Case Analysis - The Entrepreneurial Clans in Asia - Camille A. Dela Cruz

ENTREP S20

Mr. Jorge Saguinsin

Case Analysis – The Entrepreneurial Clans in Asia

  

Camille A. Dela Cruz

Situation Analysis (Relevant Facts)

·       The first ¾ part of the lengthy case focused on the businesses established by the three families – the Raiva siblings and spouses, Tunku Abdullah and his royal brood and Ibu Matiara and her grandchildren. I will not go in detail on all the business established by each family since not all is of relevant to the learning and objective of the case. In summary, the relevant facts to be considered are that all families grew each of their first businesses in different aspects. Some went to extend on the same concept of their first business and some totally ventured into a different business concept.

·       The last part of the case focused on the lessons on family conglomerates and how it can be good or bad for the total family business.

II.              Problem Analysis

The problem of the case is that the families were venturing into enterprises that go beyond their competency, strength and leadership style of the conglomerate and its family members. The two families who greatly reflected these were the Tunku Abdullah and his royal brood and Ibu Matiara and her grandchildren. They were venturing for the wrong reasons like seizing whatever opportunities may arrive and creating or acquiring businesses so that the whole family has a share of the pie. For the Raiva siblings and spouses, their case was much different compared to the other two because they were more focused in one business concept and they extended their business by adapting the backward and forward integration strategy.

III.            Alternatives Generation

A.     When growth is in mind, focus on a single business/product concept and establishing multiple lines on that single business/product concept.

When thinking of growing a current business, it is crucial for a person or families to focus first on the initial business concept that was first established. The reason behind it is that it is an advantage to play around on your strengths rather than entering a business venture that you are clueless of and with little or even no market research study.

B.     Be open to change and evolution, by creating new business for new markets.

It is also crucial to embrace change because it is one of the things that will never be constant in the world. There will be always new needs or wants of consumers that must be served and addressed or even new markets that will need to be delighted. However, the learning in the case is not to venture into a different business with little or no knowledge of at all. One must go through the process of market/research study to create a viable business that will have a long life.

IV.            Decision Analysis (Deciding on best alternatives)

In my opinion, the two alternatives must be adapted by the families but in a more proper way or manner. The first right thing to do is to focus on one business concept and after that business is already well established and fixed then new opportunities must be openly considered.

V.              Action Analysis

I take my learning from the case of the Raiva siblings and spouses. The family has always been disciplined into venturing into other businesses. Meaning they will not venture into a new business for the sake of venturing. As mentioned earlier, they were focused in one single business concept and adapted the forward and backward integration strategy. This led to a more business focus organization and cost efficiency.

  

Case Analysis - The Red Crab Group - Camille A. Dela Cruz

ENTREP S20

Mr. Jorge Saguinsin

Case Analysis – The Red Crab Group

Camille A. Dela Cruz

I.               Situation Analysis (Relevant Facts)

·       The first restaurant established by Raymond Magdaluyo's mother and him in Mimosa Pampanga – Red Crab Seafood and Steaks, was very successful despite of no market/ research study.

·       The family of Raymond Magdaluyo adapted the same planning and execution (no market/research study) when they took the opportunity to open a restaurant in Malate.  

·       When the sales significantly declined in the Malate restaurant, it pushed Raymond to do a market research study both in the Alabang and Tomas Morato restaurant. This is to identify who are the customers the restaurant truly caters, to identify what is the real positioning of the restaurant  and to recalibrate his menu to follow his new positioning.

·       Raymond brought his new learning when he was given the opportunity to open a restaurant in Greenbelt 3 – do a market research study before entering into a new venture.

·       The Seafood Club success story was not only because of the food but also because of the experience that comes with it. The restaurant sold its crabs with all the complete paraphernalia.

·       Raymond was again given an opportunity to open a restaurant in Rockwell Power Plant Mall, and he again did a market research study and at the same time used his learning in The Seafood Club, which is not only to sell food but also sell the whole experience. He focused on these four experiences; liberating, enchanting, fulfilling and transformative.

·       His last seafood restaurant concept – The Blackbeard's Seafood Island, focused on the target market that was identified in the market/research study Raymond did.

·       All of Raymond's successful restaurants were due to all his learning from his past experiences but also from what he learned in AIM which focusing on a single product, multi concept approach. He focused on seafood but used different restaurant concepts and formats.

·       He also used his most enlightening marketing lesson in AIM, which is the importance of creating his own segment, and to own this segment, he had to define it in finer detail the elements in that segment. He adapted this learning by making all the elements of his restaurants work around the concept/position he has placed.

·       Raymond believed that change is inevitable so he opened up a different restaurant concept which is Heaven N' Eggs.

II.              Problem Analysis

I believe that the main problem of Raymond was he ventured into the Malate business without doing what was vital and important before starting a business – do a market/research study. The lack of the study reflected on the significant decline of the Red Crab Seafood and Steaks in the month of April. When he started to plan his execution and thoroughly did a market/research study it definitely turnaround the business in Malate, Alabang and Tomas Morato and eventually led to the success stories of his other restaurants. 

III.            Alternatives Generation

Of course there were several alternatives to be done to address the problem Raymond was encountering.

A.     First alternative, he can create a market research study to identify who are the customers the restaurant truly caters, to identify what is the real positioning of the restaurant and to recalibrate his menu to follow his new positioning.

B.     Another alternative is to create a different concept restaurant other than seafood. This concept could be more adaptable to the Malate target market.

IV.            Decision Analysis (Deciding on best alternatives)

In my opinion, it is important to do a market/research study before entering a business venture. The importance of a study is to identify all elements – goal, objectives, concept, positioning, target market, location, pricing strategy, promotion and advertising strategy and staff, needed to identify to create a business that will definitely work and live for a long time. Market/research study is equal to planning and planning is vital to make an execution work perfectly. Planning gives the person a view of the new business as a whole and prepares the entrepreneur for any possible failure. This view provides the entrepreneur to address the seen potential problems and gives him/her to avoid such.

V.              Action Analysis

The decision was definitely the best decision Raymond could have done. In the case, he took time to do a market/research study before his business would fail in Malate. The market researched helped him identify what was wrong in the business. He then created strategies that will help fix and solve the problems of the business, which eventually led to the turnaround of the business. He used the learning in the Malate case and started to plan and create a market study first before venturing into the opportunity presented to him. This led to the other success stories of his businesses.