ProfJorge Entrep - Ateneo Entrepreneurship: 2014

Monday, June 30, 2014

Critical thinking on Air Crash Investigation

Rizal Philippines | June 30 2014

I watched the Air Crash Investigation on Otter twin prop on service at Haiti minutes after take off. The KT approach still applies here.

It is a case where the critical thinking applies.

An Otter twin prop plane dived after take off. All of the 19 passengers and crew died.

They had several hypothesis as to why the plane crashed:

1. weight and balancing
2. engine failure
3. failure of flaps to retract.

After sometime they hypothesized, after seeing the plane control cables which abnormally snapped (the others snapped because of the crash) that this was due to cable failure:

Some observation:

1. The cables wore out due to frequent take off landing especially for the elevators;

2. The particular Otter plane did quite a number of take off landing;

3. This Otter used stainless cable which wore out quickly vs carbon steel cables.

4. The Otter were parked near jet planes and were exposed to jet blast because the jet barrier blast were removed. The elevators were in land position further enhancing the wear and tear of cables.

The results:

Because of this tragedy, certain safety standards were promulgated

1. Stricter standards for cable maintenance.

2. Restoration of the jet blast barrier between prop commuter planes and jet planes

Monday, June 23, 2014

Kepner Tregoe Problem Solving Technique Stil lWorks

Rizal Philippines | June 23, 2014

Yesterday, I had the opportunity to watch an air crash investigation at Nat Geo. The episode is about a Air New Zealand Airbus 320 that crashed off the coast of France, on a acceptance (test flight) for no apparent reason. Since it was on acceptance flight, it was supposed to have undergone thorough overhaul checking.

However, the investigation was able to probe/determine the cause of the crash by comparing the normal and the abnormal (what is what is not, where is where is not)

Gratitude for our blessings

Rizal Philippines | June 23 2014

The death of Fr. Thomas Steinbugler saw the outpouring of thanks and gratitude of former beneficiaries of the scholarship grants and aid that came/passed through the office of the beloved Jesuit father. We could only be grateful for the grace and the gifts that were bestowed upon us.

Our Foundation and company has given away 30 college scholarships to poor and deserving students. When my mother died, I did not see any one of them. I never received any card nor any letter from any of the students whom the Amado M. Saguinsin Memorial Foundation has helped..

It is either they have poor memories, never really were educated, or simply have culture of entitlement - ie the world our Foundation owed them a God given right to finish college.

I hope they would be successful or no longer poor (in spirit)

The teaching days are over

Rizal Philippines | June 23, 2014

Fewer postings/publications on this page.

I do not expect to post more articles here nor in the NU12 (Entrepnew) blogs/self dev/FB pages. My academic stint has ended albeit unceremoniously because of my apparent inability to comply with new policy on 7 days grade submission after end of semester. I have a day job, and so with the students. We are both working professionals. (Hence the name Professional School) I could not go on perpetual state of insubordination with the administration. The cluster chair wrote me a letter agreeing to my giving up. (interpretation as a resignation. I did not expressly say though that I am resigning)

However, I heard from the grapevine that the administration relented to a cluster request to submit grades after one month, and that the edict should be disregarded by the cluster There are many new rules according to other faculty that are not in writing. However, meeting request must be in writing. (Hard copy) Emails are not answered. (Hearsay again. I am not to be quoted)

I could not care less because I have other interest, and I have done my best while in the care of the academe.

Now it is over. All that they have to do is do nothing (not renewing my 90 days contract) However, I could not help but think aloud.

I thank the former Dean and the administration for the 13 wonderful years of teaching.

Thursday, June 12, 2014

Condolence and Prayers for the Late Fr. Thomas Steinbugler former Dean of Admission and Aid

Lux in Domino

Rizal Philippines | June 12, 2014

I recently got the word this morning that Fr. Tom Steinbugler, former Dean of Admission and Aid passed away and his body lies in state at the Ateneo Loyola Chapels He will be buried on Saturday.

We had meeting with him sometime in June, 2 years ago at the Ateneo Loyola cafeteria. Some notable beneficiaries of Fr. Tom's legacy included former Sec of Health Manuel Dayrit, Congressman Jonathan de la Cruz to name others.

He died of lingering illness and probably old age.

We owe so much to this guy. I remember when he sent me a handwritten note informing me that I got an Ateneo scholarship. I did not know much about Ateneo nor did I expect to pass the Ateneo entrance exam, after then activist Emman Lacaba encouraged us at Rizal High School to take Ateneo entrance exam. He said that Ateneo at that time was encouraging that public schools bright students/graduate should find home in Ateneo.

Fr Stein made it happen.

May he rest in peace.

Thanks Fr. Stein

Monday, June 9, 2014

Beware of this type of emails letter; trash them

Do you recognize what our friend is trying to do. If we get exposed to this, we know what the scammers are trying to do. This is a variance of an African scam beware. The pishing here is an attempt for identity theft. How ingenious!

Dear friend,
I know that this message will come to you as a surprise. I am Naeem Afrid from Burkina Faso the Accounting and Auditing Manager bank of Africa (B.O.A), Ouagadougou
I hoped that you will not expose or betray this trust and confident that I am about to repose on you for the mutual benefit of our families. I need your urgent assistance in transferring the sum of (usd$15m) million to your account within 10 to 14 banking days. This money has been dormant for years in our bank without claim. I want the bank to release the money to you as the nearest person to our deceased customer (the owner of the account) died along with his supposed next of kin in an air crash since July, 2000.
I don't want the money to go into our bank treasurer account as an abandoned fund. So this is the reason why I contacted you so that the bank can release the money to you as the next of kin to the deceased customer. Please I would like you to keep this proposal as a top secret and delete it if you are not upon receipt of your reply, I will give you full details on how the business will be executed and also note that you will have 40% of the above mentioned sum if you agree to handle this business with me? And 10% will be set aside for any expenses that warrant on the process before the fund get into your bank account such as telephone calls bills (etc).

Kindly respond in this E-mail box (naeemafridi734@yahoo.co.nz)
Finally send your photo or your international passports for more identification.

(1)Your Full Name
(2)You Age
(3) Sex
(4)You Country
(5)You Telephone Number
(6)Your Occupation

Best Regards,
Mr. Naeem Afridi
Kindly respond to me in this E-mail box (naeemafridi734@yahoo.co.nz)

Some notes on a strama defense

Rizal Philippines | June 9 2014

I witnessed a strama defense late last week on beauty industry

I saw some difficulties in the strategy paper:

1. The business in engaged in 3 sub businesses: skin, spa, beauty products. Hence there is no strategy b
because strategy means focus on an objective.

Reaction Paper for OPEMAN Forum 2014 -resending

On Tuesday, April 8, 2014 8:46 AM, Carlo Senica <carlophillip_47@yahoo.com> wrote:

The topics discussed during the forum dubbed "EmPOWERing Juan: Watts up with the Power Sector" are the following:

1.) Electric Power Industry Reform Act (Republic Act 9136)

2.) Position of the Philippines on the upcoming 2015 ASEAN Integration

3.) Supply-Demand Outlook from 2014 to 2020

Basically the three speakers talked about our country's current position with regards to power sector, the supply & demand outlook of electricity, and the governing rules & regulations which is the Republic Act 9136. These are essential topics because we (not only us students of AGSB, but all entrepreneurs/businessmen as well) must need to know where are we right now, and how can we react & plan for the future to compete with our neighboring countries especially in the upcoming 2015 ASEAN Integration. These topics are vital to Entrepreneurship; an entrepreneur needs to innovate ideas to differentiate from the existing market, and then translate their ideas into products. During production, electricity plays an important role. Thus managing and allocating well their assets (especially equipment that uses electricity including office equipment) must be consider during strategic planning of the business plan.

One of the striking parts of the forum is that, our country has the most expensive electricity price it's because our government doesn't subsidize portion of the cost or doesn't subsidize at all unlike other countries. Also there's no focused on privatization and competition 6 years ago. To address these issues, I think, government must help other power distributors so it can compete well with Meralco in terms of pricing and quality of distribution. Government must also target the source of power by revising the existing regulations for the power-generating plants so it'll not be limited and can produce more. With a well-crafted regulation for the power-generating plants, investors will be encouraged to invest then source of power will increase thus increase in competition and will result to lower electricity price in the future.

Senica, Carlo Phillip

SPENTREP - S09

6 Common Mistakes People Make When Starting a Business

Repost from Entrepreneur.com

---------- Forwarded message ----------
From: Entrepreneur.com Social Media <news@updates.entrepreneur.com>
Date: Mon, Apr 21, 2014 at 10:42 PM
Subject: 6 Common Mistakes People Make When Starting a Business

Starting a Business

Presented by

The Lord Puts You Where He Needs You

Angono, Rizal Philippines | May 30, 2014

Here I am Lord

"The Good Lord puts you where you are needed"

I heard this earlier when a newly appointed officer explained the circumstances behind his new appointment and as he welcomed his staff. The Lord puts you where you are useful, and where you can use your gifts to do good to others. Well and good.

However of late, I ran counter to the objectives of an organization and I had no choice: either comply or quit. I chose the later. Our middle managers can only say, no choice except to follow. Maybe the Good Lord has nice way of saying when its over and.it is time to quit.

The time to say goodbye to teaching entrepreneurship in a respectable institution has come to an end. No amount of passion, no amount of rich content can guarantee success.

All good things has an end. And the Lord puts you where you are needed

Saturday, May 17, 2014

Ateneo GSB should be the best alternative for studying MBA abroad

Rizal Philippines | May 17, 2014

The Central Management Cluster, headed by Prof Dr. Manny Fong met with the new Dean Rudy Ang (he does not want to be called Sir or Dean but simply Rudy) met with some of the Central Cluster Management faculty for the first time since he took over.

These are some of his wish list:

1. To make the Ateneo GSB as second best alternative for studying abroad.

This means taking in full time students and partnering with many best Jesuit Schools worldwide (Dean Ang is the president of the Association of the Jesuit Schools and this is his first year)

2. To be in markets where Ateneo GSB would make a difference rather than just making money

Areas of concern:

1. Administrative matters - quality of work, inputs of administrative staff

2. Program directors for various programs so that growth and quality of the programs are taken care of.

1. Why is MM headcount declining?

2. What is the difference between Regis and MM

3. Why is there a 4 session Regis in Cebu and Iloilo? Why are we giving GSB credits for seminar like sessions?

3. Admission

Business Plan consultation with AGSB Clark Students

Angono Rizal | Philippines | May 11, 2014

Mr. Jopet Pineda, the AGSB Clark Secretary planned a Business Plan consultation and it was held yesterday at Stackers at Annex of SM North.

However only 2 came: Bong Canlas and Dr Tuazon.

I discussed with the two the usual problems with BP of the past class:
concept, the business model, objectives, (madalas kulang) the product (complete description of benefits - how they meet the customer wants and needs, competitive analysis, the beta testing if any) , the sales estimate - you must really come out with an estimate based on macro and micro data, EDS (enteprise delivery system the whole works: inputs, throughput, outputs, matching outcome the whole works just like the PDQ). I mentioned this many times in this site.

Deadlines for business plans

AGSB Clark

Last day of class   April 4 2014

45 days after        May 19 2014

H de la Costa Spentrep

Last day of class April 7, 2014

45 days after      May 22, 2014

Please be properly guided.

You may send your bp direct to me via LBC on or before the deadline:

Jorge Saguisin
3f Fuentes Building
San Isidro, Angono Rizal 1930

or send en masse (especially from Clark to)

Faculty Lounge c/o Shine or Bigette Vinuya
2f APS building, Rockwell, Makati City

Wednesday, May 7, 2014

My latest upload at Slideshare: Entrepreneurial Management

Slideshare Presentation by ProfJorge on Entrepreneurial Management

Affordable mobile dialysis service BP by Dr. Edu

One of the #sbusinessplans that I am looking forward to see is that of Dr. Edu Tuazon (the #entrepreneur behind #Ralos #cassava cake) on #mobile and #affordable #dialysis. I hope his example can inspire change in the #mindset of health and medical practitioners. Maybe the example of #DrDavidShetty on the $10 dialysis (yes you read it right - roughly PHP500) in #Narayana hospital in India, where billions of people are poor and can hardly afford medical care inspired him to write a bp which is very much a #socialenterprise

Challenges to the Entrepreneurship Elective Course

Angesono Rizal Philippines | Black Saturday

I took the chance of grading and correcting the papers of an entrep course this office handled early December to February. There are only a few of them and I am sure the school lost on the class because their number did not reach the break even.

The class was a great class they were lively and very dynamic and mostly middle to senior execs in their organization. May be the rigors of teaching ie the assessment and grading makes the idea of teaching challenging. If we could only be like Plato or Aristotle or the Chinese master whose only test is life/or a boxing match itself.... And if only students would not be grade conscious. (It reminds me of a conversation from an MBA student I conversed in the elevator, who said she would enroll in entrep if it were an easy 4...)

The comments I earlier made on BP early on may not have reached them

Comments on earlier business plans submitted

From Smartblog - Why some BP do not succeed

Pampering the poor can make them dependent - From a social entrepreneur

Rizal Philippines April 19, 2014

Today is Black Saturday. The Lord is not with us today. Time to reflect.

Sometime early this week, Fr. Javy Alpasa spoke on TV about "pampering the poor" can make them dependent.

The social entrepreneurs from the Ashoka Foundation, advocate not only teaching those who have less in life how to fish but even going one step further: revolutionizing, innovating the fishing industry. Giving him fish, gives him only a meal. Teaching him how to fish gives him a lifetime.

Giving, pampering the poor is the way of the politicians. It strengthens the politics of patronage and feudalism where the farmers/poor depend on the landlords. Thus it is to the best interest of the landlords the powerful and rich to keep the masses poorer and ignorant.

A One-Page Business Plan in 5 Steps; start writing your vision and mission statement

Entrepreneur.com

For rapid prototyping and business acceleration, you need rapid planning. And really tycoons plan their businesses at the back of the envelope (at least the business model) Why cant you.

But you really need a full blown business plan to flesh out details (especially the marketing and the operational processes. You cant afford not to have one.

This is very similar to the advice of Brian Tracy on how to be productive: He said know your goal, write it down, write down your action plan.

This entrepreneur guide tells:

1. Start with a vision

2. Write your vision statement

Case analysis on 3 Entrep Clans of Asia by Grace Agustin MM at Spentrep class

---------- Forwarded message ----------
From: Gracey <la_mgya@yahoo.com>
Date: Tue, Apr 15, 2014 at 1:31 AM
Subject: case analysis on entrep clans, Grace Agustin
To: Jorge Saguinsin <profjorge.entrep@gmail.com>

Case Analysis On:

THREE ENTREPRENEURIAL CLANS IN ASIA

S&P

Case Facts:

Ø Started as a small ice cream parlor in Bangkok.

Ø Served a limited menu of ice cream, sandwiches and light snacks.

Ø Hired a pizza chef that later turned out to be a baker, introduced the bakery products.

Ø S&P's restaurant and bakery chain spread all over Thailand, known for its premium services, clean premises, tasteful décor and delicious food with a long offering of Thai, Japanese and Western fare.

Ø In 1996, it had 40 full service branches, 50 smaller bakery shops, 6 fine dining restaurants, and expanded in Bangkok, London, Singapore and Taiwan.

Ø S&P hired professional middle managers and developed risen-from-the-ranks and middle line managers, but top management was "all in the family".

Analysis:

The S&P owners seem to have a focused in adding business units and expanding their business coverage. Basically their line of business revolved with the restaurant and bakery. They were able to identify their primary target market which is the middle and upper middle income classes. The S&P is fully integrated, from the product lines of the restaurants, food processing, and central kitchen operations to distribution and franchising. They expand in a more concentrated manner, focusing on their core restaurant and bakery operations. Since it's concentrated and more focused, it's hard to eliminate business units. What they did was rationalized the organization to ensure effectiveness, efficiency, and economical running of the business.

One major problem that I can see is the lack of interest of at least one of the three sons in the S&P business. Each of the three sons pursue a career different or outside their parent's business. With this known fact, the founders should be eyeing, training, and molding successor/s to continue the business if the sons will not join the company later on. The Raivas (owner of the S&P) will not forever be there to manage the company, so they should be training partners and disciples (per my report on Business and the Bible) that share same vision and passion with them to takeover on the company when the time comes.

Tunku Abdullah and His Royal Brood

Case Facts:

Ø In 1963, Tunku (Prince) Abdullah established the Binaan Nasional Sdn. Bhd (BINA), one of Malaysia's leading Construction Company at that time.

Ø Set-up a company engaged in blending and bottling beverages for the lower end market.

Ø Abdullah got involved in the selling of defense equipment.

Ø In 1970, invested in the travel industry. Organized a tour and travel agency.

Ø Established the Melewar Corporation, a family holding company to unify, enhance, and strengthen the many and varied virtues of the different business groups and companies within the Melewar Corporation.

Ø Created a general trading company involved in selling of arms, computers and other products.

Ø In 1974, entered the leasing and insurance industry.

Ø In 1975, entered the transport business, the company had a fleet of trucks and low-loader equipment for oil and other general cargo.

Ø In 1976, formed a partnership to venture into the advertising, marketing, and communication business.

Ø In 1981, formed the investment holding company.

Ø In 1982, entered the computers industry, then in 1985, decided to put up its own manufacturing company of personal computers.

Ø In the 80's, ventured into Communications industry and involved in the growing and marketing of fruits and vegetables for the local market as well as for export.

Ø In 1987, established a school specializing in management education.

Ø In the same year, put up a company that manufactured and marketed wooden household wares, knock-down furniture, gifts and toys.

Ø Also in 1987, involved in the quarrying, processing and marketing of granite.

Ø In 1993, got a licensed in television broadcasting company.

Ø Tunku Abdullah dreamed of linkaging yacht clubs that would set as naval modes of a seafaring route from Indochina to Indonesia.

Analysis:

Tunku Abdullah's group of company adds businesses using a shotgun approach, whereby opportunities were seized as they came. Some started as business propositions from foreign firms, while others were home-grown ideas coming from members of the family and from their corporate executives. The Melewar entered into diversified into different industries but when the various enterprises were lumped into industry groupings under separate siblings, each of the groupings expanded their respective group through acquisitions and natural growth. Because of Abdullah's aggressiveness in entering one business to another, it resulted to some failed projects that forced in selling and closing down some of his enterprises. He succeeded in the construction and the service industries where his organizational and deal-making capabilities as a mobilizer and politician became very useful. He excelled in putting people together and motivating them to sell and supervise projects without the need for high technology.

Three Generations of Entrepreneurs: From Ibu Mutiara to her Grandchildren

Case Facts:

Ø Ibu Mutiara Djokosoetono established Blue Bird in 1972, with an initial fleet of 25 taxis. Renting out her cars in Jakarta's hotels.

Ø Blue Bird expanded its taxi operation to 4,000 units, added an executive cars and chauffeur-driven luxury sedans.

Ø Invested I Big Bird, a wide range of service buses for tour groups, office workers and prime movers.

Ø Organized a bus manufacturing company and fire truck assembly plant.

Ø Produced efficient, clean-burning CNG (natural gas fuel) to service its cars, trucks and buses.

Ø Opened a network of petroleum and CNG pumping stations.

Ø Blue Bird invested in Holiday Inn Resort Lombok, a prime tourist destination.

Ø Ventured in cargo forwarding, warehousing, container depot, repair and service center.

Ø Manufactured clutch and brake assemblies and spare parts of her transport business.

Ø Envisioned of entering the airplane/airlines industry.

Analysis:

Blue Bird claimed that its focus is on taxi business, it actually has gone into all sorts of land transport businesses ranging from taxis, buses to trucks. It has also added resorts as its passenger destinations. It also added spare parts to supply for their transport needs. Blue Bird strategy is finding the common denominator…transport and whatever gets attached to it, increasing their supply chain in the process.

CASE's TAKEAWAY

Do not venture in a business that goes beyond the competency, strength and leadership of its leaders/founders/owners. In seeking new opportunities for the business, make sure that the partners can handle it properly. Contingency plan (exit plan) is very important in putting up a business, learn when to cut losses to be able for other business units to survive and energize. Owners and founders will not be forever in the business handle and take control of; it's wise to train successors that share same vision of that of the founder. Lastly for the business to be sustainable, next-in-line generation should be well equipped in handling the business, proper education and professional independence is very important for the company to be sustainable amidst new ideas and technology of the future.

PRANAV Case Analysis

Hi Sir,

respectfully passing my PRANAV. Thank you.

Case Analysis: Pranav New York

Submitted by: Eduardo Y.Tuazon

SITUATION: Students Karlo and Mark of the Asian Institute of Management had an assignment in Development of Enterprise and their project was a male spa. The concept was introduced to Karlo by a friend who experienced several male spas in New York. They opened the shop on the third floor of the Robinsons Galleria Mall.

PROBLEM: In the few month operations of the male spa, the main problem was financial. Losses incurred amounted to P825,568.00. Analyzing the source of the problem systematically through SWOT ANALYSIS: 1. Strengths: a. the original idea of the business that is to be introduced to the Philippine market, b. the owners also had some capital to start the business and c. they also had good professors who can advise them with their project. 2. Weakness: The core competency of the owners was weak for they are not experts in their chosen business, hence this weakness translated to many wrong decisions or mistakes like the shop's location, choice of shop's layout and furniture, specifically the barber's chair that are not the standard of the industry. In addition, they probably focused on the "macho psychographic target customer idea" by employing female barbers which are not the norm for male haircut and shave services. The misalignment of this strategy translated probably to the awkwardness of services towards the customers. The location or place of the male spa was not strategic; it was located on the third floor of the mall, where foot traffic was poor with regards to their target male customers. 3. Opportunity: The new idea of a male spa was exciting and an innovative business concept and doable. The ever increasing population of males who are conscious of their grooming, the business looked attractive. 4. Threats or competitors who also offered some of their services were more strategically positioned in their chosen place of business.

ALTERNATIVES: The owners are new players in the business hence they must increase their marketing efforts to penetrate the market as their strategy.

Product/Service: The main service of the business must be improved by having experts in the field of grooming. The existing staff must be retrained, or hire more male barbers and lay-off some female barbers and possibly retrain them for the spa services. Their competitors have experts and stylist who were trained abroad, hence they were more patronized.
Price must be competitive to add more value for money. They must be aware of price- sensitive customers.
People or their employees must be in sync with the company's mission vision. The service staff must be knowledgeable of the ins and outs of their grooming business.
Place and physical evidence must be improved in terms of lay-out and the internal temperature of the spa area must be pleasant to customers who are almost naked when undergoing the therapy. The barber's chairs must be changed to the standard ones, though pricey.
Processes concerning proper use of the spa and barber's supply will decrease wastage and also incentives must be given to the staff to make them more proactive. These measures will translate to decrease in expenses and increase in revenues.
Promotion and advertising must be enhanced and with a good location, store layout and excellent services will bring in more sales.

They can also take into consideration Michael Porter's Five Generic Strategies:

TYPE 1: Low Cost Strategy. Are the owners ready to offer low cost for their main service, the haircut and shave?

TYPE 2: Best-value strategy where they must offer a wide range of services to a wide range of customers at the best price-value available on the market.

TYPE 3: Differentiation aimed at producing services considered unique industry wide and directed at consumers who are relatively price-insensitive. Special spa treatments can be offered to their high end customers.

TYPE 4: Low-cost focus strategy that offers products or services to a small range (niche group) of customers at the lowest price available on the market.

TYPE 5: Best value focus strategy (focused differentiation) that offers products or services to a small range of customers at the best price-value available on the market. For their case, these are the salaried workers ages 30's and above who are willing to avail more specialized and stylized spa treatments.

DECISION: The owners must do a strategy for their business. An application of a quantitative process like decision trees must be employed to make an intelligent solution to their problem. Some of the possibilities are:

1. Whether to transfer their business to a new location or not.

2. Whether to cater to women and children.

3. Whether to offer volume and value driven packages or services to increase sales and improve margins.

ACTION: The owners must also benchmark to improve their business but in the end the owners have two actions to contemplate; 1. To continue the business and infuse more capital into it like inviting new investors (which would be a big challenge for the owners and investors) or taking up a loan, or source out money from their "deep pockets". Should they continue, proper strategies are a must. The option to close the shop is not distant and they can simply charge it to experience and as an "expensive tuition fee in the business school of life".

CONCLUSION: A conclusion of the case reveals that from the start, the business idea was flawed because the idea and experiences of the male spa business was not from one of the owners; hence the execution of the business plan was incomparable to the New York male spa business models. The owners also did not heed their mentor's advice about the location of their business. The owner's weak core competency led to the series of unsatisfactory business operations and activities and decisions that fuelled the vicious cycle of financial loss.

Bibliography:

David, Fred. Strategic Management: CONCEPTS AND CASES 13^th Edition. Philippines, Pearson Education South Asia Pte. Ltd., 2012.

www.yomarketin.blogspot.com/2012/12/service-marketing-7ps.html. Yo Cool Marketing, December 5, 2012

Doc Edu

Special Report by Dr. Edu Tuazon AGSB Clark Entrep - Idea Spotting

Hi Sir,

Respectfully forwarding you the link from slide share my book review "Idea Spotting" by Sam Harrison.

http://www.slideshare.net/koji_tako/idea-spotting-by

Thank you.

Doc Edu

Hi Dr Edu:

This should be a guide for students who are finding difficulty in finding new ideas. For businessman, it will help them spot opportunity

Idea spotting by Sam Harrison (Book Review) from koji_tako

Can you describe Strategic Thinking in one sentence?

As an entrep student, and one who knows the strategic thinking process, can you answer this one:
Subject: Can you describe Strategic Thinking in one sentence?

It should be easy; it is choice of resources and activities (processes) to reach an objective (strategic) That is it. Nothing more nothing less

ENTREP Francis Butiong Relfection Paper "Empowering Juan"

Sir,

Resending my reaction paper for "Empowering Juan." Just in case you weren't able to open the Word file I sent earlier.

Thanks,

Francis Butiong

Francis Matt Antonio Butiong

Entrep

Prof. Jorge

Reflection Paper

The forum "Empowering Juan" was very informative and eye opening. We had great speakers that contributed to the knowledge shared during the forum. The secretary of DOE, Carlos Jericho L. Petilla, shared a lot of his knowledge. He talked about the power consumption in the Philippines. He also talked about the nuclear plant that we have in Bataan. Most of us think that if we use that power plant, we would pay less than what we pay for electricity. But he clearly discussed how money is not the issue anymore when it comes to switching to nuclear energy. He also emphasized on how the change in the bill won't be significant enough to consider switching to nuclear energy. And that ethics will play a huge part if ever. All of the speakers shared information regarding the energy sector of the Philippines. I only hope that soon, we'll find a better way of getting power and totally abandoning the fuels that are bad for the environment.

The forum was a success. They managed to get a lot of sponsors and giveaways. I like how they made the students stay by making us wait for the much anticipated final prize which was a macbook air. <Be more do more>

Case Analysis for 3 Entrep Clans by Rocky Gabatin Spentrep

Rocky Gabatin
SPENTREP – S09

Case analysis: Three Entrepreneurial Clans in Asia

THE ADDITION PROCESS

Raiva Siblings and Spouses

Adding significant complementary businesses to the core business entails maximization or monopolization of the supply chain. Using the by-product (egg yolk) of the bakery business, for example, Raiva siblings and spouses were able to come up with another product line for their business as they are able to produce Thai desserts. What seemingly is a “waste” of another business function becomes a profitable venture for the company. Furthermore, the group was also able to implement forward integration by distributing finished goods as well as raw materials to other businesses. This approach enabled the Raivas to expand and grow very rapidly because they are able to exercise more control over the supply and value chain. They have better command of the prices because the raw materials are also within their control. As a result, this allows the company to be more cost-effective by eliminating excessive markups generated by resellers or suppliers. Eliminating the “middle-man” entails huge cost savings. More importantly, the company is able to generate profits from each point in the supply chain—upstream, core business, and downstream. The Raivas, in effect, expand its core competency.

Melawar Group

Melawar Group’s strategy revolves around acquiring as many businesses as possible. It adds businesses regardless of the industry—making the group as diverse as possible. Diversity is an important component in risk management, so the more companies it acquires and the broader the range of industries, Melawar Group effectively reduces risks from unexpected events, economic downturns, and even the losses from bankruptcies. Adding different companies from different industries to the mix also allows Melawar Group to flex its muscle in terms of sheer size. Economies of scale reduces the cost of production by adopting a larger scale of production. Melawar Group now has the capability to develop the added companies in order to maximize their profitability.

Blue Bird

Blue Bird implements both the supply chain integration of the Raivas and the establishment of a business different from the core business. The Holiday Inn nicely complements the taxi business of Blue Bird because it ensures a steady stream of customers. That is, taxis can drive people to the hotel, for example, from an airport. Meanwhile, adding brake and clutch assembly manufacturing to the business allows Blue Bird to reap the benefits of cost-effectiveness because it takes care of the maintenance of the taxis.

THE MULTIPLICATION PROCESS

Raiva Siblings and Spouses

Since the Raivas were able to vertically integrate their supply chain, they have the capabilities to multiply their numbers in terms of branches and bakery shops. This entails broader geographical reach, and thus would improve overall profitability of the business by establishing its presence on a much wider scale. This multiplication process can result to penetrating new markets and even acquiring customers from competitors.

Melawar Group

Melawar Group’s multiplication process came into play when it clustered similar industries into groups. This way, each industry can grow substantially through economies of scale, but more importantly, through synergy. The businesses can enjoy natural growth by combining best practices of each “company.” It is also effective in acquiring a larger market share because the customers of the each company are consolidated under Melawar Group.

Blue Bird

There is one key element for Blue Bird in implementing the multiplication process—achieve economies of scale. Multiplying the number of taxis would ensure that the business will generate more income, and thus, allow them to purchase more vehicles. More importantly, this has a dramatic effect on the bargaining power of Blue Bird because it can negotiate for lower prices for raw materials, and this is particularly beneficial for the clutch and brake assembly line of the business: It can further reduce cost on maintenance of the vehicles and maximize both profit and market share.

THE SUBTRACTION PROCESS

Raiva Siblings and Spouses

Holding back on the idea of franchising the business maintains the quality of operations. This means that the Raivas remains in control of the entire business. Furthermore, rather than adding potential outside ownerships through public offerings, the S&P Group effectively avoids “contamination” of the business when “new blood” comes into the mix. The sheer success of its addition and multiplication strategies, there is no pressure on the business to remove anything.

Melawar Group

The aggressiveness of the Melawar Group in acquiring companies will eventually result to failed businesses. These failed projects had to be subtracted from the entire conglomerate. However, subtraction does not necessarily mean a disadvantage because selling the business can also yield profits, just as when Melawar sold the TV broadcasting company.

Blue Bird

Similar to Melawar, the subtraction process made by Blue Bird entails removing businesses that do not complement its core competency. The agribusiness venture did not last long because it does not seem to be relevant to the taxi business of the family. Divesting this venture is important in mitigating losses for the entire business before it can damage it further.

THE DIVISION PROCESS

This process is virtually the same for the three family conglomerates. The theme revolves around prevention of conflict among the family members in the future.

Raiva Siblings and Spouses

It becomes an important element in business to place executives or managers where they can exercise their core strengths or capabilities. It can be in a form of a skill, a geographical location, or even a specific product line. The Raivas implemented this very well, so there is very little room for organizational conflict among the family members—because they are where they belong.

Melawar Group

In this case, the division approach is necessary for the Melawar Group to be able to multiply. It divided the entire company into industry groupings, a move which also complements the fact that the members of the family are coming from different marriages. This division also acts as a precaution if any family dispute arise in the future: The company can be split simply among the siblings.

Blue Bird

Ibu Mutiara is working towards being able to provide her children and grandchildren with a “fair piece of the pie.” This ensures that there will be no conflict that will arise from each member of the family. 3

Pranav New York Case Analysis by: Rophele Ocampo

Prof Jorge,

Please see my assigment on the Pranav New York case analysis SPADA.

SPADA Case Analysis: Pranav New York

Situation:

Karlo Nisce and Mark Orbos, MBA students at AIM opened a first male spa business (inspired in New York) in the Philippines last quarter of 2004 at Robinsons Galleria as part of their course requirement for graduation.

Problem:

The business incurred immense losses after its 3 months of operations due to the following:

A. Wrong Location

· The spa's stall is located in the body senses section at the 3^rd floor where mostly females' market concept stores are open and is not an easy access.

· The body senses section is located at the opposite of the foot traffic.

· The mall's demographic mix is dominated by the female segment.

B. Poor Quality of Service

· Employees are all females where needs of men are not properly delivered such as shaving and strength/pressure for massage.

· Chairs used are not barber's chairs which the effect is that simultaneous service process is suffered.

· Spacing of chairs is too narrow and not conducive for working.

· Air conditioning of the spa is too cold which customers might not like the experience of shivering while having a massage.

C. Poor Marketing

· Due to net loss, marketing was taken for granted and was removed from their solutions since it they have considered it as an additional expense.

D. Business was not systematically studied

· The partners rushed in opening the business due to their considerations of rent expense, season's demand, excitement of their venture concept, and requirement for their graduation without carefully studying it.

Alternatives:

A. Close the Shop

· Since the business is not profitable and to further not incur additional losses and waste money.

B. Re-locate

· Since the location is a mistake, better find another location to which the business is more suitable. Location preferably on the Fort area or Makati CBD area since these area is also a good marketplace. Place should be of easy access preferably not a stall in the mall but in a standalone commercial establishment which is dominated by their primary target market.

C. Re-position

· Remove the spa services since this is the service that occupies a lot of space and has the lowest revenue and focus on the strength of the business which is their salon services.

D. Improve Quality of Service/Re-branding

· Undergo employees with an intensive training to produce quality service. With quality service brings word of mouth advertising which is the most powerful promotional marketing.

· Consider male crew to create additional market and address other needs of the customers which also understands the male segment needs.

· If to maintain the all female crew strategy, make sure to train and delight the service that the men segment needs.

· Chairs to be changed to the appropriate barber's chair.

· Temperature of the spa room should be suitable for massage.

· Interior of the spa and spacing should be conducive to working and favourable for their primary target market.

E. Re-positioning

· Changing the concept from an all male spa to a unisex spa to widen the market and generate more income. Revenues over anything else.

F. Marketing

· Strengthen the Marketing of the business, Pranav has remove its marketing since the business

Decision:

With the alternatives mentioned, alternative B and D will be the most recommended in my opinion. Maintaining the concept of an all male spa is a very appropriate move since this concept creates originality and uniqueness. This is actually one of the strengths of the business but the wrong location and quality of service is the reason why the outcome of revenues is not what is expected.

A good Location is a very important consideration when opening a business because it is where the need and demand is being conceptualized. Improving the quality of service on the other hand also plays an important role in generating customers, maintaining their loyalty and loyal customers to help you market new customers.

Action:

The business is really feasible. As indicated in the study and as mentioned by the professors at AIM, the concept is actually a good business venture. Applying the recommended alternative decisions with an excellent marketing strategy will help the business eradicate its losses and incur profit; the business will eventually have its place in the market. Marketing has always been an essential tool in having the business become profitable. As Marketing major, you see to it that in every business you always analyse the SWOT (Strength, Weakness, Opportunities, Threat) of the company, turn the Weakness and Threat to Strength and Opportunities.

Submitted By:

Rophele Louie C. Ocampo

AGSB – Clark Campus

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