Analyzing Business Problem Of Koç Holding In Istanbul

Overview of the Company

The report helps in analyzing the business problem of a respective company named Koç Holding that is based in Istanbul (Koc.com.tr, 2017). The proper analysis has to be done in order to understand the current position of the respective company and proper competitor analysis has to be done as well.

The main aim and purpose of the report is to identify the problem and the different reasons behind such problem as well. The different implications have to be analyzed with proper analysis of the external as well as internal analysis of the environment.  The proper analysis of the micro and macro analysis with the usage of PESTEL analysis as well as Porter’s Five Forces Model has to be done. The internal analysis has to be conducted with proper different models and frameworks such as McKinsey’s 7S framework, proper analysis of the marketing mix as well as Porters; generic strategies.

The structure of the report will include proper description relating to the external and internal analysis of respective organization in the respective country. Proper analysis has to be conducted as this will help in analyzing the portfolio analysis as well as other strategies. The SWOT analysis has to be conducted as this will help in understanding the different opportunities, threats as well as strengths and weaknesses faced by the company. 

Koç Holding is largest industrial kind of conglomerate in Turkey and the company’s headquarter is in Nakka?tepe, Istanbul. This is controlled by Koc Family that is one of the wealthiest families in Turkey. The respective company was formed as well as established in the year and the name of the founder was Vehbi Koç who first established a firm in the year 1926 and combined all the different companies bearing the particular name into Koç Holding.

The Koç Holding is one of the largest leading investment holding companies in Turkey and the respective company is creating one common legacy for last 90 years. The number of employees who are currently employed in Koç Holding is 91,304 and the revenue of the company is € 21.238 Billion till 2016 and the net income of the company has risen to a huge extent as well. However, in the year 2015 the CEO of the company was replaced and the new CEO is Levent Çakiroglu.

The main competitors of the respective company named Koç Holding are Peugeot who is having a net income and revenue amounting to € 15.238 Billion and € 1.500 Billion that is less than Koç Holding Company and they are one of the big competitors of the respective company as well. The shares of the respective company are traded on Istanbul Stock Exchange and the particular group properly comprises of 113 companies as well as 14000 dealers.

Identifying a business problem and its implications

The problem that has been identified in the Koc Holding Company is relating to the less number of the customers of the respective company than the main competitor in the present years. Presently, the number of customers has decreased and this is affecting the business and their reputation is getting affected (Keller and Kotler 2016). There are different kind of issues that is faced by the respective company in the present years as their profit, net income as well as revenues is getting lowered as well. There are different kinds of threats to the respective company that includes initial capital may get wiped out eventually and this can have negative impact on the entire business as well (Wagner and Eggert 2016). 

The loss in the initial capital can have huge impact on the investment options that can be provided by them and the costs such as transactions related taxes or brokerage can be involved and this can have much more negative influence on the entire organization in the near future as well. In order to understand the implementations of the respective problem on the respective company as well as on the business, proper external and internal analysis has to be conducted as this will help in understanding the SWOT, PESTLE, McKinsey’s 7S framework and others as well.

Proper audit has to begin with proper analysis of the external analysis as this will include markets, customers as well as competitors of the business. Proper PESTEL analysis has to be properly conducted as this will help in understanding the position of the competitors in the company.

In order to properly analyze the issues that are faced by the company against the competitors, it is essential in nature to understand the issues that are faced by the company and proper understanding is required to analyze the different economic, social, technological and legal consequences on the company in the particular company. For macro analysis, PESTEL analysis is the suitable technique as this will help in understanding the influence of the different factors on the entire business.

In order to properly analyze the external micro environment, proper analysis is essential in nature in order to properly understand the different elements that include proper analysis of customers, suppliers as well as competitors of Koc Holding Company. In order to analyze the above, proper frameworks are required to be analyzed as this will help in understanding the strengths of the competitors and this will include Porter’s Five Forces Model as well as analysis of their competitors as well. 

External Analysis

• Power of the suppliers is one of the elements wherein investment banks do not have conventional suppliers and this will help in proper analysis of the net worth of the different clients as well. The proper intensely regulated as well as concentrated nature of the different suppliers that will help in controlling the different input related costs as well as understand the bargaining power of the suppliers (Lee and Kotler 2015).
• Bargaining power of the suppliers is another element wherein it can be explained that the different investment banks do not have proper conventional suppliers. Proper consideration is required in the international clients as this will help in analyzing the degree of the rivalry of the respective investment bank (Las Casas and Silverio 2015).
• Degree of rivalry is another elementwherein there are different competitors such as Deutsche Bank AG. This is the only financial institution that ranks better in terms of assets as well as revenues and this is the chief rival. Deutsche Bank is one of the essential rivalries and this is one of the standalone investment banks as well in the entire competitive market (Hollensen, 2015).
• Threat of new entrants is another element that will help in analyzing the competition of Koc Holding Company with other new entrants in the competitive market. The different regulatory constraints that makes cost inefficient for different new companies in order to provide proper investment services (Lee 2015) . Furthermore, it can be explained that when Koc Holding Company makes different bad decisions, this will have huge impact on them such as they can go bankrupt as well (Sheth and Sisodia 2015).
• Threat of substitutes is another element wherein it can be analyzed that the investment banks face different kinds of services from most technologically advanced world. Furthermore, it can be analyzed that lending wing as well as investment bank Koc Holding Company must compete with the peer to peer leaders as well as other crowd funding tools (Perreault Jr, Cannon and McCarthy 2013). There are other different opportunities for the investment banks as the securities; capital markets as well as exchanges are very much limited in nature through the usage of regulation. Koc Holding Company can properly switch off the different costs along with analyzing the performance of the trade off substitutes as well.

Proper internal analysis is required to be conducted in the different companies as this will help in providing and use the entire information for the proper strategic planning as well as understanding the entire future growth of the company as well. Proper determination of the different strengths as well as weaknesses has to be analyzed in order to properly understand the different steps that are necessary in order to achieve the different goals of the entire organization as well. As KOC Holding Company is an investment company, it is essential to proper assess the different happenings internally as well as externally that can have huge impact on the respective company. Proper analysis is required as this will help in understanding about the driving forces behind such trend of sales in the entire competitive market as well. 

KOC Holding Company is an investment bank wherein there can be different kind of threats from the external environment or the competitors who are in the market. The initial amount of the capital may be wiped out as this will create volatility in the entire market as well (Pasquier and Villeneuve 2017). There can be different volatility in the market that can have negative impact on the prices of the shares and this will have huge impact on the entire company. There can be different weaknesses as well that is related to the high amount of risk in the entire investment options that creates no such guarantee as well as security relating issues. However, on the other hand there are different opportunities for KOC Holding as well as different other opportunities as well. KOC Holding is an investment company that will help in providing proper appreciation of capital along with proper amount of rate of return that will help in pledging different amount of loans for the shares.

With the help of the SWOT analysis as well as with McKinsey’s framework, proper analysis is required to be conducted as this will help in determining the entire competitive viability of the organization. This is essential in nature for KOC Holding to properly understand the different competitive advantages that can be gained by the other competitors in the market that will help in providing different metrics relating to the loyalty of customers as well as sales. The SWOT analysis can help in analyzing the different issues that is related to proper ascertainments of the different threats as well as opportunities that can be faced by KOC Holding Company and they gained proper competitive advantage as well in the future. The SWOT analysis is performed in the following manner:

Implementation of Porter’s Five Forces Model

Proper ascertainments have been made by the respective company as this will help in improving the different issues that will be faced by the respective company. This will help in improving the different issues that can hugely affect the performance of the entire company. The different issues has to be properly ascertained as this will help in determining the different strategies related to communication as well as other strategies that will help in analyzing the different categories related to interdependence in the organization. Proper ascertainments are required to be made within the different elements such as hard as well as soft elements relating to the structure as well as systems of the organization (Armstrong et al. 2015).

The different seven elements are properly broken into two parts such as hard elements that includes different strategies as well as structure along with systems. On the other hand, there are different soft elements that included shared values as well as skills and styles that will be highly influenced with the culture of the organization as well as skills of the staffs in the organization. The proper ascertainments has been made related to the 7s as this will help in proper ascertainments of the skills as well as strategies that will be applied by the different employees in the entire organization. This will help in proper recruitment as well as selection of the different candidates as well (Elenkov 2014).

KOC Holding Company has to properly analyze the different issues that are cropping up in the entire organization as this will help them in gaining proper competitive advantage. Proper implementation of strategies is essential in nature as this will help in analyzing the competitive advantage and this will help in creating more economic value in the competitive market as well (Bresler and Lubbe 2014). The main aim of the respective company KOC Holding Company is to gain proper sustainable competitive advantage that can be properly achieved with the implementation of different technological advancements and this will help in succeeding the company as well. Proper analysis of the entire target market is essential in nature as this will help in analyzing the strengths of the competitors in the market along with analyzing the different weaknesses of the competitors that can lead to gain more competitive advantage to KOC Holding Company (Baker 2014).

Proper value chain analysis is essential in nature to be conducted in KOC Holding Company as this will help in analyzing the different areas such as inbound logistics, sales, marketing as well as outbound logistics (FISK 2013). This is essential in nature for the respective company as this will help them in gaining proper success with implementation of successful strategies. Furthermore, value chain is the best tool that can be applied by the respective organization as this will help them in proper identification of the different functions that are essential in nature along with other fundamental sources that are required in order to support different activities such as the primary activities namely inbound, outbound logistics, sales as well as marketing. There are different parts in the value chain analysis that can help in gaining more value for the final product and this will help in comprehending their profit or loss that is incurred by them.

Internal Analysis

Conclusion

Therefore, it can be concluded that proper analysis of the internal as well as external factors are essential in nature as this will help in generating proper competitive advantage to the entire organization. Proper internal as well as external analysis is required to be performed as this will help in increasing the focus of the firm in identification of the capabilities and this has helped the entire firm in gaining proper competitive advantage as well. The main focus of the internal as well as external environment is to gain more sustainable competitive advantage as this will help in gaining proper core competencies that is required in order to improve the present issues and create proper opportunities for the own firm in the near future as well. Proper strategy related to the competitive advantage has been built by them as this has provided the firm the power to compete with the competitors and this will help in achieving sustainable development as well as competitive advantage against the competitors as well. The company has been able to gain higher profit as this will help in creating and gaining more economic value and this helped them in being more sustainable in nature. 

References

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Bresler, M. and Lubbe, I., 2014. Marketing management.

Elenkov, D., 2014. Experiential Exercise with Multinational Student Teams: Researching Together a Multinational Corporation and Developing Jointly a Strategic Marketing Plan for IT Using Blackboard. Developments in Business Simulation and Experiential Learning, 41.

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