkey, and the logistics of the trip to Turkey. During
those sessions students will chose a topic for their research paper, which will be the main
assignment of the course. Then students will go on an eight-day trip to Turkey during which
they will be provided opportunities to observe Turkish business practices. Students will also be
able to interview Turkish/Expatriate managers of businesses in Turkey. This will allow students
to gather primary data for the specific topic they chose for their research project.
Course and trip Objectives:
• Observe and interact with Turkish managers of business as they deal with some of the
opportunities and problems facing global managers today.
• Learn to adapt to, and become more sensitive about, Turkish culture and peoples and
doing business within Turkey.
• Appreciate the complexities and nuances of operating in the cultural, political, legal,
ethical, economic and financial environments of Turkey
• Assess the political risks associated with doing business in Turkey
• Understand the principles of international trade and foreign direct investment and how
they could be applied to doing business in Turkey
• Appreciate the components and complexities of the global financial system as evidenced
in the Turkish banking system.
• Understand the complexities of marketing and the strategic management of multinational
or global enterprises, and
• Write and present a country investment worthiness paper on a selected industry in Turkey
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Assignments:
1. Read and study the required textbooks and come to classroom sessions ready to discuss
different aspects of international business management topics.
2. Observe and analyze Turkish management practices in different industrial settings.
3. Interview and interact with Turkish/Expatriate managers of Turkish and foreign firms
doing business in Turkey.
4. Write four, two-page reflection papers.
Graduate (C566) Assignment
(This is a team assignment)
At the beginning of the course, teams of four or five students each will be formed. Each team
comprising graduate students will be required to write a research paper of up to 20-25 pages.
The research paper will consist of two parts: in the first paper each team will research Turkey’s
macro business environment: the cultural-social, political-legal, economic environments,
government fiscal and monetary policies, and the foreign direct investment environment in
Turkey. Each team will then select a specific industry in Turkey on which the research findings
will be applied, and thus determining whether that selected industry is investment worthy.
Teams will carry out a major part of the data collection for the research paper during the trip.
(More details are given in the last two pages of the syllabus.) They will finalize the paper when
they return and are required to submit their paper before the end of the semester.
Undergraduate (D496) Assignment
(This is an individual assignment)
Write a four-page, double-spaced, research paper on one of the following topics. The research
paper should have at least four non-web based scholarly references (the first listed book above
can be one of the references). You may include as many web-based reference works as you
deem necessary. You should also include at least one topical interview with a Turkish person.
Whichever topic you choose for your research paper, it is essential that you analyze the
implications the topic has for doing business in Turkey. Here are the topics:
a. Turkish Accession into the EU. Turkey has been trying to become a member of
the EU (EC, European Common Market, etc.) since the 1960’s. Only recently has
the EU opened accession negotiations with Turkey and there is no guarantee that
Turkey would be admitted as a full member of the EU any time soon. (Read: Hill,
“Islamic Capitalism in Turkey,” p. 115.) In contrast, countries like Bulgaria,
Romania, and Cyprus were a virtual shoe-in when they applied soon after the
collapse of communism in Eastern Europe. What does the EU have against
Turkish membership and what implications that does the issue have for doing
business in Turkey?
b. The New Turkish Policy of Turning Back to the East. Perhaps because of
frustrations at the slow pace of EU accession, for the last five or so years, Turkey
has started an extensive and highly successful campaign of engaging and doing
business with the Middle East and the Muslim World. Assess this policy and its
implications for doing business in Turkey.
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c. The Kurdish Problem: A Highly Controversial Issue. The Kurds are the
largest minority group in Turkey – 20 million strong according to some estimates.
Extremist elements in the Kurdish community have been engaged in terrorist
activities since the 1970’s. Until very recently the Turkish government had
drastically curbed Kurdish. For the last few years, however, the Turkish
government opened talks with the PKK, a Kurdish terrorist group fighting for
independence. This is a very sensitive issue with most Turks. So if you choose
this topic, you have to be extremely careful in how you word your interview
questions. Try to assess both sides of the issue.
d. The Armenian Problem: Another highly Controversial Issue. Another way of
wording this issue is: What exactly happened in 1915? The Armenian lobby in
the USA makes sure that the issue is regularly brought up in the USA Congress.
The Armenians say that Turkey had committed genocide against Armenians and
some the European countries, France for example, agree with this claim. Turks,
howerver, say it was an armed rebellion by the Armenians that the Turkish
government had no choice but to suppressed; there was no genocide. Take your
pick. This is another very sensitive topic and you have to be careful in how you
approach it.
e. Secularism and Religion in Turkey. Turkey has been a militant secularist
country since the 1920s when the modern Turkish Republic was founded by
Kemal Ataturk after the Ottoman Empire had collapsed following the devastating
defeat it suffered in the First World War. However, religion has made a big
comeback since the current administration came to power about ten years ago.
Analyze the fine balance between the secular and religious forces and the
pertinent implications for doing business in Turkey.
f. The Role of the Turkish Military. Turkey has been a member of NATO since the
1950s and its military has been the most powerful institution in the country.
Turkish military has appointed itself as the grantor of secularism in Turkey in
order to safeguard Kemal Ataturk’s legacy. Over the years the Turkish Military
carried out coups in order to deposed democratically elected governments.
Somehow the current government has gotten the upper hand over the military,
locking up numerous generals. Explore this issue and its implications for doing
business in Turkey.
Grade Scale
1. Research papers (G/U)
2. Four/three exams
3. Quizzes (10/8)
3. Attendance of events and post-event forums
4. Three, two-page reflection papers
A+ 100-97;
A 96-94;
A- 93-90;
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B+ 89-87;
B 86-84;
B- 83-80;
300/200
500/375
200/160
200
75
C+ 79-77;
C 76-74;
C- 73-70;
D+ 69-67;
D- 63-60;
D 66-64;
F below 59%
Modules
To make course materials easier to study, they will be divided into four modules. For details
check the Modules tab of Oncourse. The first three modules will be equally required of the
graduate and undergraduate students. The fourth module is for graduate students only. At the end
of each module you will take an exam.
Module 1:
Chapters 9 – 15
Chapters 1 – 4
Module 2:
Module 4 (graduates only):
Chapters 5 – 8
Chapters 16 – 20
Module 3:
Tentative Course Schedule
(You will find more details under the Modules tab in Oncourse)
Attendance of every face to face session and every event is mandatory and will be graded.
Tuesday, May 14, 2013, Kokomo
Session 1
– Orientation; Globalization and the impact of international business; the cultural
environment
– Readings: Hill, Chapters 1, 4
The Turkish Coffee House (posted on Oncourse)
http://www.businessweek.com/articles/ 2013-04-18/turkish-fashion-designersmake-muslim-style-chic
http://www.globalnegotiationresources.com/cou/Turkey.pdf
Take Quiz 1 (Chapters 1 & 4)
Internet assignment: Acquaint yourself with the following topics or companies by
doing an online research on them:
1.
Starbucks in Turkey
2.
Free Trade Zones in Turkey
Thursday, May 16, Kokomo
Session 2
– Guest Speaker
– The Economic and Political environments
– Readings: Hill, Chapters 2 & 3
– Doing Business in Turkey 2011, pp. 4-21
Take Quiz 2 (Chapters 2 & 3)
Take Exam 1 (Chapters 1-4)
Reflection Paper 1: Pre-trip impressions of Turkey (Due by 11:59pm, May 23)
Do an online research on the following:
1.
Zorlu Holdings
2.
Price Waterhouse Coopers in Turkey
5
Tuesday, May 21, 2013
Session 3 (Online)
– Ethics in IB; Int’l Trade
– Readings: Hill, Chapters 5 & 6
– Doing Business in Turkey 2011, pp. 21 – 47
Take Quiz 3 (Chapters 5 & 6)
Do an online research on the following:
1.
Gulluoglu Baklava; the role of Baklava in Turkish culture
2.
Orient Express
Thursday, May 23, 2013
Session 4 (Online)
– Politics of Int’l Trade; FDI
– Readings: Hill, Chapters 7 & 8
Take Quiz 4 (Chapters 7 & 8)
Take Exam 2 (Chapters 5 – 8)
Do an online research on the following:
1.
Disney in Turkey
2.
Orient Express
3.
Garanti Bank
Reflection Paper 2: Ethics in Int’l Business; Watch the movie “The Constant Gardener” and
write a two-page essay on it. [Warning: there is nudity and violence in the movie.] Base your
essay on the eponymous novel after reading it and get 10 extra points. (Due by 11:59pm, June
9th.)
Friday, May 24, 2013
Depart for Istanbul, Turkey
Saturday, May 25, 2013
Arrive in Istanbul, Turkey, at 1:45pm
TBD Tour of Bosporus – Istanbul Strait boat tour
Sunday, May 26, 2013
Session 5, Istanbul
All day cultural tour
Lunch #1 at Orient Express
Corresponding Readings: Chapter 4 and other course materials covered in session 1 above
Monday, May 27, 2013
Session 6, Istanbul
6
Bogazici University with MBA students from NYU Stern College of Business
8a
Leave for university
9a – 10:30a
Lecture by Prof. Aysegul Toker – Mobile applications in Turkey
10:45a-12:15p
Lecture by Prof. Guven Alpay – Recent Developments in Emerging
Economies
12:15p-1:30p
Lunch #2
1:30p-5p
There will be two more lectures after lunch at 1:30- 3:00p and 3:154:45p.
Dinner with NYU time and location TBD
Corresponding Readings: Chapter 3
Regional Integrations; Foreign Exchange
Readings: Chapters 9 & 10
Take Quiz 5 (Chapters 9 & 10)
Tuesday, May 28, 2013
Session 7, Istanbul
Free Trade Zone and Zorlu Holdings
8am
9:30am-Noon
Noon -2:30pm
2:30pm3:30pm-5pm
5pm
5:30-6:30
6:30pm-7:30pm
7:30pm
Leave for visit
Free Trade Zone (ASB)
Presentation regarding foreign direct investment in Turkey and operating
in the Free Trade Zone. Tour of a business operating in the Free
Trade Zone.
Zorlu textile manufacturing facility. Lunch and presentation regarding
SAP, quality, manufacturing practices, worker safety. Tour facility.
Travel to Zorlu HQ
Visit Zorlu HQ. Presentation and tour regarding shipping, customer
service, custom products, licensing.
Travel to nearby mall
Visit local Linens store. Presentation regarding product marketing, in
store financing and buyer behavior.
Students may shop in the mall
Return to hotel
Corresponding Readings: Chapters 8, 16, 17, 18
Wednesday, May 29, 2013
Session 8, Istanbul
PriceWaterhouse Coopers, Garanti Bank and Yeditepe University
8am
9am-11am
1p-3p
7
Leave for PriceWaterhouse Coopers
Price Waterhouse Coopers presentation regarding corporate governance
Lunch #3
Garanti Bank presentation regarding Turkish economy at a glance,
Turkish banking sector overview and Highlights on Garanti Bank
3:30p
3:30p-5:30p
5:30p
Travel to Yeditepe on Asian side of Istanbul
Yeditepe University sociology presentation & reception with Turkish
MBA students
Return to hotel.
Evening on own
Corresponding Readings: Chapters 4, 5, 12, 20
Int’l Monetary System; Global Capital Markets
Readings: Chapters 11 & 12
Take Quiz 6 (Chapters 11 & 12)
Thursday, May 30, 2013
Session 9, Istanbul
Gulluoglu, Disney Turkey and IU Alumni Reception
10am
11a-2p
2pm
3pm-5pm
5pm
7:30p-9:30p
Leave for Gulluoglu
Karakoy Gulluoglu Baklava tour. Discussion of privately held business
in Turkey, HR management, marketing in the foodstuffs arena.
Lunch #4
Travel to Disney offices
Disney presentation regarding licensing and unique US business operating
abroad.
Travel back to hotel
IU Alumni Meeting and Reception with Turkish Alumni at Bizimtepe
Corresponding Readings: Chapters 4, 15, 18, 19
The Strategy and Organization of IB
Readings: Chapters 13 & 14
Take Quiz 7 – (Chapters 13 & 14)
Friday, May 31, 2013
Session 10, Istanbul
Starbucks Turkey and US Embassy
9a-:10:30a
Starbucks Turkey presentation regarding branding, marketing and culture
building of US iconic brand in Turkey.
10:30a-1p
Students free to have coffee at Starbucks, eat lunch and visit mall
Lunch #5
2p-3:30p
US Embassy presentation regarding US companies doing business in
Turkey, laws and regulations governing business practices. At the hotel
Evening on own
Corresponding Readings: Chapters 3, 7, 15
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Saturday, June 1, 2013
Free Day
Sunday, June 2, 2013
Wake up at 2am!!! to catch flight back to USA at 6:15am
Tuesday, June 4, 2013
Session 11 (Online)
Entry Strategy and Strategic Alliances
Readings: Chapters 15
Take Quiz 8 (Chapters 15) – Undergraduates only
Exporting, Importing, and Countertrade
Readings: Chapter 16
Take Quiz 8 (Chapters 15 & 16) – Graduates only
Reflection Paper #3: Post-trip impressions of Turkey
Thursday, June 6, 2013
Session 12 (Face-to-face)
Wrap-up, in class and video link
Take Exam 3 (Chapters 9 – 15)
(Undergraduate schedule ends here)
Tuesday, June 11, 2013
Session 13 (Online)
Global Production, Marketing and R&D
Readings: Chapters 17 & 18
Take Quiz 9 (Chapters 17 & 18)
Thursday, June 13, 2013
Session 14 (Online)
Global HRM, Int’l Accounting and Financing
Readings: Chapters 19 & 20
Take Quiz 10 (Chapters 19 & 20)
Take Exam 4 (Chapters 16 – 20)
Thursday, June 20, 2013
Graduate and Undergraduate Research Papers Due by 11:59pm
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Graduate Team Research Project
International Business Environment and Industry Analysis
The project (to be completed by teams of 4-5 students) is intended to develop your understanding
of international political economy and its impact on business and industry. The International
Business Environment project requires students to develop an environmental analysis of a
national political economy of Turkey. Each team should assume it represents a US-based firm
exploring international business opportunities for its global expansion. The project entails
exploring economic and political risk, investment, export and import barriers etc., associated
with doing business in Turkey.
The Project will consist of two parts:
Part I
Part A: Country Business Environment Analysis
In order to conduct business in a foreign country, certain information is vital. Determine what
this information is, analyze it and write a report on it. You should include the following in your
report:
The language of the Country, Demographic Information, Political Environment, Legal
Environment, Economic Environment, Physical Infrastructure, Communication Infrastructure,
Cultural Issues, Currency, Exchange Rate, International trade and Investment Policies, Business
Opportunities and Political Risks.
Also answer the following questions.
• Does your team think that Turkey is an attractive country for FDI?
• What key factors should companies doing business in Turkey monitor?
• Do you think that Turkey’s business environment will improve in the next 12 months?
Why or why not?
• Do you think the country’s business environment will improve in the next 10 years?
Why or why not?
• Do you think that the EU accession talks with Turkey will succeed? If yes, what
implications would that have for doing business in Turkey? If no, ditto.
Part II: Industry Analysis
Research the following for your choice of industry in Turkey.
• Industry Background
• Government Regulations and Control
• Local Competitors
• Foreign Competitors
• Business Opportunities
• Potential Risks
• What entry strategy will you recommend for your industry? Why?
The final paper should integrate the two parts and should be between 20-25 double spaced pages,
not counting appendices and references.
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