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Spentrep and Mentrep Guest Entrepreneurs

Monday, February 12, 2018

Who are your best customers? Friends and relatives or strangers?

Every generation needs a revolution - an entrepreneurial revolution

According to Jack Ma founder and chair of Alibaba, the best customers are strangers.

He explains how and why:

Image result for jack ma

Image result for strangers

Rizal Philippines
February 12, 2018

This is what Jack Ma, the CEO of Alibaba has to say when we treat customers.  Who has priority: friends, relatives or Strangers.  Who are your best customers?

Why strangers:   Jack Ma explains:

Jack Ma once said, 'When Selling to close friends and family, no matter how much you're selling to them, they will always feel you're earning their money, no matter how cheap you sell to them, they still wouldn't appreciate it.'
There will always be people who do not care about your Costs, Time, Effort, they rather let other people cheat them, allowing others to earn, then supporting someone they know. Cause in their heart, they will always be thinking, 'How much did he earn from me?' instead of "How much did he SAVE/MAKE for me?"
This is a classic example of a poor person's mentality!
How did the rich people become rich? One of the main reason is because they are willing to SUPPORT their associates business, taking care of one another's interests thus naturally they get back more.
Your Friends will in turn support you, thus the circle of wealth continues to grow and grow!
Simple Logic, you will start to get rich once you understand it.
Jack Ma on Sales: 'When doing Sales, the first people who will trust you will be Strangers, Friends will be shielding against you, fair-weather friends will distance from you. Family will look down upon you.'
The day you finally succeed, paying the bill for every get-together dinner, entertainment, you will realize.  Everyone else is present except the Strangers.
Do you get the meaning of this?
We need to treat our dear Strangers better! And even more so to Friends who know what you are doing and yet still SUPPORT you!
Let us treat STRANGERS who buys from us better from today. They are your BEST customers!

Friday, January 12, 2018

Unity of direction strong leadership is essential for business success

Every generation needs a revolution - an entrepreneurial revolution

Rizal Philippines
January 18, 2018

Image result for unity of command principle of management

Image result for unity of command principle of management

Henry Fayol said in his one of  his principles of management "Unity of Direction  ie that the organization must take command from a center from a leader. It means that there should be only one conductor in an orchestra, one chef running the kitchen.Too many cooks spoil the broth.

I learned this lesson the hard way.  Being a good brother I followed to the letter the instruction of our parents to divide the estate equally among the 5 children. Which I did.  Not knowing that they will take control and kick me out of the board in accordance with Sec. 28 of corporation code (the  majority (2/3) of the board can kick you out without any reason whatsover

To wit:

Sec. 28. Removal of directors or trustees. - Any director or trustee of a corporation may be removed from office by a vote of the stockholders holding or representing at least two-thirds (2/3) of the outstanding capital stock, or if the corporation be a non-stock corporation, by a vote of at least two-thirds (2/3) of the members entitled to vote: Provided, That such removal shall take place either at a regular meeting of the corporation or at a special meeting called for the purpose, and in either case, after previous notice to stockholders or members of the corporation of the intention to propose such removal at the meeting. A special meeting of the stockholders or members of a corporation for the purpose of removal of directors or trustees, or any of them, must be called by the secretary on order of the president or on the written demand of the stockholders representing or holding at least a majority of the outstanding capital stock, or, if it be a non-stock corporation, on the written demand of a majority of the members entitled to vote. Should the secretary fail or refuse to call the special meeting upon such demand or fail or refuse to give the notice, or if there is no secretary, the call for the meeting may be addressed directly to the stockholders or members by any stockholder or member of the corporation signing the demand. Notice of the time and place of such meeting, as well as of the intention to propose such removal, must be given by publication or by written notice prescribed in this Code. Removal may be with or without cause: Provided, That removal without cause may not be used to deprive minority stockholders or members of the right of representation to which they may be entitled under Section 24 of this Code.

Having learned the lesson the hard way (I do not get my dividends, I cant get back my investment for some of the projects, the business is going haywire -  lose of direction, lose of focus, mistakes in decision making. Well the siblings left are old and mature enough to know what they are doing but to what extent?) I should have done the following:

     1. Should have a holding company (which I had  majority control of ) to hold stocks of subsidiary companies;    and strong corporate staff to oversee all the business. Initially we had that
    2. Always be the majority - 50% + 1, or have proxy votes signed from among others or voting trust agreement.

Democracy has no place in corporate governance.  The very term itself defines how to run a business group - to govern. Short of being a monarch or dictator.

That is the only way.   When the organization is in disarray, the end is in sight.

I know of one group - of professionals who had equal voting rights. and their only key resource is a huge  loan from a govt bank  However their weakness now is:

     1   Giving management responsibility to each stockholder, even if he/she is not lacks management
          expertise in that area;

    2.  Having job rotation in top exec position

    3.  No central control or supervisory board to supervise how other boards are doing

    Since they are equals, no one can mind and change errors of colleagues And when the mistakes pile up...

Even if there are subsidiaries, there should be strong central management, as we have one President who should be respected and followed

A little learning is a dangerous thing

Every generation needs a revolution - an entrepreneurial revolution

Rizal Philippines
January 13, 2018

Image result for makati medical center

The growth area in the economy is health care. The external environment, the PESTEL has favored that:

         1. Growing population;
         2.  More lifestyle diseases because of pollution and modernization
         3.  Philhealth and govt supoort for universal health care
         4.  Open loan windows from govt banks to groups wanting to put up hospital. Thus a group of 30 to 50  doctors can put up a hospital of 100 beds or more to the tune of  P300 to P500 million.

Land Bank finance ACE hospital project in Ilollo

       But this post sees problems dark clouds ahead.  While there are many successful hospital ventures the stories I have been hearing do not forebode well  for the future of many MD hospitals  Even while teaching at MBAH I have heard horror stories about the faults in hospital management by the professionals.

    Such was encountered by Ms. Rose Montenegro - Reyes in turning around  Makati Med. The MDs should be allowed to practice what they know best -  patient care and curing illnesses. About managing.... leave it the professional  managers and other technicians    The MDs as in their case  were responsible for bringing the hospital to the brink.

How Rose turned around Makati Med

    One of her solutions was to divide the management of the hospital between  that  of running the curing side, and administrative side..... MDs cure, managers manage  And thus she  was able to turn around Makati Med.

   Some MDs management run hospital on basis of democracy ie giving management responsibility to those whose expertise are  more or less in the MD side. and infighting or mismanagement allowing to prospper

  Some take up MBAH or even had MBA MD degree.  Let us just see what is going to happen in the long term.