Strategic Audit for Business Seminar I created

1. Presented by: Chester Company Yvonne Evans Etta Lucero Becky Stachel TURKCELL Strategic Audit

3. Based in Istanbul, Turkey

5. First GSM company

7. Turkcell VALUES We believe that customers come first We are an agile team We promote open communication We are passionate for making a difference We value people

8. Current strategic posture One of the largest operators in Europe in terms of the number of users. Provides coverage of an area that includes 100% of the population living in cities of 5,000 or more people, 97.21% of the total population, and 80.44% of Turkey’s land area. Overall, Turkcell operates in eight different countries, reaching 160 million people.

10. “We have introduced a wide range of mobile services intended to attract and retain customers with various service needs.”

11. Remain at the forefront of technological innovation

13. To grow in our core mobile communication business through increased use of voice and data.

14. To grow in our existing international subsidiaries with a focus on profitability in the long term.

15. To grow in the fixed broadband business by creating a synergy among Turkcell Group companies with our fiber optic infrastructure.

16. To grow in the area of mobility, internet and convergence through new business opportunities.

17. To grow in domestic and international markets through communications, technology and new business opportunities.

19. Increase call minutes per customer

20. Increase literacy throughout the country, especially in women

22. The dividend amount will be determined by a ratio determined by the Capital Market Board Human Resources – Pay above industry average

23. Board of directors Turkcell’s Board is composed of 7 members elected by the Annual General Meeting for maximum terms of three years. MehmetEminKaramehmet(Chairman of the Board) - Çukurova Holding A.Ş. – age 65, served since 1993 MehmetBulentErgin– Age 60, served since 2005 AimoEloholma– Age 59, served since 2007 Oleg Malis– Age 34, served since 2006

24. Board of directors AlexeyKhudyakov – Age 38, served since 2006 Colin J. Williams – Age 67, served since 2006 TeroErkkiKivisaari– Age 36, served since 2007 Of the 7 board members, 4 are age 59 and over, 3 are in their 30’s and all board members are non executive.

26. Worked as an accountant in New York at Price Waterhouse 1980– 1985. Then he worked for Interbank as Head of Corporate Finance until taking on the Area Finance Director of PepsiCo International in 1992.

28. SureyyaCilivis the current CEO of Turkcell since Jan 2007. Ciliv is 50 years old. Before joining Turkcell, he held executive positions in Microsoft Corporation. In 1997, Ciliv was appointed as the Country Manager for Microsoft Turkey and in 2000 he was promoted to the Microsoft headquarters in Redmond, WA, USA. He held executive positions in the Microsoft Worldwide Sales, Marketing and Services Group from 2000 till 2007. Ciliv was the head of Field Readiness Strategy and Systems Division of Microsoft, before he joined Turkcell.

30. İlterTerzioğlu - Chief Network Operations Officer since 2006. Age 42.

31. CenkBayrakdar - Chief Product and Service Management Officer

32. İlkerKuruöz - Chief Information and Comm.Technologies Officer

33. SelenKocabas- Chief Business Support Officer since 2003. Age 40

34. LaleSaralDevelioğlu- Chief Marketing Officer since 2006. Age 40

35. EmreSayın- Chief Corporate Business Officer since 2008. Age 41

36. EkremYener- Chief Corporate Business Officer since 2007. Age 47

38. HulusiAcar- Chief Consumer Sales OfficerCurrently there are 10 members of Senior Management, only two of whom are female.

40. Headquarters offers a gym and sauna for the employees.

41. Cafeteria provides free lunch for all employees

42. Provides extensive employee training.

43. Creating high employee loyalty

46. Provide 100% communications coverage in Turkey for ALL cities with populations of 5000 or more.

47. More than 100 different consumer services

48. By March 2002, there was a nationwide network of more than 520 exclusive handset dealers selling only Turkcell services

49. Corporate resources Marketing

52. Center has 42 technical staff offering 24/7 coverage.

54. 49% Technical

55. 26% Customer care

56. 16% Finance & Administration

57. 9% Marketing

58. Average employee age is 28.

59. 80% of employees are university educated

61. Revenues of $1.97 billion

62. Net income of $101 million

64. Turkey has great resiliency

65. 70% of population is under 35

66. Granted a 25-year GSM license to

67. operate in Turkey

68. Market penetration is only 34%

69. New 3G Innovative Technology available

71. Inflation rate that has hovered around 40% for 20 years

73. Consumer inflation rose 68%

74. Government entry into the mobile telecommunications market

77. Values five structural principles: proactive approach, result orientation, minimum hierarchy, full accountability, and simplicity

78. Accomplished company winning many awards

79. Creating high employee loyalty

80. Provides extensive employee training.

81. Provide 100% communications coverage in Turkey for ALL cities with populations of 5000 or more.

83. Snabbit branding – including Cell-o and his family.

84. 80% of employees are university educated

85. Employee wages are above industry standard.

86. The $10 million Network Control Center housing State-of-the-art computer technology.

88. They will have to set aside capital to purchase the 3G license which they will have to bid for.

89. If unwilling to invest in 3G market, they may no longer be the industry leader.

91. Strategic Factor Analysis Summary (SFAS)

92. Strategic alternatives Growth Pursue 3G technology and continue foreign acquisitions. Pro – Will remain ahead of the competition and keep and expand market share. Will be able to offer customers who don’t have Internet access an alternative access to the Internet. Con – Large cost and capital investment needed to enter the 3G market. Will take years to recoup their investment.

93. Strategic alternatives Stability Remain with the current services offered. Do not invest large amounts of capital into 3G technology. Pro – Save money from not investing into 3G technology. Con – Will lose competitive edge and market share when its competition implements 3G technology, thereby surpassing Turkcell as the industry leader in innovation.

94. Strategic alternatives Retrenchment Bring in an expert that specializes in implementing 3G technology in order to plan for future expansion. Pro – Gives an estimate of capital required to upgrade their current facility to recommended specifications for 3G technology. Con – The capital needed to upgrade to 3G technology.

95. Recommendation Growth Pursue 3G technology in order to provide state of the art technology to their customers and to remain the innovative market leader Continue foreign acquisitions to continue to expand globally Continue strong character branding with Snabbits

96. 3G promotion

97. implementation Action Plan Bring in an expert that specializes in implementing 3G technology who can detail cost reduction Receive proposal and estimate from specialist to determine capital requirements needed. Plan for capital requirements. Set a time frame of 6 months. Purchase any additional assets needed to upgrade the current facility. Build facility and go live in 3G technology!!

98. Where is turkcell today?

100. Their Subscribers went from 16.3 Million in 2003 to 35 Million

101. The CRM Software implemented in 2007, has resulted in near real time data delivery, easy-to-build data services, and complex business intelligence reports to offer personalized and efficient customer interactions.

102. Turkcell went live with 3G on July 30, 2009

103. 34% of Turkcell’s customers using 3G have Internet service for the first time.

104. 2 Million active 3G users.