Vehbi Koc and the Making of Turkey's Largest Business Group

Vehbi Koc and the Making of Turkey's Largest Business Group

1) Motivations for Vehbi Koc:

* Economic Disparity between Muslim Turks and wealthy Christians of Ankara

motivated him to enter business and help his community economically.

* Turkey's unstable political and economic environment motivated Vehbi to

diversify his business and hence the risk.

* Inadequate competitive resources in technology and management led Vehbi to

establish R&D center.

* Lack of good educational system in Turkey led Vehbi to establish the Koc

Holding Training and Development Center so that he could nurture young

talent in his organization, later holding top positions.

* Vehbi's desire to sustain the business as a family-controlled led him to create

numerous companies thus giving top positions to the family members.

2) Driving factors for Vehbi Koc until 1950's:

* Vehbi always hired skilled staff while investigating any new business because of

the lessons he learnt while running the Grocery shop in 1917.

* During the 1920's Vehbi wanted to represent his hometown Ankara as an agent

in an international company and entered into Kerosene business.

* With Ankara becoming the capital of modern Turkey, Vehbi shifted to

construction business to develop Ankara city.

* Vehbi's long-term goal of entering Istanbul market was realized in 1937 by

opening a construction materials business.



3) Vehbi Koc - Post 1950:

* Import Substitution and Market Protectionism: The decades between 1960 and

1980 were growing phases for large private family-owned groups. This was mainly because of absence of foreign competitors and this gave Vehbi Koc the potential to grow and become a huge family owned business.

* Manufacturing: With government providing incentives to private firms to move to manufacturing, Vehbi established oxygen factory, entered steel furniture industry, refrigerator production, iron radiator factory, liquid petroleum gas distribution and gas cylinder manufacturing business.

* Koc Holding: Vehbi established