Turkey
Rahmi M. Koç
- Honorary Chairman, Koç Holding (Diversified)
Born Ankara, Turkey, 1930. BA, Johns Hopkins University (1956).
“It is not easy in this global world. Competition is very, very tough, even merciless. The mother companies in other markets are very strong. They can afford to lose ten years in order to get control of one market.”
Summary
Rahmi Koç was chairman of Koç Holding, Turkey’s largest diversified business group representing 8 per cent of the country’s GDP, between 1984 and 2003, when he became Honorary Chairman. The group had been created by his father Vehbi, a serial entrepreneur who had started the business in the newly founded Republic of Turkey in the 1920s. During the postwar decades, it grew enormously in the context of a highly protected Turkish economy, diversifying into automotives, consumer durables, retail, construction, tourism and many other activities, while still being closely controlled by Vebhi and his family. Rahmi Koç joined one of the group’s automotive businesses in 1958, after attending Johns Hopkins University and eighteen months of military service. In this interview he discusses his formative early years in the business, and the challenges of navigating Turkey’s closed, highly regulated and turbulent economy, especially before 1980, when a process of slow liberalization began. The subsequent opening of the country to greater international competition provided a new set of challenges. The interview explores both how Koç built a successful global business for the wholly-owned Arçelik white goods business, and why many other businesses, dependent on foreign corporate partners and licenses, still remain domestically focused. Under his leadership, Koç explains how he began to streamline the highly diversified portfolio and, especially, how he began to professionalize the management, even while seeing the continued family role as essential to the cohesion and vision of the group. The interview shows how managers were developed inside the group within the context of a corporate culture which embraced both business and social behavior, with a set of values stressing the importance of social etiquette, respectable family lives, fairness and honesty.
Video Clips by Topic
Family Business
Rahmi Koç, former Chair of of Koç Holding, the largest diversified business group in Turkey, explains the role of family members in monitoring the performance of professional managers, using his own company (with 70% family ownership) as an example.
Keywords:
Turkey, Family Business
Global Expansion
Rahmi Koç, former Chair of Koç Holding, a large diversified business group in Turkey, describes his cautious approach to international expansion, using the U.S. appliance market as his example.
Keywords:
Turkey, Global Expansion
Fundraising
Rahmi Koç, former Chair of of Koç Holding, the largest diversified business group in Turkey, relates how difficult it is to bring foreign investments to Turkey, in part due to its location in a volatile region of the world.
Keywords:
Turkey, Fundraising
Additional Resources
- Koç Holding: Arçelik White Goods [HBS case]
- Vehbi Koç and the Making of Turkey's Largest Business Group [HBS case]
- Vehbi Koç and the Making of Turkey's Largest Business Group (B) [HBS case]
- Vehbi Koç and the Making of Turkey's Largest Business Group [HBS teaching note]
- Arçelik Corporation (Koç Group), 1955–2014 [Historical Data Visualization trends over time map]
- Aslı M. Colpan and Geoffrey Jones, "Business Groups, Entrepreneurship and the Growth of the Koç Group in Turkey," Business History (2015)
- Interview with Rahmi Koç, Charlie Rose Show, November 3, 2011
- Interview with Rahmi Koç TV24, Deniz Bitmesin, June 22, 2012
- Interview with Rahmi Koç, May 29, 2009
- "Rahmi Koç: Gece 2 ile 3 arası kalkar idman yaparım," Habertürk, May 17, 2015
- "Rahmi Koç, Miami’yi yatlarla fethedecek," Milliyet, October 28, 2014
- "Koç Family Turkey's Highest Taxpayers in 2013," Cihan, May 5, 2014
- "Rahmi Koç Türkiye'nin vergi rekortmeni oldu," CNNTurk, May 4, 2014
- "Too Big to Fail, But in a Good Way; Turkish Conglomerates (Koc Holding A.S. And Sabanci Haci Omer Holding A.S.)," The Economist, February 1, 2014
- "Rahmi Koç: Bundan daha fazla büyümeliyiz," CNNTurk, December 14, 2012
- "Koç: Moody's ve S&P'den not artışı bekliyorum," Dünya, November 7, 2012
- "Koç: Türkiye zorlu bölgenin tam kalbinde," Hürriyet, September 14, 2012
- Melih Arat, Değişimin Liderleri: Dünya Çapında Başarılara Imza Atan Alarko, Eczacıbaşı, Koç, Sabancı Ve Vestel Şirketlerinin Değişim Öyküleri. Varlık, 2012
- Attila Yaprak, Bahattin Karademir, and Richard N. Osborn, How Do Business Groups Function and Evolve in Emerging Markets? The Case of Turkish Business Groups. Emerald Group Publishing Limited, 2006
- Phillip Rosenblatt and Marat Terterov, Turkey: A Business and Investment Review. GMB Publishing, 2006
- Rajiv Lal, Marketing Management: Text and Cases. McGraw-Hill/Irwin, 2005
- "The Retiring Mr Koc; Face Value. (Rahmi Koc and Dynastic Succession)," The Economist, April 19, 2003
- Bernar Nahum, Koçʾta 44 Yılım: Bir Otomativ Sanayii Kuruluyor. Milliyet Yayınları, 1992
- Koç Holding website
- Vehbi Koç Foundation website
- Rahmi M. Koç Museum website
- Koç University website
- Video file of this interview available at Baker Library Historical Collections, histcollref+hbs.edu. Harvard ID holders can access the full-length video above.
Interview Citation Format
"Interview with Rahmi M. Koç, interviewed by Felix Oberholzer-Gee, February 12, 2015, Creating Emerging Markets Project, Baker Library Historical Collections, Harvard Business School, http://www.hbs.edu/creating-emerging-markets/."