Globalization of Business
Sabanci Holding is the biggest conglomerate in Turkey. It owns orcontrols about seventy local companies in different sectors of theeconomy, mainly manufacturing, energy, communication, hospitality,and finance. It is a public company listed on the Istanbul StockExchange. In addition to the domestic operations, it has operationsin at least 15 countries. It also has joint ventures withmultinational corporations in different parts of the world (Mermod &Idowu, 2014).
There is no doubt that Sabanci Holding is one of the most successfulfamily businesses in Turkey and the region. However, the company isadversely affected by uncertainties in the economy, which are causedby the state and political factors (Bugra & Savaskan, 2012). Itcan be argued that the conglomerate has been able to adapt to thelocal business environment, but government interference and politicalinstability have adverse effects on its operations. The economicpolicies implemented by the political leadership have direct impactson domestic and international business activities (Bugra, 2014). Forexample, government regimes have used discrepant and diverseapproaches to fiscal and economic policies. Consequently, it has beendifficult for corporations to structure themselves based on aconsistent economic philosophy. In some cases, severe turns inpolicies have been implemented by the same administration, resultingin a lack of certainty. Additionally, there are no clear laws thatdetermine the extent of state involvements in the businessenvironment (Bugra, 2014).
Although Sabanci Holding has performed significantly well in the lastfew years, political uncertainty and government interference areevident in the Turkish’s business environment (Letsch, 2014,Sabanci Holding, 2016). For example, the legal frameworks andstructures in the country are often ignored for short-term social andeconomic objectives. Haphazard policies have resulted in changes inthe legal context, and, thus, modification of the role of the statein business operations (Bugra, 2014).
Bugra, A. (2014). State and business in modern Turkey: acomparative study. Albany, NY: State Univ. of New York Press.
Bugra, A. & Savaskan, O. (2012). Politics and class: The TurkishBusiness Environment in the Neoliberal age. New Perspectives onTurkey 46, pp 27-63.
Letsch, C. (2014). Turkey`s economic success threatened bypolitical instability, available athttps://www.theguardian.com/world/2014/jan/09/turkey-instability-threatens-economic-success-erdogan
Mermod, A. & Idowu, S. (2014). Corporate social responsibilityin the global business world. Heidelberg: Springer.
Sabanci Holding (2016). Sabanci Holding’s Net Profit Was 1,089Million TL In The First Half Of 2013 With An Increase Of 51% Over TheSame Period Of Last Year, available athttps://www.sabanci.com/en/press/press-release-archives/sabanci-holding-s-net-profit-was-1-089-million-tl-in-the-first-half-of-2013-with-an-increase-of-51-over-the-same-period-of-last-year/i-3095