Description of the Strategic Alignment Issues Within the Dogus Holding

1. THE DOĞUŞ HOLDING STORY – SCOPE AND CONTEXT

(QUESTION 1)

DESCRIPTION OF THE STRATEGIC ALIGNMENT ISSUES WITHIN THE DOĞUŞ HOLDING

Intergenerational conflicts are universal in human societies. Especially common and by far most dramatic are those between father and son. Psychoanalysts (i.e. Freud, Jung), novelists (i.e. D. H. Lawrence, Kafka, Turgenev, Sophocles), Shakespeare (i.e. Hamlet, The Merchant of Venice, King Lear)), poets (i.e. Rilke, Werfel) – all have centralised the father-son theme in their works.

Similar to the protagonists of the literary works, Turkey's Doğuş Holding story revolves around the Şahenk father–son relationship. Besides this the distinctions of the "old versus new", "traditional versus modern", "conservative versus progressive" are central in this case, all of which developed as result of Ferit Şahenk being named by his father as president and CEO of the holding in March 1999 - a period that marked the start of economic, political and financial instability in Turkey.

The financial crisis was one, but not the sole reason that Ferit contemplated major changes within the Holding. Already prior to the crises he started to prepare the company to compete in a dramatically different environment, due to the fact that Turkey was a candidate for admission to the European Union (EU) which required drastic changes in the regulatory and taxation systems. Besides all these external factors, Ferit had internal reasons for change as well. He believed that some of the companies were not performing well enough and planned to get out of some sectors such as food processing and construction – Doğuş's core business.

Realizing Doğuş's new purpose as a "leading service provider group in Turkey, by customer-driven growth in branded services" (Volland, 2000) would be impossible without the supportive behaviour of its employees and key stakeholders. Ferit had to create strategic alignment in order to achieve the new strategic initiatives. Achieving strategic alignment however is not an easy task considering all the challenges that the company were have facing, inside-out.

Leadership-style challenges

"...once people love you, as they love my father, it's hard to be tough and do what needs to be done." Ferit Şahenk

Leading the large, traditionally managed, $14.4 billion Turkish conglomerate into the 21st century is no easy task considering the 50 years of highly personal style that Ayhan had cemented into the company. A charismatic patriarch and 96% owner of the holding, Ayhan is a self-taught man, influential and much-beloved figure. His leadership style had brought the company to success. Ferit however,