Strategic Planning For Migros Company

BEYKENT UNIVERSITY

STRATEGIC MANAGEMENT PLAN

FOR MIGROS COMPANY

Erman HENDEM

İrem AKTAŞ

Yılmaz GÜNEŞ

Berk IŞIKTAN

Uğur METE

Submitted to Prof. Dr. Asım ŞEN

For the Requirement of BUS401

Fall, 2009, Şişli / Ayazağa

Nov 06, 2009

2 STRATEGIC PLANNING FOR MIGROS COMPANY

CONTENTS

CONTENT NAME INDEX PAGE NO SHAREINTRODUCTION 4 IRMVISION, MISSION, OBJECTIVES AND VALUES 1 4 IRM

VISION 1.1 4 IRMMISSION 1.2 4 IRMOBJECTIVES 1.3 5 IRMVALUES 1.4 5 IRM

ENVIRONMENTAL ANALYSIS 2 5 B & UEXTERNAL ANALYSIS 2.1 5 B & UINTERNAL ANALYSIS 2.2 7 B & UCAPITAL 2.3 7 B & UPHYSICAL RESOURCES 2.4 8 B & UHUMAN RESOURCES 2.5 9 B & U

SWOT ANALYSIS 3 10 Y & ESTRENGTHS 3.1 10 Y & EWEAKNESSES 3.2 10 Y & EOPPORTUNITIES 3.3 11 Y & ETHREATS 3.4 11 Y & E

STRATEGIC ESTABLISHMENT 4 12

OPERATIONAL POLICIES AND THE BOTTOM LEVEL STRATEGIES OF MIGROS 4.1 12 Y & E

SOCIAL RESPONSIBILITY POLICIES 4.1.1 12 Y & EPROFIT SHARE POLICIES 4.1.2 13 Y & EETHICAL RULE POLICIES 4.1.3 13 Y & EHUMAN RESOURCES POLICIES 4.1.4 15 Y & EWORK TIME SCHEDULE POLICIES 4.1.5 17 Y & E

FUNCTIONAL LEVEL STRATEGIES 4.2 17 IRMLOW COST STRATEGY 4.2.1 18 IRMPRODUCT DIFFERENTIATION 4.2.2 18 IRMFOCUS MARKET NICH ON 1 4.2.3 20 IRMFOCUS MARKET NICH ON 2 4.2.4 21 IRM

BUSINESS LEVEL STRATEGIES 4.3 22 B & UALLIANCES 4.3.1 22 B & UMERGERS / ACQUISITIONS 4.3.2 23 B & U

VERTICAL INTEGRATION / HORIZONTAL INTEGRATION 4.3.3 23 B & U

OUTSOURCING 4.3.4 23 B & UCORPORATE LEVEL STRATEGIES 4.4 24 B & U

DIVERSIFICATION 4.4.1 25 B & URELATED AREA 4.4.1.1 26 B & UUNRELATED AREA 4.4.1.2 26 B & U

ENTERING IN NEW BUSINESS 4.4.2 27 B & UHORIZONTAL INTEGRATION 4.4.3 27 B & U

INDUSTRY LEVEL STRATEGIES 4.5 27 IRMINTRODUCTION 4.5.1 27 IRM

Nov 06, 2009


GROWTH 4.5.2 28 IRMMATURITY 4.5.3 32 IRMDECLINE 4.5.4 33 IRM

GLOBAL LEVEL STRATEGIES 4.6 34 Y & EEXPORT / IMPORT 4.6.1 34 Y & ELICENSING 4.6.2 34 Y & EFRANCHISING 4.6.3 34 Y & EJOINT VENTURE 4.6.4 35 Y & EALLIANCES 4.6.5 35 Y & E

ETHICS RULES 5 35 ALLMIGROS’S RESPONSIBILITIES TOWARDS ITS EMPLOYEES 5.1 35 ALLTHE RESPONSIBILITIES OF EMPLOYEES TOWARDS TO THE COMPANY 5.2 36 ALLMIGROS’S RESPONSIBILITIES TOWARDS OTHER COMPANIES 5.3 37 ALLMIGROS’S RESPONSIBILITIES TOWARDS TO THE COMMUNITY 5.4 37 ALLTHE RESPONSIBILITIES OF EMPLOYEES TOWARDS EMPLOYEES 5.5 37 ALLIN GENERAL 5.6 37 ALL

REFERENCES & SOURCES 38 ALL

Nov 06, 2009


INTRODUCTION:

In 1954 the Migros Schweiz Cooperatives Union and Istanbul Municipality's

initiatives established with Migros, food and consumer goods under the control of the city

from the manufacturer to provide these products to health and in appropriate circumstances

and economic prices Istanbul was founded with the aim to achieve. Migros, especially in

consumer goods to consumers in Ontario with the car sales reached 45 developed, first in

1957 and then to the fish market in Beyoglu stores have opened stores in several

neighborhoods. During this period, confidence and interest in Migros Istanbul citizens won.

Now, Migros, the average per week in 2008 by opening 5 new stores has increased the

prevalence of domestic and 63 to begin providing services in the province has made rapid

growth. The end of 2008 with the 7 geographical regions, 93 M, 101 MM, 44 MMM, 271

Tansaş, 652 Blast, 6 5M Migros and 8 serving as Macrocenter abroad through subsidiaries

and 10 also in Kazakhstan, 3 in Azerbaijan, and 1 in Macedonia to 2 of them in Kyrgyzstan

with a total of 16 stores serving. Migros, the end of 2008 has a total of 1191 stores.

1. VISION, MISSION, OBJECTIVES AND VALUES

1.1 VISION

Modern retailing in Turkey and surrounding countries before the spread and consumer

expectations are always with strategy, serving in different formats is to be closest to the

consumer.

1.2 MISSION

Home and abroad, customer-focused, people, society and the environmentally sensitive,

reliable, as well as innovative and efficient structure and quality of life in carrying forward to

assume the leading role, employees, business partners and shareholders long-lasting and

satisfying by providing return, growth and operational profitability and market leadership can

continue.

Nov 06, 2009


1.3 OBJECTIVES

With its experience, 50 years for the customers, to investors, employees and suppliers to the

best, the best to provide customers with satisfaction.

1.4 VALUES

Migros Trade Co. formed with the participation of all our employees and everyone connected

to the corporate values that include: Customer Focus, Reliability Sensitivity, Leadership

Efficiency, Innovation.

2 ENVIRONMENTAL ANALYSIS

2.1 EXTERNAL ANALYSIS:

Retail sector growth in the share of the chain stores began to increase rapidly.Undoubtly,

Migros is the most significant example of retail sector. Large chains such as Migros products

in large quantities from domestic manufacturers by taking advantage of price catch me of

themselves, a major source of revenue and increasing customer profile provides.

Economy: Crisis does not effect the Migros too highly.Because it is the best manufacture

chain store of Turkey. Crisis effected customers. According to data from Migros,

consumers, gave up most meat and meat products. Migros sales within the group recorded

a decrease after the most fruits and vegetables while the other was in a category. Eight-

month data compared, fruit and vegetables per cent and its share in total sales of 8.4 from

7.7 down to. The decline in consumer markets towards the open shows.

Milk, butter and yogurt category, despite the increase in, cheese and eggs can be seen that

the reduction of sales. With both products in the fruit and vegetable group, just as in

consumer products and open markets turned. Olives, pickles, snacks, pastries, sugar and

tea also decreased its share in total sales.

Allthough, decreases in total sales, Migros known to how save us from economic crisis

with minimum damage with our experiences.

Nov 06, 2009


Political Situation: Received from foreign firms can be seen a decrease in sales of

products. Products may be political reasons to protest.

Technology: Positive effects of technology developments in the whole company. As an

example of the whole campaign over the internet Migros and reach a lot of information

about.

Also with the technological developments Migros gave benefits fon environment.For

instance,natural Soluble Bags First Time in Turkey began to be used in Migros!

Energy efficient use of resources with the goal within the company, stores and

administrative units with the help of technology, lighting and temperature control are

made, used energy-efficient products by ensuring conservation, ecological balance,

protection and efficient use of resources for the important steps are to continue.

Government: Goverment incentives and tax relief to companies if the investment will

reproduce. Retailer Metro, large chains such as Migros products in large quantities from

domestic manufacturers by taking advantage of price catch me of themselves, these

advantages give the complain.

Population: Investments will be made according to population distribution network is

expanded to benefit customers. Transportation will be easy to be opened in places such as

Migros allows people come and there is increased potential customers.

£ 4.4 billion of the organization in 2007, over £ 5 billion turnover in 2008 is getting in

2009 the target of £ 6 billion, which explains Özgür Tort who is general director of

Migros Turk, Migros in 2012's "10 billion to the club" and the goal of entering the same

allegations continue In 2008, the number of customers increased 11 percent were caught

in the world and in Turkey, disappeared when the conditions of the crisis thanks to their

investment in the new era as a much larger group said they would meet.

Concern with the effects of the crisis-stricken growth plans without going through the

same life that highlight Tort, new employment targets the "total of 12 thousand new jobs

in two years, as announced.

Nov 06, 2009


Competition: Undoubtely, Migros is the only competation himself but this is not easy

keep the title in hand. Will be contracted with companies to execute campaings and

promotional programs to attract customers who will provide superier against others, such

as rival compaines.

Social and Cultural: Productive and efficient use of resources for the steps leading

Migros, to increase environmental awareness in Turkey and has been launching

campaigns to create awareness for the important.

Also by investing in may places, such as it is known migros gives people jobs. In addition

to social responsibility projects developed social and culturel benefit to society.

Suppliers: Migros is the owner of the facilities needs of our wide product meets. That’s

why suppliers want to market their products are migros. Buy products whole sale and

retail prices will profit from the sale. Competition between suppliers would be within its

structure. As a result , they are preferred suppliers for Migros advantage over other

competitors provide.

2.2 INTERNAL ANALYSIS:

Internal Resources directly related to companies own inside situations. If Top Managers or

Board of Director want to interfere the company , they make this. Internal Resources has

some items. Such as Capital, Physical Resources, Human Resources.

2.3 CAPITAL:

In 1954, Migros Cooperatives Union and Istanbul Municipality Switzerland and was founded

with the initiative. Migros, especially in consumer goods to consumers in Ontario with the car

sales reached 45 developed, first in 1957 and then to the fish market in Beyoglu stores have

opened stores in several neighborhoods. During this period, confidence and interest in Migros

Istanbul citizens won.

Nov 06, 2009


In 1975, the majority of Migros shares were transferred to Koç. Since then a new concept

began to work with Migros, has rapidly increased the number of stores in Istanbul. Setup with

the giant warehouse centers, fruit and vegetables fresh from the fields and as economical for

consumers to reach a healthy fruit and vegetable intake with the development agencies has

created the necessary infrastructure for distribution. Migros has a big adventage about capital.

Firstly the market establish to Migros Cooperatives Union and Istanbul Municipality

Switzerland and with these budget.

In 1975, Koç provide big and new developments. 2006 - 2007, Migros and Tansaş merged.

And this situation is the most important subject, both Tansaş and Migros financial statements.

Migros Turk, General Manager Ozgur Tort, Turkey in 2008, Migros Group has achieved a

turnover of £ 5.1 billion, the goal for 2009 is announced £ 6 billion. And in 2008, the number

of customers increase by 11 percent. Özgür Tort, Migros Turkey until the end of 2010 a total

of 12 thousand people will create new jobs. Migros develop own capital with merge and

target market.

2.4 PHYSICAL RESOURCES:

Migros Pte Ltd As of 15/10/2009, has covered area of 1,357,516 m², 261 Migros, 298 Tansaş,

832 Şok, 9 Macro Center and 6-5M with 1407, with a total of 1426 stores abroad, with 19

Ramstore serves. (261 Migros; 109M, 107MM, 45MMM, 54 Countires) Migros uses net, At

Migros have set Ownselves the target to serve all food and non-food products in a hygienic

and safe environment in order to ensure customer safety. Migros implements the risk

management to minimize the dangers and consumer awareness of the aims. “ Product

Control”, “Control of Suppliers”, “Private Label Products” are important for Migros about

product purchaising.

Safety in Storage is an another necessity step for Migros name. By "Admission of Goods

Quality Control" process, safety in selling covered controls stages like training, staff hygiene,

traceability, temperature controls, expire date control, cross - contamination precaution, store

control.

The company pay attention to own shops places. The company want to places of near the

center, and these shops must be biggest then rivals companies.

Nov 06, 2009


2.5 HUMAN RESOURCES:

Vehbi Koç says “Our most important capital is our human resources”. This sentence explain

all Human Resources meaning for Migros.

Migros configures its strategies in such a way as to obtain continuous quality, respectability

and sectoral leadership combined with a customer satisfaction concept which will raise the

retail standards of the countries in operation. Migros Human Resources aims to develop and

apply the systems which will provide continuous motivation, management and development

of the human resources, that could create a competitive advantage in the realisation of these

objectives.

Excellent Business Ethics and Integrity, Reliability, Equal Opportunity, Participation and

Transparency, Competitiveness… These titles show how much they give importance about

Migros’s personnels. The company’s HR department make a special system for own works.

Migros’s HR departments pay attention to employment. Employment and Placement main

objective of “Employment and Placement” is to choose and place the employees who will

carry the company to the future and will meet the requirements of their positions on the top

level in accordance with the company culture and common values, in the most appropriate

positions, and to be a point of attraction for employees.

Training is another important factor for The company’s HR. Training is a necessary items If

staff take a good training, sertificate, seminar, they know own work and you can take best

performance. Job evaluations results provide compesation to Migros policy. Justice is

important fort he company. HR department working with rules and orderly shapes.

3 SWOT ANALYSIS:

3.1 STRENGTHS:

Nov 06, 2009


Product Diversity: As Selin Gürsel, who is a customer of Macro Center Markets,

mentioned that she is pleased of product variety and vale park service.

Favourable Prices, Quality, Freshness of Fruits and Vegetables, Special Promotions

and Attractions: 5M consumer, Fügen Özgür, found the prices are suitable. She added

that established brands are high qualified and fresh. She loved weekend promotions and

sale rayons.

Capital: Jan 09 - Mar 09 sales income of Migros Co. is 1.272.076.000 TL and Jan 08 -

Mar 08 sales income is 1.152.357.000 TL. It shows us sales income increased 10.4%

comparing the same period of previous year.

Cooperation with Suppliers, Having Many Kinds of Market Concepts, Accessing

Large Amount of Consumer Profiles, Locating Suppliers Exclusive and Special

Products: Sabri Gülel, Doru Gıda supplier, mentioned that Migros is collaborator and

cooperative for every supplier that wants to work with. Having different concepts of

grocery stores (markets) provides suppliers to achieve larger crowd of consumers. It

includes exclusive and special products.

3.2 WEAKNESSES:

Disability following up products inside the market: We have made a research from

www.sikayetvar.com and found that a customer annoyed when he goes to the market he

always and buys eggs he always see that some part them are broken and cracked. Another

consumer’s complaint is the defect of appropriate nylon bags for the product’s dimension.

3.3 OPPORTUNITIES:

Being Environmentally Conscious Company: Recycled pochette (“%100 Doğaya

Kazandırılan Poşet”) innovation is the most common nature sensitive behaviour.

Nov 06, 2009


Media: Migros announces about 400 adverts every year. By TV media it reaches whole

regions of Turkey. Also using media and internet is the best way to compete its

competitors.

Technology: Jett Cash (“Jet Kasa”) innovation provides consumers to use barcode system

without and cashier. They can buy and sell the products themself.

Training Programs: Management staff are sent abroad periodically to learn strategies

and events of their big competitors in the world.

3.4 THREATS:

Increase of Carrefour’s Joint Ventures: When Migros and Tansaş made a joint venture

proposal, Carrefour bought Gima chain market. The growth of the Carrefour is a very

significant threat for Migros.

Capital of Carrefour: Migros is the part of Koç Holding however Carrefour is the part of

Sabancı Holding. We know that Koç Holding and Sabancı Holding are two monolopols of

domestic economy. Koç Holding’s capital is more than Sabancı Holding’s. No one

predicts the economic future about whose company will be the top.

4 STRATEGIC ESTABLISHMENT

4.1 OPERATIONAL POLICIES AND THE BOTTOM LEVEL STRATEGIES OF

MIGROS

Nov 06, 2009


4.1.1 SOCIAL RESPONSIBILITY POLICIES

Environment: While normally it takes plastic at least in 100 years to dissolve, plastics

produced with ‘Oxo - biodegradable’ technology biodegrade 100% in just 24 months.

Migros invites its customers to use them.

Health: Migros, which stringently applies Food safety and Quality Management

regulations in all its store formats, further demonstrated the attention it pays to customer

satisfaction and food safety by being awarded ISO 9001 Quality Management System and

ISO 22000 Food Safety certificates in 2005 and 2006 respectively.

Lösev (Foundation for Children with Leukaemia) donation boxes have been placed in all

stores. Through these donation boxes they helped to pass on the support of our customers

to LOSEV. There are also separate donation boxes in stores for customers wishing to

support the Cancer Association. Migros employees donate blood to the Red Crescent

every year. Donations to the Tohum Foundation also continue to be made. These

donations cover annual costs of one autistic child.

Education: Since 2003 Migros has been supporting the MUZEBUS (museum bus),

whose aim is to support the personal and social development of primary school students

who don’t have the chance to visit museums.

Culture & Art: The Annual April 23rd Theatre Festival, which has been organised for

the last 14 years by the cooperation of Migros and the National Theatre, was held again

this year in various cities which have Migros stores, over two weeks in April.

Sport: Migros is helping to set up teams of young people and children in different cities

and train up amateur teams of children from different neighbourhoods at TEGV

(Educational Volunteers Foundation of Turkey) Training Parks. The aim of this is for

society as a whole to perceive sport as a way of life. As part of its ongoing support for

sport Migros is renewing the existing football pitches in TEGV’s Training Parks and

setting up football teams.

Nov 06, 2009


Charity Work: The project, clothing for children aged 0-10 years, was collected in

donation boxes placed in 61 Tansaş stores all over Turkey and delivered to the needy

through KEDV (Women’s Labour Foundation) after being laundered.

During the Muslim religious holiday Eid al-Adha, customers were given the chance to

donate to various charitable foundations at Migros stores and the Virtual Market, these

included the Educational Volunteers Foundation of Turkey and the Red Crescent amongst

others.

To stress the importance of cleanliness and hygiene for health in the primary schools

within the province of Batman, toothbrushes and toothpaste were given out to the local

children.

4.1.2 PROFIT SHARE POLICIES

Dividend Payment Policy and Timing: Migros has successfully reported a net profit

every year since it was first quoted on the stock market in 1991. Paying a dividend is a

matter that Migros has always regarded as important from the standpoint of its

shareholders' interests and in this direction is our dividend payment policy. The amount

that is to be paid to our Company's shareholders in dividend is determined on the basis of

the attributable profit shown in its consolidated financial statements.

4.1.3 ETHICAL RULE POLICIES

Migros's Responsibilities Towards its Employees: In all hirings, promotions, and

appointments, the only criteria to be taken into account are the qualifications for the

position: Migros creates equality of opportunity among its employees.

Migros does not involve itself in the personal affairs or private lives of its employees and

holds all of the information it has about its employees in strict confidence.

Nov 06, 2009


Migros provides training opportunities for its employees to improve themselves

professionally and personally. In all of its dealings with its employees, Migros does not

discriminate in any way on the basis of sex, age, ethnic origin, or creed.

The Responsibilities of Employees Towards the Company: Migros employees strictly

reject any offers of material or moral benefits from third parties made to influence their

conduct of activities falling within the areas of their individual responsibility.

They refrain from any act or behavior that would damage the Company's image and

reputation. They avoid waste and use all of the Company's fixtures, tools, and equipment

for the purposes for which they are intended. They do not divulge outside the Company

any confidential or private information that they become aware of as a consequence of

their position or the work that they do.

Migros's Responsibilities Towards Other Companies: It is important for Migros that its

business partners refrain from tarnishing the image and reputation of Migros in their own

business activities and that they give importance to Migros's proven business values.

Migros does not divulge confidential information it receives from a company that serves it

to third parties without that company's permission.

Migros's Responsibilities Towards the Community: Migros seeks to fulfill all of its tax

and other obligations in full and on time and to be an example to the community on such

matters.

Migros does not make humiliating, derisory, or offensive statements concerning other

companies, organizations, products, or individuals.

Migros defends its business ethics in its sector and strives for calcification, furtherance,

and acceptance of these principles.

The Responsibilities of Employees Towards Employees: Migros employees do not

divulge private information concerning other company employees that they come into as a

consequence of their jobs except where it is a requirement of their jobs.

Nov 06, 2009


4.1.4 HUMAN RESOURCES POLICIES

Resources aims to develop and apply the systems which will provide continuous motivation,

management and development of the human resources, that could create a competitive

advantage in the realisation of these objectives.

Our Principles

Viewing Human Resources As Of Strategic Importance: Human Resources Management

in Migros, highlights the value given to “human being” to make this concept strategically

important and creates awareness to evaluate them as privileged.

Excellent Business Ethics and Integrity: Showing fair, good will and understanding

behaviour in our all relations with our employees and abiding the laws and ethic codes is our

main principle.

Reliability: Migros guarantees to execute its obligations to its employees within the context

of legal arrangements. In order to provide a secure work environment to employees of Migros

T.A.Ş, requirements of “Laws, Regulations and Rules regarding Labour Law and Work

Safety” are executed and also sectoral standards related to ergonomy and the development of

the work environment are met.

Equal Opportunity: Migros offers its services with its employees from various age,

nationality and religion groups in its affiliates in Turkey and overseas by Migros Integrated

Human Resources system.

Participation and Transparency: Employees are informed about their roles and

responsibilities regarding human resources applications and guided in order to execute these

responsibilities. Human Resources policies and processes are continuously shared with

employees by using all communication sources of the company (Intranet, e-mail, distance

learning and meeting organizations).

Competitiveness: Migros plans and manages the occupational development of its employees,

to ensure the continuity of the competitiveness level not only in company but also in all

Nov 06, 2009


occupational platforms in order to create positive actions for environment society and

economy.

Devotion to Common Values: Common Values constitute the foundation of our Company

Culture. These common values are; To regard customer satisfaction as first priority, to be

modern and dynamic, integrity and Reliability, to be respectful to laws and personal rights, to

be sensitive to society and environment, to be predispositioned to teamwork.

Migros Integrated Human Resources Systems:

Human Resources Strategies: The aim is to analyse the requirements of the organization for

today and for future in order to reach the strategic objectives and setting up the systems which

will develop the most appropriate human resources for these requirements.

Process Analysis and Sub-Process Definition: Migros created a corporate documentation

methodology under the name of “Sub-Process Definition” which observes the operations of

the company based on micro process and relations (links) and which analyzes and evaluates

these process based on competencies/responsibilities areas, input/output, performance criteria

and critical success factors.

Employment and Placement: Employment and Placement process is done with modern

evaluation methods and tools like interviews, panels and tests according to clearly defined

competencies and occupational skills profiles in positions.

Integrated Human Resources Evaluation Systems

The competencies and skills of the employees are evaluated with a participatory process in

order to create personal development plans for the employees, to determine the employees

who have a potential for managerial positions, to support and manage the development,

according to necessary skills and critical competency requirements of the Company.

Development Planning and Training: Development Planning aims to develop the

performances of the employees in their management level and business family, to train the

employees from company’s own sources as candidates for the future positions and

management levels that might be needed by Company later, to meet the development

Nov 06, 2009


requirements of the employees in competencies and skills areas which are determined by

Integrated Human Resources Evaluation Systems.

Compensation: The main principle of compensation, is the management of the total income

packages of the employees, by separately analysing and rewarding the performance with fair

and competitive compensation policies based on inter-company – market balances and

evaluation results about salaries.

Industrial Relations: The objective of Industrial Relations is to follow and apply the rights

given to employees by laws and business contract, to ensure the application of related laws

and regulations in full force and to manage the employee personal rights by protecting the

work peace and fulfilling the legal responsibilities.

4.1.5 WORK TIME SCHEDULE POLICIES

Migros has two types of working schedules as “Full Time and Part Time”. Full time incluıdes

flexible timing for employees. These are organized weekly. An employee may work from

10:00 to 18:00 however the employee may work from 11:00 to 19:00 depends on the

schedule. There is not internship opportunitiy for university students. Whether they want, they

should work as full-time employee for a defined period. There is also part-time working

schedule from 18:00 to 22:00.

4.2 FUNCTIONAL LEVEL STRATEGIES

Functional Level Strategies fifth steps of the pyramid. It covered varieties strategies; Low

Cost Strategy, Product Differentation, Focus Market Nich on 1 and 2. Companies uses these

methods and they the adatpt themselves.

4.2.1 LOW COST STRATEGY

This Strategy is necessary for all firms. Because, when produced with less cost, more win. As

a result, purpose of the whole company to produce more, sell, and to win.

Nov 06, 2009


Migros Pte Ltd As of 15/10/2009, has covered area of 1,357,516 m², 261 Migros, 298 Tansaş,


Ramstore serves, so If migros have different shops, it will have very kinds of price option and

this price option happen from cost rates.

Şok Market competitive pricing and promotional campaign that şok applied with the first

branded products always cheaper to house prices is contributing to the budget.

But Migros always gives important to quality. So If ıt use Low Cost Strategy method, Its

never to reduce quality.

Wholesale sales chepar than retail selling. Anyway Migros writes wholesale’s benefits in own

website. This paragraph say; Pricing, Migros Wholesale industry-specific products and

services with variety in every sector with not only unit prices, with the added value to

minimize your total cost solutions.

Economies of scale, the increase in efficiency of production as the number of goods being

produced increases. Migros have many goods and shops alternative so the company uses this

strategy.

4.2.2 PRODUCT DIFFERENTIATION

Product Differentation has ‘’Total Quality Management’’ and ‘’5Ps’’. 5Ps cover the People,

Price, Product, Plan, Place. Because Product Differentation has many stage. Firstly People is

the most important element of all pyramid.People produce a different and useful shapes. Price

is important component, If you have a low cost, your price so product are having a difference.

Plan is necessary to all production steps. Place must be useful. All concept ensure product

differentation strategies.

Migros know 5Ps, because it is very successful and Vision, Mission Statements and Values

write these elements.We think anyway migros has success for this applications.

Nov 06, 2009


Total Quality Management aims to provide quality all area. Customer Responsibilities, Team

Work, Employee Involvement, Just in Time, Continues Improvement. These are bottom titles

of TQM.

Customer Responsibilities are important both customer and firms. Customer must rely to

companies and these companies should know purchasers affected. Migros always consider

customer view.

Team work must be perfect. Because both successful and failure happen from team. All

employee must be desirous and helpful.

Employee Involvement provide good personel because If employee believe themselves in

work, they will make a too success. So good management shapes gives responsibilities own

personel.

Just in Time is another important section to TQM. Just in Time called another names, Zero

Stock Production. Everythink must be at thr right time and materials has not overs.

Continues Improvement is the most necessary at this times. Because competition is reality and

all firms must be developer. They use last technology and they must superior competitors.

Migros Management shape always provide this situations. All shops listen to customer wants

and they know customer responsibilities so product quality go on end of sales. Team Work is

in the Migros Mission Statements. So this situation shows gives importance. Employee

Involvement has like team work features. Just In Time concept is in the Migros quality

awareness parts. Migros know all risks so they use JIT and secure storage. Innovation

(Continues Improvement) is in Migros Values. All in all the companies uses these technic and

they use very good shapes, so and of course Migros is number one own sector. Because The

name create trust, quality and difference etc.

4.2.3 FOCUS MARKET NICH ON 1

Nov 06, 2009


A niche market is the subset of the market on which a specific product is focusing on;

Therefore the market niche defines the specific product features aimed at satisfying specific

market needs, as well as the price range, production quality and the demographics that is

intended to impact.

Nich Market on 1 focus of low cost. Migros uses tactics about this subject because The

Companies have different type of shops.

Migros Pte As of 15/10/2009, has covered area of 1,357,516 m², 261 Migros, 298 Tansaş,


Ramstore serves, so migros have different shops about price (of course it related to cost),

variety, quality and different target market.

Migros grocery aims, both quality and innovation in own companies. The Brand provide

different product so you can easily find new or unusual goods. Migros grocery target market

is some upper than normal level to customer about price. It prices are not cheap not expensive

but Migros always find a customer because everybody know quality equal to Migros. Migros

grosery do not think connect to cost anyway It always has customers.

Fresh products, affordable prices, and related services with the understanding Tansaş close to

its customers continues to be a neighborhood of the popular supermarket. Tansaş "Intelligence

Consumer Rights" and the industry always one step ahead. Tansaş grosery target market is

normally and like it prices are normal level. Migros create different topics each shops For

example, migros aims always innovation, Tansaş aims, Intellenge Consumer Rights so Migros

has different place in own sector.

The pioneers of discount retailing to their customers Şok Cheaper grosery is always best.

Market competitive pricing and promotional campaign that Şok applied with the first branded

products always cheaper to prices and this prices help to budget. Şok happen to low cost and

low sales prices, Its target market almost all people.

Service standards and product exclusivity and make a difference, "Tailor Made" boutique-

style store chain with a representative of Macrocenter, gourmet product range has a wide

range. The large and spacious building with their customers to feel privileged and special

Nov 06, 2009


offers. Macrocenter has süperior service mind so It always very succesfull. Low cost concept

is necessary but better quality and modernized is most importantant to these concept for

Macrocenter.

5M , In the kitchen and purchase food products can be consumed in the cafee, with free

exchange within the field of hyper - cheap hosting 5M hypergrosery, a broad range of

products as well as electronics and home appliances with the product variety is making a

difference. 5M prices show, low cost tactic in the 5M Migros strategies.

Pricing, Migros Wholesale, with sector specific products and service variety, provides

solutions to keep your total costs to a minimum in every sector not only with the unit prices

but also with the added values we supply. We always have the best prices at Migros

Wholesale because we have a powerful purchasing infrastructure and we constantly monitor

market prices and sectoral developments.

4.2.4 FOCUS MARKET NICH ON 2

Nich Market on 2 related to Differentation, and now differentatin subject is in Migros

strategies.

I write again, Migros Company has variety shops.Such as Migros, Macrocenter, Şok, 5M,

Tansaş so these uses another concept, price level, quality, differentetion. Innovation, last

technology are very important to this company. Şok grosery has boht product variety and low

price, Macrocenter has tailor-made products and of course product differentation. Tansaş use

customer responsibilities and trust titles.

Product Variety, In Migros Wholesale, there are thousands of products specific to your

business. Thousands of products which are controlled using global standards in each category

in the way you would expect from Migros, are available to meet all your requirements.

Another differentation about Migros tactics, Kangurum.. If you do not have the time to shop,

Turkey's first electronic commerce site, Kangurum'u clicking their mobile phones to furniture,

white goods up to hundreds of thousands of flowers that you want from the product of the

product can be brought up to your door. Migros Sanal Market is in a similar way, Istanbul,

Nov 06, 2009


Ankara, Izmir, Mersin, Adana, Bursa, Antalya, Kayseri, Manisa and in Bodrum, which allows

you to make purchases from your location and market your products are delivered to your

door.

All in all, Migros management system is suitable to Functional Level Strategies and so the

company create different concept in own rivals. Differentation is very important for the brand,

so it has very kind of shops about prices, variety and quality. So datas shows Migros is

number one in own market.

4.3 BUSINESS LEVEL STRATEGIES

Strategy in a company's customer and market structures to respond to changes likely will

occur are scheduled to move to.

Strategy is a plan for a company's target to perform. Company's management what they want

and there clearly know how they will achieve.

'' As Migros Trade Anonym Company, we develop strategies in line with our mission, based

on the concept of customer satisfaction in order to increase the retailing standards of the

countries where we operate and provide sustainable quality, respectability and leadership in

the sector.

Our main strategy is to offer modern, reliable, economical and high-quality services to our

customers.''

4.3.1 ALLIANCES

Merger of two business activities of a general concept describing the consolidation means.

Business merger called for cooperation between both economic and legal aspects of becoming

from an association of businesses and assets of businesses also must also be combined.

Migros has entered into merger companies with 5 grains. These are Şok - Tansaş - Kangurum

- Ramstore - macro center.

4.3.2 MERGERS / ACQUISITIONS

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Migros has within its structure to smaller companies. Within small firms and logistics support

are able to reach many customers. These are Şok - Tansaş - Kangurum - Ramstore - 5M -

Macro center

Why they are prefer Migros ?

Because of product diversity, service, quality, ccontinuous, development, payment benefits,

distribution.

4.3.3 VERTICAL INTEGRATION / HORIZONTAL INTEGRATION

Vertical integration

Firms operating in the same area at a lower cost of production in order to obtain more revenue

than a single process under

Migros has relationships with companies in other sectors. For example, an agreement with

stores to customers, for example 100 TL shopping vouchers giving discounts. Another

example could be pharmaceutical company.

Horizontal integration

The same goods - producing enterprises, economic units combine companies’ costs to protect

their assets, capital, technology, communications and transportation facilities to markets and,

perhaps most importantly, enterprises prefer to grow by sharing risk in case remained. For

example Tansaş combine with Migros.

4.3.4 OUTSOURCING

Company's services or services to produce their own instead of these services from outside of

the cheaper and higher quality as is provided. About security is a private company contracted

with Migros.

4.4 CORPORATE LEVEL STRATEGIES

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To perform their strategic business objectives, and support the work of the companies as well

as to the benefit of society is based on the idea.

The Basic Principles of Migros Trade AC Concept of Corporate Social Responsibility:

Migros Trade AC, established its basic concept of corporate social responsibility on the

corporate values of innovativeness, productivity, leadership, sensitivity, reliability and being

customer focused. With this approach, Migros carries out its task of social responsibility by

designing projects in particular which have an effect on society as a whole and which create

an impact, difference or awareness. In the framework of this concept, the three main themes

are responsibility towards people, nature and future generations. The criteria to measure the

success of these projects, and the aim of the projects themselves, are the creation of added

value, efficiency, sustainability and social benefits. Migros believes in growing together with

both the society it serves and with all its social stakeholders and supports the participation of

volunteers working in the social responsibility projects it carries out.

In the focus of its concept of corporate social responsibility, Migros Trade AC places a

particular priority on needs in the fields of education, culture and arts, sport, environment and

health as these are the major issues it considers as investments in the future.

Migros promises all its stakeholders to operate according to the basic principles of corporate

management: transparency, accountability, responsibility and fairness as well as continuously

focusing on improving the quality of its products and services through the innovative service

concept and development processes it offers to customers.

Migros Trade AC Corporate Social Responsibility Goals:

With its target entitled “New Route to Growth at the Start of a New Era” and by stressing its

adopted values, Migros is defining a difference. It sees the different store formats, developed

with the strategy of connecting with the customer, as an advantage. Following closely

changing needs and expectations, Migros acts with awareness and the responsibility in

Nov 06, 2009


meeting those expectations. Migros owes its strength, prevalence and the preference of the

customer to this sensitivity.

Along with its own expansion Migros aims to make a contribution toward economic growth

and the development of the retail sector. In the corporate social responsibility projects it

carries out, Migros passes on the added value created to all of its stakeholders and society as a

whole.

In its “New Route to Growth” target Migros aims to provide maximum efficiency for all its

stakeholders. Company priorities include: bringing more ‘firsts’ to the customer, providing

greater satisfaction and creating a difference through innovative applications, being a good

employer by giving employees opportunities for personal development, providing high returns

for its investors and providing a better partnership environment for suppliers. Migros

determines all its operating methods and rules in order to raise customer satisfaction to the

highest possible level and always strives to be a responsible employer, a responsible brand

and a responsible institution. The company bases its relations with its business partners and

investors on trust, ethical rules and transparency. Migros is an institution which under no

circumstances would compromise its identity as a “good employer”, which always respects

the legal and human rights of its employees, which never allows discrimination and prejudice

in the recruitment process or workplace, and which supports the personal development of its

employees and invests in their future. As an institution that respects the right of the consumers

to be informed, Migros serves the customer with the best trained, qualified and

knowledgeable staff in their field.

4.4.1 DIVERSIFICATION

The most important reason why companies turn to become different, the whole structure is a

cruel world markets. Past year, according to the most important things in business life -

changing, many are in each category of product diversity.

To be different than the other companies Migros customers may be tempting, I need to have a

creative strategy. Because they always compete with other competitors in. this situation

requires a differentiation

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4.4.1.1 RELATED AREA

Product diversty : There are thousands of products specific to your business type Migros.

Quality controls in each category were followed up with world-class standards, to meet all the

needs of thousands of ordinary Migros-quality products at your service.

Pricing : diversity of industry-specific products and services with Migros in every sector with

not only unit prices, with the added value to minimize your total cost solutions. Market prices

and sectoral changes constantly followed by a strong purchasing background is always the

best prices in the Migros.

Continuous Development : The largest customer's market leader Migros and the advantages

of being constantly reflects customers. The best prices and most convenient to customers by

continuously improving cost structure provide opportunities for long-term cost reduction.

Distribution : strong logistics infrastructure and the desired product at any time you want

delivered to your door to the course standards. Instead of working with different suppliers for

every need all your needs can be provided with a single delivery. Your promised delivery

time occurs.

Quality : Production of all products from Migros will follow until you reach customers. All

kinds of moves according to the hygienic and proper criteria.

4.4.1.2 UNRELATED AREA

Migros is in its relationship to other sectors. for example, has an agreement with a

pharmaceutical company. Meet the company's food and beverage, and pharmaceutical sales in

return for a particular coupon is free to do shopping. By providing such facilities has attracted

customers to its own market

4.4.2 ENTERING IN NEW BUSINESS

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Migros is in the relationship with KOC HOLDING. The two companies and make each

other's advertising potential customers increased. But now because of global crisis holding

KOC holding. maybe KOC Holding may sell Migros.

4.4.3 HORIZONTAL INTEGRATION

Firms in different sectors to benefit from economies of scale, reduce costs and finance,

advertising, distribution or marketing in order to obtain benefits under one roof and to

combine. SOK , TANSAŞ horizontal integration combined with the MIGROS. Audiences

reach more customers by advertising their products as more capable of presentation.

4.5 INDUSTRY LEVEL STRATEGIES

Industry Level Strategy is second step to major strategy pyramid. Industry definations:

Industry continuously or at certain times, machinery and other vehicles using the power

nature or substance or in form of mass production activities and If defination union the

strategy it cover the companies development.Such as Inroduction, Growth, Maturity, Decline.

And always, overall organizational strategy that addresses the question “How should we

compete in this industry?”

4.5.1 INTRODUCTION

This steps show introduction divisons to companies.

In 1954 the Switzerlan Migros Cooperatives Union and Istanbul Municipality's initiatives

established with Migros, food and consumer goods under the control of the city from the

manufacturer to provide these products to health and in appropriate circumstances and

economic prices Istanbul was founded with the aim to achieve. Migros, especially in

consumer goods to consumers in İstanbul with the car sales reached 45 developed, first in

1957 and then to the fish market in Beyoglu stores have opened stores in several

neighborhoods. During this period, confidence and interest in Migros Istanbul citizens won.

So since 1954 all people find trust and innovation to Migros.

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4.5.2 GROWTH

This steps cover growth stage and development.

In 1975, the majority of Migros shares were transferred to Koç. Since then a new concept

began to work with Migros, has rapidly increased the number of stores in Istanbul. Setup with

the huge warehouse centers, fruit and vegetables fresh from the fields and as economical for

consumers to reach a healthy fruit and vegetable intake with the development agencies has

created the necessary infrastructure for distribution. I think this development the biggest

situation for Migros history because Migros find quality than this step.

In 1981, Migros's various additions and developments to the main store entered service,

legumes such as hygienic products be stored as a packet be a healthy way to prepare for sale

investments have been made, meat processing center has been engaged. In 1988, the first time

outside of Istanbul at 4 stores opened in Izmir, Migros, the Aegean Region has launched an

infrastructure for their work. At the end of 1989 in 2 large cities with 34 stores serving

Migros, economical prices and health by consumers with high quality products suitable for

"Honest Seller" identity has been adopted.

In 1991 Migros is opened to the public!. Migros, Turkey in 1991 and 1990 at the end of the

change in consumer habits also take into consideration the norms of contemporary world,

many more choices to consumers has led to a big store. New neighborhoods in Istanbul and

Izmir, a new residential area near shops and transportation points out of the city department

stores have adopted the idea of opening in Izmir Alsancak after MM Migros MMM Migros in

1991, Atrium, Sisli Migros MMM then introduces to consumers. has a wide range of these

stores, food and materials needed except stationery, glassware, household appliances, books,

tapes and clothing to the section, almost all requirements, weekends, evenings until 22:00

were begun to be met. Another innovation at the end of 1990, the university students,

housewives, teenagers to pensioners that provide new job opportunities for part-time

application. Staff training programs are developed. In 1990, the last of the day every 15 days

until the smooth running action with Migroskop advantageous and cheap shopping has begun

to be announced.

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Migros, the new areas quickly to demands of contemporary, high quality, reliable and

economical service and drive growth in this area has taken first steps on the path. 1990 end of

the first half of 1991 from the former stores the renewed almost all major stores put their full

automation of the Turkish consumers computerized, automatic scales developed chassis meet,

Migros completely gained a contemporary image. Migros, in 1991, became a public company.

In 1991-1992 Migros, become common in the new region, completed the studies necessary

infrastructure to service the then opened MMM Migros Antalya, Antalya Regional

Directorate has been established. Only in Istanbul, Izmir, Antalya, not in big cities such as

Bursa, Marmaris, Bodrum, Silivri, Yalova to provide services to customers in regions such as

the holiday began. Their control of the leading companies producing "Migros" branded range

of goods has started to be expanded, as an alternative economic and quality of consumer

interest and appreciation has started to develop and be adopted. In 1992, consumer credit card

payment Migros'larda provided convenience, periodic customer satisfaction surveys with

customers in all regions through the eyes started to be discussed in detail in Migros. In 1993,

store manager for school Migros supermarket has given its first graduates, the participants of

the project staff work with the store employees in the group with new ideas has been made

contributions directly to the store management.

In 1995, the Migros store's infrastructure investments and the rapid growth of life has been

spent. Provinces and regions where the new hi derken Migros'larla customers, service

network, Adana, Gaziantep, Edirne, Eskisehir to the Tekirdağ and southeastern Anatolia,

including expanding the geographic area with 17 or 5 was. In 1995, Migros, to take advantage

of synergies than the wider public with the aim of Şok into the circuit, the sector has taken in

an innovation. Consumers' interests are met with Şok's Migros customer portfolio, starting in

Istanbul and Ankara to Izmir from the service soon spread. Migros and the synergistic effect

of Şok growing nationwide at national level too close to the target Migros serving abroad to

grow the necessary infrastructure work was completed.

Migros in 1996 by end of infrastructure work in Azerbaijan, the first overseas store opened in

Baku Ramstore. Abroad as well as a Turkish company will continue development Migros, is

completing infrastructure work for other foreign countries.

Always new goals and advances in design that Migros, 1996 at the beginning of a new store

opening every week target, at the end of 1996 by opening 51 stores were able to perform. In

Nov 06, 2009


1996, Erzurum in eastern Anatolia the first store opened MM Migros Migros, the year-end

total of 20 provinces in 124 stores in 6 geographic regions with 75 million people per year in

service.

Migros, together with service excellence and the prevalence rate of technology services

offered to consumers are also, at the end of 1996 with another MMM Migros Caddebostan

first introduced to the electronic shelf labels have the customer.

Until 1997 the area within 7 Migros shopping mall, shop since 1997 for clients in appropriate

circumstances and arranged Beylikdüzü Migros Shopping Center Shopping Center opened

Ramstore a new shopping opportunity has presented to its customers. These centers of mass

for large purchases, trade, and social aspects has been the meeting point.

The second country abroad and in Russia, Migros, Enka partnership with Ram and Ramstore

Shopping Center opened in Moscow's most important center became.

Migros Shopping Center opened in December in Istanbul in Turkey and abroad Beylikdüzü

new shopping centers will follow.

Migros, opened in 1996 in Baku at Ramstore 's success with the Baku at the opening 4 new

Ramstore, Azerbaijan has reached the 5 stores.

Migros, become even closer to their customers with the aim not only to new stores,

technology has also made significant investments. Technological superiority is a product of

the Migros Club with customers all over Turkey on the basis of their goods from the center

tracked shopping, special discounts to customers outside of traditional Migroskop discount

programs can be made. In 1998, the Migros Migros Club card advantages meet family, star

products and draw billions of won, 1998 at the end of Migros Club members 900,000 has

been exceeded.

The first months in 2000 years “Bakkalım” format was put into service. Growing interest

shown in a short time Bakkalım'lar Istanbul, Izmir and Ankara began to serve, the number

reached 700.

This year they are serving in countries all over Ramstore'lar become even more prevalent.

Moscow 3, Kazakhstan 2 Ramstore in hypermarket was opened. Migros Club members

Nov 06, 2009


organized many different campaigns in the context of increasing to 3.2 million with interest

ulaşmştır. In 2000 to only 575,000 people made in campaigns TL 2.7 trillion free Shopping

voucher "were distributed.

Serving 160 million customers per year Migros, domestically and abroad in many regions by

opening 128 stores, department stores increased the number 450. In 2000, one of the drop

from 128 stores MMM Migros Fenerbahçe Stadium, with ten thousand goals at the same time

sweep the stadta as shopping can be shared with thousands of families gave a different

dimension to shopping. Also the first time in 2000, Sivas, Kırıkkale, Tekirdağ, Kırklareli and

Koç University, Eskisehir, Turkey's Migros was put into service in the university campus.

Koç University Koç University-Migros Retailing Education Center in 2000 and the first

period opened with a ceremony at the graduates received their certificates.

Migros MMM in 2001, 3, 5 MM, 3 M to 11 Migros, 19 shock, 1 Ramstore Shopping Center

(Moscow), 1 Migros Shopping Center (Antalya), 2 Ramstore (Moscow and Sofia) to 34 total

new investment in service opened a total of 461 stores per year to reach 160 million customer

service started.

Domestic 65 M, 58 MM, 30 MMM, 273 Shock and 3 hypermarkets Shopping Center and

serving as Migros, in 7 geographical regions within the country, abroad and in Baku, 3, in

Moscow, 15 in Kazakhstan and 3, in Sofia the end of 2002 with 2 Ramstore number of stores

reached 452 pieces.

In Baku in 2001 due to technical reasons completely burning Ramstore, January 29,re-opened

in. In a short period of 6 months with an investment of $ 4.5 million Ramstore re-opened.

As of 2005, domestic M 79 in 7 geographical regions, 79 MM, 33 MMM, 311 Shock and 3

hypermarkets total of 505 stores to serve in the Migros abroad through subsidiaries in

Azerbaijan 3, Russia at 49, Kazakhstan 5, 1 in 3, and in Macedonia to Bulgaria Ramstore has

reached a total of 566 stores. This number has increased with 722'ye Tansaş stores. Migros

continued to grow in 2005, the number has reached 140 million customers.

All in all, Migros has big development process and budget. Koç names affect to this situation.

And so migros is number one own market since its founding.

4.5.3 MATURITY

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This steps show maturity action and condition.

Migros Trade combined to grow more rapidly from domestic and abroad, all formats, and

geographic spread has developed a number of stores. Domestic Migros, Tansaş, and Şok

Macrocenter as each new store in store format in different provinces and territories spread to

new locations, while the first time, Kastamonu, Nevsehir, and Western Black Sea Region in

the provinces of Zonguldak Karabük and store openings were made. Per week with 2 new

stores opening speed of 52 areas of activity with the end of 2006 soared.

Ramstore'lar expands to Kyrgyzstan, the new provinces and regions in Russia, in Macedonia,

Tetovo, in the provinces of Karaganda in Kazakhstan has also started operating in 2006 with

the opening 20 Ramstore and 1 AVM drove rapid growth abroad as well. The largest in

Russia Ramstore'ların the 130,000 m² Capitol Shopping Center in Moscow Vernadskova into

service.

2006, including Turkey, in 7 countries in total, 878 stores, 20,000 employees, 300 million

customers and has successfully completed the unification of volume turnover reached 3.3

billion dollars combined.

Prepared by Deloitte on a regular basis every year, the Global Powers of Retail 2008 report

from Turkey for the first time Migros, 236 ordinary input. In addition, Migros Trade Co.,

2001-2006 Between the years between the 12th fastest growing 50 companies took place.

Migros Pte Ltd Migros customers domestically, Tansaş, Blast, Macrocenter, with kangaroo-

like format, while providing services in September 2007 a new format to add richness, the

free shopping area in the lower price and contain hyper-5M hypermarket customers

introduced. So that all retail formats developed the ability that has diversified service offering.

53 years being a good corporate citizen among the priority target holding Migros Trade, all

stakeholders, ie customers, to investors, employees, suppliers and society towards a

transparent, fair, accountable and accountability is that a responsive approach. In 2007, the

first time in our country in the assessment, Capital 500 list of the companies participating in

the "ethical and accountability" has been evaluated in, Migrosevaluation among the top 10

companies were.

Nov 06, 2009


Prepared by Deloitte on a regular basis every year, "Global Powers of Retail 2009" report in

2007, as well as take part in 2008 from Turkey, Migros has demonstrated success. 236 to the

list in 2007 managed to enter the ordinary Migros, in 2008, 190 has successfully promoted to

the position. In addition, Migros, between the years 2002-2007 between the 12th fastest

growing 50 companies took place. Migros, the average per week in 2008 by opening 5 new

stores has increased the prevalence of domestic and 63 to begin providing services in the

province has made rapid growth. The end of 2008 with the 7 geographical regions, 93 M, 101

MM, 44 MMM, 271 Tansaş, 652 Blast, 6 5M Migros and 8 serving as Macrocenter abroad

through subsidiaries and 10 also in Kazakhstan, 3 in Azerbaijan, and 1 in Macedonia to 2 of

them in Kyrgyzstan with a total of 16 stores serving. Migros, the end of 2008 has a total of

1191 stores.

4.5.4 DECLINE

This stage is finally step to life cycle product.

Migros always develop to own life but I think in 2008 Migros decided to different decision.

Economic crisis effect to own sector and Migros uses last technology, upper quality so ıt

prices are expensive and as a result customer choise different brand.

Koç Holding and Moonlight Capital between the sale of Migros to Moonlight Capital SA, a

stock transfer of shares in Turkey and merge subsidiary Moonlight Retailing and Trading Co.

Inc. in 2008 to May 30 period has been completed. Board of Governors 05 December 2008 at

Migros, Migros Turk’S main partner, the Moonlight Retailing and Trade Co. decided to

merge.

But Migros are always successful this decline steps are temporary and small in business life.

Migros Turkey Ozgur Tort General Manager in 2008, Migros Turkey `s Group turnover of £

5.1 billion was obtained in 2009 the target of £ 6 billion is 250 million TL in 2009, will invest,

will open 400 new stores and said.

Tort, six thousand in 2009, six thousand in 2010 to the two-year period a total of 12 thousand

people will be saying` the five-year period of employment in the world's fastest growing food

Nov 06, 2009


retailers are all fifth. Investing in this country and he said `We will continue our commitment

to growth.

4.6 GLOBAL LEVEL STRATEGIES

4.6.1 EXPORT / IMPORT

According to Migros Trade Anonym Company 01.01.2009 - 30.06.2009 Consolidated

financial statements period special account belongs to search the explanatory notes, in

31.12.2008 Migros import amount is 15.808.000 $ however in 30.06.2009 it decreased to

15.066.000 $. It shows us the company gives more importance to domestic products instead of

imported products. Beside, Migros does not have information report about exporting.

4.6.2 LICENSING

Under licensing, a company assigns the right to a patent (which protects a product, technology

or process) or a trademark (which protects a product name) to another company for a fee or

royalty. Ramenka Company was founded in Moscow in 1997. Its founders are КОС Holding,

the largest Turkish industrial – trade - financial conglomerate, and the Turkish Building

Company Enka. Ramstore retail chain exploits the know-how of Migros Turk, the owner of

the widest store chain with over 700 hyper- and supermarkets in Turkey.

4.6.3 FRANCHISING

Franchising is a special form of licensing in which the franchiser makes a total marketing

program available including the brand name, logo, products and method of operation. Usually

the franchise agreement is more comprehensive than a regular licensing agreement in as much

as the total operation of the franchisee is prescribed. It differs from licensing principally in the

depth and scope of quality controls placed on all phases of the franchisee`s operation.

However Migros does not provide any supply for franchising.

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4.6.4 JOINT VENTURE

As the report of Migros and Moonlight Retail joint venture, Moonlight, that is Migros’s major

partner, has got 81.59% of the company on 30.09.2008. However Moonlight increased its

share to 97.92% after purchase on İMKB.

According to Istanbul Stock Exchange from Migros announcement, the Tansaş As of

December 31, 2005 with all current assets and liabilities taken over by the CMB (Capital

Market Board) regulations, the Turkish Commercial Code and other relevant provisions in the

context it was decided to merge has been reported.

4.6.5 ALLIANCES

Turkey Garanti Bank and Migros Turk TAS., announced it has signed a cooperation

agreement. Of new announcements, the bank will provide specific benefits to consumers of

Migros with a joint cooperation agreement to determine the program that was specified.

Cooperation through this program will be provided to consumers is planned to be important

opportunities.

Migros is organizing a project named “My Grocery” that contains a type of dealership system

to support groceries. After that, whole project participant groceries which makes an

agreement with Migros, will be provided product logistics support and credit card machines.

5 ETHIC RULES

5.1 MIGROS’S RESPONSIBILITIES TOWARDS ITS EMPLOYEES

Migros completely fulfills all of its legal obligations towards all of its employees. In situations

where the requirements of law are not sufficiently clear, Migros consults those who have

specialized knowledge on the matter. Migros is mindful of the rights of its employees within

the framework of its rules of business ethics in situations where the rule of law provides for

less. In all hirings, promotions, and appointments, the only criteria to be taken into account

are the qualifications for the position: Migros creates equality of opportunity among its

employees. Migros does not involve itself in the personal affairs or private lives of its

employees and holds all of the information it has about its employees in strict confidence.

Nov 06, 2009


Migros provides training opportunities for its employees to improve themselves

professionally and personally. In all of its dealings with its employees, Migros does not

discriminate in any way on the basis of sex, age, ethnic origin, or creed. In matters that are

related to employees, Migros seeks to include their opinions as much as possible in any

decisions that are concerned with the Company's future. Migros provides healthy and safe

working conditions as dictated by the requirements of law and of the Company's business and

it seeks to improve them to the best of its ability. Migros holds in strict confidentiality and

does not divulge any private information (such as medical records, shopping habits, economic

circumstances etc) about its employees that it may come into possession of in any way

whatsoever.

5.2 THE RESPONSIBILITIES OF EMPLOYEES TOWARDS TO THE COMPANY

Migros employees strictly reject any offers of material or moral benefits from third parties

made to influence their conduct of activities falling within the areas of their individual

responsibility. Migros employees inform their immediate superior whenever entering into a

one-on-one business relationship with any company in which a close relative works, has a

partnership interest, or is the owner and they take action with his knowledge. Migros

employees exhibit maximum attention and care when fulfilling the duties given to them and

they make every effort so that the work they do can be of higher quality, faster, and more

economical. Migros employees refrain from any act or behavior that would damage the

Company's image and reputation. During working hours they remain within the modes of

dress and behavior that have already been established by company management or are

generally accepted. Migros employees are neither indifferent nor unresponsive when

confronted by any situation that is contrary to the Company’s interests and they notify the

appropriate Company units instead Migros employees avoid waste and use all of the

Company's fixtures, tools, and equipment for the purposes for which they are intended. They

do not make use of anything the Company provides them to do their jobs for their own private

benefit. Migros employees do not divulge outside the Company any confidential or private

information that they become aware of as a consequence of their position or the work that

they do. Without the written approval of the Company's management they do not give

interviews or make statements of any kind to any media organization.

Nov 06, 2009


5.3 MIGROS’S RESPONSIBILITIES TOWARDS OTHER COMPANIES

Migros complies with the requirements of law in all its activities. No unjustified gain may be

secured from any individual or organization for any reason whatsoever. Migros makes all its

goods and services procurement decisions in line with established and publicly disclosed

criteria. It is important for Migros that its business partners refrain from tarnishing the image

and reputation of Migros in their own business activities and that they give importance to

Migros's proven business values. Migros checks to ensure that the services it obtains on a

continuous basis from other organizations are provided in compliance with the requirements

of law and it takes necessary action accordingly. Migros does not divulge confidential

information it receives from a company that serves it to third parties without that company's

permission.

5.4 MIGROS’S RESPONSIBILITIES TOWARDS TO THE COMMUNITY

Migros makes every effort to uphold the standards that its customers expect of it. Migros

seeks to fulfill all of its tax and other obligations in full and on time and to be an example to

the community on such matters. Migros does not make humiliating, derisory, or offensive

statements concerning other companies, organizations, products, or individuals. Migros takes

care in all its activities to avoid causing harm to the natural and historical legacy and to

behave in accordance with customs, mores, and traditions and it complies with all the

requirements of law on such matters. Migros defends its business ethics in its sector and

strives for calcification, furtherance, and acceptance of these principles.

5.5 THE RESPONSIBILITIES OF EMPLOYEES TOWARDS EMPLOYEES

Migros employees do not divulge private information concerning other company employees

that they come into as a consequence of their jobs except where it is a requirement of their

jobs.

5.6 IN GENERAL

The Migros Committee on Business Ethics set up within the Company is responsible for

dealing with and clarifying any issues that are not dealt with by the principles set forth above.

Nov 06, 2009


REFERENCES & SOURCES:

1- http://www.migroskurumsal.com/en/

2- http://www.ortakalan.com.tr/haber.asp?S=&HID=369

3- http://www.tumgazeteler.com/?a=4705844

4- Migros TAŞ Headquarter Department Call Center

5- http://www.dtm.gov.tr/dtmadmin/upload/EAD/.../fatihakkaya.doc

6- http://www.emlakhaberleri.com/-haberleri/garanti-ve-migros-is-birligi-yapti.html

7- http://www.cnnturk.com/finans/haber_ic.asp?id=256590

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Strategic Planning For Migros Company

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