10/10/08

APPLICATION FOR CEMS MEMBERSHIP IN TURKEY:

ContentsEXECUTIVE SUMMARY....................................................................................................................31. INTRODUCTION: OVERALL GOVERNANCE.............................................................................4

1.1 Brief Overview of Sabancı University..........................................................................................4

1.2 Brief Overview of Faculty of Management (FMAN)...................................................................4

1.3 University Governance.................................................................................................................6

1.4 Finances and Support for CEMS..................................................................................................6

2. ACADEMIC REPUTATION OF FMAN..........................................................................................72.1 Research Policy and Climate........................................................................................................7

2.2 Contributions to Research...........................................................................................................14

2.3 Plans for International Accreditations........................................................................................20

3. PROXIMITY TO THE CORPORATE WORLD.............................................................................223.1 Board of Trustees and International Board of Overseers............................................................22

3.2 Practice-Academia Cooperation at FMAN.................................................................................23

3.3 Executive Education and Consulting Activities.........................................................................30

3.4 Outreach Programs and Research Forums..................................................................................31

3.5 Fundraising.................................................................................................................................32

3.6 Alumni Employment...................................................................................................................34

3.7 Career Services...........................................................................................................................34

4. INTERNATIONAL POLICY & RELATIONS WITH CEMS SCHOOLS.....................................364.1 Partner Business Schools............................................................................................................36

4.2 Institutional Memberships..........................................................................................................38

4.3 International Faculty at FMAN....................................................................................................39

4.4 International Students.................................................................................................................39

4.5 International Student Exchange..................................................................................................40

4.6 International Internships.............................................................................................................41

4.7 Support for Learning of Foreign Languages...............................................................................41

5. VISION FOR CEMS MEMBERSHIP AND PLANS FOR PRE-EXPERIENCE MASTER’S IN MANAGEMENT..................................................................................................................................42

5.1 Our Strategic Approach to Graduate Management Education...................................................42

5.2 Role of CEMS at FMAN – Expectations and Contributions......................................................441

5.3 Introduction of CEMS-MIM in our Program Portfolio..............................................................45

6. QUALITY OF OUR CURRENT AND FUTURE STUDENTS......................................................506.1 SU Undergraduate Intake Statistics............................................................................................50

6.2 Admissions to FMAN’s Full-time Graduate Programs..............................................................52

6.3 Placement Success of our Alumni..............................................................................................56

7. OTHER STRENGTHS OF SU AND SU-FMAN............................................................................587.1 Integration with and Contribution to the Society........................................................................58

7.2 Unique Undergraduate Curriculum.............................................................................................59

7.3 Academic Support Services for Students....................................................................................60

7.4 Infrastructure and Campus Life..................................................................................................60

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EXECUTIVE SUMMARY

In this report we seek to show why Sabanci University is the best candidate to be the CEMS Partner Institution from Turkey. In brief:

While young, we have built a very strong reputation in the 10 years since our founding and now are recognized as one of Turkey’s top universities, with innovative programs, excellent faculty and students, and a superb infrastructure.

We are very strongly committed to internationalization as evident from the fact that we have the highest number of per capita exchanges of all Turkish universities and the highest per capita level of research grants from the EU. Both of these successes are the result of our international vision and the infrastructure that we have put in place to support the internationalization efforts of our students and faculty members. The university has recently significantly expanded and upgraded its International Office and its scholarships for international students which will further enhance our internationalization efforts.

Our vision of management education is very close to the CEMS vision. Most of our programs include required internships and/or company projects, emphasis on international exchange, managerial skills workshops and very close engagement with the business community.

We have exceptionally strong corporate ties, as evidenced by our active advisory boards, frequency and caliber of company projects, internships, guest lecturers and practice faculty.

We have the strongest group of full time faculty in management of all the Turkish universities. This group is particularly strong in cross cultural management, and has impressive knowledge of the Turkish and international context.

We are well managed and have an excellent infrastructure in terms of technology and human resources.

Our faculty is characterized by integrity, commitment and high levels of professionalism.

We hope that in reviewing this document you will see how keen we are to become members of this network and what a good partner we would be. Thank you for your consideration. Whatever happens we hope that CEMS will have great success in Turkey!

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1. INTRODUCTION: OVERALL GOVERNANCE

1.1 Brief Overview of Sabancı University

Sabancı University (SU), a private not-for-profit foundation university was established in 19971 with educational activities beginning in 1999. Founded with a great deal of idealism regarding our role in Turkey with regard to establishing innovative programs, educating critically minded students, and contributing to the development and dissemination of world class research it is gratifying to see that within only ten years we have made great strides towards reaching these lofty goals. The mission of SU is “to develop competent and confident individuals, enriched with the ability to reflect critically and independently, combined with a strong sense of social responsibility; and to contribute to the development of science and technology, as well as disseminating the knowledge created to the benefit of the community”.

Beginning from the initial discussions to establish SU (including a small international search conference to articulate the vision of the university) we foresaw that research, education and training will emphasize learning to learn, teamwork, fundamentals, and creativity, will be interdisciplinary, and will not hinder the students from seeking their own goals and ideals. The philosophy and the motto of SU is “Creating and developing together” in an innovative, interdisciplinary institution, responsive to the needs of all its constituents through a participatory and team-based culture.

SU currently has 3,604 students (2,958 undergraduates and 646 graduates) and is comprised of three faculties: Faculty of Arts and Social Sciences (FASS), Faculty of Engineering and Natural Sciences (FENS), Faculty of Management (FMAN) and the School of Languages (SL). The university has 156 full-time faculty, 47 part-time faculty and 32 adjunct/network/practice faculty, and 304 full-time administrative and support personnel. Across the university, 86% of the full-time faculty members hold doctorates from abroad, in the FMAN this percentage is 82%.

1.2 Brief Overview of Faculty of Management (FMAN)The smallest of the three existing faculties, the FMAN began as the Graduate School of Management in 1999 with a full-time MBA, Executive MBA and PhD programs. In 2003, facing the tremendous demand for business education amongst our undergraduate students we began, within the auspices of the Faculty of Arts and Social Sciences (FASS), an undergraduate management program. All of our most recent degree programs (Leaders for Industry, ITM and Masters in Finance) offer Masters of Science degrees. FMAN offers the following degree programs

Undergraduate Program:

Bachelor of Arts (BA) in Management (20032)

Graduate Programs

MBA – Full-time Program, 21 months (1999) Executive MBA – (EMBA) Sixteen month, part-time program for experienced managers (1999) Leaders for Industry (LFI) – a dual degree program Masters in Management and Masters in

Engineering offered with the Faculty of Engineering and Natural Sciences (2001) Information Technology in Management (ITM) – a one year Masters degree program, offered

for full-time working professionals (2005)

1 Private foundation universities are a relatively new phenomenon in Turkey, beginning in the late 80’s with Bilkent University in Ankara. Today there are 127 universities in Turkey of which 33 are foundation universities, with Sabancı clearly in the top tier of these, along with Bilkent and Koç universities. 2 Years in the parentheses indicate the first year classes were offered.

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Masters in Finance – a one year full time program (2008) PhD in Management – offered only for specialization in Operations Management, Organization

Studies and Finance3 (1999)

Table 1 Comparison of FMAN Degree Programs Executive MBA MBA MiF ITM LFI

Degree(s) Awarded

MBA MBA MSc in Finance MS in ITM MSc in Man. andMSc in Eng.

Applicant Career Stage

Average 10 years work experience

Average work experience < 1 year

Average work experience < 1 year

Average 18 months work experience

Average work experience < 1 year

Participant Profile:

60% with Manager or higher position

Average GMAT 594, IBT TOEFL 100 and ALES 84

Average ALES 83 and IBT TOEFL 93

Average ALES 72 and IBT TOEFL 83

Average ALES 89 and IBT TOEFL 98

Admissions Requirements

Bachelor's degree, interview, ALES and TOEFL/SU ELAE.

Bachelor's degree, interview, GMAT, ALES and TOEFL/SU ELAE.

Bachelor's degree, interview, GMAT/GRE/ ALES and TOEFL/SU ELAE.

Bachelor's degree; interview; GMAT/ GRE/ ALES/ and TOEFL/SU ELAE;

BSc degree in Engineering, interview, ALES and TOEFL

Length 16 months 21 months 10,5 months 12 months 21 months (including summer)

Format Part-time, weekends

Full-time Full-time Part-time. Full-time

Partnership Arrangements

Collaboration with Henley Management College in organizing international field trips.

International exchange opportunities available with schools in the US, Europe and Asia.

  International exchange opportunity is available through the Erasmus program.

International exchange opportunities with schools in Europe.

Curriculum Design

General Management curriculum; * 30 credits of required courses * 6 credits of electives

General Management Curriculum; * 38 credits required courses * 12 credits elective courses* 8 credits CAP

Specialized program in Finance. * 15 required courses* internship (or project under special circumstances)

Specialized program that combines IT with Management. * 31.5 credits required * 3 credits of electives * company project

General Man. & Specialist Eng. Curriculum; * 30 credits mgmt courses * 30 credits eng. courses* company project

Tuition (2008-2009)

YTL 36,500 (all inclusive) &YTL 500 (technology fee).

YTL 22,500 (tuition) &YTL 500 (technology fee).

YTL 22,500 (tuition) &YTL 500 (technology fee).

YTL 17,000 (tuition) &YTL 500 (technology fee).

Program partners and University finances the program

In addition, members of the FMAN are strong contributors to programs run by SU’s Executive Development Unit (EDU), the Entrepreneur Development Program (GGP), the Corporate Governance Forum of Turkey, (CGFT) and the Competitiveness Forum (REF).

It is important to note that we are the youngest among the top universities in Turkey. Yet, in the less than the 10 years since our inception, we have done exceptionally well, to the extent that SU and its FMAN are recognized as a rising star in the Turkish academic context. We believe our strengths stem from our innovative programs, excellent students and faculty members and solid relationships with the

3 Our PhD in Management offers specializations only in areas where we believe we have achieved a critical mass in faculty numbers. We hope in a year or two to begin offering a specialization in marketing as well.

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business community. Moreover, the culture of the FMAN, built on integrity, respect and openness to change makes us a place where academic as well as administrative staff are highly committed to the mission and goals of the faculty.

1.3 University Governance

The basic performance expectations of the faculties of all foundation (private) and public universities are determined by the Higher Education Act and by the Higher Education Council (abbreviated as YÖK in Turkish). The Council approves all programs of higher education prior to their establishment; regulates and audits the institutions’ teaching, research, governance, planning and organization activities; keeps track of the students and faculty members; certifies the equivalency of the degrees from other countries for both the students and faculty members; and arbitrates academic misconduct. Despite this centralized regulation of higher education institutions, non-profit foundation universities have flexibility in their administrative and financial matters as long as they comply with the procedures and principles stipulated in the Act regarding academic activities, recruitment of faculty and discipline matters. Hence, as a private foundation university, SU is completely free to manage its own affairs and determine additional expectations for its faculty members in accordance with the rules and regulations adopted by its Board of Trustees.

Across SU and within the FMAN we strive to have a highly participative culture. Most initiatives emanate from the bottom up, are discussed in various forums within the faculties, and then brought before the required decision making bodies (e.g. the Dean’s Council or Academic Council). We take care to include our various stakeholders in much of our decision making, in particular students and members of the business community. Decisions necessitating significant resources are required to come for approval before the Administrative Council (comprised of the University Rector, General Secretary and Chair and Vice Chair of the Board of Trustees).

It’s important to note that we have many advantages as a young, small university. The academic leadership of the university resides in the Dean’s Council which includes the Deans of all three faculties, the Director of School of Languages, the Director of the Foundations Development Program, and the Rector. We have a warm, highly collegial working relationship. We are not very bureaucratic, it is very easy to get decisions brought before the council and we are able to move fast. We can say unequivocally that there is great support amongst the SU leadership and wider community for our prospective CEMS membership. Thus, we have no qualms about our ability to get the requisite support, be it financial or otherwise.

1.4 Finances and Support for CEMS

SU is financed through two main sources, university generated income (tuition, research grant, corporate projects) and funding from the Sabancı Foundation. Sabancı Group is one of the largest corporations in Turkey and is a publicly traded company with a majority control held by members of Sabancı Family. Through time, it has dedicated itself to give back to the society through extensive philanthropic endeavors. Sabancı Foundation, which was founded in 1974, along with SU is the most important output of this philanthropic expression.

Sabancı Foundation has its own endowment to support various social initiatives of Sabancı family, including SU. Income to the endowment of the foundation is augmented by annual transfers from several companies within the Sabancı Group. Annual transfers from companies are dictated by clauses in their respective Articles of Association, and these transfers are mostly targeted to SU. SU’s annual budget is approximately 95,000,000 YTL. Of this approximately 20% comes from the Sabancı Foundation, 63% from tuition and 17% from other sources (e.g. research grants, company projects).

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At SU, financial planning is conducted at the university level. University budgeting is done on a calendar year basis. At the end of October, each faculty and administrative unit puts together their financial plans and budget requirements for the following year, and report to the general secretary’s office. These plans are then consolidated and aligned with the university’s financial strategies through negotiations with individual units. Following this process, the completed budget is presented for approval at the December meeting of the Board of Trustees. Since this year’s budgeting process will begin before we are notified of the CEMS decision, we plan to include additional support staff for the CEMS program within our budget for 2009.

It is important to note here that once we are approved, hopefully, of CEMS membership, we will have to take our new Masters in International Management (MIM) program for approval to the Higher Education Council of Turkey (YÖK), as this is a legal requirement of all universities whether private or public. Our track record in obtaining approval is 100%, so we envision no problems, but it is something that we will have to plan for as it usually takes several months for this approval to go through YÖK’s bureaucracy.

2. ACADEMIC REPUTATION OF FMAN

The mission of the FMAN is to contribute to the knowledge and practice of management in Turkey and the world through the quality of our research, programs and graduates. In this vein we:

- Conduct and disseminate rigorous, relevant and internationally recognized research.

- Deliver a range of challenging and innovative programs that are responsive to the current and potential needs of business and society.

- Graduate confident, socially responsible individuals with the knowledge and skills to succeed in the global arena and poised to impact society.

The FMAN takes its mission to conduct and disseminate rigorous, relevant and internationally recognized research with utmost seriousness and commitment. We are fortunate to be at a university that supports our research function with a myriad of services and funds. In addition, we recognize that the culture of the university and faculty must also be conducive to fostering an environment where world class research can be imagined and executed. Thus, priorities like achieving a critical mass of faculty in different areas, hiring post doctoral fellows to support faculty, hosting research seminars, and hosting visiting faculty on sabbaticals contribute to create this kind of environment. Perhaps one of the most important things we do to support our research function is to have a growing doctoral program. In the section that follows, we describe our research policy and climate including incentives for faculty members. Next, we outline our contributions to research with a comparison to Turkish universities as well as CEMS academic members and finally, we present our PhD program. We conclude this section on academic reputation with information regarding our efforts towards international accreditation.

2.1 Research Policy and Climate

2.1.1 Recruitment and Faculty Profile

The FMAN’s recruitment, development and evaluation practices are all consistent with our desire for to have a core of faculty members who have the training and motivation to do research and contribute to management knowledge through publishing in peer-reviewed publications. Looking at the individual CVs of our faculty members will reinforce this statement (See Annex 1). Eighty-two percent of our full-time faculty members have their doctorates from prestigious institutions abroad. Beyond this, those who

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have their graduate training in Turkey have spent significant periods abroad, either in an educational program or as a research fellow.

As a young school, our number one priority has been recruiting high caliber faculty members trained at top tier institutions. Over that last five years we have increased the size of our full-time faculty members from 13 to 28. Our recruiting strategy was led by our teaching obligations and a desire to achieve a “critical mass” in key areas so that young scholars have colleagues with which to do joint research as well as teaching and curriculum development.

One of our latest achievements has been the recruitment of Prof. Mete Soner, former Dean of the College of Administrative Sciences and Economics at Koç University, to our newly established Işık Inselbağ Chair of Finance (the university’s first chair). Prof. Soner is a world class scholar who held a named chair at Princeton University before returning to Turkey. Prof. Soner is the only Turkish scholar listed in the Thompson ISI Highly Cited Researcher Ranking. He is also the first Turkish scientist to receive an Advanced Grant from the European Research Council (ERC). He will undoubtedly give a boost to FMAN’s research in finance (his appointment commenced 1 September 2007). Table 2 summarizes the pace and disciplinary focus of our recruitment activities to date.

Table 2 Pace and Disciplinary Focus of FMAN Recruitment Activities

By Date… Breakdown of new recruits by disciplineDecember 2009 2 FIN, 1 ACC, 1 STRG, 1 MKTG CHAIR

December 2008 1 FIN, 1 OM/IS, 1 MKTG

December 2007 1 OM/IS, 1 FIN, 1 OBDecember 2006 2 FIN, 1 MKTG, 1 OTDecember 2005 1 STRG, 1 OM/IS, 1 FIN, 1 ACCT, 1

MKTG December 2004 2 OM/IS, 1 MKTGDecember 2003 1 Dean (OB)

The breakdown of FMAN full time faculty is as follows: Management and Organization: 5 faculty with strengths in cross-cultural and international

management and organization theory. Accounting: 2 faculty with strengths in financial accounting Finance: 5 faculty with strengths in corporate governance, mathematical finance and portfolio

management. Marketing: 5 faculty with strengths in international marketing, brand management and

quantitative marketing. Operations Management and Information Systems: 8 faculty with strengths in supply chain

management, mathematical modeling and optimization and facility location. Management and Strategy: 4 faculty with strengths in organizations & strategy and political and

development economics. Many do research focused on the Turkish context.

This year we are aggressively recruiting in Finance, Accounting, Management and Strategy and for a senior chaired position in Marketing (the Sabancı Group Chair in Marketing Excellence).

The following table gives an overview of all full-time faculty members including their research interests.

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Area Faculty Members PhD Areas of Interest

Accounting Mine Aksu Syracuse University, USA

Troubled debt restructurings, financial distress, valuation; initial public offerings.

Accounting Ulf Nilsson Jonkoping International Business School, Sweden

Management accounting, Inter-organizational relationships, performance measurement

Finance Hakan Orbay Stanford University, USA

Corporate finance, corporate governance, firm theory.

Finance Kemal Saatçioğlu The University of Texas at Austin, USA

corporate governance, market microstructure, emerging markets, corporate finance,

Finance Akın Sayrak University of Texas at Austin, USA

Corporate diversification and governance, optimal compensation schemes in diversified firms.

Finance Mete Soner Brown University, USA

mathematical finance, Nonlinear partial differential equations;

Finance Koray Şimşek Princeton University, USA

Financial optimization, , asset liability management, financial econometrics, derivative pricing

Organization Mahmut Bayazıt Cornell University, USA

Organizational behavior, leadership, managerial decision-making.

Organization Nakiye Boyacıgiller

University of California, Berkeley, USA

Cross-cultural management; international human resource management; organizational culture; management pedagogy.

Organization Özgecan Koçak Stanford University, USA

Organization theory, sociology of markets

Organization Behlül Üsdiken Istanbul University, Turkey

Organization theory, history of management thought

Organization Arzu Wasti University of Illinois at Urbana-Champaign, USA

Cross-cultural organizational psychology, human resources management

Marketing Emine Batislam University of Missouri-Rolla, USA

Performance measures, service marketing, service operations.

Marketing Ronan Jouan de Kervenoael

University of Sheffield, UK

Retail competition, consumer behavior, direct marketing

Marketing Cenk Koçaş Purdue University, USA

Game theoretical models of price promotions, industrial organization,

Marketing Burcu Taşoluk Michigan State University, USA

international marketing, global branding, global new product management

Marketing Özge Turut Harvard Business School, USA

Innovation under uncertainty, R&D interface, asymmetric information models, retail channel competition.

Operations Management and

Can Akkan Cornell University, USA

Design, planning and control of discrete parts manufacturing systems, production scheduling,

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Information Systems

project scheduling

Operations Management and Information Systems

F. Tevhide Altekin Middle East Technical University, Turkey

Supply chain management, combinatorial and heuristic optimization, simulation modeling and analysis.

Operations Management and Information Systems

Burçin Bozkaya University of Alberta, Canada

combinatorial modeling and optimization, heuristic algorithms, transportation and logistics planning, geographical information systems

Operations Management and Information Systems

Meltem Denizel University of Florida, USA

Production planning, flexible manufacturing systems, mathematical modeling, supply chain management, e-business.

Operations Management and Information Systems

Enes Eryarsoy University of Florida, USA

Data mining, scheduling, IS economics, machine learning, and telecommunication

Operations Management and Information Systems

Çağrı Haksöz New York University, USA

Supply chain risk management, real options, operational risk management, intelligent demand forecasting,

Operations Management and Information Systems

Nihat Kasap University of Florida, USA

Pricing and quality of service in telecommunication networks, heuristic design and optimization, data mining and machine learning

Operations Management and Information Systems

Muhittin Oral Case Institute of Technology, USA

Competitiveness analysis and strategy, group decision-making and consensus formation, performance analysis.

Management and Strategy

Oğuz Babüroğlu University of Pennsylvania, USA

Strategy and organizational development

Management and Strategy

Dilek Çetindamar Istanbul Technical University, Turkey

Technology management, industrial economics, development economics.

Management and Strategy

Ayşe Karaevli Boston University, USA

Organizational change and strategic adaptation, comparative corporate governance, executive succession and selection

Management and Strategy

Ahmet Öncü University of Alberta, Canada

Sociology of organizations, political economy, social theory

In Economics we have 11 full time faculty, two visiting professors, two network faculty members and two part time faculty members. For further information on the Economics program, please go to http://www.sabanciuniv.edu/ssbf/economics/eng/?people/faculty.php.

The European Studies group currently has 13 full time faculty members, 1 visiting faculty and one part time faculty member. For more information on this program and its faculty please go to http://www.sabanciuniv.edu/ssbf/es/eng/?Kisiler/OgretimUyeleri.php#.

CVs of all full time faculty members are provided in Annex 1.

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2.1.2. Teaching Load

The recent recruitments enabled us to manage the teaching load for faculty members better to allow enough time for research. Our average teaching load for faculty was 3-4 courses/year in 2007/2008. We endeavor to have more junior faculty (those in the early years of their careers) teaching only 3 courses a year.

2.1.3 Personal Research Funds and Conference Support4

Full-time faculty members are granted Personal Research Funds (PRF) on a yearly basis, which they can use at their discretion (with appropriate documentation) for research purposes such as attending conferences, hiring graduate assistants etc. The annual amount of PRF can be up to US $5000 and depends on the previous year’s research performance. Faculty members fill out a research performance report at the end of each year documenting their research activities and output. Based on this report, the University Research Council (URC)5 evaluates the faculty performance on a scale of 1-5 (poor-excellent) and awards them with the corresponding amount as PRF. Incoming faculty automatically are given $3000 USD for their PRF for two years under the assumption that it take a while for one’s publication stream to begin. The average PRF for FMAN faculty members is approximately $3800 USD per year.

In addition to the PRF, full-time faculty members are supported financially to attend national and international conferences, workshops, and seminars. The FMAN provides comprehensive financial support for attending one international and one national conference per year if the faculty has an accepted paper presentation. Between PRF and FMAN support most faculty members attend between two to three international conferences every year.

2.1.4 Sabbatical and Research Leaves

Depending on their tenure at the FMAN, faculty members have the right to take summer research leaves and one or two semester sabbatical leaves. SU has procedures that regulate the academic leaves and the FMAN applies these procedures to support faculty for their academic development. For example, two faculty members have just returned from their sabbatical leaves (one at Cambridge University, the other at Georgia Tech). Moreover, a number of our faculty members have taken advantage of our relatively flexible research leave policy over the summer break, which allows them to develop and maintain international research collaborations.

2.1.5 Internal Research Grants

The SU also grants internal funds to support research and academic activities of faculty members. These grants fall into two categories: Internally Funded Research Projects and Internal Grant for Academic Activities. FMAN faculty members are encouraged to apply for these university wide grants.

It is important here to mention the very important role played by the Research and Graduate Policy Directorate (known by its Turkish acronym, ALP). They inform faculty members of national and international grant opportunities and lend much administrative support to faculty members who are applying for grants. They are part of the reason why SU faculty members have been so successful getting external grants, as detailed below in the next section.4 All documentation regarding University policies and procedures are available on SU Intranet and can be provided upon request.5 URC is comprised of the Deans, the Director of Research and Graduate Policy Unit, one faculty member from each faculty appointed for two years by the Rector.

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2.1.6 The Research and Graduate Policy Directorate (ALP)

The Research and Graduate Policy Directorate, ALP is a centralized unit that provides extremely valuable information and administrative support to faculty members in regard to upcoming grants and the like. Led by Dr. Cemil Arıkan, his assistant director Dr. Nilay Papila and a group of highly capable administrators, ALP has as its mission to facilitate institutional approval for all extramural proposal submissions, provide assistance in proposal writing, administration of grant awards and negotiation of contracts and other research-related agreements on behalf of the SU. As a result, research awards at SU have risen steadily since its establishment in 1999 to last year's record 38 million YTL (approximately 25 million USD / 20 million EUR) placing SU among Turkey’s leading research institutions in terms of grants awarded on a per capita basis (Please refer to Figures 1 and 2 below for a comparative assessment of Turkish universities in Turkish National Science Foundation [TÜBİTAK] and FP6 grants). The performance of SU has been impressive also for FP7 with a total budget of 2.267.104 EUR which includes seven Marie Curie International Reintegration Grants, one Capacities REGPOT, one Marie Curie Initial Training Network, two Cooperation and one ERC Advanced Investigator Grants. More information about ALP is available on their webpage at http://rgp.sabanciuniv.edu/eng/.

Figure 1 Comparison of Turkish Universities in Turkish National Science Foundation (TÜBİTAK) Research Grants (2006-2007)

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Figure 2 Comparison of Turkish Universities in FP6 Grants

2.1.7 Network Faculty and Invited Research Seminars

The FMAN realizes the importance of interactions between its faculty members and those from other well-recognized international academic institutions. For this purpose the FMAN hires network faculty, who are primarily affiliated with universities abroad. These network faculty members visit FMAN not only to teach classes but also to interact with the FMAN faculty members in their own disciplines and get engaged in joint research. For a list of current network faculty members please see http://www.sabanciuniv.edu/ybf/eng/?Faculty/People.php

The FMAN also invites researchers in various disciplines from other institutions to present their latest research. This year the seminar series is going to become more vibrant as several of our new faculty members have received Marie Curie Reintegration Grants from the EU which allows them generous support to invite senior colleagues to visit Turkey to help these junior scholars successfully reintegrate to their new research environment. The academic seminars offered can be found at http://www.sabanciuniv.edu/ybf/eng/?News/Academic_Seminars.html.

2.1.8 Academic Performance Evaluations

Maintaining academic qualifications is an important part of the long-term Periodic Reviews the faculty members go through every three years6. To this end, each faculty member prepares a comprehensive portfolio of her/his most recent vita, a lengthy Periodic Review Form, copies of publications and working papers, a few of which are sent out for peer reviews by at least two external academicians, and the teaching load over the three years. A summary of student evaluation forms, a self-assessment letter on teaching, research and internal and external citizenship activities and plans for the future, and any supporting documentation deemed relevant and important to the faculty member are also included. The Dean also prepares an evaluation letter for the faculty member with respect to three responsibilities; teaching, research, and service (the Dean’s letter is expected to stress the last two, external reviewers are expected to comment mainly on the candidates research). The Academic Evaluation Committee composed of the Rector of the University, the Deans of all three faculties in SU, the Director of the Foundation Development Program and one additional appointed senior faculty member evaluates the 6 Periodic Reviews are conducted every five years at the latest and every three years for junior faculty members. If the Dean notices a negative performance trend, the relevant PR can be brought to an earlier date, subject to the Rector's approval.

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performance of the faculty member and provides feedback. At the end of the periodic evaluation a retention, probation or termination decision is made.

Following the Periodic Review there is also a performance-based salary increase system. The raise is decided upon by the Salary Evaluation Committee after the Dean's proposal. This Committee consists of the Rector, the Secretary General, the Deans and the HR Director. The amount of salary increase will be determined by the evaluation the candidate has received (from probationary to extraordinary).

2.2 Contributions to Research

2.2.1 Publications

Annex 2 provides a summary table of scholarly contributions in the last five (2003-2007) years by full-time faculty members in the FMAN, and Economics and European Studies Master of Arts (MA) programs in the Faculty of Arts and Social Sciences (FASS)7. In view of the fact that 23% of our full-time faculty members have only completed their doctoral studies in 2004 or later (as indicated by the patterned columns), we calculated the average annual per capita publications using relevant data only from the years after the completion of doctoral studies. Accordingly, the average annual per capita output of FMAN full-time faculty members in peer-reviewed international journals is 0.70. The total of discipline-based intellectual contributions (i.e. all peer-reviewed journal publications, books, book chapters, monographs, and contributions to special volumes) shows an average of 0.97 per faculty over the last five years. This is impressive especially considering the substantial time that faculty members have had to spend on institution-building service activities related to the start up of the university. The same calculation8 for the FASS Economics and European Studies programs reveals that the average annual output per capita with respect to peer-reviewed international journals is 0.50. This is not surprising given that there are stronger norms towards publishing books or book chapters in social sciences. Indeed, the total discipline-based intellectual contributions show an annual average of 1.18 per faculty over the last five years.

Annex 2 also provides the number of citations received by the faculty members in the FMAN, Economics and European Studies programs. With faculty members like Prof. Boyacıgiller (with 317 citations excluding self-citations), Prof. Soner (with 926 citations excluding self-citations) and Prof. Oral (with 328 citations excluding self-citations), it is evident that the FMAN hosts a number of internationally renowned, prolific scholars whose research has had a solid influence in their respective fields. SU has also attracted up and coming, young scholars (such as Dr. Bayazıt, Dr. Sayrak, Dr. Wasti) who promise to continue the legacy of their senior role models. The FASS, while particularly unique and prominent in Turkey with respect to the multidisciplinary graduate programs offered, also boasts of several prominent senior scholars like Prof. Alkan (member of the Turkish National Academy of Sciences), Prof. Öncü (with 109 citations excluding self-citations) as well as very promising younger professors like Prof. Baç (winner of the Turkish Academy of Sciences’ first Science Award ever to be bestowed in social sciences) and Prof. Çarkoğlu (winner of several grants for his research on political Islam and voting behavior). The FASS also hosts two Jean-Monnet Chairs since 2004 (Prof. Yılmaz and Prof. Müftüler-Baç, the latter is the only research chair in Turkey).

Finally, Table 3 below shows the past and present editorial board positions held by FMAN and FASS faculty members in peer-reviewed international journals. This performance also complements our previous analysis by highlighting the expertise SU has in various fields (some of which may be too novel or specialized to be captured by citation analyses or indexed journal publication counts).

7 The Faculty of Arts and Social Sciences (FASS) does not exactly have a traditional structure organized around disciplines but largely offers a number of interdisciplinary programs. Therefore, in addition to Economics, we selected the European Studies MA program and its full-time faculty members as a source of synergy for potential CEMS membership.8 17% of the full-time faculty members of FASS Economics and European Studies programs completed their doctoral studies in 2004 or later.

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Table 3 Past and Present Editorial Positions held by FMAN and FASS Faculty

In order to benchmark SU’s research performance both nationally and internationally, we relied on publicly available information. While any secondary data is imperfect by virtue of using measures that are not obvious or ideal to its consumers, it can be deemed to be more objective and easily verifiable. In terms of a national comparison, we used the publication statistics published by the Higher Education Council (YÖK) which are available at http://www.yok.gov.tr/istatistikler/istatistikler.htm (also in English). YÖK provides statistics on the number of articles published in ISI-indexed journals by every Turkish university. Since 2004, YÖK has been providing a breakdown of this data at the faculty/department level. Since the most recent data provided by the YÖK is for the year 2006, we report a comparative assessment of FMAN and the Economics program9 for the years 2004-2006 below:

In 2004, of the 94 universities in Turkey, 44 (46.8%) had Business Administration/Management Departments. Of these 44 departments, 26 (59.1%) had no publications in ISI-indexed journals. Of the remaining 18 departments, the vast majority (n=14, 77.8%) had less than three publications in the ISI-9 Given the European Studies MA program has a faculty of diverse disciplines (e.g., economics, political science, cultural studies), the YÖK data does not allow a comparison with other universities.

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indexed journals. The highest number of publications was produced by Bilkent University (15), followed by Koç University (12), Middle East Technical University (6) and SU (5). In 2005, there were many more Business Administration/Management Departments in Turkey (n=69); yet, a vast majority (n=49, 71%) continued to have no publications in ISI-indexed journals. Of the remaining 20 departments, only one-third had greater than three publications in ISI-indexed journals. The highest number of publications was produced by Bilkent University (18), followed by Koç University (10) and SU (8). In 2006, there were two more entrants to the field increasing the total number of Business Administration/Management Departments to 71. Mimicking previous years, the majority of these departments (71.8 %) did not publish in ISI-indexed journals and 60% (n=12) had three or less such publications. The highest number of publications was produced by SU (13), followed by Koç University (12) and Bilkent University (11). It should also be noted that the Business Administration/Management Departments of these three institutions were roughly equivalent in size in this time period (the number of full-time faculty members as of December 31, 2005 was 20 for SU, 18 for Koç, and 20 for Bilkent). In sum, the FMAN has typically ranked in the top three in Turkey with respect to total number of ISI-indexed journal publications.

A similar picture emerges regarding the Economics departments in Turkey. While the number of Economics departments without any publications is lower compared to Business Administration/Management departments (62.3% on average), SU Economics faculty has consistently ranked in the top six schools out of an average of 65 universities. However, it should be noted that SU’s Economics faculty is the smallest in terms of size among the top six universities (department sizes range from 29 full-time faculty members at Hacettepe University to 12 at SU). When per capita publications are calculated, SU’s Economics faculty ranks in the top three (along with Koç University) after Bilkent University and Middle East Technical University.

In terms of an international comparison, we benchmarked the FMAN’s publication performance against the CEMS academic members. To this end, we relied on the research ranking of the European Business schools published by Baden-Fuller, Ravazzolo and Schweizer (2000)10. While their ranking is based solely on publications in top management, finance and marketing journals (including practitioner-oriented journals such as Harvard Business Review; see Table 4 below for a full list of the journals included in the study), their coverage of schools is much more comprehensive than alternative listings, thereby providing a more complete comparison. It should also be noted that their ranking is for the 1995-1998 period, a time when SU did not exist. Thus, the FMAN total that is provided for comparison is from the 2005-2008 period.

Table 4 Top Business Journals (Baden-Fuller et al., 2000)Academy of Management Journal Journal of Banking and Finance Academy of Management Review Journal of FinanceAdministrative Science Quarterly Journal of Financial EconomicsJournal of International Business Studies Journal of Futures MarketsJournal of Management Journal of Financial and Quantitative AnalysisJournal of Management Studies Journal of International Money and Finance Management Science Journal of Money, Credit and BankingOrganization Studies Journal of Portfolio ManagementOrganization Science Review of Financial StudiesStrategic Management Journal Human RelationsCalifornia Management Review Human Resource ManagementHarvard Business Review Journal of Consumer ResearchLong Range Planning Journal of MarketingSloan Management Review Journal of Marketing Research

10 Baden-Fuller, C., Ravazzolo, F., & Schweizer, T. (2000). Making and measuring reputations: The research ranking of European Business Schools. Long Range Planning, 33, 621-650.

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Financial Management Journal of Product Innovation ManagementJournal of Business Marketing Science

0 5 10 15 20 25

St. Petersburg State Prague University of Economics

Corvinus UnivUniv. of Cologne

Univ. Nova de Lisboa Warsaw Sch Econ

St. GallenESADE

Louvain Bocconi

Norwegian Sch Econ & BAVienna Univ Econ & Business Adm

Helsinki S. E.Sabancı Univ.

Copenhagen B.S.UCD Michael Smurfit

HECLSE

Stockholm Sch EconRSM

Total Number of Publications in Top Business Journals (3-year data)

Figure 3: Total Number of Publications in Top Business Journals by CEMS Members and SU (3-year data)

As can be seen in Figure 3, SU ranks eighth along with Helsinki School of Economics in number of publications in top business journals out of 19 CEMS members for which data was available11.

As a supplementary analysis, we also collected data on the number of SSCI publications for CEMS academic members as well as SU for the period 2003-2008. We limited our data to business and economics publications12. Given the high variance in the faculty sizes of these institutions, we calculated per capita publication figures based on an average of annual publications divided by the number of full-time faculty members13. Our overall results suggested that SU’s per capita SSCI publications in the field of business and economics (0.21) was comparable to other CEMS members (e.g., UCD Michael Smurfit Graduate Business School, 0.21; Copenhagen Business School, 0.24). SU also fared better than some well-known institutions and did not perform too poorly against North America (e.g., University of Western Ontario, Richard Ivey School of Business; 0.37). On the whole, SU appears to have a respectable publication record in terms of quality as well as quantity.

2.2.2 Research Grants and Awards

11 The study by Baden-Fuller et al. (2000) did not report any data on St. Petersburg University.12 More detail on the search terms can be provided upon request.13 We could not benchmark against all schools as numbers regarding full-time faculty members are not easy to discern from every website. Hence, we limited our comparison to a select number of schools.

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Historically there has not been much support for research in the social sciences in Turkey, putting members of the FMAN and FASS at a disadvantage when compared to their colleagues in engineering. However, the Turkish National Science Foundation (TÜBİTAK) has increased its funding of late and several FMAN faculty members have won competitive grants from this institution. For a listing of various grants won by FMAN faculty in the last five years, please refer to Annex 3.

As mentioned in a previous section, SU boasts to have the highest per capita grant budget in comparison to other Turkish universities, both in terms of TÜBİTAK and EU grants. The FMAN has an important role in this performance, as is evident from, for instance, Prof. Soner’s Advanced Grant from ERC for his research entitled “Mathematical Methods for Financial Risk Management”, Prof. Üsdiken’s EU grant on “Mapping European Higher Educational Models” as well as the Marie Curie Reintegration Grants awarded to Dr. Taşoluk and Dr. Koçak. The FMAN members have also been awarded several competitive grants from Istanbul Metropolitan Municipality and Turkish Industrialists’ and Businessmen’s Association (TÜSIAD), an independent, non-governmental organization dedicated to promoting public welfare through private enterprise.

Annex 4 presents a list of various awards won by the FMAN including those bestowed by the Turkish Academy of Sciences (TÜBA). TÜBA is an autonomous body which aims to establish the criteria of scientific excellence in Turkey and to encourage and foster scientific endeavors. One of the main activities of the TÜBA is the provision of incentive programs which have the objective of encouraging scientific pursuit by donation of scholarships, bursaries, awards and varying degrees of support for enterprises deemed worthy. All of the above are aimed at promoting research, encouraging the youth towards scholarly pursuits, honoring dedicated scientists, and, above all, establishing norms of scientific excellence. As such, the TÜBA awards are among the most prestigious accomplishments for scholars of Turkish nationality.

TÜBA has bestowed four distinct categories of awards: Science, Service, Encouragement and Distinguished Young Scientists Awards Program. The former two recognize the cumulative achievements of senior scholars, while the latter two promote exceptionally promising young scholars. TÜBA provides a list of award winners for the years 2001-200714 on its web site (http://www.tuba.gov.tr/). Table 5 below provides a listing of the number of recipients in the fields of Business Administration/Management, Economics and Political Science. As can be seen, SU ranks as the top school with respect to the number of TÜBA awards, which again attests to SU’s academic excellence.

2.2.3 PhD Program

The FMAN’s commitment to research is perhaps best exemplified by its PhD program, which was established right at the faculty’s inception (in 1999). The FMAN PhD program is a full-time program intended for candidates who aspire to a career in academia. Further, unlike many institutions in Europe and certainly the majority in Turkey, SU endorses the “no-endogamy principle” which means that we do not provide the first full-time employment of our own graduates15. Therefore, we can not generate a demand for our PhD program and constantly strive to develop students who will be sought by other institutions committed to research and teaching excellence. The PhD Admissions Committee tries to accomplish this goal firstly by means of a careful screening and evaluation process. To be admitted to the doctoral program, candidates must have a 4-year Bachelor degree or preferably a Masters degree. Students who do not have the Masters degree are required to take additional coursework early in the program in preparation for higher-level courses. During the application process,

14 Starting from 2008, the Turkish Academy of Sciences (TÜBA) is only bestowing Science and Distinguished Young Scientists awards.15 For a prevalence assessment and recommendations regarding the “no endogamy” principle in European doctoral programs, please consult Aghion, P., Dewatripont, M., Hoxby, C., Mas-Colell, A. & Sapir, A. (2008). Higher aspirations: An agenda for reforming European universities. Bruegel Blueprint Series.

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candidates are also required to submit a valid GMAT (a minimum score 600 is required) and a TOEFL score (minimum score of 100 from IBT or minimum score of 250 from CBT), transcripts from institutions attended earlier that show strong academic track record, two letters of recommendation that hopefully show evidence of research potential, and a statement of purpose written by the candidate clearly stating academic career goals. The applications are then reviewed by the PhD Admissions Committee and a personal interview is granted to candidates who pass the initial review process. After the interview, the committee evaluates the suitability of the candidate for the program and whether or not scholarship(s) should be offered.

Table 5 Turkish Academy of Sciences (TÜBA) Awards Recipients in Business Administration/Management, Economics and Political Science (2001-2007)

To attract good students to the PhD program, it is SU’s policy to extend scholarships to all PhD candidates. A PhD student is typically provided with a tuition waiver and monthly stipend. In exchange for this funding support, doctoral students must perform research or teaching assistantship duties as defined by the faculty they are assigned to (typically someone whom they later will be doing their thesis with).

The PhD program is open to candidates with a background in a variety of areas such as business, economics, social sciences as well as engineering or natural sciences. Applicants must show intent, though, for one of the three areas of specialization: Finance (which was offered for the first time in the academic year 2008-2009), Management and Organization Studies or Operations and Supply Chain Management. Table 6 presents the profile of the currently enrolled PhD students (Two are specializing in Finance, seven in Management and Organization Studies, one in Operations and Supply Chain Management, and one is pursuing a joint specialization in the latter two fields).

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Table 6 Profile of Current Doctoral StudentsNumber of Students 11Average TOEFL score 269Average GMAT score 656Percentage with Master’s Degrees from US or Europe % 55Percentage with Scholarships for Master’s Degrees % 64Percentage of Women % 60Average GPA 3.55

The PhD program consists of three main components, namely, coursework (usually lasting two academic years), a qualifying examination and a dissertation. Altogether the completion of program requirements takes four to five years. Students are expected to take the qualifying examination after they complete course requirements and before the end of their fifth term in the program. Following successful completion of the qualifying requirement, the student develops a research idea and a dissertation proposal with the assistance of his or her supervisor and thesis proposal committee. Within six months after the qualifying examinations, the student orally defends his or her proposal in front of the committee. Upon approval, the PhD candidate can then proceed with the dissertation, which is then read by the five-person dissertation committee. The final approval is given by the student's committee after an oral defense of the dissertation PhD.

The PhD program is too new to benchmark internationally or nationally; indeed, we only have four graduates so far. However, some observations are due for an accurate assessment of the program. The PhD program is explicitly geared towards full-time students seeking a career in academia. It has high requirements in terms of acceptance as well as completion. Furthermore, many students find the decision to join our PhD program to be rather uncertain, especially in view of the fact that most of the alternatives are offered by universities that endorse inbreeding. Despite these circumstances, the size of our program is rather impressive and suggests that the reputation of the faculty attenuates the uncertainty around career prospects thereby rendering the investment worthwhile. Furthermore, as provided in Table 7 below the placements statistics are quite respectable in a market characterized by endogamy. We also provide a list of ISI-indexed journal publications by our PhD graduates/students in Annex 5.

One of our primary goals in the near future is to increase international cooperation at the PhD level. We believe our students will greatly benefit from exposure to research programs and perspectives in other contexts, not only in terms of their scholarly development but also to increase their marketability. Furthermore, TÜBİTAK provides generous travel grants to doctoral students, which relieves both the student and university of financial concerns. We consider CEMS membership to be a great opportunity with respect to our internationalization goal at the PhD level and we are confident of the prospects of a mutually beneficial collaboration in this respect.

2.3 Plans for International Accreditations

As a relatively young university, we spent our first years largely on internal matters such as recruiting new faculty, developing new programs and on establishing the processes and procedures required of a full fledged university. Once we had established an excellent reputation in Turkey, we rapidly began to work on efforts to extend this reputation abroad. We realized that the fastest way to signal our reputation was to acquire accreditation from an international agency.

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Table 7 Placement of FMAN PhD GraduatesName Scholarship Area Thesis

AdvisorDate of Dissertation Defense

Graduation Term

Current Position

Said Gattoufi

Full ScholarshipExternal Transfer

Operations Management

Muhittin Oral

March 16, 2002

2001-02 Summer Term

Asst. Prof., College of Commerce and Economics, Sultan Qaboos University, Tunisia

Zeynep Erden

Tuition Waiver

Organizational Studies

Behlül Üsdiken

March 20, 2006

2005-06 Summer Term

Asst. Prof., Istanbul Technical University, Faculty of Management, Turkey

Deniz Tuncalp

Tuition Waiver

Organizational Studies and Operations Management

Ahmet Öncü and Meltem Denizel

February 9, 2006

2005-06 Spring Term

Senior Manager, MVNO Business / Marketing at Turkcell

Çetin Önder

Full Scholarship

Organizational Studies

Behlül Üsdiken

February 2, 2006

2005-06 Spring Term

Asst. Prof., Başkent University, Faculty of Business Administration

Several years ago we began to explore whether we should work towards accreditation by EFMD or AACSB. In fact, Dean Boyacıgiller attended the joint EFMD/AACSB meeting in Paris (April 2006) for this express purpose. In discussions with officials from both agencies, we gathered that AACSB was probably a better fit for us initially. This is partly due to AACSB having more flexible accreditation criteria (what they refer to as mission based criteria). For example, EQUIS has fixed size and internationalization ratios which we will not be able to meet for several years; this is not the case for AACSB.

We began our AACSB accreditation effort on August 14, 2006, and sent in our full Accreditation Plan and Self-Evaluation Report in February 200816. Our plan was largely approved, with the proviso that we send in a 20-page amendment by February 2009 on how we plan to assess our learning goals. We plan on submitting this amendment on time after which we expect AACSB to schedule our visitation team, hopefully within 2009. Our confidence comes from two sources. Our accreditation mentor, Dean John Kraft of the University of Florida, while certainly unable to guarantee anything, has given us strong assurance that we are on track for accreditation. Second, the past issue of BizEd, the publication of AACSB has an article on accreditation where they have profiled the experience of four schools17. We were chosen as an example of a school in the accreditation process. Again, there are no guarantees, but we feel reasonably confident on acquiring accreditation by 2010.

In addition, we are just in the process of joining EFMD and Dean Boyacıgiller will attend the next Dean’s meeting in Milan this February. Since we are part of Europe, and since we have already prepared very well for AACSB accreditation, we envision applying for EQUIS accreditation in the future. The timing of this is effort is a question of resources and priorities. Here guidance from our colleagues in the CEMS community will be invaluable.

16 If desired we would be happy to share our AACSB Accreditation Plan, Self-Evaluation Report and Annex electronically.

17 Shinn, S. “Earning Excellence,” BizEd, Sept/Oct. 2008:26-31. See page 29 for a description of FMAN’s views of AACSB accreditation.

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3. PROXIMITY TO THE CORPORATE WORLD

Corporate links of SU go back to its foundation as detailed in the introduction. At the university level, corporate and external relations are coordinated at the Institutional Development unit. The main function of the unit is to develop a strong constituency base for ensuring the sustainable advancement of the university. Through a range of targeted cultivation activities and their tight follow up, corporate and external ties with regional, national and international stakeholders are being coordinated with the help of relevant university units. We detail our most significant corporate ties below.

3.1 Board of Trustees and International Board of Overseers

The Board of Trustees of the University consists not only of the highest representatives of the Sabancı Group but also some of the leading figures of the Turkish business world whose management vision strengthens the academic excellence of the institution (See Table 8 below for Board Members of SU).

Table 8 SU Board of TrusteesGüler Sabancı Chairperson of SU Board of Trustees; Chairperson of Sabancı Group Prof. Tosun Terzioğlu Rector of SUProf. Ahmet Aykaç Deputy Chair of SU Board of TrusteesProf. Banu Onural Drexel University, Dir. of School of Biomedical Eng. Science & Health SystemsDr. Can Paker BOY Management Services, ChairmanDr. Cem Kozlu International Airline Training Fund, ChairmanProf. Gülru Necipoğlu Kafadar Harvard University, Aga Khan Professor of Islamic Art & ArchitectureHalis Komili Komili Group Company, ChairmanSevil Sabancı Sabancı Group, Board of Directors, Board MemberTuncay Özilhan Anadolu Group, Chairman

SU's board members play a crucial role in representing the university in Turkey and internationally by cultivating and establishing tight links with other significant corporate, scientific, philanthropic stakeholders. Members of the Boards of Trustees of Turkish universities are by law required to be Turkish citizens. This of course is an important limitation in view of the fact that diversity of opinion essential in today's complex and changing world. SU has dealt with this limitation in two notable ways. Firstly, several of our Trustees, while Turkish citizens, are currently working in universities abroad. Second and perhaps more importantly, in 2005 an International Board of Overseers (IBO) was established mainly to provide feedback as well as new and global perspectives to university leadership. The profile of the IBO members is presented below in Table 9.

Table 9 International Board of OverseersLady Barbara Thomas Judge UK Atomic Energy Authority, ChairpersonBaron Paul Buysse N.V. Bekaert S.A., Chairman of the BoardCandace Johnson Johnson Paradigm Ventures, PresidentCharles O. Holliday DuPont, Chairman of the Board and CEOChris Patten The Rt Hon the Lord Patten of Barnes, CH, Chancellor, Oxford UniversityProf. David Pines Institute for Complex Adaptive Matter, Co-DirectorJohn V. Faraci International Paper Company, Chairman and CEODr. Katsuhiko Yamashita Toshiba Corporation, Chief FellowSenator Phil Gramm UBS Invesment Bank, Vice ChairmanRichard Christou Fujitsu Services, Executive ChairmanDr. Rolf E. Breuer Deutsche Bank AG, Former Chairman of the Supervisory BoardDr. Shuhei Toyoda Toyota Boshoku Corporation, President

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In addition to the university-level links to the business community, the FMAN has established several mechanisms to ensure strong collaboration with the corporate world. As mentioned in Section I, to “deliver a range of challenging and innovative programs that are responsive to the current and potential needs of business and society” is one of FMAN’s missions. Strong links to the business community, through our board of Trustees, various advisory boards, executive education programs, Company Action Projects (CAP) in the MBA program, projects in Leaders for Industry (LFI) and Information Technology in Management (ITM) programs provide us numerous opportunities to sense the current and emerging needs of the business community. Below, we initially describe the mechanisms that allow corporate input to the design and implementation of our professional master’s programs. Next, we provide information on executive education and consulting activities. In the third section, we present some of our recent fund raising activities. After the section which provides information on our alumni, we describe the management of corporate relations both at the university and faculty level in the final section.

3.2 Practice-Academia Cooperation at FMAN

3.2.1 Practice Faculty

From its inception, the FMAN has had the goal of emphasizing both the science and practice of management in its courses. One vehicle for accomplishing this is the utilization of a number of Practice Faculty members in our classes. Practice faculty members are individuals who have managerial experience in business, government, or non-governmental organizations with a record of accomplishment in their professions. These individuals typically give a course that is related to their area of professional expertise (e.g. auditing, entrepreneurship, business law and corporate governance). Most of them have long term relationships with the FMAN and teach one to two classes on an annual basis. Most notable are Dr. Reha Yolalan, board member, Eurobank Tekfen Bank, teaching banking in the Masters in Finance and Executive MBA programs, Dr. Cüneyt Evirgen, Director of EDU with many years of experience in market research teaching marketing, Mr. Ziya Boyacigiller with 25 years of entrepreneurial experience in Silicon Valley teaching entrepreneurship, Dr. Hasan Ersel, former Deputy Governor of the Turkish Central Bank and Member of the Board of Yapı Kredi Bank teaching economics and last but not the least, Jan Nahum, past CEO of Petrol Ofisi, and a former at Fiat executive who frequently delivers guest lectures in our strategy classes.

In addition, SU and the FMAN take pride in valuing the full-time work experience of the academics that we hire (not typical of most Turkish universities). Approximately 25% of FMAN members have industry experience. For example, Dr. Batislam spent several years working at The Sabancı Group before joining FMAN and Dr. Bozkaya, an expert in Geographical Information Systems, worked in industry (in the U.S.) before joining SU.

3.2.2 Advisory Boards

As mentioned briefly in the introduction, the FMAN, in addition to Bachelor and PhD degrees, offers a number of professional Master’s degrees as listed below:

- MBA - Full-time Program - Masters in Finance (MiF) - Full-time Program - Executive MBA (EMBA) - Sixteen-month part-time program for experienced managers - Leaders for Industry (LFI) - Dual degree program offered with the Faculty of Engineering

and Natural Sciences (FENS)

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- Information Technology in Management (ITM) – One-year Masters degree program offered for full-time working professionals

The mission of the advisory boards for the professional master’s degrees is to provide advice and assistance on the strategic direction of the programs, the curricula, mentoring students, marketing of the programs and alumni activities. Board members are typically prominent professionals in industries or sectors from which the FMAN recruits students as well as places graduates. Thirty-one per cent of the advisory board members are alumni, allowing us to gain input from professionals with first-hand experience of our organizational culture, structure and resources. Annex 6 provides the full list of various advisory board members and their affiliations.

3.2.3 CAP – Company Action Projects

A unique feature of SU’s full-time MBA program is that second-year students work with a company, with the purpose of solving a practical problem that the company identifies. This involves students signing up for a project among those that are presented to them by various firms that articulate a problem or a goal. After they pick a firm they want to work with (every year, the number of projects presented approximately equals twice the number of project teams), students in teams put together a proposal outlining how they intend to solve the firm’s problem or help the firm achieve its goal. Upon approval of proposals by faculty advisors, student teams work on their projects over two semesters. They are expected to spend two days a week on location at the firm. The intention of these projects is to give students an opportunity to apply what they learned in their courses, not only in narrowly defined problem solving but also in formulating a problem, developing alternative solutions, deciding on a solution, and implementing that solution. Because many of our students come to the MBA Program without prior full-time work experience, these projects provide an opportunity to participate in a work organization before graduation. The coordinator of these projects also provides feedback on the interaction between students and the participating company. This constitutes additional feedback on the curriculum and its administration. Table 10 lists CAPs of the last three years.

Table 10 Company Action Projects (2005-2008)

Partner Companies Projects

2007

-200

8

Novartis Understanding Pharma marketing environment and challenges in terms of generics.

Fiat How to increase Fiat’s market share in Istanbul?Eczacıbası Pharmaceuticals Marketing

Determining an OTC Business Strategy

IBM Assessing the position of IBM in Banking Industry and developing a renewed strategy

Standard Ünlü Developing a derivative product for futures and options marketCoca Cola Designing a model to evaluate in store activities and merchandizing

effectiveness Iş Investment Privatization of tender process and pre-valuation researchEti Designing a regional expansion strategy

2006

– 2

007

Borusan Establishing car rental business as an alternative sales channel for the luxury segment cars.

Iş Investment Creating a new “Product” using derivatives for the Turkish marketPınar Meat Group A marketing and growth strategy development project Coca Cola Developing an on-line data ordering system for Point of Purchase Materials

(POP). Coca Cola Designing a customer centric supply chain system that gathers and reports

customer inventory data.

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3MProduct launch plan for high jump Supply Chain Execution Solutions (SCE) software in Turkey

Air Ties New Product Introduction of VoIP and IPTV and EMEA Regional Expansion

PfizerDeveloping a marketing plan for product X, including market assessment, pricing strategy and the launch plan

2005

- 20

06

Artesis Go to market plan for a high tech product / licenseBorusan Developing alternative sales channelsEli Lilly Comparison of pricing & reimbursements environment in Turkey and abroadGlaxo Smith Kline Brand management and marketing research for FluarixGlaxo Smith Kline Measuring HR applications and processesPinar Strategic marketing decisions for 14 product groupsTeknosa CRM infrastructure implementation

The companies with which we have completed CAPs between 2000 and 2005 are as follows: Alcatel, Arkas Logistics, Bosch Power Tools, Burger King, Cisco Systems, Danonesa, Finansbank, Hedef, IBM Turk, Kale Group, Logo Business Solutions, Merck Sharp & Dohme, Nestlé, Netone, Novartis, Oracle, Pfizer, Sabancı Group, Şölen, Teknosa, Temsa, Toyotasa, Türk – Henkel, Vestel.

In addition, the following companies have proposed CAPs since the program’s inception: Abbott Laboratories, Akbank, Ak Emeklilik, Alcatel E-commerce, Anadolu Group, ARI, Arkas, Artesis, Avea, Borusan Logistics, Citibank, Doğan Online, Dundas Unlu & Co, Eczacıbaşı, Express Cargo, Fiat Tofaş, Flormar, Galatasaray Sports Club, Gıdasa, IBM, Kordsa Global, Kurtsan Group, Levi’s, Marsa, Mavi Jeans, MedLine, Mobisera, Novartis, Osmanlı Bank, Polin Waterparks & Pool Systems, Polisan, Raymond James Securities, Sabancı Group, Sakosa, SuperOnline, Siemens, Suteks Tekstile, Temsa, Tourism Investors Association, Verisoft, Xerox.

This is an important expression of the amount of support the FMAN receives from the business community.

3.2.4 Professional Seminar Series, Managerial Skills Workshops and Guest Speakers

Ample opportunities are provided for SU management students to learn from and interact with practicing managers18. Guest speakers are invited to classes to show students how the course material can be applied in the business world. Bringing in guest speakers is strongly encouraged and supported by the school. The FMAN has an online centralized database that faculty can use to find potential speakers among a list of businesspeople that have expressed an interest in participating in instruction.

There are also more structured venues created to enhance practitioner input to our educational activities. For instance, the Executive Insights events provide a forum where successful executives share their life and work experiences, coupled by reflections from our students, alumni, and faculty. Table 11 below presents a selection of recent speakers in the Executive Insights Series.

18 Last year we calculated that an engaged student over two years in the MBA program had the potential of meeting close to 200 managers and executives, if they took advantage of all the opportunities they were provided.

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Table 11 Executive Insights Series

Ethem Sancak Hedef Alliance, Chairman Institutionalization and Hedef Alliance 3/21/2007

Adviser to the Board

Toyota Motor Corporation

Meral Gezgin Eris Meral Gezgin Eris,CEO and Chairman, Hilal Packaging and Hilal Food Industry and Trade, Inc.

Perspective on EU- Turkey Relations 5/2/2006

Cem Kozlu Coca-Cola East Europe, Eurasia and Middle East Group

The Public, The Private and The Political: Reflections on Global Career

10/26/2005

Guler Sabanci Sabanci Holding Group Chairperson Reflections on My Career 12/9/2003

Andrew Buxton Former Chairman, Barclays Bank PLC A Personal Journey in the History of Banking, 1963-2003

1/21/2004

Kevin Ali Merck Sharp Working for Giants:Two Perspectives on MNC Careers and the Pharmaceutical Industry

2/25/2004

Dr. Hans Ulrich Doerig

Vice Chairman, Board of Directors and Chairman of the Risk Committee, Credit Suisse Group

The Ideal Profile for Managers and Leaders: The 12 "I."

3/28/2004

Jan Nahum Petrol Ofisi and Former Tofas Chief Executive Officer, Fiat Auto S.P.A Business Unit International Developments President

A Reflection on the Importance of Vision, Strategy and Self Confidence

5/5/2004

Ibrahim Betil Community Volunteers Foundation, Chairman My Two Careers and Two Lives 10/27/2004

Abdurrahman Ariman Founding Member of SPN Investment Counseling, Counsel, World Bank, and Columnist, Referans Newspaper

How Did We Start the Reform for Foreign Investment? 14 Years and Beyond with Foreign Partners

12/22/2004

Ercan Kumcu Chairman, Tekfenbank The Process of Turkish Economic Development 3/2/2005

2004 - 2005 Mahfi Egilmez Executive Director, Garanti Bankasi; Chairman of the

Board, Garanti Leasing Company; Istanbul Bilgi University

The Success Story of Garanti Leasing 3/2/2005

Sir John Bond Chairman, HSBC Holdings Plc 1/26/2006

2005 - 2006 Imre Barmanbek Vice Chairman, Dogan Holding My Professional Work Experience 3/20/2006

2006 – 2007Yoshio Ishizaka The Secret of Toyota's Strength and its

Challenges 10/2/2006

Cemalettin Sarar Sarar Europe Gmbh, Sarar Usa Inc., Sarar-Gusto International Fashion, Sarar (Shangai) Trading Co. Chairman

My Experience 5/23/2007

2007 – 2008Arzuhan Doğan Yalçındağ

Chairman, TUSİAD Overall state of the Turkish economy 3/4/2008

Another distinguishing feature of the full-time MBA Program at SU is the emphasis on developing managerial skills through courses, workshops, and project work. During the first two semesters, students are provided with managerial skills workshops. These workshops do not count towards the credit load19 but involve interaction with guest speakers and faculty for 42 hours (every other week for the entire first year of the program). Hence, the Managerial Skills Workshops provide another platform for practitioners to contribute to our MBA education. Table 12 lists selected speakers who have participated in the workshops in the Fall semester last academic year.

19 The course is graded Satisfactory/Unsatisfactory and attendance is required (if they miss only more than 3 sessions they have to repeat the course).

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Table 12 Selection of Recent Speakers in the Professional SeminarsTopic SpeakerManagement and Team Building Burhan Karaçam, BK Partners (former CEO Yapı Kredi Bank)Brand Management Mert Başar, Hewlett PackardMarketing Research Vezire Alp, UlkerBenchmarking Birgül Ulucan, IKEANestle's Global Success Dr.Hans Ulrich Mayer, General Manager NestleInnovation Management Zafer Kurtul, General Manager, AkbankFinancial Risk Management Oktay Laçiner, VDF (Volkswagen Doğuş Finans)Leadership and Enterpreneurship Selim Güven, Director Siemens Business Accelerator6 SIGMA Alpaslan Terekli, BSH (Bosch Siemens Hausgerate)

Table 13 Selection of Managerial Skills Workshops

Date Topic Instructor24.10.2007 Presentation Skills Dilek Tokay,

Sabancı University07.11.2007 Business Writing Gülayşe Koçak,

Writing Center, Sabancı University21.11.2007 Stress Management Eser Büyükaydın,

Amak Education and Consulting12.12.2007 Effective Presentation Techniques Dilek Tokay,

Sabancı University27.02.2008 Giving and Receiving Performance

Feedback – SimulationMahmut Bayazıt, FMAN Sabancı University

3.2.5 Leaders for Industry (LFI) Program Projects

Leaders for Industry (LFI) is a dual degree graduate program awarding MS in both Engineering and Management. The LFI program aims to attract highly qualified individuals and develop their technical and managerial capabilities in cooperation with the industry with the goal of them becoming leaders in industry. Since the program also offers a post graduate degree in engineering, all entering students are engineering graduates. Since all LFI students receive full scholarships from industry sponsors (partner companies), the demand for the small number of seats is extremely high – making this a highly selective program.

In addition to courses, LFI students complete an industrial project in order to be eligible to graduate. The projects are real company projects where an LFI student works full-time for 6 months to solve a problem assigned by a Program Partner Company. It is critical to note that projects are real-life activities with a business value, current and valid content for the Program Partner Company. They are planned around a fixed schedule, budget and resources, with a pre-defined deliverable. The students are not acknowledged as "interns" rather they are recognized and treated as "full-time employees" of the company throughout their project assignment. Each project is managed by three co-advisers, one from the Program Partner, one from FENS and one from FMAN. It is essential that the project content focus on the core issues related to both Engineering and Management disciplines. Table 14 lists the LFI projects completed in the last three years.

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Table 14 Leaders for Industry (LFI) Program Projects (2005-2008)

2008

-200

9

Partner Companies ProjectsIpek Kağıt Demand ModelingKordsa Developing band labeling and example preparation processFesto Integrated TRIPOD and Festo CameraBrisa Test method development for the investigation of die-swell & shrink

properties of tread, sidewall & inner liner compounds by Rubber Process Analyzer

IBM Transformation ProjectKale Seramik Microwave and laser sintering processesKordsa Development of adhesive activated spin finish for PET HMLS yarn

2007

-200

8

Borusan Holding Adaptation of the ITIL (Information Technology Information Library)

Alcatel Rural transportationIBM Transformation projectTOFAS Establishing performance measurement of the spare part warehouseBeksa Recycling the waste water from evaporator into process in Beksa Plant

Kale Seramik Microwave and laser sintering processesKordsa Development of adhesive activated spin finishBorusan Boru Energy rarefy of the pipe heat and band heat ovensBrisa Automatic raw rubber material loading system for truck – bus tyre production

Kordsa Automation of relaxation-retraction of the synthetic fiber and fabric under normal conditions

2006

-200

7

Alcatel Opportunity identification and market analysis for Turkey's public, defense and security telecommunications

Beksa Automation of lub pit station by scadaBrisa Investigating the effect of carbon black type and amount on Natural Rubber

(NR) and Styrene-Butadiene Rubber (SBR) used in tire manufacturing by Rubber Process Analyzer (RPA 2000)

IBM Services management modeling and controllingKale Seramik Antibacterial/ self-cleaning additives for ceramics and glasses

2005

-200

6

Alcatel Investigation of Turkish public sector based security and defense market intelligence

Beksa Automated diameter measurement in dry drawing machines

Borusan Telekom Class 5 ServicesBrisa Characterization of raw polymers in tire industry by RPAFesto Studying Festo's new product Tripod's system structure & kinematics and

installing a demo system in TurkeyKale Kalip Design of an automatic leakage detection machine for the natural gas meterKale Seramik Reactive polymer glue for reinforced multilayer sinterflexKordsa Factors affecting mechanical quality of Nylon 66 yarns and improving the

mechanical quality measurement systems at Kordsa yarn spinning processes

Kordsa Tension control of the threads coming to the weaving machine via open or closed loop control

Logo Business Solutions Revision of production management module of Logo ERPTOFAS Vendor managed inventory at Tofas spare parts supply chain: Main dealers

stage

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In addition, LFI projects were carried out in the following companies between 2002 and 2005: Alcatel, Beksa, Borusan Telecom, Brisa, Kordsa, Logo Business Solutions, FIAT-TOFAŞ, Borusan Holding, Festo, and Siemens.

3.2.6 Information Technologies in Management (ITM) Program Projects

Information Technologies in Management (ITM) is a graduate program awarding the Master of Science. This program started in the Fall 2005 semester and is one of the few graduate programs in Turkey that combines two disciplines: information technologies and management.

Following the FMAN strategies, the ITM Program mission is to provide the prospective professionals with state-of-the-art knowledge both in IT and in management disciplines. To accomplish this, ITM curriculum has been designed with the dynamic needs of the IT business community in mind. In order to achieve this, we asked some of the key players from industry (Oracle Turkey, Turkcell Telecom, Ernst & Young etc.) for feedback and suggestions. Many of the courses offered in the program have been introduced and designed based on information collected from IT professionals and academics with experience in the IT sector. Some of the courses are taught by part-time lecturers, working in the industry and also have great working experience in their fields. Moreover, for most courses there are invited talks /seminars where successful business people talk about their career and their business as a complementary part of the development of students.

In addition to coursework, students complete a term project and write a report in order to be eligible to graduate. This report is mainly evaluated by an advisor assigned by the ITM coordinators. Table 15 presents a list of the projects successfully completed since the program’s inception.

Table 15 Information Technologies in Management (ITM) Program Projects

2007

-200

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Project TitleGovernance Model for Service Delivery in IBM TurkeyAnalysis of Risk Dynamics in Service DeliveryIT-Integrated Stock Relocation Optimization for TeknosaIT-Based Credit Risk ManagementMeasuring the Impact of Using UML in Profitability and PerformanceDeveloping an Estimation Model for Software Development ProjectsIntegrating Telecommunication and IT Service Management Processes for Turkish Telecommunication Service ProvidersBI-Consolidation of Databases – Data WarehousingHow to Calculate Total Cost of Ownership of an ERP ProjectSabancı University – A GIS Application: CampusDatabase Management System for Olive Oil FactoriesThe Block Watching System

2006

-200

7

A Conceptual Model for Assessing Managerial Implications of Changes in ITA Data Mining Implementation on a restructured Data Warehouse System for Energy Sector CompanyCreation of Well Structured Customer Database for TEKNOSA: Operational CRME-Learning at TeknoSAPerformance Management in Human Resources

2005

-200

6

IZO-AGRA ProjectImpact of IT Governance on Textile IndustryHow IT Superiority Effects to the ICM in Travel Industry and How to become superior in IT of its Travel ServicesINGUR: A Web-Based CRM Application For Food & Beverage Services Sector

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Business & GIS Portal: TURGISAnalysis and Design of a Software on Simulation Aided Optimization for IT Project ManagementInformation Technology and Business Awareness Diagnostic Tool

3.3 Executive Education and Consulting Activities

Our mission statement, like that of SU, openly emphasizes three goals: scholarship, student development and contributing to the needs of business and society. At SU and the FMAN we see research, teaching and our outreach to the community as highly interrelated. SU has from the beginning articulated a desire not to be an “ivory tower.” Thus in the FMAN, we have active engagement with the business community through consulting projects managed through ALP and our executive education unit (EDU) as well as the Corporate Governance Forum of Turkey, housed at FMAN, Entrepreneur Development Program and the Competitiveness Forum. The details of these activities are provided below.

3.3.1 Executive Development Unit (EDU)

The Executive Development Unit (EDU; www.edu.sabanciuniv.edu) was established to act as the interface of the university with the business world in the area of executive training. EDU operates as an independent unit within the university. Since its conception and formation, EDU has benchmarked itself against executive training services of the leading universities in the US and Europe both in terms of depth, breadth and quality of programs and infrastructural support facilities such as 50-bed executive hotel, conference halls and training rooms.

EDU operates through many partnerships with leading universities and executive education centers. For example, MYGLOBE is a program, developed together with the INSEAD, which is oriented towards high level business executives from companies which have recently entered emerging markets, or which desire to operate globally. The program consists of two modules, the first of which is held at SU, and the second is held at INSEAD.

EDU Retailing Program aims to support and develop the retail industry in Turkey and offers training programs and consultancy services for those companies who want to develop their people and business in relating with world class applications, systems and tools. In order to benefit from world class retailing management systems and techniques, SU and the EDU Retailing Program have established a strategic partnership with Retail Performance Specialists (RPS) out of the UK which is one of the leading retail training and consulting companies. A similar partnership has also formed with Ratrey+Magnes out of the US in the area of strategic retail structure concept and design services. Strategic design services offered by EDU through this partnership is received very well and sought after by Turkish retailers.

EDU offers other training programs on a variety of topics and target audiences ranging from CEO or General Manager down to middle management or Management Trainees. EDU designs and offers these training programs in collaboration with SU FMAN faculty members, other academics active on a national or international level, executives, advisors, experts, and other executive development institutions. EDU services include 1-2 day open enrollment or in-house trainings, modular programs focusing on a particular theme or target group and in-house or public seminars/conferences. In all of its programs, EDU s mission is to offer value to its target groups through bringing academic knowledge and business practice together. EDU’s success has lead to its securing long-term (2-5 years) contracts to build and run corporate academies of some leading Turkish business groups, such as Borusan.

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The FMAN members form the backbone of the SU’s executive education operation offered within the auspices of EDU. Approximately, 34% percent of all EDU courses are taught by FMAN faculty (full-time, part-time and network) and 43% of our full-time faculty contributes to this undertaking. EDU teaching is not considered part of a faculty member’s normal teaching load, thus they are paid extra for teaching in EDU programs. While all of our degree programs are in English many of our EDU programs are in Turkish which extends our reach substantially to individuals, particularly in small and medium sized companies (SMEs) who perhaps are in a position to benefit most greatly from such programs. One such example is Turquality, a program financed by the Turkish government through the Undersecretariate of the Ministry for Foreign Trade with the objective of improving the competitiveness and brand building of Turkish products and companies in the global marketplace. Turquality houses various initiatives one of which is a 7-month intensive executive training program to increase the value of the human capital working in Turkish companies that are members of Turquality. Our faculty members are significant contributors to the design and teaching of this program.

Today, EDU is recognized by many companies (both local and multinational) in Turkey as a leading university-based world-class executive training provider. Annually, more than 2,000 managers attend EDU trainings and EDU offers close to 500 training days (for a total of 10,000 man days) in total through different programs.

3.3.2 Consulting

Turkish industry faces important challenges as it becomes more professional and global, which leads them to seek the advice and counsel of our faculty members. We encourage such engagement with the business community as part of our mission to contribute to practice. At the same time we realize that our faculty members gain much from this active involvement as they are then able to bring real world, and particularly Turkish examples to their classes, adding to the relevance of the coursework.

FMAN faculty members have been involved in projects such as industry analysis, company assessments and analysis, demand forecasting and planning and econometric modelling for companies such as BMC, Citibank, Danone, Deloitte & Touche, Mavi Jeans, Procter & Gamble, IBM, the Sabanci Group, Sütaş, Sevilen Wine and the Ministry of Industry. These projects also involved advising in functions such as Strategy, Marketing, Operations Management and Human Resources. Faculty members often gain a wealth of insights to share with her students as well as guide their research. Furthermore, in some cases these projects lead to further industry-academia collaborations such as Sabancı Group Chair in Marketing Excellence at FMAN, which we are currently actively recruiting for.

Of great importance here is the existence of the Research and Graduate Policy Directorate (ALP). All contracts that faculty members have with third parties go through ALP. This frees faculty members from spending time on bureaucratic issues of billing and the like, provides a percentage of the consulting fee to the university, and makes these relationships totally transparent. There are also consulting opportunities for members of the CEMS network since we cannot with our relatively small size and youth20 meet the demand for consulting support required by the vibrant and growing Turkish industrial sector.

3.4 Outreach Programs and Research Forums

3.4.1 Competitiveness Forum (REF)

The TÜSİAD-SU Competitiveness Forum is a research center formed jointly by the Turkish Industrialists’ and Businessmen’s Association (TÜSİAD) and SU. Its mission is to help improve the

20 Since our faculty members are still quite junior, they need to give primary emphasis to their research and teaching, thus we often have to turn away potential consulting projects.

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competitiveness of the Turkish private sector in international markets by conducting and supporting research on competitiveness, innovation and technology management and benchmarking studies. Having REF based at SU, and having its leadership from within FMAN (Dr. Çetindamar) gives our faculty ample opportunities to engage with the business community and facilitates access to companies for research, guest speakers and other important relationships. For more detailed information on REF see http://www.ref.sabanciuniv.edu/

3.4.2 Corporate Governance Forum of Turkey (CGFT)

FMAN members are also the leading force behind the Corporate Governance Forum of Turkey (CGFT) housed in the FMAN. The CGFT has the mission “to support improvement of corporate governance practices and its institutional framework in Turkey” by operating at the intersection of research and practice. The CGFT is led by Dr. Melsa Ararat and has active involvement from 3-5 members of the FMAN faculty. As can be seen from its website (http://cgft.sabanciuniv.edu/eng/ ) the activities of the forum are quite impressive for such a small group. The CGFT makes an important contribution to the understanding and practice of corporate governance in Turkey, a vital subject for the growth of the Turkish economy. The CGFT is also quite active in international corporate governance networks and thus provides a link between the FMAN and SU and established research institutions and policy institutes such as The European Corporate Governance Network and the World Bank’s International Finance Corporation among others.

3.4.3 Entrepreneur Development Program (GGP)

Turkey, with its young population and high level of unemployment, has a critical need for the establishment of new ventures and job creation. One way to foster this is by providing training to budding entrepreneurs. With this goal in mind, in 2003 we began a summer institute for entrepreneurs, GGP. Led by an academic advisor from FMAN, Dr. Dilek Çetindamar, and having many courses taught by our faculty, the program is completely underwritten by sponsors and thus is free to the participants. For example, one of our sponsors has been KAGIDER, the Women’s Entrepreneur Foundation. KAGIDER has supported the GGP with the proviso that at least 30% of the seats in the participants be allocated to women. In the three years we have offered the program, we have had over 900 applicants for 90 positions! Thirty percent of the participants were women, supporting our diversity efforts as well. In 2009, GGP programs in four different cities are being planned under the sponsorship of AKBANK.

3.5 Fundraising

The university has as an important strategic initiative to broaden its sources of support beyond tuition, company projects, research grants and the Sabancı Foundation. Organized at the university level, these include many activities one would expect in a university fundraising function (alumni donations, outreach to the community etc.). Most significant, we are also 100% owners of Inovent, a technology commercialization company that specializes in the development, commercialization and management of intellectual properties developed by universities, research institutions, technology companies and entrepreneurs in Turkey (http://www.inovent.com.tr/ ).

Within the FMAN, we have undertaken two significant external fundraising activities recently: One being the funding for an international student to attend our MBA program (Hedef Alliance Scholarship) and the other the funding for CAFE (Center for Applied Finance Education)

3.5.1 Hedef Alliance Scholarship

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The most comprehensive scholarship available at the MBA program is Hedef Alliance Regional Scholarship. Hedef Alliance, Turkey’s largest distributor of pharmaceuticals started supporting one international student to attend our MBA program beginning with the 2008-2009 academic year21. To be eligible the candidate should be a citizen of one of the following countries: Bulgaria, Egypt, Romania, Russia and Ukraine. These countries were chosen by Hedef Alliance in accordance with their international expansion plans. The driving reason behind this scholarship is to help Hedef Alliance recruit citizens of these countries who will be accustomed to the Turkish culture through the Sabancı MBA program and their corporate culture through an internship at Hedef Alliance, to maximize their managerial performance at Hedef Alliance’s international operations.

The scholarship includes full tuition and fee waiver, monthly stipend and dormitory fee for 10 months (double room), textbook support and travel support for each year. The recipient of the scholarship is expected to have a summer internship at Hedef Alliance and then work at Hedef Alliance for two years. Total funding provided by Hedef Alliance is TL 36,550.00 (approximately €20,000.00) per year per student.

3.5.2 CAFE (Center for Applied Finance Education)

CAFE, a state-of-the-art facility, the only one of its kind in Eastern Europe and Middle East (except one in Israel), is

A simulated trading room with state-of-the-art financial software and real-time data-feed services, utilizing a powerful hardware infrastructure,

A laboratory providing a sophisticated learning environment in finance and other related areas,

A smart classroom allowing hands-on finance education.

CAFE has 24 workstations in the classroom, and 3 workstations in the adjacent business suite. Each workstation has two LCD displays and is connected to data-feed from all over the world with further access to supporting software. Students will have access to Reuters, Bloomberg and Matriks terminals as well as E-Signal FutureSource.

Here are some examples of what students can do at CAFE,

Follow real trading activity guided by an expert via video-conferencing Trade with classmates, or enter world-wide trading competitions using FTS, a financial trading

simulation software

With FinCAD XL, a software used by over 25 thousand finance professionals, create new derivative products and determine their prices

Research companies using comprehensive data from all over the world.

Approximately 60% of the $450,000 USD cost of setting up the facility was donated by Sabancı Group. Sabancı Group has also agreed to donate $ 100,000 USD per year for the next 5 years for the operating expenses, most of which is for the license fee of software, subscription to data feed services and databases.

21 Hedef Alliance is a strategic partnership of Turkey’s Hedef Group and Alliance UniChem Plc, a Fortune Global 500 company. Currently, Hedef Alliance is the market leader in its sector in Turkey with a market share of 41%. Alliance UniChem ranks 2nd in Europe and the 6th in the world in the pharmaceutical distribution (health care – wholesale) sector.

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3.6 Alumni Employment

Our alumni have been employed by some of the leading companies in Turkey, including several major multinationals. The list of multinational corporations (MNCs), which have hired our alumni are provided in Table 16 below (in alphabetical order):

Table 16 MNCs Recruiting FMAN StudentsAbbott Laboratories Ernst&Young MicrosoftACNielsen Focus Reports Millward BrownAdidas Ford Otosan Møller MærskAlcatel Fortis NestleBosch Germanischer Lloyd NovartisChase Manhattan Bank Hankook Osram LightingCitibank Henkel PalmoliveClariant Hewlett-Packard PfizerCoca Cola Company HSBC PriceWaterhouseCoopersColgate Isuzu Procter & GambleDaimler Chrysler Services Komatsu Rehau AGDanone Kraft Foods SiemensDeloitte Touche Levi Strauss SynovateDHL Lilly Pharmaceuticals Templeton Asset ManagementDow Chemical Mercedes Benz Turk TNT LogisticsDuPont Merck Sharp Dohme ToyotaEfes Pilsen Beverage Merloni Elettrodomestici Tuborg-CarlsbergEricsson Metro Grosmarket Unilever

When we look into the sectors of the top employers of our alumni, seven sectors emerge as the most prominent. These are financial services, consumer products, automotive, technology, manufacturing, consulting, and pharmaceuticals. Table 17 below shows the distribution of these sectors across our different programs.

Table 17: Top 5 Employer Sectors of Our Alumni (% of Alumni of Each Program)BA MBA EMBA LFI ITM

Financial Services 18% 20% 24% 7% 23%Consumer Products 21% 23% 24% 9% 5%Automotive 12% 16% 20% 14%Technology 4% 11% 6% 14% 23%Manufacturing 15%Consulting 7% 12% 14% 9%Pharmaceutical/Healthcare Products 9%

3.7 Career Services

FMAN students benefit from the career services given by two units in the university. Firstly, there is the Career Office that serves all the students in the university. Secondly, FMAN has its own unit that provides more direct and one-on-one support to FMAN graduate students.

3.7.1 University-wide Career ServicesUniversity-wide career services activities are managed by the Career Office under the Institutional Development Unit ((http://kariyer.sabanciuniv.edu/eng/). The Career Office provides active assistance

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to students who are seeking employment or internship positions or applying to graduate schools. This office also organizes recruitment events where companies make presentations on campus and contact candidate students. The activities of the Career Services unit can be outlined as follows:

1. Personal development seminars and academic career activities focusing on: a) Basic information regarding applying for universities abroadb) Writing a resume and application letter c) Bringing out the inherent skills of the students, informing them on conceptual, technical

and personal skills. d) Sharing “experience” with students who are planning to enroll in graduate programs or

pursue academic careers in or outside Turkey.e) Interviewing skills f) Preparing for the TOEFL and GRE/GMAT exams.

2. Company/Sector Presentations a) General presentation about the companies and the sectors they operate inb) Presentation on recruitment and internship procedures of various companiesc) Presentation of countries and their Higher Education System (e.g., inviting Corps

Diplomatique staff [e.g., cultural attaches] in charge of education), d) Information on education and scholarship opportunities (Fulbright-USA, British Council

etc)e) Lectures by leading people in business and arts with the students

3. Career Express Exhibition: Career Express Exhibition is organized to bring together companies and exhibit a good example of the collaboration between the university and the business world. The Exhibition helps the students to acquire information on various sectors as well as the operation of the non-profit sector.

3.7.2 FMAN Career Services

In addition to the Career Office, FMAN Career Services Unit provides professional guidance to our MBA, LFI, MiF and ITM students by playing a facilitative role in encouraging the students to explore career options, set goals and take action through workshops as well as one-to-one guidance, simulation exercises in interviewing techniques, training sessions on “the job of finding a job” and panels with visiting executives from varying industries. In these activities our Career Development Unit staff works in collaboration with UNIDA, an HR consulting company, which has extensive corporate experience in strategic HR. Table 18 provides a sample list of career activities FMAN Career Development Unit undertakes in collaboration with UNIDA as well as other SU members.

Finally, as mentioned above, each semester SU hosts a number of company presentations in a wide variety of fields, from small and medium-size organizations to large multinationals. Every spring the FMAN publishes and distributes a CV Catalogue of the entire MBA students to over 300 major employers in Turkey.

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Table 18 FMAN Career Services Sector Panels and WorkshopsDate Subject Speaker(s)03.10.2007 Workshop: CV Preparation

Techniques IUNIDA

10.10.2007 Workshop: Case Analysis Ozgecan Kocak, FMAN Sabancı University

17.10.2007 Workshop: CV Preparation Techniques II

UNIDA

24.10.2007 Workshop: One to one Coaching-I UNIDA

31.10.2007 Panel: Media Sector Başak Tecer, Sabah, Güngor Uras, Milliyet, Volkan Günak, Skyturk

07.11.2007 Workshop: One-to-one Coaching-II UNIDA

21.11.2007 Workshop: One to one Coaching-III UNIDA

28.11.2007 Panel: FMCG sector Çiğdem Yıldız, Unilever, Levent Kömür, Serra Ulusoy, PG

05.12.2007 Panel: Finance Sector Özgür Kutay, Citibank, Özlem Gündoğdu, Albert Krespin, Deutsche Securities, Murat Bayburtluoğlu, Hakan Alp, Finansbank

12.12.2007 UNIDA Office Hours UNIDA

20.02.2008 Careers in Marketing Elif Elkin & Ferhan Çıragöz, Deva Pharma, Nesrin Taslak, Altek Elektronik, Özge Turut, Sabancı University

05.03.2008 Automotive Sector Moris Bayar, Arkas Otomotiv, Kerem Coşkun, Borusan, Seda Ertuna, Otomotiv, Alper Tokalp,Temsa, Cihangir Önal, Toyotasa

4. INTERNATIONAL POLICY & RELATIONS WITH CEMS SCHOOLS

4.1 Partner Business Schools

The university currently has 137 cooperation agreements with universities in 25 countries. Of these, 123 are under the Socrates-Erasmus framework (detailed further below), whereas the remaining 14 are broader cooperation protocols. The list of partner business schools and the nature of the partnership is provided in Table 19 below. Partnerships with CEMS schools are presented in bold letters.

Some observations are due regarding our current partners. As the latest entrant into the Turkish business school scene, we found that the top international schools who were interested in developing relations in this part of the world already had a Turkish partner. Further, many schools have been approaching “exchange fatigue” where they have many inactive exchange relationships and were not keen to add new one. However, the major reason has been the structure (and incidentally the strength) of our MBA program designed around the Company Action Projects (CAP), which makes an exchange outside of the summer term very near to impossible. Therefore, our strategic approach to exchange was to use the Erasmus program to increase the number of partner schools, ensuring that any student who wanted to go on an exchange would have the opportunity. We believed and hoped that as we built our reputation, we would have opportunities to strengthen our exchange network.

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Table 19 List of International Business School Partners*

* We can also note that on October 14th, 2008 we had a visit by Ms. Saila Kurtbay from the Helsinki School of Economics and signed an exchange agreement for staff and student mobility.

Indeed, over the last few years, as we have increasingly established ourselves (see for instance, http://www.sabanciuniv.edu/ybf/tr/?News/FMAN_in_the_Media.php), we have started conducting study tours for students (at all levels including Executive MBAs) from the following universities:

Cranfield University EM Lyon Leiden University Rotterdam School of Management

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University of Illinois at Urbana-Champaign University of South Carolina

These study tours include company visits, discussions with company representatives, lectures on the Turkish cultural, political and managerial context and social activities including visits to cultural and historical sites of importance. Some of the lectures, offered largely by our own faculty members, include:

The socio-political and socio-cultural context of Turkey Recent political events in Turkey Turkey’s regional role Turkey’s EU Entry: Political, economic and social perspectives Cross-cultural management with an emphasis on the Turkish cultural context

We see these study tours as a key component of our internationalization strategy. We aim to be the place that companies and universities come when they want to learn about management in Turkey (and eventually the wider region). The lectures above are the seeds of some of the courses that will be included within our CEMS MIM program.

4.2 Institutional Memberships

FMAN also takes pride in its membership in the following institutions of which we are full and very active members:

CEEMAN-Central and East European Management Development Association. We joined CEEMAN in 2006 in order to develop closer ties to business schools in our neighboring countries and immediately were asked if we would be interested in hosting their next annual meeting. We concurred, and hosted a very successful meeting in 2007 (see http://www.ceeman.org/?nSel=events&nSub=annconf&eID=15)

UN Global Compact. Not only were we the first member in Turkey, we hosted, together with the Wharton School of Business, the first international conference of the UNGC. See http://www.unglobalcompact.org/ParticipantsAndStakeholders/search_participant.html?detail=Sabancı+University

Principles for Responsible Management Education. One of our faculty members was on the initial working committee that crafted these principles. We have become a participant of the program and are actively incorporating the principles throughout our programs. See http://www.unprme.org/

At the university level we also have memberships in many international institutions. The list is very long and can be accessed at http://www.sabanciuniv.edu/eng/?genel/uyeler/uyeler.php. Some of the most notable associations from a European perspective are:

Council for Advancement and Support for Education (CASE) European Foundation for Quality Management (EFQM) European University Association (EUA) European Association of International Education (EAIE)

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4.3 International Faculty at FMAN

100% of FMAN full-time faculty members hold PhD degrees of which 90% are from abroad. In addition, since the inception of our faculty in 1999, 24 part-time, 7 visiting and 25 network faculty members have contributed to our activities. 56% of all part-time faculty members and 100% of our visiting and network faculty hold PhD degrees from abroad.

Table 20 also shows that currently, we have two full-time faculty members of non-Turkish origin. Also, we have had 3 visiting and 13 network faculty members of non-Turkish origin. All our visiting as well as network faculty members are affiliated with universities abroad.

Table 20 Nationality and Education of FMAN Faculty

  CountNon-

TurkishPhD from

AbroadFull-time 29 2 26Part-time 25 0 14Visiting 7 3 7Network 25 13 25

4.4 International Students

Although SU’s long-term vision is to be a world university that attracts international students for its degree programs, so far the university has mainly focused on recruiting Turkish students. This is not inconsistent with the long-term vision, since priority was given to building the institution and strengthening its reputation in Turkey, while designing the organizational processes and academic policies to target foreign students. Now that this set-up is established, the university and the FMAN plan to increase their efforts to reach international students. For instance, neither the university nor the FMAN have participated in international higher education fairs/tours in foreign countries but we will do so in the near future.

Despite these limited efforts, every year SU attracts a few foreign students for its undergraduate programs. Currently, we have a total of 15 full-time international students (Azerbaijan (5), Germany (4), Italy (1), Kazakhstan (1) and US (4)) enrolled in our undergraduate programs22.

In the past, our MBA and Executive MBA programs occasionally had foreign students as well. Specifically:

MBA Class of 2007 had one Chinese and one Azerbaijani student, EMBA Class of 2001 had one Japanese student EMBA Class of 2005 had two Ukrainian students

This year a significant step was taken to attract a foreign student to our MBA program through the new Hedef Alliance Regional Scholarship. As a result of this, for the first time, our MBA Class of 2010 has three foreign students (one German, one Russian and one Ukrainian), which constitutes about 11% of the class. Currently, we have no international students in our PhD program. However, the first of our four PhD graduates is of Tunisian nationality.

22 As students declare their major in their second year, and also can change their major later on we report the total number of international undergraduate students.

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4.5 International Student Exchange

Established in the academic year 2003-2004, the International Office/European Office (IO/EO) focuses on coordination of mobility programs contributing to SU’s strategic goal for being a global university. The office activities include the following:

1. Preparation and implementing exchange agreements : These efforts have resulted in 137 agreements from 25 countries at the university level (Annex 8 provides the proportion of all incoming and outgoing students for the BA program in Management, MA for Economics, European Studies and MBA). In the framework of the Lifelong Learning Programme (LLP); SU has applied for and was granted an Extended Erasmus University Charter. The Charter entitles SU to participate in several forms of LLP programs such as mobility, multilateral projects and networks.

2. Supporting and implementing education programs : The office coordinates education mobility projects (Erasmus, Erasmus Mundus External Cooperation Window, Leonardo Da Vinci, etc.) including application, implementation, monitoring and reporting. It also explores funding opportunities for funding and potential projects and supports faculty when submitting project proposals.

3. Taking care of the needs and requirements of incoming and outgoing students : IO/EO commits itself to the preparation of both outgoing and incoming students in order to ensure that they make the most out of the exchange experience.

For the outgoing students an information session on cross-cultural interaction is organised before their departure. Students have to submit reports evaluating their study period together with the services provided by both host and home university. These reports are used as a tool to measure EU/IO’s student service performance and a source for future exchange students.

For the incoming students IO/EO has prepared an International Students Guide and Course Catalogue which provides prospective faculty and students information on Turkey, Istanbul and SU. Incoming students receive support and enjoy priority in course selection, accommodation, and other practical matters. All incoming students are guaranteed accommodation on campus.

Furthermore, an orientation program and socialization programs including a city tour are organized for incoming students each semester. Every student is allocated a local peer mentor (usually a former exchange student) to introduce them to campus life and the city. Incoming students may also request a host family from the university community. Host families volunteer for helping and meeting foreign students in different type of activities, such as dinners, sporting events, cultural events, etc. The program brings students and Turkish families together in order for them to get to know each other better in a family environment as well as to assist foreign students in adapting to the local culture and lifestyle through various social and cultural activities. Student can apply for this opportunity upon arrival to SU.

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4.6 International Internships

SU has the highest sponsorship per student provided by the EC Erasmus Placement Program. The most preferred countries by our students for internship are the Netherlands, Germany, Sweden, Austria, and the UK. SU also has made bilateral internship agreements with Toshiba Corporation and with Marubeni Corp. in Japan.

Figure 4 Students who had an international internship (number and percent sponsored by Erasmus)

A selection of companies where our students had interships is as follows: Bekaert, Belgium; IBM Deutschland GmbH, Germany; Marubeni, Japan; Nokia Siemens Networks-Germany; Robert Bosch GmbH, Germany; Toshiba, Japan.

4.7 Support for Learning of Foreign Languages

The medium of instruction at SU is English. All undergraduates are required to take the SU English Language Assessment Exam (ELAE; for more information on ELAE please refer to http://www.sabanciuniv.edu/do/eng/?content/ela_exam.html). Students who pass this exam begin their undergraduate programs while those who do not meet the standards of English language proficiency enroll in the School of Languages (SL). The SL provides students with the necessary foundation skills and knowledge to excel in their interdisciplinary academic studies; help students develop their language awareness, knowledge and skills in English, Turkish and in second foreign languages; help students develop critical and creative thinking through the provision of high quality instruction and the promotion of independent study; and contribute to the further development of language teaching and teacher education in Turkey.

The School of Languages offers second foreign language courses to SU students in German, Spanish, French Italian, Japanese, Russian, and Turkish at the Basic, Pre-intermediate, Intermediate and Upper-intermediate levels. Each course is completed in 14 weeks, 3 hours a week. For all language courses including English, exit level descriptors based on the Common European Framework of Reference for Languages (CEFRL) and syllabus objectives are developed.

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Table 21 Number of Students Taking European Language Courses (2007-2008)Language

Level FRE GER ITA SPA TotalBasic 74 154 110 238 576

Pre-intermediate 3 8 29 23 63Intermediate 21 12 3 3 39

Upper-intermediate 13 13Total 98 187 142 264 691

5. VISION FOR CEMS MEMBERSHIP AND PLANS FOR PRE-EXPERIENCE MASTER’S IN MANAGEMENT

5.1 Our Strategic Approach to Graduate Management Education

While SU is almost revolutionary in its approach to education in Turkey, we cannot ignore the realities of the Turkish higher education system or the peculiarities of management education here. A few facts follow:

As in most of Europe, there is a tradition of the state providing free higher education. However, it is also important to note here that as opposed to public universities in Western Europe most Turkish public universities are severely underfunded, which impacts everything from their physical infrastructure to more importantly the quality of their faculty.

Given the demographics of Turkey, a country where 31.2 % of the population is under the age of 15, the demand for undergraduate management education will continue to be high for the foreseeable future. Around 1.6 million students take the national entrance exam every year. Unfortunately, there is a huge gap between those wanting to pursue higher education and the number of seats available; with close to one million students every year not finding a place in any university.

The MBA degree is still a relatively new concept in the Turkish higher education scene. In general, an MBA degree does not lead to a salary premium or ensure a move to a managerial position in Turkey. The reasons behind this fact are mainly found in the informal culture of Turkish organizations, placing higher importance in a working knowledge of the company and industry, rather than scientific management skills. The upshot is that full-time post-experience MBA programs do not provide a reasonable value proposition to potential students. Consequently, any full time graduate program has to be pre-experience to attract a reasonable number of students,

On the other hand, our surveys indicate that potential students (with or without work experience) place a high importance to the MBA ‘label,’ regardless of employers’ perspective of the same label. Capitalizing on this perception, many universities started MBA programs, most of which are evening programs positioned for the working group. Yet, these programs cannot be properly called post-experience because many of them also accept pre-experience students for a range of reasons, the foremost reason being postponement of military service,

Right from the beginning, one of our goals has been to create a ‘Sabancı MBA’ degree with a distinctive quality attached to it. With this goal in mind, we have always regarded a pre-experience MBA diploma as a necessary sacrifice, as the pre-experience MBA diploma lowers expectations from any Sabanci MBA degree. It is interesting to note that, our full-time pre-experience program was initially called MBM (Master of Business Management) due to our reluctance of calling it an MBA degree. Just a few months before kick-off, it was changed to MBA, as university administrators were concerned about marketing a completely new degree program in a new university.

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We have therefore focused our efforts to building the best MBA program in Istanbul, and we are confident that we reached this goal in nine years. In our curriculum design, the special needs of pre-experience students were kept in mind. One of the solutions to lack of experience was Company Action Projects (CAP), which became the cornerstone of our MBA program. Within our CAP program, students work on real projects two days a week on company premises for 6-7 months, and obtain a much more intimate knowledge of work environments compared to internships or class projects. In addition to CAP, mandatory managerial skills workshops, mandatory career panels, a requirement to do a summer internship or summer exchange, visits to campus by almost 200 managers during the program, all show the care that we have given to cover our young students’ lack of experience.

As a result of these efforts in curriculum design and implementation, Sabanci University now has the premium MBA program in Turkey. As Koç University reduced the duration of their MBA program to 10 months starting in 2008, Sabanci remains the only full-time two-year MBA program requiring tuition. Even with this substantial difference in duration and cost with Koç (our program’s total tuition is 50% above that of Koç’s), our student intake in 2008-2009 was 26, remaining at par with previous years (see Figure 5).

0

5

10

15

20

25

30

35

40

2004-2005 2005-2006 2006-2007 2007-2008

2-Year Full-Time MBA Programs - Intake Numbers

Koç MBA

Sabancı MBA

Figure 5 Intake Numbers for 2-Year Full-Time MBA Programs

This is not to say that we have become comfortable with a pre-experience MBA program. In the past few years, we have been working on strategies to align our programs with European norms. We see the value in rebranding the MBA in Turkey as a post-experience program and we believe that from our position of strength as the clear leader in the full-time MBA market, we are in the best position to lead this change effort.

Perhaps, this vision would explain why we are so enthusiastic with the opportunity provided by CEMS. The ability to replace MBA ‘label’ with a highly prestigious Masters diploma would accelerate us towards our target. Despite the great pride we take in our MBA program, we believe that being part of the CEMS network will provide greater value to both our students and faculty. This is elaborated in the next section.

It should, however, be noted that moving away from the MBA program must be done carefully and over a time period. An important part of our brand strength emanates from the perceived quality of our MBA and our dedicated MBA alumni. We have to keep in mind what such a move would mean for our alumni and other stakeholders, and thus would have to move forward thoughtfully.

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5.2 Role of CEMS at FMAN – Expectations and Contributions

We see CEMS membership as an opportunity to reach our strategic goal of becoming one of the top international management schools in our region. As is the case for most of the business schools in Turkey, we have been heavily influenced by the US higher educational system23. Thus, we believe CEMS would help us better integrate with the European management education system, not just in terms of teaching but also in terms of being part of the research networks.

We think CEMS membership provides us an opportunity to align our graduate degrees with European and global norms. Specifically, we are currently planning to make the MBA a post-experience degree, and call the pre-experience general management master’s program, MS (Master of Science) in Management. Since currently the MBA title is used for all pre-experience general management master’s degrees in Turkey, we will be actively promoting the MS in Management degree and the CEMS brand will help us in this vein. These promotional activities will also help all the CEMS partner schools, since despite its prestige, CEMS-MIM specifically and MS in Management degree in general are not well known in Turkey. We believe our reputation in Turkey (not just among potential students but also corporate world) will increase the CEMS brand awareness in Turkey very quickly and very positively. We have been investing in our brand through various means (top quality brochures, attending MBA fairs, a very informative web site, corporate advisory boards, etc) and we believe this experience and know-how in brand-building within the Turkish context will help us contribute to the CEMS brand very effectively as well.

In addition to us promoting the CEMS brand in Turkey, we expect being a partner of CEMS will help us market our programs internationally. Being a young school, we had decided we would first invest in the development of our academic and administrative processes and resources with the internationalization goal in mind, before starting extensive international marketing activities. Having accomplished most of these goals, our decision was to increase international marketing activities for our MBA program (which we now plan to re-label as MS in Management program) in the 2009-2010 academic year. CEMS membership will, of course, provide an impetus to these internationalization efforts.

We believe CEMS would be a very valuable resource for many Turkish firms that are internationalizing, with many of which we have close relationships. For instance, one of those companies, Hedef-Alliance, currently gives full scholarship for one foreign student in our MBA program as they see this as a means for accessing managerial talent that can be used in countries where they want to expand their operations. For these companies our CEMS membership would be quite timely, since they would be interested in hiring CEMS graduates from us and the partner schools. We also see a potential for us being a bridge between CEMS partner schools and these companies for developing case studies and doing field or case-based research.

One of our strategic decisions was to be a “full-service” management school, that is, we would have a portfolio of programs ranging from undergraduate degree programs to executive education/development programs. We would expect that our membership in CEMS would be a vehicle for developing alliances and collaborations with CEMS partner universities in all of these programs. We are keen to set up a true partnership in improving our PhD program through joint curriculum development and research collaborations with CEMS partner schools. Although our PhD program is quite successful, it is still fairly young and small. By collaborating with CEMS partner schools; we hope we can produce more PhDs who have international mobility. Such collaborations would help us and all CEMS partner schools in recruiting junior faculty members from our PhD programs.

23 There are interesting historical reasons for this including early support by the Ford Foundation for the development of business schools in Turkey, and of course the role of the American based Robert College, the precursor to Boğaziçi University.

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On the other hand, there is a growing demand for executive education in Turkey, and our Executive Development Unit (EDU) has built a reputation for providing quality executive education programs and courses. However, it is practically impossible to meet the demand for such education programs just by our professors, and therefore EDU would benefit from having CEMS partner school professors in its network of instructors who could come and teach short (one day to one week) courses here in Istanbul. Since Turkey is a large and rapidly developing country, the needs and opportunities are not limited with executive education. We have only recently been approached by entrepreneurial organizations, non-governmental organizations and the like for various areas of collaboration including joint projects and curriculum development. Since our own capacity to undertake such projects alone is limited, we would benefit from approaching these opportunities together with some CEMS partner universities. For this reason, we would be interested in hosting a workshop with CEMS partner universities to search for areas of collaboration in such areas.

We believe we would be a very attractive school for students coming from CEMS partner universities for block seminars and their semester(s) abroad in the CEMS-MIM program. In addition to our state-of the-art campus facilities (not just for teaching but also for social and cultural life as well as sports), the curriculum we can develop for CEMS-MIM would contribute to our attractiveness. We were the first management school in Turkey that developed a course on Turkish Business Context. In addition, our Global Business Context course, managerial skill workshops which are offered by both academics and business professionals, our full-time and network faculty with expertise in cross-cultural management and international business, our extensive contacts with leading local and MNCs that help us bring every year more than 200 business professionals to our campus to give seminars and workshops, attend discussion panels, advise student projects, deliver guest lectures in classes and the like make us confident that we can offer very attractive courses to incoming students.

Our contribution to CEMS through our membership would be enhanced by the characteristics of our undergraduate student body and the design of our undergraduate curricula. Our undergraduate students include some of the highest scoring students in the nationwide central university entrance examination (ÖSS). In addition, our undergraduate curricula (unique in Turkey) require delayed specialization and give students the right to choose their programs at the end of their second year and then allow a large degree of flexibility in choosing their courses24. Due to these reasons our students receive a more well-rounded education, are more likely to study what they really enjoy, and pursue a post-graduate degree (around 30% them do so). The MS in Management program described below is designed to make best use of this.

5.3 Introduction of CEMS-MIM in our Program Portfolio

Figure 6 below summarizes the positioning and core concept of our MS in Management program with CEMS-MIM option. Estimated number of students are also included (those coming from an undergraduate program at SU and other universities stated separately).

24 Turkish undergraduates gain admission to university based on the score they earn on the nationwide ÖSS exam and are placed directly into departments. In most universities transferring to another department is very difficult. SU students are given 100% freedom to choose their program of study; in fact, we are the only university in Turkey to give students this freedom.

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Figure 6 Positioning the CEMS-MIM in our Program Portfolio

5.2.1 Positioning in the Program Portfolio

We are going to have a pre-experience MS in Management program with two tracks:

1. CEMS Track: CEMS – MIM track.2. CAP Track: Functional Specialization with CAP (Company Action Projects)25.

Depending on whether a student had the basic (core) undergraduate management and economics courses, MS in Management program will either be a two year program (4 + 2 model) or a one year program (4 + 1 model):

1st year of the two-year program will have core management topics, those that we have in our current MBA program. We will refer to this year as the M1 year.

2nd year of 4 + 2 or first year of 4 + 1 will be the specialization year. We will refer to this year as the M2 year. This is where we will differentiate the CEMS track and the CAP track

5.2.2 Student Selection and Profile

The basic (core) undergraduate courses required to enter the one-year program will be seven management core courses, two economics courses (microeconomics and macroeconomics), and statistics (a total of 10 courses). Those seven management core courses are as follows: financial accounting, managerial accounting, operations management, information systems, financial management, marketing, and organizational behavior.

In addition to the SU undergraduate Management students, Economics students can easily fulfill this requirement of 10 courses since three of them are already required courses for Economics students and the remaining seven can easily be taken since the Economics curriculum allows students to take up to

25 As presented above, CAP is one of the key building blocks of our current MBA program. Student teams carry out a 6-7 month project at a leading company in Istanbul, under the supervision of an academic advisor and a company advisor. There are formal mechanisms to facilitate reflective practice and action learning in order to develop students’ practice of the “art of management”.

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MS Year 2

Functional specialization w/ CAP

CEMS MIM

30 22

5

UGD w/ Basic Mgmt Courses

UGD w/o Basic Mgmt Courses

MS Year 1 Basic Mgmt Courses

12 SU + 5 other

8 SU + 10 other*

12 SU + 5 other

13

24 SU + 10 other

13 free electives. A significant number of SU Engineering students can also fulfill this requirement, since motivated and successful students can take six courses per semester, rather than the usual five and can go up to seven courses in their last year with special permission. Since the Engineering curriculum requires students to take four non-engineering electives (which could all be in management), and statistics is already a required course for them, this ability to “overload” combined with the possibility of taking up to three courses in the summer school, would make it quite feasible for some Engineering students to take the additional six courses required.

Of course, Management and Economics students from other universities could also qualify for the one-year program.

It should also be noted that students will be expected to meet the following minimum performance requirements in these courses in order to be eligible for the one-year program:

No grade below C (2.0/4.0) in any of the 10 courses required. A certain minimum grade point average in these 10 courses, such as 3.0/4.0. TOEFL and ALES scores. ALES is the equivalent of GRE/GMAT in Turkey. A student with a

high ALES score and a high TOEFL score is quite likely to get a high GMAT score as well. Since GMAT is quite expensive, not requiring GMAT would increase the applicant pool.

It is quite clear why the 4+1 option would be quite attractive for Economics and Engineering students. We believe this option would be very attractive for SU BA in Management students as well. We would like to position it as an “honors” type of program, where the best students go. We believe this will have a very positive synergetic effect for both the undergraduate Management program and the MS in Management programs. Clearly, the CEMS track would be quite attractive. On the other hand, even if a student cannot or does not want to join the CEMS track, the CAP track would be extremely attractive to him/her. CAP has been very successful in our MBA program and has become a brand, since it helps students find very good jobs very quickly and helps them make a better decision in choosing their first job (industry, company and their position).

We plan the admission deadline for the 4+1 track to be the end of first semester (early January). In addition, we could have an early conditional acceptance at the end of third year (for those who go on an exchange in the first semester of their fourth year). The main reasons for this are as follows:

To help students shape their electives in their last semester in their undergraduate program (some may focus on language courses, some would avoid taking courses that they will/can take in the MS program)

To arrange a “concentrated” mini-term (or pre-term) session upon their graduation (more on this follows).

To require summer internship and support timely, targeted internship search for admitted students.

5.2.3 Fees

We plan to set the annual tuition fee of the program to be at the same level as that of our undergraduate programs. Currently that is YTL 22,500.00. However, in the Turkish market, it is necessary to give scholarships to attract a larger number of well qualified students. Therefore, we plan to give an average of 40-50% scholarship to the students in this program.

5.2.4 Student Forecasts and Underlying Assumptions

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Two-year program intake:

Target: 18 students. Since the two-year program will be the same as our current MBA program except its name, the

numbers in that program would be a good benchmark. Our current MBA program takes in an average of 20 students with no work experience (and around eight students with some work experience). Around 10 of these 20 are SU graduates. We can assume some of these (e.g. SU Engineering students) will be able to qualify for the one-year program. Furthermore, the lack of the popular MBA title may have some adverse effect on the demand. However, we think the existence of the CEMS-MIM track would make up for lost demand due to dropping the MBA title. We also believe our current success in the placement of our student to good jobs would help us as well (in 2008 70% of our MBA graduates were hired before graduation).

We can assume most of these students will not be trilingual. So we estimate about five of them to go to the CEMS-MIM program (possibly with the tri-national version of the program). Since this is a costly undertaking (travel etc), we do not expect more than 5 students here.

One-year Program:

Target: 34 students A total intake of 24 students from SU undergraduate programs is reasonable because

o Graduate study is very popular among SU students. Overall, 30% of SU graduates pursue a master’s or PhD degree.

o Around 160 students graduate with a BA in Management or Economics every year. We estimate we can enroll 16 of them to our one-year program.

o We believe we can attract at least eight SU Engineering graduates. This is quite a conservative forecast since every year around 140 students graduate from the Manufacturing Systems Engineering program (equivalent to Industrial Engineering in other universities). At least 50% of them are interested in a career in management. We believe at least eight out of those 70 students would take the extra course required to qualify for the one-year program. In addition, there are graduates of other engineering programs (around 250 graduates every year) and there would be demand for our program among them as well.

CEMS – MIM track will have 17 students (12 from SU)o SU takes in around 90 students per year from German, French and Italian teaching high

schools in Istanbul. Furthermore, a significant number of students take German, French, Italian and Spanish courses at the University. Around 40 of these students take courses at the Intermediate level of these four languages. Even without the trinational option of CEMS-MIM (just relying on the trilanguage option), targeting about 10% of these SU students would provide us the forecast intake of 12 students.

Functional specialization track with CAP will have 17 students (12 from SU)o Non-SU intake will mostly be students with BA in Economics and Management,

especially for those coming from universities in Ankara (METU and Bilkent), since CAP is a great way to take one’s first step for a career in Istanbul.

5.2.5 CEMS/MIM Curriculum – First Draft Proposal

The Higher Education Council (YÖK) regulations require a non-thesis masters program to be comprised of courses with a minimum of 30 credits (60 ECTS). To get the ECTS equivalent of each course simply multiply its SU credits by 2 below. The following program has a total of 33 SU credits (66 ECTS)

Pre-program (June)o Orientation

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o Intensive Practice Development course (1.5 credits) Duration: One week. Students will be embedded in a specific organization, and will both individually

and collectively experience a 'live case'. The course will expose the students to all the benefits of a case study approach yet in a real time and in an interactive manner.

It will help students learn the practice of management, and help them make informed decisions for their summer internship in Turkey.

Summer Internship (minimum 6 weeks) In Turkey. Block Seminars (September) Fall Semester (15 credits)

o Required courses International strategy (3 credits) International marketing (3 credits) International management and organization (3 credits) International Financial Management* (3 credits)

o Electives (3 credits) Courses from MS in Management elective courses pool. Some selected courses from Economics, European Studies, and Conflict

Resolution master’s programs, including the following: Political Economy of European Integration* Political Economy of Turkey* Conflict Resolution in Practice*

o Skills seminars Spring Semester

o SU Students will spend this term abroado Courses

Required Cross-Cultural Management (3 credits – 6 ECTS) Business Project (7.5 credits – 15 ECTS)

o 2 days a week, at an international company.o Team project

Electives (6 credits) Global Business Context* (3 credits) Turkish Business Context* (1.5 credits) Global supply chain management (3 credits) International Financial Reporting and Analysis (3 credits) Managing People Globally – International HR Management (3 credits) Cross-cultural Leadership (3 credits) Some selected courses from Economics, European Studies, and Conflict

Resolution master’s programs, including the following:o Turkey EU Relations* o Managing Conflict in Practice*

Courses from MS in Management Elective courses pool. Skills seminars (0 credit)

Summer – international internship (minimum 10 weeks)

Further comments on the curriculum: The courses marked with * are already being offered in one of our graduate programs. In

particular, we feel that the current MA programs at FASS offer strong potential for synergy. For instance, the European Studies program launched in 2004 has 4 Jean-Monnet course modules-the highest proportion in all the EU programs in Turkey. Similarly, of the 43 MA degrees conferred by the Conflict Resolution program, 13 are to international students. Some of these

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students are academically placed in a wide range of fields, ranging from psychology, political science, peace studies, management to international relations at Universities such as Illinois, Bradford, George Mason, Georgia, Carnegie Mellon.

Courses specifically designed for the CEMS-MIM track will also be open to students on the CAP track as electives. This will not only enrich course alternatives for the students in the CAP track but also, create an environment for incoming CEMS exchange students to meet and work with Turkish students.

6. QUALITY OF OUR CURRENT AND FUTURE STUDENTS

6.1 SU Undergraduate Intake Statistics

ÖSS Exam, carried out once a year to place students in universities, is a key, publicly available measure of student quality. Two statistics are available for each student who has taken an ÖSS exam: (1) A point score (2) His/her rank in the exam. Since the exam characteristics have changed over the years the best way to compare performances across years is the rank of students rather than their point scores. Figure 8 shows the rank statistics (in percent among all the students that take the exam, which is around 1.6 million every year) of the students who have entered SU through two faculties26 and Figure 7 shows the number of students admitted to those two faculties. Most of the BA in Management students enter the university through FASS – Faculty of Arts and Social Sciences, however because of the freedom of choice given to the students a student who has entered through FENS – Faculty of Engineering and Natural Sciences, could choose to get a BA in Management degree. Since the rank data could be skewed, we are reporting the median, the 5th and 95th percentiles of these percent rank data of our intake. The two charts show that our “typical” engineering student represented by the median ranks in the top 2.5% of the exam takers, and arts and social sciences student ranks in the top 4% of the exam takers.

0

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100

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200

250

300

350

400

450

2004 2005 2006 2007 2008

Undergraduate Student Intake at SU

FENS

FASS

Figure 7 Undergraduate Student Intake Through Two Faculties

26 All other universities in Turkey take students into departments through the ÖSS exam. SU takes them into two faculties and then gives them complete freedom in choosing which program they study, whichever program that faculty is in.

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In summary, most of our undergraduate students come from the top 5% of the 1.6 million ÖSS exam takers every year.

0.00%0.50%1.00%1.50%2.00%2.50%3.00%3.50%4.00%4.50%5.00%

2004 2005 2006 2007 2008

% R

ank

Amon

g Ex

am T

aker

s

FENS Student Intake Statistics

5th percentile

median

95th percentile

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

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16.00%

2004 2005 2006 2007 2008

% R

ank

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g Ex

am T

aker

s

FASS Student Intake Statistics

5th percentile

median

95th percentile

Figure 8 ÖSS Performance of SU Undergraduate Student Intake

Another key statistic that is relevant for CEMS membership is the number SU undergraduate students who come from high schools in Istanbul which teach in French, German or Italian. Since these schools’ graduates are trilingual upon graduation from SU, they constitute a significant potential for our CEMS-MIM program. Figure 9 below shows that in the recent years the total number of such students who enroll in SU every year is around 90. These high schools are Saint Joseph Private French High School, Saint Benoit Private French High School, Lycèe Galatasaray, Notre Dame De Sion Private French High School, Sainte Pulcherie Private French High School, Saint Michel Private French High School, İstanbul High School (German), German High School, Sankt Georg Austrian High School, Italian High School, Beyoğlu Italian High School, and Galileo Galilei Italian High School.

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0

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40

60

80

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120

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

SU Undergraduate Intake from European Language High Schools

Italian

German

French

Figure 9 SU Undergraduates from European Language High Schools

6.2 Admissions to FMAN’s Full-time Graduate Programs

Below we provide summary statistics on the recent students entering all of graduates programs at FMAN. In the rest of this section, we will focus on the full-time graduates programs at FMAN and relevant FASS graduate programs (Econ and European Studies) as they are more relevant to the CEMS membership.

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Table 22 Statistics on the Students Entering All Graduate Programs of FMAN Program MiF ITM PhD

Year of Entry 2007 2008 2007 2008 2008 2008 2007 2008 variousNumber of Students

28 26 37 36 13 9 7 6 11

Average TOEFL score

249 - CBT 100 - IBT 103 96 93 92 83 98 269

Average GMAT score

590 594 656

Average LES/ALES score

69 - LES 84 - ALES 69 - ALES 75 - ALES 83 - ALES 72 - ALES 89 - ALES 83 - ALES 84 - ALES

Percentage of Women

54% 31% 27% 32% 38% 0% 29% 17% 64%

Percentage of International Students

0% 12% 0% 0% 0% 11% 0 0 0

Outside of Istanbul 25% 31% 3% 5% 15% 22% 57% 33% 36%

Average job experience

11.6 months

6,62 months

10 years 10 years 0 1.5 years 1 year 0 n/a

MBA LFIEMBA

6.2.1. Admissions to the MBA Program

The MBA program offered at FMAN is oriented towards students coming from various disciplines and having little or no business experience. At a minimum, applicants must hold a 4-year Bachelor degree and score over the threshold of 55 points in the ALES exam administered by ÖSYM (an exam that measure academic readiness for graduate studies, similar to GRE or GMAT). However, due to competitive nature of the admission process, applicants typically enter with much higher exam scores. The program administration also requires official GMAT scores, official TOEFL scores (minimum CBT 220, IBT 83) that indicate English proficiency, two letters of recommendation and transcript(s) from institution(s) attended earlier. Again, satisfying minimum score levels for TOEFL and GMAT exams does not guarantee admission.

Students who satisfy the minimum conditions set by YÖK for admission are subjected to a screening and interviewing process by an Admissions Committee headed by the MBA Program Director. The applicants are evaluated both through a written exercise as well as an interview conducted by two faculty members. The interview follows a certain structure in order to determine a profile of the applicant. The goal of the interview is to assess the spoken English, academic suitability, personal readiness and motivation of the applicant for the MBA program. After all the interviews are complete, the Admissions Committee extends admission offers to a selected set of applicants.

For more information on admission procedures to our MBA program go to: http://www.sabanciuniv.edu/ybf/eng/?PrgMba/Application_Requirements.html

SU’s MBA program currently enrolls 26 first-year and 28 second-year students. The current MBA student population has limited work experience (mean 14 months, median 7 months), mainly because in Turkey most students pursue an MBA as a pre-experience degree because it allows them to change the career that they were placed in involuntarily through the National Entrance Exam (ÖSS) or due to parental pressure. Another important factor is that attending a graduate program allows young men to get a deferral from the compulsory military service which is typically completed upon graduation from college. The gender distribution is therefore slightly skewed towards males, with 43 % female and 57% male students. The MBA students hold undergraduate degrees from Engineering (69%), Business/Economics (19%) and Social and Natural Sciences (12%).

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The majority of SU MBA students are graduates of elite universities in Turkey, e.g., Middle East Technical University, Koç University, Bilkent University, Boğaziçi University, Istanbul Technical University (ITU) and SU along with international (i.e. non Turkish) universities.

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

Other

Boğaziçi University

Marmara University

Koç University

Yıldız Technical University

Abroad

Bilkent University

İstanbul Technical University

METU

Sabancı University

MBA Classes of 2008-2010: Undergraduate Institutions

Figure 10 Undergraduate Universities for MBA Classes of 2008 through 2010

Some summary statistics on the required examinations for the MBA Classes of 2008 through 2010 are as follows:

GMAT – Average 595, Median 600 TOEFL (IBT) – Average 99, Median 100 ALES – Average 72, Median 69

6.2.2 Admissions to the Masters in Finance (MiF) Program

The admission requirements of the MiF program are similar to the MBA program. For more information on admission procedures to our MiF program go to: http://www.sabanciuniv.edu/ybf/eng/?PrgMif/Application.html

MiF program, which is in its first year, currently enrolls 13 students which are coming from various disciplines and with limited or no business experience. The disciplines that the MiF students hold undergraduate degrees from were 38% Engineering, 46% Business/Economics and 15% Natural Sciences. The gender distribution is slightly skewed towards males, with 38 % female and 62% male students. Most of the SU MiF students are graduates from SU.

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6.2.3 Admissions to the Leaders for Industry (LFI) Program

LFI program is open primarily to candidates who have engineering backgrounds and who would like to acquire management skills while strengthening their engineering formation. Because the program involves areas of specialization, depending on the specific tracks that will be supported by the program partner companies, candidates typically have a Bachelor’s degree in Electronics Engineering, Computer Science and Engineering, Mechatronics Engineering, Industrial Engineering, Materials Science and Engineering, and Biological Sciences and Bioengineering.

Candidates must submit an official transcript showing a GPA of at least 2.70 out of 4 or 70 out of 100. Candidates must also submit one of LES, ALES or GRE scores, and a TOEFL score for English proficiency, along with letters of recommendation and a statement of purpose. After the application deadline of June 1, candidates are screened by the Admissions Committee and selected candidates are invited for an interview. The interview panel includes program directors and faculty members from the engineering and management faculties and HR directors and other representatives from the sponsoring firms.

LFI program is a fully-sponsored program; therefore a comprehensive scholarship package is available to students who are granted admission. This package includes full tuition waiver for the duration of the program, a monthly stipend and partial housing support. Through this scholarship and high threshold criteria, SU is able to attract some of the best students entering the university for graduate studies. Because of the relationships with the sponsor companies, LFI is one of the best examples of university-industry collaboration and the advantages it can provide both to education and industry.

For more information on admission procedures to the LFI program go to: http://www.sabanciuniv.edu/mdbf/lfi/eng/?Admissions/Admissions.html

Currently there are 10 students in the 2007 entering class and 6 students in the 2008 entering class. Typically LFI students are top graduates of top engineering schools, including Istanbul Technical University, Yıldız Technical University, Middle East Technical University, and SU graduates, making them the best of the best.

Abroad, 15%

Other, 15%

ITU, 31%

SU, 15%

YTU, 15%

METU, 8%

Undergraduate Institutions of LFI Students (Classes of 2009 and 2010)

Figure 11 Undergraduate Institutions of LFI Students (Classes of 2009-2010)

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6.2.4 Admissions to the MA programs at FASS

The admission process for MA programs of FASS requires the submission of an official transcript, LES/ALES (for MA in Economics GRE with a minimum score of 780 out of 800 in the quantitative section) scores, a TOEFL score for English proficiency, along with letters of recommendation and a statement of purpose. The majority of the FASS MA students are graduates of the three elite English language universities in Turkey, i.e., Bilkent University, Boğaziçi University and SU along with international (i.e. non Turkish) universities. The average GRE quantitative scores of the 2008 entering classes are 789 for the MA in Economics and 740 for the MA in European Studies. The average TOEFL (IBT) scores are 94.8 (median 76) for the Economics and 91.5 for the European Studies programs.

6.3 Placement Success of our AlumniSabancı University graduates at both the undergraduate and graduate levels have gained impressive successes upon graduation. Whether it be pursuing further study or entering the workforce, we see them being recruited by top universities and companies. Below we share some statistics for our undergraduate and MBA programs as we feel those would be of greatest relevance to CEMS membership.

6.3.1 Undergraduate

30% of our alumni pursue a graduate degree right after they receive their bachelor’s degree. In the case of BA in Management alumni this ratio is 20%. Most of these students study on full scholarship at some of the most prestigious universities of the world. We see their success as a primary indicator of the quality of our undergraduate program. The figure below, shows which universities have the highest number of our graduates.

0 5 10 15 20 25 30

London School of EconomicsMassachusetts Institute of Technology

Stanford UniversityTexas A&M University

University of Massachusetts, AmherstUniversity of Warwick

Northeastern UniversityUniversity of Pittsburgh

Brown UniversityHarvard University

University of ChicagoCarnegie Mellon University

Max Planck InstituteUniversity of California

Foreign Universities

BilkentKoç

BoğaziçiTurkish Universities

Universities Where At Least 5 of SU Undergraduate Alumni Attended a Graduate Program (2003-2007)

Figure 12 Universities where at least 5 SU undergraduate alumni attended a graduate program (2003-2007)

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More than 50% of our undergraduates pursue professional careers upon graduation at some of Turkeys most prestigious companies. See the table below for some of these companies. Furthermore, as shown in Figure 13 in 2007 fully 93% of our alumni are employed with one year of graduation.

83%

92%

93%

78%

80%

82%

84%

86%

88%

90%

92%

94%

2005 2006 2007

Placement in the First Year After Graduation

Figure 13 Percent of Alumni Placed within One Year of Graduation

Some of the companies that hired our undergraduate alumni are as follows:

ABB Elektrik Sanayi AŞ. Fortis Bank NovartisAccenture Danışmanlık Frito Lay Oracle Bilgisayar Ltd. Sti.ACNielsen Araştırma Hizmetleri A.Ş. GlaxoSmithKline Peppers & Rogers GroupAlcatel Lucent Türkiye Google PepsiCo InternationalAlstom Transport Henkel - İstanbul Perfetti Van Melle TürkiyeAssociated Press Hewlett-Packard (HP) PfizerAutoliv Cankor Otomotiv Emniyet Sist. HSBC Bank Philips- JaponyaAviva Hayat Emeklilik IBM Turk Limited Sirketi Phillip MorrisBayer Türk Kimya Infenion Technologies AG PirelliBlockbuster Inc. Johnson & Johnson PricewaterhousecoopersBosch San Johnson Diversey - İstanbul Procter & Gamble - BrükselBP Petrolleri JP Morgan Reckitt BenckiserBritish American Tobacco Kimberly-Clark Company ReutersCarrefour KLM Robert Bosch GmbH - SttutgartCisco Systems KPMG Rolls RoyceCitibank A.S. Kraft SandozCredit Europe Bank - Holland Lilly İlaç Shell International Ltd. - UKDanonesa L'Oreal Siemens San. Tic. AŞDeloitte & Touche - Amerika Mattel SonyDeutsche Bank Germany McKinsey and Company TchiboDHL Express Mercedes Benz Toyota Motor EuropeDupont Türkiye Metro Cash&Carry TRW Automotive AftermarketEricsson Telekomünikasyon Microsoft Corporation Unilever TürkiyeErnst & Young Millennium Bank Vodafone ETH, Zurich Nestle Gıda XeroxEurobank Tekfen Nortel

Several start-up companies have also been founded by SU Alumni in areas such as Information Technology, Software Development, and Advanced Materials, of which two are based abroad.

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6.3.1 Placement Success of our MBA Program AlumniWe keep record of placement statistics of our MBA program alumni according to the norms of MBA Career Services Council. Table 23 reports the placement performance of alumni who were actively searching for a job (thus, the statistics exclude those who worked at their family business, established their own company, or joined the military to complete their obligatory military service).

Table 23 MBA Program Placement Performance MBA Class of 2007 2008% employed by graduation 39 % 72 %% employed by three months of graduation

89 % 100 %

In addition to being placed rather quickly our alumni have been recruited by some of the leading Turkish and multinational companies, as depicted in Table 24.

Table 24 Companies that hired MBA Class of 2007 and 2008 Abott Pharmaceutical Deutsche Bank Novo NordiskACNeilsen Eczacıbaşı Pharmaceutical PfizerAkbank Ernst and Young Philip MorrisAnadolu Group ETI PWCAvea Fuyang Kangwei Garlic Products Sony Bosch HSBC Standard UnluCitibank İş Investment UnileverCoca Cola Maersk Wyeth PharmaceuticalDeloitte Touche Maxxium Turkey

7. OTHER STRENGTHS OF SU AND SU-FMAN

7.1 Integration with and Contribution to the Society

Among the foundation (private) universities in Turkey, SU is particularly well-known for its integration and contributions to the society. This stems partly from the Sabancı family’s long history of philanthropy, the values of the university and its leadership and thus the strategic vision we have set for our school. From day one, our goal was not to be an ivory tower, to be actively engaged with society. In Turkey, these added-values can be summed as follows:

SU provides an extensive pool of scholarship opportunities to young and bright individuals who reach the university level. About 40% of the undergraduate students at SU receive a scholarship that alleviates their financial pressures and help them focus to their studies. After their initial year, ongoing students also receive scholarship support based on their need and merit; combined, nearly 3.000 such scholarships were provided to SU's student body since 1999.

Along with scholarships, a recent study by the Higher Education Council (YÖK) has identified SU at the top of all of the private higher educational institutions in Turkey in its scale of investment per student. In other words, SU spends 30.000 USD per student per year while tuition fees reflect only around 63% of its budget.

Recognizing the weak state of NGOs and civic participation in Turkey, we require all SU undergraduate students to work for 40 hours their first year on Community Involvement Projects (CIP). CIPs, a unique aspect of SU, enables the channeling of our students' willing efforts to not only the needs of SU's immediate physical surroundings (socially an area that remains marginally poor with many community improvement necessities) but also to very remote areas of the country. So far, 4,200 of our students have volunteered in more than 630 community

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projects ranging anywhere from training/education/capacity building, environmental conservation to the supports provided to the elderly and handicapped citizens. Completely student run, we see that over 25% of our students continue working at with the CIP office, even after they have fulfilled their required hours. In addition, close to 20 universities around Turkey have requested our help in setting up their own CIPs.

FMAN through its early adoption of the Principles for Responsible Management Education27, membership on the boards of the Turkish Sustainable Development Association, endorsement of the UN Global Compact, and its required Business Ethics classes and sponsorship of the Corporate Governance Forum of Turkey, actively seeks to promote and embody the principles of responsible management.

The Istanbul Policy Center, referred to as a “think and do tank” by its founding director former rector of Boğaziçi University Prof. Üstün Ergüder, and its associated research groups function as an NGO that fosters thinking, debate and lobbying to influence important issues in the educational and socio-political agenda of Turkey.

Strengthening the position of women in Turkey is a top priority and we support to several NGOs working in this area. One of our own notable efforts in this area is the UN Joint Program "Promoting and Protecting Women's and Girls' Human Rights," a social improvement and human development project in which all of the United Nations institutions in Turkey, Ministry of Internal Affairs, Sabancı Foundation and SU have been contributing. This project aims at to reduce existing gender inequality by bringing together local governments, public institutions, the private sector and non-governmental organizations in a collective action program. As part of this initiative SU faculty members have devised and delivered in six provinces, the Purple Certificate program, which seeks to raise the consciousness of high school teachers and through them, high school students with respect to women's human rights. In addition, we work very closely with KAGIDER, the Women’s Entrepreneurship Association.

Scientific research and the intellectual outputs in the form of patents and other inventions may be one of the most understated contributions of SU to the society at large. In this sense, SU is a hub of innovative thinking that often results in improving the efficiency of products used directly and indirectly in the Turkish economic arena or intellectual productivity that questions Turkish and global scientific trends. In 2007 alone, more than 170 research projects were carried out with international partners, some of which eventually lead to the improvement of our life quality.

Since its establishment, SU distinguishes itself as a university that has enabled a "reverse brain drain" for bright Turks who used to prefer working, researching and/or teaching abroad. About 85% of our faculty members have returned to Turkey, to SU after completing their post-graduate studies in important universities of Europe and USA.

Last but not least, SU provides an unmatched contribution to the society through its support to culture and the arts. The Sakıp Sabancı Museum and the Sabancı Performing Arts Center as well as the contemporary art spaces of the university host members of the local communities as well as a wide range of regional and national-international constituents.

7.2 Unique Undergraduate Curriculum

All applicants of undergraduate programs of Turkish Universities must take an entrance examination (ÖSS) administered by the National Student Selection and Placement Center (ÖSYM) attached to the Higher Education Council (YÖK). The Council determines applicants for the enrollment of each university and faculty/program after evaluating related subject grades, high school results, and student preferences according to the faculty/program requirements. In all cases but SU, students are placed into a specific university department through this process. At SU, students enter the university, not a specific program, and make their program choice at the end of their second year, with complete freedom (e.g. no quotas or GPA requirements even for our most in-demand programs). Basically we argue the individual 27 One for our faculty members, Dr. Dilek Çetindamar was a member of the international task force that developed these principles.

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should be allowed to make their own choice, and not be forced into a program that they are not interested in. We are the only university in Turkey that gives this freedom to students, a very important factor in helping us attract top notch students.

All SU undergraduate students take a set of required university courses during their first year (after they have completed their English preparation year if unable to pass the English entrance exam). The intent of the university courses is to ensure that each and every student has a broad and solid foundation in the humanities and the sciences. Furthermore, our undergraduate programs provide the students with quite a bit of flexibility and options to take lots of electives outside of their own programs giving them a broad perspective. For more information on university courses please go to: http://www.sabanciuniv.edu/eng/?ogrenim/temelgelistirme/dersler/dersler.html

7.3 Academic Support Services for Students

In accordance with its mission, student support receives utmost attention at SU. The Center for Individual and Academic Development (CIAD) is comprised of sub-units that aim to facilitate students' adaptation to university life, thus providing a smooth transition from secondary to undergraduate education:

Academic Support: Academic Support organizes and provides services that enable students to benefit fully from the university environment. It helps them realize their potential and develop their skills. The unit assists students in clarifying their academic goals so that they make appropriate course choices according to their career plans. It also organizes programs promoting peer support and plays a role in building a healthy academic and social campus climate. Moreover, Academic Support aims to promote student success and encourages their awareness in local and global subjects.

Disabled Student Support: Disabled students are supported regarding their mobility in the campus as well as their academic and personal well-being.

Individual Counseling: Individual counseling is provided by CIAD to assist students in their academic and personal needs. Individual Counseling assists students in clarifying concerns, examining solutions they have employed, and developing new coping strategies in order to acquire the skills needed for healthy, successful adult lives.

Writing Center: The Writing Center creates a learning environment in which students can work to attain the highest possible level of written English. The Center's goal is to provide guidance, assistance, and reinforcement to students for competence in primarily academic writing but other venues as well such as presentation skills and creative writing. The Writing Center faculty fulfils this aim by organizing a wide range of workshops and tutorials as well as individual support assisted by peer tutors.

7.4 Infrastructure and Campus Life

SU campus is located at the edge of Istanbul with state-of-the-art facilities. The campus occupies over 1.3 million square meters, with over 162,000 square meters of covered area. Classrooms of various sizes are located within three faculty buildings and School of Languages. Each faculty building also houses an auditorium with seating capacities of 170-380 persons.

7.4.1 Faculty of Management Building

FMAN building covers a total area of 12,750 square meters, with 50 faculty offices, 13 classrooms, 41 student team offices, a room of cubicles for concurrent teamwork for up to 8 teams, 2 seminar rooms, 3

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meeting rooms and an auditorium. There are 50 hotel rooms on the top floor, operated by the Executive Development Unit (EDU), which facilitates overnight stay mainly for executive education program participants as well as Executive MBA students, however rooms are available for anyone who wants to stay on campus.

All classrooms and seminar rooms at FMAN are equipped with a desktop computer, projector and screen. Three of the classrooms offer power outlets and wired connections for individual seats to facilitate laptop use with internet and intranet connection.

7.4.2 Library Services (Information Center)

We have a beautiful library, which we call the Information Center, to reflect its state of the art infrastructure which provides access to a wide range of information sources. The Information Center has a large collection of books (87,415, 30% of its periodical collection), 38,057 e-books, 31,561 (95.6% of its multimedia collection) multimedia resources, more than twenty thousand print and electronic journals (98,5% of its periodical collection), 62 online databases, 295 e-Thesis, and 1,547 e-Literature. These databases include management and business specific ones such as Ebsco-Host and ISI Emerging Markets database. In addition attention was paid to provide ample spaces for individual and group study making it a favored locale for many of our students.

7.4.3 Information Technology Infrastructure

Information technology infrastructure of SU is unmatched in Turkey. The university makes every effort to provide up-to-date equipment and software to faculty members and students. Each student is provided with a laptop when registering. This enables faculty members to efficiently use the most modern technology when teaching and ensures that students have access to a large amount of information through this infrastructure wherever they are.

7.4.4 Medical Services

The University has a Health Center providing 24 hour access and a fully equipped ambulance. Furthermore, private health insurance is provided for all students at no extra cost. SU's annually revised health services and insurance plans are fundamental elements that enable students to maintain their social lives as healthy individuals as well as succeed in their academic studies.

7.4.5 Dormitories

SU is largely a residential campus, where approximately 75% of our students and 60% of our faculty reside on campus.  All the dorms are on campus. Dorm rooms which accommodate 2 or 4 students are equipped with showers, closets, and personal telephones. All exchange students are guaranteed accommodations on campus.

7.4.5 Transportation and Other University Services

The University Center houses independently operated facilities to provide for student and faculty needs. Among these are a full bank branch, a supermarket, a bookstore, a copy center, dry cleaning and technology stores. In the dormitory area, there are several cafes and a hair dresser all of which are operated independently. University provides mail services for students.

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Another service provided by the university is transportation between campus and several city locations. There are regularly scheduled shuttles which students can use for a fee. Cost of transportation is partly subsidized by the university.

University also maintains an easily accessible help desk that aims to assist students, staff and subcontracting companies on any issue regarding campus facilities with the goal of maximizing the efficient use of the University’s resources.

7.4.6 Sports Facilities

The Sports Center contains a multi-purpose court for basketball, volleyball, and handball at a spectator capacity of 1200; 3 squash courts at international standards; 2 aerobics studios, a covered tennis court, a climbing wall, locker rooms and showers. Membership is free for all University members and any required equipment can be borrowed from the Sports Center.

7.4.7 Culture and Arts

Sakıp Sabancı Museum: The historical Mansion on the bosphorus and the new gallery Annex equipped with the latest technology are now a museum of international standards with an area of 3500 m2 appropriate for holding exhibitions of every kind. Sabancı Museum's collection of precious manuscripts and extensive collection of 19th and 20th century paintings are on permanent exhibition in the rooms of the original house and gallery Annex. The museum also hosts national and foreign exhibitions, which recently included Picasso and Dali exhibitions.

Performing Arts Centre: SU Performing Arts Center (SGM) aims to contribute to the rich cultural life of Istanbul, particularly to the city's Asian side, and provide cultural and artistic services to the University's students and staff, as well as to all art appreciators in the region. It is the largest and most well equipped performing arts center on the Asian side of the city. Every month 8-9 arts events take place at the centre where ticket prices are heavily subsidized (prices are around €4 for students and €6 for the general public). Events include concerts (classical, jazz, pop, etc), theatre shows, dance shows of professional groups. In addition, SU student clubs (choirs, theatre groups etc) also perform at the centre.

7.4.8 Student Clubs and Extracurricular Activities

SU supports student extracurricular activities that enable the enhancement of their social, cultural, artistic and individual skills. In addition, these activities aim to encourage the development and fostering of students' creativity. In line with our University's philosophy, "creating and developing together" student clubs and their activities grow and develop with the participation of the campus community. It should also be mentioned that the university recognizes outstanding achievements in extracurricular activities through its annual Extracurricular Activity Awards event.

Currently, the following student clubs are active:

Aerospace Club Folklore Club Model United Nations ClubAmateur Astronomy Society FRP Club Motor Sports ClubAtatürk Club Game Club Music ClubBridge Club Gender Club Ocean Publication ClubCeramics Club Global Interaction Club Outdoor Sports Club

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Chess Club Horseback Riding Club PiraSA Humour ClubCinema Club Ice Skating Club Photography ClubComputer Club IEEE Student Branch Politics ClubCoRe (Conflict Resolution Club) International Students Club Radio ClubCulture and Literature Club Istanbul Club Robotic ClubDance Club LeYLeK Travel Club Sailing ClubDebate Club Linux Users Group Saving the World ClubDrama Club Manufacturing System

Engineering SocietySocial Sciences Club

Economics & Management Club Mathematics Club Underwater Sports ClubEU Club MBA Club Young Entrepreneurs Club

Of particular importance is the MBA Club of the FMAN. The MBA Club is established to help students improve their managerial skills, to foster mutually beneficial relationships between the business world, academia and the students, and to help students obtain better career opportunities in the business world. The MBA Club aims to build bridges between the graduate and undergraduate students and to establish a link among the MBA Clubs of other universities, both in Turkey and in other countries.

Some activities that the MBA Club organized during the previous two years are:

An MBA forum, co-organized with Bilkent University MBA program that takes place over an extended weekend in April in a resort in Southern Turkey where executives from companies and some 200 MBA students get a chance to come together and network.

Networking events where members from organizations such as The Young Executives and Businessmen's Association (GYIAD) are invited to campus.

Civil involvement projects, such as tutoring underprivileged children or nature preservation work.

A reunion for the MBA and EMBA program graduates in Sakıp Sabancı Museum. A Tea&Talk series where MBA students get to come together and chat with an invited faculty

member over tea. Company visits to companies such as Coca&Cola and P&G. An "Executive Insights" series that the MBA club co-organizes with the Dean’s Office. A bowling tournament with participating MBAs from all other MBA programs from across

Istanbul. A four week seminar series on marketing named "Pazarlama Sohbetleri" where practitioners and

academics share current developments on a topic chosen to be the theme for the year.

7.5 Alumni organisation and networking possibilities

The University’s Alumni Office maintains and strengthens links between the University and its more than 2500 graduates. Also it is a bridge between SU and the Alumni Association. Alumni Association, SÜMED, was established in 2002. SÜMED publishes an e-newsletter, organizes mentorship activities and social events.

We have an alumni web portal, in which alumni can update their alumni profile, search for their classmates, and post/search job opportunities.

In addition to the university-wide organizations and activities, FMAN facilitates several venues where current graduate students and alumni can network and assist each others’ professional development. For instance, Executive Insights events where top managers and owners of leading companies share

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their experiences are open to all graduate students and alumni, and organized in the city close to major business centers.

Executive MBA (EMBA) program is a valuable resource for the students in all our graduate programs because this program attracts mostly middle and senior level managers (EMBA classes have an average work experience of 10 years) from leading national and multinational companies in Turkey. To facilitate networking and maintain bonds between FMAN and alumni, an annual alumni event is organized where both students and alumni of EMBA and MBA programs are invited.

Students in all our programs meet a large number of managers throughout their studies at FMAN. Especially for the students in the MBA program, this number is quite high (around 200 managers during the two-year program). MBA students are given “business cards” to help them develop contacts with those managers whom they meet on- and off-campus.

As a young school, we have had only a few small reunions. However, in June 2009, we will host the first major reunion homecoming weekend. It is going to be a special time to reconnect with old friends, learn something new, hear what is happening at SU and have some fun. We hope we will also be able to announce our CEMS membership to our alumni. They would be delighted!

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