Download WHY Turkish Firms Should Compete in America - TACCI

WHY Turkish Firms
Should Compete in
America
PRESENTED BY TACCI-MIDWEST OF CHICAGO
ATAKAN ARICA
Agenda
•Why USA
•Business Climate
•Must do Fundamentals
•General three prong Strategy
•Current business climate in USA
•New trends in developing countries and the world
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Why US?
Geography & Size
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Buying Power PPP
Current GDP power of USA: $14 Trillion annual output, $48,000 PPP
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GDP per State
Turkey’s GDP Output is very similar to Washington State
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Midwestern States
TACCI-Midwest captures 12 states including Illinois, Indiana, Michigan, Ohio, Iowa,
Minnesota, Missouri, Kansas, Nebraska, North Dakota, South Dakota & Wisconsin
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US is Still Growing
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World Growth Rates & North
America & South America
GDP Real output for the world Energy sector included
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Comparative Data
US is still the largest Economy in the world by far
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Comparative data
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Other reasons
•
World’s largest open market
•
Great competition---- Everyone is here. Operational
Excellence efforts
•
Mature Market---- Requires a general growth strategy,
Marketing & Brand Strategy
•
Different than Europe, Middle-East & Asia
•
If you can compete in this market, you can compete
everywhere else because of the demanding customers.
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Business Climate
•
Requires Commitment…Long term
•
Start small and do your homework
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Strategy & Planning Requirements
•
It is very favorable for Foreign Companies
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Worlds largest
Import Market
US Imports in 2007: $2Trillion, Exports $1.2Trillion
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Market
Opportunities in USA
Retail trade sector potential in 2010 is $5.1 Trillion….
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Turkish Products IN USA
Sectors and Products Turkish Exporters have competitive advantages
-
- agricultural products
- processed foods
- plastics
- apparel, yarns
- fabrics
- home textiles
- marble
- ceramic tiles
- sanitary ware
- glassware
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- jewelry
- copper and aluminum products,
- pumps
- air-conditioning equipment
- machine tools
- electrical equipment
- home appliances
- electrical and electronic cables
- automotive components
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Fundamentals
•
LEGAL
Contract Laws : Express and written
Product Liability Laws: Warranties etc.
•
ACCOUNTING
Types of Corporations, in which states
Federal Accounting Guidelines
GAAP if you are reporting
Taxes and repatriation of earnings
•
LABOR LAWS
Minimum Wage
Discrimination Issues: Gender, Race, Age, Americans with Disabilities Act
Proper documentation
Unions if necessary
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Fundamentals
• Understand the culture and the customers
suppliers & vendors
Hire experienced people in your field
• Market Research for your products and services
• Operation and Supply Chain Management
• Finally, after a certain amount of time, reassess and expand if
necessary
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Three Prong StrategyInterconnected
Cultural & Educational
Business Strategies
Political Strategies
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Cultural
& Educational
1. Teach about Turkish Products & Business Environment
2. Learn about the American Business Environment
3. Learn how to deal and connect with the top
management
• Study in the same schools or hire talented people
• Learn how to negotiate
• Learn how they think & approach the issues
• Understand the decision making process
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Business Strategies
1. Become a member of a Chamber of Commerce and industry group
2. Attend business specific trade shows
3. Learn to follow through
4. Keep the utmost professionalism
5. Work only with reputable companies
6. Manufacturing and Service industry
7. Logistics strategy inbound and outbound
8. Use the services from your Commercial Attaches office
9. Technology transfer, Joint Venture, Licensing, Mergers & Acquisitions
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Political Strategies
1. Keep in constant contact with your Consul General Office
2. Know all your State and Local USA Representatives
3. Support Turkish lobbying efforts in conventional and unconventional ways
4. Explain & educate the importance of Turkey to all the other foreign
nationals
5. Help draft legislation if necessary
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Current State in US
•Everyone is cutting back
•Shift from spending to saving. Remember 1998 Asian Crisis…
•Banks are still shaky but new TARP program will inject more money into the economy
•Great potential to buy companies and business
•Great labor force for work…cheaper & more qualified.
•Opportunities are all over.
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Personal Disposable
Income
Personal Disposable Income for 2010 is projected at $11.8Trillion
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Shift In
Globalization
BRIC countries are expanding into western economies
•
•
•
Indian TATA bought Jaguar from Ford & CORUS Steel in UK
Chinese Companies expanding; Cherry & Geely Looking at Volvo
Ulker bought Godiva…
•
•
Shift from manufacturing to service industries
IT and Medical Imaging, Accounting, Call centers, Medical Records Management
•
Better opportunities for Turkey as well
•
Q&A
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Contacts in Chicago
Turkish Consulate General
Honorable Kenan IPEK, Turkish Consulate General
360 North Michigan Avenue,
Suite #1405 Chicago, IL 60601
Tel: (312) 263-0644 ext 27
Fax: (312) 263-1449
E-mail: [email protected]
Turkish Commercial Attachés Office
Suleyman SOZERI , Turkish Commercial Attaché
Office of the Commercial Attaché
Turkish Consulate General
444 N. Michigan Ave., Ste 2930
Chicago, IL 60611
Tel: 1 (312) 410 9005
Fax: 1 (312) 410 9006
e-mail: [email protected]
TACCI Midwest
Turkish American Chamber of Commerce & Industry, Midwest
Sevil KUTAY President
333 N. Michigan Avenue, Suite #932, Chicago, IL 60601
Cell: 847 414 1150
Tel: 847 885 8785 (direct) 312 276 5171 (office)
Fax: 847 885 8707
E-mail: [email protected] www.TACCI-Midwest.org
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