University of Iloilo, February 1, 2014
AM Actitivies:
I just learned early this morning for the the Chinese New Year, City Kim Chu was the guest for for the parade and program. I learned too that the team of Chevrolet Execs who were in town to inaugurate the new Iloilo showroom in Jaro Iloilo were in the place of cousin of Terence, and the lady whom I engaged in a conversation about the 4x4 was an Executive Director of Chevrolet Philippines, Ms. Seline Yu.
Our AM activities consisted of only 2 activities: SR by Christian on Sun Tzu. and SR by Terence on Purple Cow by Seith Godin. Since there was a lot of things to be emphasized on this subject, I had to make a lot of comments and annotation on the report. Seith Godin supports the idea that the business concept has to be unique, differentiated, enchanting. Sun Tzu which is and was a required reading before in MBA at AGSB, needed a lot of explaining in view of generic strategies being taught in Strama. Sun Tzu treastise would be more comprehensive.
Business Plan
Then I lectured on Business Plan preparation which is 25% of the total semestral grade. I went through the powerpoint on Slideshare, and went through each of the element one by one. I related this to the Spentrep grades I gave last semester, and what they missed, their weaknesses, and why they got low grades.
Entrep Guest: Felix Tiu
Felix Tiu of Eon at Philstar
The main part of this day was the Entrep Talk by Felix Tiu, the adviser to the Mayor of Iloilo City on Trade and Investment. He is the CEO of the EON group, a manufacturer of Kiss lollipop candies, the Fiesta brand of Bijon, the Eon realty, Lending, the Centennial Hotel, the Guimaras Memorial Gardens. He is a true serial entrepreneur, a compleat entrepreneur, and his life is very interesting.
He claims he never finished formal schooling, that is why he does not subscribe to the graduate school. He is a relative Alex come lately because he started in l986 as a trader of goods in the market, and his employee was his wife, who recorded the sale, and a helper.
He eventually went into resuming the candy (lollipop business of his parents which failed) He peddled from town to town in Iloilo, Panay island, and eventually in Mindanao He had interesting story about a storeowner in (Agreda) Marbel, who turned out to be an Ilongo, and a relative of his wife. The storeowner even doubled the sales for him and let him stay in his house overnight. He also had story about a big retail storeowner in Gen San who was suplado in the beginning (Boy Valencia), who was shooting enthusiast. He eventually got him with a video on shootfest (Alex also is a shooter)
I can relate to Felx story because I drove a vehicle before and went to doctors and drugstores peddling drugs for Unilab. I am familiar with Marbel and Gen San went I oversaw the construction of Holy Gardens Polomolok, some l5 km from Gen San and 10 km from Marbel.
Scaling up:
He mechanized his candy making, spending on machine bought from Korea,for P8 million, which later, he found out, cost only P1 million in China. The mechanization increased his lollipop candy business output to 900 pcs per hour. There are now only 3 lollipop manufacturers (from 8) his : Lips Swiss, Jack and Jill. Why? Because the margins are low, and it is still sold at P1 a piece. Why did he choose lollipop - because it is a generic business, and not many competitors.
He also went into Bijon manufacturing, made from rice starch, under the fiesta brand. Why did he choose bijon. Since it it is bulky, even if China would sell this to the PHIL when the WTO kicks in China would not be able to match his price (a smart External Analysis for a man who claims he did not finish school) His plant only makes 10 tons a day, but the entire daily demand is 1,000 tons daily
He moved into lending, and foreclosed properties which nobody bought. He eventually partnered with a developer, and now they have big projects which run into billions. He also had a memorial park in Guimaras, which he bought for P2.50 million, developed for 10 million and recovered his investment in 3 months because they were able to sell l,000 plots on the opening day because they sold dirt cheap (P15 t). His regrets is that two of his children are abroad did not join him in the family business.
His real estate development company, Eon Realty has built a thousand homes since 2005 which makes him one of the top developers in Iloilo. They have 5 projects: Centennial Villas, Centennial Homes, Ciudad de Iloilo, Gold Land Village, and Centennial Town Homes. Centennial Homes is the first town homes project in Iloilo and was received well by the community.
Centennial Homes
His belief: positive: God, guts, genius. The negative: greedy, glut, grudges. He believe that an entrepreneur must have integrity in case he borrows or go into IPO.
Other advice: "Dream big" It is cheap
Opportunity: Business is about making money and opportunity. Opportunity is may be just beside you in an airplane seat or anywhere. Be aware of that. Your plane seatmate may give you a multi million/billion project. Talk to your plane seatmate
Felix Tiu at Iloilo City Trade and Investment Board
We had lunch at a Vietnamese restaurant Cilantro
PM Activities:
1. Micromarket analysis presentations: Chowking and Gloria Maris, Starbucks vs other coffee shops in Iloilo
2. PDQ: balut and banana Q
3. Lectures; Opportunity Seeking and BP writing from Prof Jorge lectures at Slideshare.
4. Case analyses: MC2 and Jose Lontoc. It is surprising that the Case book, which is followed up l5 days ago just arrived now.....!!!! I had to do most of the analyses. More practice needed by the class.. in this area of critical thinking.
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