McCallum Graduate School of Business Bentley University
GBE 790: Manufacturing in the EU and The Changing Dynamics of Turkey's EU Relations
March 9-‐18, 2012
Munich, German and Istanbul, Turkey
Cost per student: $5,200
Dr. Alan N. Hoffman Professor of Management Office: MOR 107; Office Phone: (781) -‐ 891 2287 E-‐mail: [email protected]
REQUIRED READINGS
Books:
The German Economy: Beyond the Social Market, by Horst Siebert, Princeton University Press, 2005. Read Chapters 1-‐4, 6.
Chapt.1: Basic Features of the German Economy Chapt. 2: The Social Market Economy Chapt. 3: The Weak Growth Performance Chapt.4: The Labor Market: High and Sticky Unemployment Chapt 6: Ageing as a Challenge Over the Next 40 Years.
The Government and Politics of The European Union, th 7 edition, Neill Nugent, Palgrave Macmillion, 2010, Parts 1 & 2.
Part 1: The Historical Evolution of the EU Part 2: The Evolving Treaty Framework
Forces of Fortune: The Rise of the New Muslim Middle Class and What It Will Mean for Our World, by Vali Nasr, The Free Press, 2009.
Articles:
Turkey in Europe: The Economic Case for Turkish membership of the European Union:
1 Turkey’s Accession to the EU – The Business Case by Rt Hon David Miliband MP, Foreign Secretary
Preface by Rt Hon William Hague MP, Shadow Foreign Secretary and senior member of the Shadow Cabinet
Introduction: Turkey’s future lies in Europe by Adam Hug, Policy Director, The Foreign Policy Centre
1. Turkey’s economic integration with the EU: A case of win-‐win interdependence by Olli Rehn, European Commissioner for Enlargement
2. The Turkish Economy and the EU Connection: The case for moving beyond engineered uncertainty by Dr Mehmet Ugur, Jean Monnet Reader in International Relations, University of Greenwich 26
3. Trade, Investment and Migration by Professor Refik Erzan, Professor of Economics, Bogaziçi University, Istanbul 37
4. EU and Turkey: In search of an almost perfect equation by Dr Bahadir Kaleagasi, TUSIAD (Turkish Industrialists’ and Businessmen’s Association) representative to the EU and BusinessEurope
5. Turkey: Trade and EU Accession by Sir Julian Horn-‐Smith, UK co-‐chair, Turkish British Business Council
6. Turkey and the EU: the Business Case for Membership by Roland Rudd, Chairman, Business for New Europe.
7. Turkey and EU Energy Security by Dr Gareth M Winrow, independent analyst and formerly Professor of International Relations Istanbul Bilgi University
Conclusion: Making Turkish membership a reality by Adam Hug
COURSE DESCRIPTION
The course will compare and contrast advanced manufacturing in the EU (Germany) and in an aspiring entrant to the EU (Turkey) that is already leader of manufacturing and trade in the EEMENA Region (Eastern Europe, Middle East, Northern Africa).
Munich, Germany
Germany is one of the world's most advanced market economies. It is the world's third largest economy in USD -‐ exchange rate terms, the fifth largest by purchasing power parity (PPP) and the largest economy in Europe.
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Compared to other German cities, Munich has the strongest economy and also boasts of the lowest unemployment rate (5.6 %). It is the economic centre of southern Germany and is considered a global city. Hardly surprising that it is home to of the headquarters Siemens AG (electronics), BMW (car), MAN AG (truck manufacturer, engineering), Linde (gases), Allianz (insurance) and Munich -‐ Re (re insurance). Among German cities with more than 500,000 inhabitants purchasing power is highest in Munich (26.648 Euros per inhabitant) as of 2007. Munich is also a centre for biotechnology, software and other service industries. Aircraft engine manufacturer MTU Aero Engines, the space and defence contractor EADS, the injection molding machine manufacturer Krauss-‐Maffei, the camera and lighting manufacturer Arri, the semiconductor firm Infineon Technologies, the DRAM company Qimonda, as well many foreign companies like Precision Plus, McDonald’s and Microsoft have their German or European headquarters in Munich.
In the finance sector, Munich is home to Hypo Vereinsbank, Bayerische Landesbank and insurance companies like Allianz and Munich Re.
Munich has earned itself the reputation of being Europe’s publishing capital. It is home to the Süddeutsche Zeitung, one of Germany's largest daily newspapers. It also plays host to Germany's largest public broadcasting network, ARD, and its largest commercial network, Pro7-‐ Sat1 Media AG and the Burda publishing group. One of Europe's biggest and most famous movie production studios, the Bavaria Film Studios is also located in the suburb of Grunwald. Lufthansa has opened a second hub at Munich's Franz Josef Strauss International Airport, the second-‐largest airport in Germany, after Frankfurt International Airport (from Wikipedia).
During the five day stay in Germany, the group will visit Munich where the participants will study and analyze the German and EU business strategies and practices through lectures, company visits, visits to key historical and cultural research sites, market and exchanges of views with German businessmen and government officials.
Istanbul, Turkey Istanbul is one of the world’s most vibrant and dynamic cities. Spanning Europe and Asia, the city’s history stretches back to Ancient Greece. serves Istanbul pre and honors its legacy as the former capital of three successive -‐-‐ empires Roman, Byzantine and Ottoman. Today’s Istanbul is a key cultural center where modern Islam meets Western Europe. Students will have an opportunity to experience the realities of today’s Turkey in cultural and historical context. Turkey's economy is no longer dominated by traditional agricultural activities in the rural areas, but more so by a highly dynamic industrial complex in the major cities, mostly concentrated in the western provinces of the country, along with a developed services sector. In 2007, the agricultural sector accounted for 8.9% of the GDP, while the industrial sector accounted for 30.8% and the services sector accounted for 59.3%. Tourism has experienced rapid growth in the last twenty years, and constitutes an important
3 part of the economy. In 2008, there were 30,929,192 visitors to the country, who contributed $21.9 billion to Turkey's revenues. Other key sectors of the Turkish economy are automotive, banking, construction, home appliances, consumer electronics, textiles, oil refining, petrochemical products, food, mining, iron and steel and machine industry. Turkey has a large and growing automotive industry, which produced 1,024,987 motor vehicles in 2006, ranking as the 6th largest automotive producer in Europe behind Germany, France, Spain, the United Kingdom, and Italy, respectively. Turkey is also one of the shipbuilding leading nations; in 2007 the country ranked 4th in the world (behind China, South Korea and in Japan) terms of the number ships of ordered . (from Wikipedia).
The course examines Turkish business strategies and practices from the cultural and historical perspectives. It involves a ten-‐day study tour Mun to ich, Germany (EU) and Istanbul Turkey, preceded by one -‐ pre departure seminar and one trip orientation meeting at Bentley University. The course will enable students to observe manufacturing in the the EU and on-‐going socio-‐ economic transformation of Turkey and the challenges of globalization with the EU, Russia, China and the US.
During the ten day visit top Munich and , Istanbul the group will study and German analyze the and Turkish business strategies and practices through lectures, company visits, visits to key historical and cultural sites, market research and exchanges German of views with and Turkish businessmen and government officials.
GRADING/PERFORMACE EVALUATION
1. Attendance in the pre-‐trip seminars/meeting (25%).
There will be two pre-‐trip meetings offered on campus before the trip: the first seminar will be on German the and Turkish economies, history and culture and background on the European Union (4 hours); the second meeting will cover the trip overview, logistics and assignments. Students are required both to attend sessions (2 hours).
2. Attendance in all Group Activities in Munich and Istanbul (15%).
Students are required to participate in all the arranged group activities in Turkey, including attending lectures and visiting companies.
3. Student Journal of Company Visits (20%)
Students are required to keep a journal of their thoughts and reactions to all of the company visits Munich in and Istanbul and describe the central issue or problem facing each company.
4. Industry Analysis Research Paper (25 pages) (40%)
After the trip, students are required to hand in a research paper of 25 pages on one
4 Germany or Turkey’s key industries: automobiles, tourism, shipbuilding, banking, construction, home appliances, electronics, textiles, oil refining, petrochemical products, food, mining, iron and steel and machine industry.
COST: $5,200.
The program includes accommodation in double occupancy/shared rooms at 4 star hotels and coach class airfare.
Credit for Removing International Air: $ 1400 – through December 1, 2011
Summary of Inclusions:
INTERNATIONAL AIR TRANSPORTATION
Roundtrip, economy class ticket on Lufthansa airlines via Boston
TRANSFERS, TOURING & MEALS
Arrival and departure transfer with English speaking assistant 4.5 days coach & guide at disposal for business visits Surface transportation – via private coach in Munich and Istanbul Tourism activities & entrance fees included for Istanbul as listed (Blue Mosque, Topkapi Palace, Grand Bazaar, Spice Market) Seven (7) Dinners Six and (6) Lunches – 3 course equivalent with one drink per person included (Note: transfer day likely -‐ a cold packed lunch) All current local and federal taxes Tips at hotel & restaurant meals HOTEL SERVICES
8 nights hotel accommodations in shared rooms Munich Germany: TBD Istanbul: Hotel Titanic City (4-‐star) www.titanic.com.tr – Taksim neighborhood Buffet breakfast daily at the hotels All hotel taxes, service charges and applicable meal gratuities Note: Hotel space is held on provisional basis pending final contract & deposit
5 VALUE ADDED SERVICES
Travel insurance provided (at an additional cost) for baggage insurance, medical evacuation and treatment and trip interruption/cancellation $27,000,000 Travel Agent’s Professional Liability insurance coverage Consumer protection for up to $1,000,000 on advance deposits through USTOA membership
ADDITIONAL INCLUSIONS
Students receive (via UPS) all relevant trip information including: Destination-‐specific travel letters detailing currency, weather, electricity, etc. Travel document holder with all relevant trip documents
OPTIONAL INSURANCE SERVICES
After registering you might want to consider individual insurance for your trip. We recommend Travelex underwritten by Old Republic Insurance Company. They offer an array of services ranging from luggage ance insur to cancellation insurance. If you are interested in their services please follow the link or call the number listed below and make sure to include the location number in your application so that Accent will be notified of your policy.
Mar 9 USA/ IN TRANSIT FRI Depart USA en route to Istanbul
Mar 10 ISTANBUL - ARRIVAL SAT Arrive Istanbul ~ 2 – 4 PM – Flight arrives Istanbul D Meet and assistance on arrival at airport Luggage assistance and transfer to hotel for check in Hotel check-in Transfer to restaurant Welcome Dinner (3-course set menu, 1 soft drink per person included) Overnight: Istanbul (1)
Mar 11 Istanbul City Tour SUN Breakfast at hotel Full day coach & guide for city tour including – Roman Cisterns, Heija Sofia, Grand Bazaar,
6 B, L, D Topkapi Palace, Blue Mosque & Hippodrome Group lunch at local restaurant – one drink included per person Group dinner at local restaurant (3-course set menu, 1 soft drink per person included) Overnight: Istanbul (2)
Mar 12 Istanbul Business Visits MON Breakfast at hotel Full day coach & guide for company visits B, L, D Visit #1 arranged by Accent Lunch at local restaurant – one drink included per person Visit #2 arranged by Accent Group dinner at local restaurant (3-course set menu, 1 soft drink per person included) Overnight: Istanbul (3)
Mar 13 Istanbul Business Visits & Cruise TUE Breakfast at hotel Full day coach & guide for company visits B, L, D Visit #3 arranged by Accent Lunch at local restaurant – one drink included per person Visit #4 arranged by Accent Sunset cruise on the Bosphorus by private boat with unlimited beer & wine, snacks (nuts, chips, pretzels, local cheeses) served (1-1.5 hrs duration) Group dinner at local restaurant (3-course set menu, 1 soft drink per person included) Overnight: Istanbul (4)
Mar 14 To Munich WED Breakfast at hotel Transfer to airport for flight to Munich B, D Economy-class flight to Munich Lunch on own Coach/ guide meet and assistance on arrival at airport Afternoon city tour of Munich Transfer to hotel, check-in Coach(s) for round trip transfer to dinner Dinner at local restaurant (3-course set menu, 1 soft drink per person included) Overnight: Munich (1)
Mar 15 Munich Business Visits THU Breakfast at hotel Full day coach & guide for company visits (8 hours) B, L, D Visit #5 arranged by Accent Lunch at local restaurant – one drink included per person Visit #6 arranged by Accent Group dinner at local restaurant (3-course set menu, 1 soft drink per person included) Overnight: Munich (2)
Mar 16 Munich Business Visits FRI Breakfast at hotel Full day coach & guide for business visits (8 hours) B, L, D Visit #7 arranged by Accent Lunch at local restaurant – one drink included per person Visit #8 arranged by Accent Group dinner at local restaurant (3-course set menu, 1 soft drink per person included) Overnight: Munich (3)
Mar 17 MUNICH – SALT MINES & FAREWELL DINNER
7 SAT Breakfast at hotel included Private Coach(s) & Guide(s) for full day cultural visits (8 hours) B, D (or TBA train 90 minutes) Salt Mines Tour Free time in Salzburg Lunch on own Coach(s) and Assistant for round trip transfer to dinner Farewell Dinner at Hofbraeuhaus with live music (3-course set menu, 1 soft drink per person included) http://www.hofbraeuhaus.de/ Overnight: Munich (4)
Mar 18 In transit/ Arrive USA SUN Breakfast at hotel Hotel check out B Transfer to airport for flight to USA
Other meals per airlines
Possible company visits:
Istanbul Companies 1. Yapi Kredi Bank www.yapikredi.com.tr 2. Goodyear Tire & Rubber Company www.goodyear.com/corporate/about/facilities.html 3. EGE Chemicals 4. Turk Telekom 5. Istanbul Stock Exchange www.ise.org 6. Womens Entrepreneurs Association of Turkey www.kagider.org 7. Turkish Cultural Foundation www.turkishculture.org 8. Dogus Holdings www.dogusgrubu.com.tr 9. Karadeniz Holding www.karadenizholding.com 10. The Acibadem Healthcare Group www.acibadem.com.tr/English/ 11. KOC Holdings www.koc.com.tr 12. Sabanci Foundation http://www.vaksa.org.tr/eng/?hakkinda/hakkinda.html 13. AMCHAM www.amcham.org.tr/eng/ 14. Global Tanitim www.globaltanitim.com 15. Merck & Co (Pharmaceuticals) 16. Intengo Information Technologies
Munich Companies 1. U.S. Commercial Service www.buyusa.gov/germany/en/munich.html 2. General Electric www.ge.com/research 3. Intel http://www.intel.com/corporate/techtrends/emea/eng/labs/ 4. Gate Technology www.gategarching.com 5. CB Richard Ellis www.cbre.com
8 6. Department Of Labor & Economic Development http://www.muenchen.de/home/60093/homepage.html 7. Munich Outsourcing Center www.munich-outsourcing-center.com 8. Wellington Partners Venture Capital www.wellington-partners.com 9. Strascheg Center for Entrepreneurship www.sce-web.de
Specific faculty requests: 1. BMW http://www.bmw-werk-muenchen.de/lowband/com/de/index.html 2. Bayer 3. Kuka Robot 4. Mercedes-Benz company
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