why turkish firms should compete in america presented by tacci-midwest of chicago atakan arica

WHY Turkish Firms WHY Turkish Firms Should Compete in Should Compete in

AmericaAmericaPRESENTED BY TACCI-MIDWEST OF CHICAGOPRESENTED BY TACCI-MIDWEST OF CHICAGO

ATAKAN ARICAATAKAN ARICA

AgendaAgenda

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•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?Why US?

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Geography & Size

Buying Power PPPBuying Power PPP

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Current GDP power of USA: $14 Trillion annual output, $48,000 PPP

GDP per State GDP per State

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Turkey’s GDP Output is very similar to Washington State

Midwestern StatesMidwestern States

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TACCI-Midwest captures 12 states including Illinois, Indiana, Michigan, Ohio, Iowa, Minnesota, Missouri, Kansas, Nebraska, North Dakota, South Dakota & Wisconsin

US is Still GrowingUS is Still Growing

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World Growth Rates & North America & World Growth Rates & North America & South AmericaSouth America

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GDP Real output for the world Energy sector included

Comparative DataComparative Data

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US is still the largest Economy in the world by far

Comparative dataComparative data

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Other reasonsOther reasons

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• 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.

Business ClimateBusiness Climate

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• Requires Commitment…Long term

• Start small and do your homework

• Strategy & Planning Requirements

• It is very favorable for Foreign Companies

Worlds largest Import Worlds largest Import MarketMarket

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US Imports in 2007: $2Trillion, Exports $1.2Trillion

Market Opportunities in Market Opportunities in USAUSA

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Retail trade sector potential in 2010 is $5.1 Trillion….

Turkish Products IN USATurkish Products IN USA

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Sectors and Products Turkish Exporters have competitive advantages- - jewelry

- copper and aluminum products, - pumps- air-conditioning equipment- machine tools - electrical equipment- home appliances- electrical and electronic cables- automotive components

- agricultural products- processed foods- plastics- apparel, yarns - fabrics - home textiles- marble - ceramic tiles - sanitary ware- glassware

FundamentalsFundamentals

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• LEGALContract Laws : Express and writtenProduct Liability Laws: Warranties etc.

• ACCOUNTINGTypes of Corporations, in which statesFederal Accounting GuidelinesGAAP if you are reportingTaxes and repatriation of earnings

• LABOR LAWSMinimum WageDiscrimination Issues: Gender, Race, Age, Americans with Disabilities Act Proper documentationUnions if necessary

Fundamentals Fundamentals

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• Understand the culture and the customerssuppliers & vendorsHire 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

Three Prong Strategy- Three Prong Strategy- InterconnectedInterconnected

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Cultural Cultural & Educational& Educational

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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

Business StrategiesBusiness Strategies

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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

Political StrategiesPolitical Strategies

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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

Current State in USCurrent State in US

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•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.

Personal Disposable Personal Disposable IncomeIncome

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Personal Disposable Income for 2010 is projected at $11.8Trillion

Shift In GlobalizationShift In Globalization

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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

Contacts in ChicagoContacts in Chicago

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Turkish Consulate GeneralHonorable Kenan IPEK, Turkish Consulate General360 North Michigan Avenue, Suite #1405 Chicago, IL 60601Tel: (312) 263-0644 ext 27Fax: (312) 263-1449E-mail: trchicago@mfa.gov.tr

Turkish Commercial Attachés OfficeSuleyman SOZERI , Turkish Commercial AttachéOffice of the Commercial AttachéTurkish Consulate General444 N. Michigan Ave., Ste 2930Chicago, IL 60611Tel: 1 (312) 410 9005Fax: 1 (312) 410 9006e-mail: dtchi@sbcglobal.net

TACCI MidwestTurkish American Chamber of Commerce & Industry, MidwestSevil KUTAY President333 N. Michigan Avenue, Suite #932, Chicago, IL 60601Cell: 847 414 1150Tel: 847 885 8785 (direct) 312 276 5171 (office)Fax: 847 885 8707E-mail: president@tacci-midwest.org www.TACCI-Midwest.org