World Travel Guide

City Guide  - Istanbul  - Business
Business

Business Profile
Although Ankara is the official capital, Istanbul has always been the centre of the country's economic life, due to its location at an international junction of land and sea trade routes. As a result, 36% of Turkey's total exports and 40% of total imports of Turkey are transported via Istanbul, and nearly half the nation's wealth is in the metropolis, however, the gap between rich and poor is the worst in Eurasia. Land values have skyrocketed in recent years and coupled with high inflation, nearly 40% of the city's wealth goes to rentiers, largely untaxed, and the growth of shanty towns is unchecked.
Rural people, however, continue to stream into the city for very good reasons. Istanbul is by far Turkey's industrial leader, with 24% of all related jobs in the country and 44% of medium- to large-scale workshops (those with 25 employees or more). Wages are low, but so is unemployment. Half of the top 500 industrial enterprises of Turkey have their factories and business centres in Istanbul and so it has attracted the highest percentage of qualified workers in the country. Food processing, textile production, oil products, rubber, metal ware, leather, chemicals, electronics, glass, machinery, automobiles, paper and paper products, tobacco and alcoholic drinks are among the major industrial products. Along with industry, the insurance and banking companies and major corporations in the city steer the nation's economic life.
The largest company in Turkey in terms of value is scarcely five years old - the mobile phone giant Turkcell. This company, with seven million subscribers, went public in 2000 and is listed on the New York and Istanbul Stock Exchanges, with a capital value of around US$18 billion.
Other major companies have built their gleaming office towers along the road from Mecidiyeköy through the suburbs of Levent and Maslak, home to the Istanbul Stock Exchange (IMKB), news channel NTV, Goodyear, Bosch and more. The major media groups (Hurriyet, Milliyet, Sabah, Ihlas etc) have moved to high-tech complexes at the edge of town in Ikitelli. As business tends to centre on major transport routes, the ring road or TEM, the Trans European Motorway, serves as the magnet for growth on the Asian side, running across the new Fatih Sultan Mehmet Bridge over the Bosphorus. Many foreign businesses have their main offices on this side, from Henkel to Ford Motor.
The main draw for foreign business is a high disposable income for the 20% of the city's population that have most of it, and a culture that thrives on conspicuous consumption. Evidence of this is more and more apparent - the Bosphorus has been earmarked for luxury villa projects, and huge commercial and shopping centres are springing up. As the city expands, and especially since the 1999 earthquake, construction standards have risen, new satellite cities touting total safety have sprung up and many buildings (even those in luxury areas) have been condemned and are being rebuilt. As a result, the construction industry is also flourishing.

Business Etiquette

In Ottoman times, greetings were highly formalised and some vestiges of this formality remain in modern Turkey. It is customary to address new acquaintances by their first names followed by 'Bey' (sir) or 'Han?m' (lady). Business relationships tend to be more hierarchical than the European norm, encouraging servile behaviour at the bottom rung of cleaners and tea 'boys' (usually old men) that may seem galling to seasoned democrats. Secretaries are rarely empowered to take important messages or even know the boss's schedule, so it is customary to be told to ring back 'one hour later'.
However, relations between business equals (especially when entertaining foreign visitors) can be lavishly generous, although one is expected to make at least a gesture of resisting. It is customary for the boss to display extravagance and insist on paying the entire bill, and one should accept this with good grace. Turkish people also adore having their photos taken with visiting dignitaries, even more so if appears in print somewhere. When visiting people's homes, flowers or sweets are more appropriate than alcohol as the host may not drink. If they do drink, however, good whisky is a sure-fire hit.
Business dress is the same as in Europe or North America, although women are advised to wear business suits with long skirts (below the knee), to avoid any misunderstandings. Many Turkish companies in the past have employed flashy young women in miniskirts as sales reps and publicity agents, thinking to impress foreigners, but this practice is fading as managers learn that competence in employees is considered more important than looks. Visiting businesswomen will usually be treated with the same respect as male colleagues. However, they should resist any after-dinner invitations to accompany the men to a revue bar or belly-dancing club. These are basically upmarket brothels and a woman's company will be resented no matter how much she may be pressed to join them.
Business hours are technically 0900-1700, Monday to Friday, although most employees are still expected to put in a ten-hour working day.



Copyright © 2001 Columbus Publishing
    
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