25 Mayıs 2011 Çarşamba

Establishing and Developing to the Koç Group and in during time Turkish Economy


Economy has direct relationship with life and politics. Because it is determine the country welfare and developing. My department is Business Administration and my double major is International Relations and this lesson is Modernization in Turkey. Turkey modernization has existed many different and strong subject. Econmy is equal to life. Because if you haven’t got strong economy, you won’t be modern. Because modernization process related with welfare effect. And then strong politics, and large network international relations occur.
When Republic of Turkey founded by Mustafa Kemal Atatürk, our econmy was being dependent and strong. My subject is ‘’ Establishing and Developing to the Koç Holding and in during time Turkish Economy ‘’ . I am going to write 1900 – 1950 time interval. Because in this time Koç Holding established and it was improving by Vehbi Koç. In addition to this time was near Republic of Turkey founded. 1900 was starting my subject and it was finishing 1950. In the 1946 , single-party period was end of the date. After this time How was the effect of Turkish Economy. And this time was improving Koç Holding.
Vehbi Koç lived ; July 20, 1901 and February 25, 1996 And we should examine 6 different headline.
1- Beginning and Development Period (1901-1950)
2- Leap Period (1950-1960)
3- Rising Period (1960-1970)
4- Rooting Period (1970-1980)
5- Maturity Period (1980-1993)
I am going to focus and explain first one: Beginning and Development Period (1901-1950). And I am going to add and tell Turkish Economy. Related between Koç Holding and Turkish Economy.

Firstly, I read my main book. It is ‘’ Memories with My Boss Vehbi Koç ‘’( Anılarımla Patronum Vehbi Koç). This is special book because Can Kıraç was employee of Vehbi Koç. They have got many memory and anecdote. I chose this book because He is direct business life and he knows the Turkish economy and situation. It published in 1995, March in Istanbul.
And about Can Kıraç. He is succesful businessmen. But in this book he is author.

Can Kıraç: Ankara in 1927 Etimesut present name "Atatürk Forest Farm" was born on the land ... His father Ali Numan Kiraç agricultural engineer, and that in years at the disposal of Mustafa Kemal Gazi Farm "in the task was doing.
He is coming to the world in such an environment because he was awarded two-way! First, the name " Can " as the given ny Mustafa Kemal Pasha. Secondly, his father Eskisehir "Dry Agriculture '' (Kuru Ziraat) Due to the Ataturk surname order "Kiraç as " earned us the honor. Childhood farm life in the Eskisehir passes for all the land he lived in arms to embrace, Vocational education in agriculture as a father to choose occupations in which stemmed from this lifestyle. Galatasaray High School in 1946, he graduated in 1950, the Ankara University Faculty of Agriculture. In that year, Coach Trade Company Ankara Branch of engineering, Bernar Nahumun "apprentice" to work as a tread.
Years of 1949-1950, the university student, president of Turkey did the National Federation of the demand.
In 1952 He wrote an article due to adhere to the principles of Ataturk, "the Turkish people incentive to rebel, " He was accused of ... Years of the 1960s as a member of London Chamber of Commerce Board of Directors "planned mixed economy," defended.
1970s, the beginning and panels He did: "Fitting Industry". He worked TUSIAD committee tried to carry out trade.
In 1980,He worked for Vehbi Koç. 1991 Süleyman Demirel invited Can Kıraç to the politics but Can Kıraç ignore this issue. In 1991, Can Kıraç finished professional business life.

Secondly, I read Turkey Economy by Hacettepe University press. It is conference book. And it explains 1900 -  1950 Turkish Econmy. I read this book for the say something and think about when Vehbi Koç begin and develop his company how was the Turkish economy.
Country economy and Corporations have got straight correlation. Because country movement specify the company.

Lastly, I read some of the page‘’ Emperor ‘’ (İmparator) by Erol Toy. I read this book for general outlook and idea. In this book: Vehbi Koç lived about a century, Turkey's biggest commercial successes in the past that have come and the story of the biggest businessman. Reading this book to criticize someone to leave, I believe in working to do the business. The book was published in October 1973.  Çokzade Fehmi, Ankara in 1920 entered the game as a grocery store, living in the Republic of Turkey on the organization. Reach Roman empire, the axis of a small shop in a country politically and economically in the community exceeds the strike, march and rally activities, such as the epic story of the advent of the present day.







During certain periods in the historical process of Turkey's economy experienced fractures and direction of the economy clearly has changed. These transformations in our country in the world in various discussions transformations in parallel with it is a fact that had been neglected. Turkey individual interests to the fore in this process has been a prisoner of political wrangling, laying barren. Therefore, to capture the radical transformations in the world and Turkey signed a sharp transformation, whereas did not reach the desired goals, objectives remained away.
Turkey's political-economic transformations, especially the Turkish economy, which forms the basis for given the structure due to the nature of the people of the characteristic has caused controversy for a long time. Although this transformation has caused controversy, the industrialization of Turkey sees as a target date completed the desire to become a state, have moved today from the establishment, both liberal economic model as well as the statist and import substitution policies and made ​​efforts towards this goal.
These transformations rightly criticized in some periods, and sometimes large faced injustice. Although the general structure of the systems of choice for this injustice also, the political wing of the opposition economic system has determined the direction of the criticism. This accordingly, the structure of Turkish society, and many exciting field into variable sub-structure problem discussions leading to the extension, while Turkey has had to count over the many years.
Following the year of 1908,  began the era of junior Vehbi's school years, the integrity of the Ottoman Empire was repeatedly rocked the events. Ottoman Empire was sick man of Europe.
Harbinger of the collapse of consecutive disasters. Bulgaria declared its independence, Bosnia-Herzegovina and the island of Crete separate from Ottoman Empire, Battle of Tripoli, Balkan War, Riots in Albania and Lebanon and then The First World War next pursue the war of Independence. We had great pain in the years 1908-1922 as a nation. Ottoman empire desolation of foreign economic relations, the country, military and political sphere had been semi-colonial. Currency debt, concessions given to foreign capital, economic and social presence in Duyun-u Umumiye and capitulations introduced into the control of imperialism in its entirety. In this time Vehbi Koç started the business with his father. He was apprentice to the market. The tradition of the national bourgeoisie of them had yet. But after the declaration of the republic he will take the success of his experiences. Also, in the imperial period, commercial activities and and especially the foreign trade relations were control by non-Muslims. Vehbi Koç had effective and effective relation with non muslim. Because they know the business. He worked and did business with them for experience. And when Vehbi Koç had a business, he hired non-Muslims.



During the first world war in the country difficult situation. This situation was reflected in trade. In the first world war, young Koçzade Vehbi's Istanbul travel was expanded view of his life. The journeys he met and knew new people. He compared the Istanbul and Ankara. When he go to the Istanbul, his work motivation changed. Istanbul was increase encouraged and self-confidence.
The years 1923-1929, in Anatolia, The Ottoman Empire came to an end and during this period, Izmir Economic Congress assembled. In 1924 the railways, in 1925 tobacco monopoly and mines, in 1926 the nationalization of the right of cabotage,and in 1924 the establishment of İş Bank. These determining the cornerstones of a new era.

How was  İş Bank formed?
War of Independence ended, the Republic was declared. Now, a new state of Turkey, waiting for economic and social problems to be overcome. Funds collected in this period by encouraging savings could finance supporter of all economic activity, the industrialization movement in various areas as needed to participate in the launch of a national organization with its own resources and the emergence of the need for the creation of the national banking system deeply felt.
Turkey's first private bank established republican period. Turkey's largest privately owned bank, Bank of the First Economy Congress in İzmir Atatürk's directives in accordance with the decisions taken on August 26, 1924 was the anniversary of the Great Attack.
İş Bank is the first capital of TL 1,000,000, during the War of Independence of India in order to support the National Struggle Mustafa Kemal sent 250 thousand TL and was in that amount. The Bank's founder, Mustafa Kemal, Celal Bayar became the first general manager. Mustafa Kemal, the two service branches and 37 staff starting with the management of the bank's shares donated before the death of the Republican People's Party. Profit shares are to be obtained from the Turkish Language Association and Turkish Historical Society has left.

The most important event of the year 1926; Vehbi Koç's father: Koçzade Mustafa Rahmi handed over the job to his son. Thus, the period of the republic,Koç Group will develop as a company by Vehbi Koç. And it has written in the records of Ankara Chamber of Commerce. The biggest movement to got Ford and Standard Oil agent. This was only beginning. Vehbi Koç was developing his father business and now it is miracle.

Republic years Istanbul and Ankara had '' Republic Balls ''. And in Ankara,  Member of Parliament and top-level bureaucrats wore frock , generals and officers were wearing the uniform. It was symbol for modernization of turkey. Mustafa Kemal Ataturk  was dancing with the young ladies for modernity. Mr. Vehbi  and Mrs.Sadberk was trying to get the status by participated in this ballroom. These balls has been important for modernization. And that time it should be. Because we follewed Europe and applied in Turkey for improving and modern Turkey.
From  ‘’ Emperor ‘’ book  (İmparator) :
National Assembly building in Ankara, the nation after the War of Independence ends with the walls during construction. However, the roof tiles cover the kind found in Ankara, in spite of all the relevant research.
Vehbi Koç asked if the idea of ​​a young age.
Vehbi Koc, "I take care of tile job," he says.
Vehbi Bey tiles takes money to advance. Castle area on horseback through the provision of car expenses. From the roof tiles wander from door to door to buy the houses. Player and opens the door to the owner of the house:
"Are you sell me your house tiles?" he asks.
Everyone laughs at the proposal before the Vehbi Koç's strange. However, the proposed price for the tiles so that's nice, the money home owners who agree to offer one at this but profitable.
After a while everybody out roofs and tiles collect and deliver their Vehbi Koç. Vehbi Koc will appear shortly after the tiles in front of the National Assembly.

Vehbi Koç, after the Numune Hospital, Ankara State Railways, Cebeci, Ankara Maternity and Children's Hospitals and showed complete construction. The  balance sheet  showed that these jobs didn't earn money. He taken from construction job and want to do business in Istanbul. The period of the republic Vehbi Koç's works, shows similarities with the onset of capitalism and the bourgeoisie.

In Turkey, the 1930-1939 periods, a striking feature of the economic policies of state control the ''protectionism'' and ''statism'' were two important decisions.  The world economy is a major crisis inside the country's economy by the government ''to be'' necessary in the national industrialization.

The Central Bank was established in 1930 and foreign exchange markets were the control.
Turkish law on the protection of value of currency. The government has set important decisions about monetary policy. In 1931, customs tariffs, and export control issues to put quotas on imports did ​​the legal arrangements. Vehbi Koc followed these developments closely. An appropriate time and looking for opportunities to enter the industrial field, locate the subject.


In the 1930s, the Turkish economy, industry and businesses have the capital needed to manage the knowledgeable staff orientation to ensure a pivotal problem. Period in the private sector does not have these two basic elements, the establishment of new factories had to be the state. Under these conditions, the Republican administration had to accept the principle of state control of economic policy. 1936, constitution in the main goals of the Republic of Turkey was one of the principle of statism.
Economic activities of the state interference, was not a new experience for the Turks in any way. The First World War, during the national economy had been tried under the name, the name of statism in the 1930s and had been given the term. However, in practice the basic features remained the same: the road show and due to the weakness of his economic measures realizing the private sector to help the growth and maturation.

Vehbi Koç was the most important steps taken towards the incorporation took place in June of 1938. Mr. Vehbi describes the initiative: "Europe came and went, I saw the big firms, companies working order. We desire the individual companies. I have spread a great deal of work to both rejoice and felt sorry school principals, gave power of attorney, separate accounting records and without knowledge of the centers will be kept under a mistake you can dip him a great responsibility. "Mr. Vehbi to reduce the error to minimize the likelihood of the with his friends after a long work day of 29 June 1938 "Coach of Commerce Joint Stock Company"which had decided to set up. This company is in the following years with success, "Coach Group" concept starting and at the end of 1963, Koç Holding's establishment of a "foundation stone" would play the role.

Danzing' causing the Second World War, Germany invaded on September 1, 1939,Vehbi Koc, Coke agency Karabük had to sign the agreement. Germany's attitudes toward its neighbors, closely and with concern in our country, had for months. Finally,provisions are confronted with the feared event, and the German armies had been mobilized ... Mr.Vehbi, so impressed by this news that the hard work over the past
Ankara, Karabük signing the franchise agreement, on holiday in Istanbul with his wife and children also provided immediately to return to Ankara ... But not in the war, the economy of our country's world upside down all the troubles of the Second World War had lived. Such as the war is going to be costs of being prepared, especially in the agricultural sector, the working age population of Turkey's military to be introduced into major difficulties. Time the war, before the Refik Saydam Saydam in 1942 after the death of the Sukru Saracoglu country governments "war economy " had to manage
with rules. At a time when there is a need for rapid growth and development of the economy, people livingin poverty. Price increases and black market to avoid the
"National Protection Law"were removed. Excess profits tax imposed in the state treasury for the purpose ofrevenue, "Wealth Tax" world of business, "Soil Products Tax"  and for the future of the farmers had been causing serious concern. In particular, "Wealth Tax"at the discretion of the "religious and racial discrimination" made ​​the big cities from families with jealousy. President of the Republic Ismet Inonu, Turkey Grand National Assembly's 1942 speech study, "Depression time opportunity for a more elusive warlord and his farm counting overtakes breathe the air that we desperately attempting to trade commodity traders profiteer of all the life of a nation Arrogant is working to put the loss of stock! "accusation, and in later years was discussed for a long time business world of Istanbul had become a source of distrust merchant Ismet Pasha . Mr.Vehbi, this critical period, a self-criticism, he brings his own front: "The company I owned in 1926 would be the guarantor integrity of our institution until 1939! 1939 until 1946, the social ethics is broken, we hear a lot of events took place or not heard. This issues, I believe the guilty conscience, and God would account! "

War, economic problems and prepare to pursue new business, business life of the Vehbi Koc was more busy. In such a period, Sadberk, giving the family a new baby waiting for good news! Vehbi Koc, the sense of having a son, although he has enjoyed three times previously, this time his wife began to show an unusual care. And in 1941, the third girl born blonde was seen appropriate to give the name of the Suna. Now, I could feel the whole family is happier. Semahat and Rahman, of German descent and grew up under the supervision of multicultural nannies. Martha Baumann and Ms. Schwartz, after the Austrian German Irma Mrs.  Sadberk shown by the children of their own regardless of what they know were reading! ... Semahat Arsel's a memorable event, with the arrival of Mrs. Martha had happened ...

Personal relationships of his interest in country matters, Vehbi Koc, he had found the membership of the Board of Directors of Ankara City Municipal Council and the CHP. As a natural consequence of this, in 1943, the Mr.Vehbi, Ankara, from the deputy (deputies) to be made ​​of the proposal. Dr. Kemal Line, stated that this proposal is the request of the National Chief and the Vehbi Koç Ismet Inonii inwardly tried to influence ...
Mr. Vehbi onurlandırmıştı such a suggestion! Especially the "deputy" to be recognized by some people willing to donate their wealth at the expense of, in the face of such an offer even heard of a situation assessment of need to ... CHP Ankara, 11 Executive Board had taken the views of colleagues. Listened to the reactions of his mother and his wife, eventually, on a mission to honor such a candidate that will be decided whether the statement had .. Vehbi Koc, with this decision, the rules of business life in the struggle to maintain their own preferred environment was proven ... Multi-party period has been seeking support from all sections of the CHP in 1946, this time of forty Vehbi Koç established a new "Court Party" had begun to exert pressure to join!

1946, in terms of political developments, was the beginning of a new era in history of our Republic, Jan. 7, 1946, Celal Bayar and Adnan Menderes, Fuat Köprülü, and Refik Koraltan's was founded under the leadership of the Democratic Party. On July 21, 1946 with the participation of the Democratic Party for the first time in our country the "single stage" parliamentary elections, despite the repression and electoral frauds "democratic life" is an important event. Indeed, the 1946 parliamentary elections, 14 May 1950, during the democratic rules of power exchange, "yeast" was! This elected, parliaments and governments, "the stage of society, " the masses, "the audience", not "actors" to take part in the transfer initiated. September 7, 1946, the devaluation of the period also had an unforgettable event. Thus, the first important history of the Republic and the Turkish lira currency operations for U.S. $ 128 cents 280 cents removed.

Vehbi Koç’s idea about the Responsibility of State in the economy:
Limited resources of the State to carry out only essential tasks should use the bestway.
The major role of the state and the establishment of a structure to provide for the protection of competition in the markets and put the necessary rules to follow. For this purpose, the interventions are important to have simple and transparent.
Government investmentsin infrastructure businesses primarily directional, competitive markets should not operate in any field can handle.
Legal system to keep up with economic developments, arranged urgently. Guiding the development of laws, not to be restrictive, and that justice is manifested in rapid economic growth, no to give confidence to the markets of the leading one of the components.


Vehbi Koç's business career by establishing his own company were laid in this first period  was followed by years the development of this order: in 1926,  "Koçzade  Ahmet Vehbi"  recorded with the name of Ankara Chamber of Commerce, "the company" will bring in the Koç Group, the "big building "The first basic porter. "Koçzade AhmetVehbi" in the aftermath of the establishment of firm, agency, and Standard Oil in 1928,Ford sales agency in Ankara is taken, entered the construction and contracting business. In 1934, a joint did Iron Pipe Factory ... Fermeneciler opens branch in Istanbul in 1937, and the Vehbi Koc and Partners General Partnership Company established.Coach of Commerce in 1938 formed the core of the Koç Group Inc. begins operations in Ankara and the "institutionalization" thrown in the first step.

In 1945, the United States of America, New York, "Ram Commercial Corporation and General Electric are starting to work, U.S. Rubber, Oliver, Burroughs companies in Turkey was taken distributorships. Oxygen Company for industrial use in 1947 in Ankara, "the oxygen gas" enterprising  production. This was based on the production of electric light bulb in partnership withGeneral Electric in 1948 in Istanbul. Trade and industry initiated
activities, as well as the Vehbi Koc, his travels to the United States and European countries during this period and established the foundations of businessmen realized "no" are affected by their work, their organization and functioning of gathering information about the ongoing. The Foundation of Ankara University in 1949 and was completed in late 1950 the construction of thrown universitesty the transfer took place on April 30, 1951 the Vehbi Koç Student Dormitory in the socialpurpose of this period was the first investment.
In 1901, "Coach Empire" made ​​by the foundations of the last half-century period, until 1950, Vehbi Koc, had been witness to many important events and changes ... Koçzade Vehbi, in his career were laid, the Ottoman economy is dominated by foreigners, "the exploitation scheme" has fallen into all the problems of being lived in and sting. This period, almost all commercial and industrial enterprises, local Jewish, Armenian and Greek bourgeoisie were left at home. The imperialist powers, within the borders of the Ottoman Empire, their "influence zones" created an economic infrastructure completely overthrow capitulations and foreign debts. The defeat of Turks in the First World War and abandoned the motherland to parts of Anatolia, Istanbul, Izmir, and in many regions of Anatolia were occupied enemy forces. 1913 until 1923, wars in the last ten years, the most efficient and valuable "human asset" lost squares of war.
Years following the founding of the Republic, in 1929, affecting the world economy "great depression" young Turks in the state of distress were bitten, and "state capitalism" was the cause of the birth of. However, despite these difficulties, the Republic soldier and bureaucrat-based administrative staff were "special initiative" has given importance to applications developers, and a new "class Turkish businessmen," had made the birth of the lead. And finally, in the years following the Second World War and it gave impetus to the United States, the capitalist system and changes in Turkish political life, brought the new dimension to the functioning of economic life.

Thus, the Vehbi Koc By the 1950s, the direction of Turkey's development, people's expectations of their abilities in this new environment  and had met the understanding consciousness. Non-Muslim merchants in Istanbul and Ankara, and magnificent in their fields of study, he Vienna, Paris and New York's new Mr. Vehbi sees the events from the point of view and value dimensions and prospered. Ankara is a center of the Republican administration, to carry out their dreams of Vehbi Koc, the estimates had prepared a suitable environment beyond ... Also during these years, about the health of excessive "self-listening" curiosity, Vehbi Bey's life line, provides a secure way of life today determine elongation. Mrs. Sadberk, "soft-headed" with the personality to take on responsibility within the family, all the power and the attention of Vehbi Koç said the e-supply business orientation.

Tasks of raising children with the protection of the integrity of the family to leave his wife of Vehbi Koc, in this way, the draft work projects and hopes for the future feel the absence of subject.Vehbi Koç, this period, the non-Muslim people who grew up in government bureaucracy, and exclusive partnerships with people who realized that the future solid companies with management agreements was able to put foundations. That is, the Vehbi Koc, Mustafa Kemal Just as he said: "Victory is mine victory can say, he'll be successful, success starting the principle of " believing their own "empire" of the "quest for Did he period-in ", with a great desire and enthusiasm excretion decided to continue giving.






Finally, These are the story of Vehbi Koç business life and also this paper beginning his succseful large group; Koç Corporation. 1900 and 19500 term is the important term in business for Koç. And these time Turkey had great and hard time. 1900 and 1923 are pre-republican period. And it is survivor for indepent. When was republic borning and it founded by Ataturk Turkish people said : Yeah! We are independent and relax, we can look our life and business. Hereby 1923 and 1950; time interval better than last one. This times Mustafa Kemal Atartürk did many revolution related with economy and improving ourselves. After the Atarurk term so after 1938 it was critic. Becauce it is difficult term. But İsmet İnönü decision was nice. His decision: Turkey don’t have to be Second World War. It was quite good because we improved and did many international trade. European was difficult situation and come countries were reborn and rebuilt. If we were in the war, we won’t be this time position about economy and about economy, business. Vehbi Koç intelligent person. Because in that time government could support many entrepreneur. State wanted we can do something about industry. And only Vehbi Koç did quickly and imroved himself and his corporation. And today 5 out of 10 largest companies are from Koç Group. According to the 2009 results of the annual 500 Largest Industrial Companies survey carried out by the Istanbul Chamber of Industry (ISO), 5 out of the top 10 companies are from the Koç Group: Tüpraş, Aygaz, Ford Otomotiv, Tofaş, Arçelik, Tat, Mogaz, Türk Traktör, Arçelik-LG, Otokar, Entek Elektrik, Demir Export and RMK Marine. At Koç Holding the belief is that the means by which great results are achieved are just as important as the end result. The corporate culture in Koç Holding enables effective corporate governance that is a firm foundation not only for Koç Holding, but for the entire Koç Group of Companies. Honesty and integrity are at the center of Koç Holding’s businesses. Compliance with the highest corporate governance standards, ethical conduct and cultural integrity within the Group are built into the corporate culture.
Additionally, after 1946 so multi-party period was difficult for Vehbi Koç. He supported CHP and new party DP had problem with him. Because He was member and strong supporter CHP. But business and politic are different issues. Vehbi Koç focused his company and improv Turkey economy and Turkish name all over the world. And he had many factory so many people could work here.
Industrialization is important business for country economy because it is main market, big profit area and all of the subject related with industry. Marshall plan: Turkey shouldn’t do anyting Europe has industry and you can buy from west counrty. And today we haven’t got our industry. In Turkey only outsoursing for others foreing countries. I am finishing my sentence and lastly i am sharing successful business men Vehbi Koç ideas about Turkey induttry.
Development and competitiveness of an industrial facility is needed to reach the 3 main contingent. The first market, the second technology, the third of the financing.
1) Market is insufficient to compete in terms of technology and cost must create a sufficiently large organizations.Market in Turkey are still very advantageous. Because there is a large domestic market. Well, this is a blessing for us to use our advantage of the internal market. Some developed countries have used a very good advantage of the internal market. Enlarged internal market by selling large organizations and large organizations, then it spread throughout the world. Good use in Turkey and exports to take advantage of the internal market must find way to raise a meaningful way.
2) A new technology to enhance the competitiveness of an industrial facility in need. Technology changes too fast for the supply of very expensive and difficult. Technology development and transfer should be encouraged, such as western countries.
3) The competitiveness of an industrial facility until reaching the market needs is also important that the financing of investments. The volume of investments needed to prepare for the World competition is higher than before.

Bibliography:
1) Kıraç, Can. Anılarımla Patronum Vehbi Koç, Istanbul/ Türkiye, Milliyet Yayınları,1995.
2) Üniversitesi, Hacettepe. Türkiye Ekonomisi, Ankara/ Türkiye, Hacettepe Üniversitesi Atatürk İlkeleri ve İnkılap Tarihi Enstitüsü, 2001
3) Toy, Erol. İmparator, İstanbul/ Türkiye, Yaz Yayınları, 1997
4) http://www.koc.com.tr
5) http://www.vehbikoc.gen.tr
6) http://www.vkv.org.tr

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