Letter of appreciation from a former entrep student

---------- Forwarded message ----------
From: J.P. Molina <josepaolomolina@yahoo.com>
Date: Mon, Jun 24, 2013 at 11:31 PM
Subject: Thank you sir

Hi sir,

I didn't want to say this before you gave us our grades because it might send wrong signals. Anyway, I really just want to say thank you for the time and effort you made in teaching us.

There were a lot of moments where I think I had a paradigm change because of our discussions in class. Among one of them is actually "dreaming big" and being "walang hiya". 

Our discussions were very lively and actually provoking. Just the first session gave me the idea that our class was different (it was the first time I had to debate). Plus, this is the only class in AGSB that has a food trip as far as I know.

Up to now, when I dine in restaurants and fast food chains, I observe the people eating, the menu, the layout, the prices, how well trained are the staff, and the general ambiance of the establishment all because of our entrep class.

I hope sir that you find time to teach again because many students will need you to touch their lives as you have done so with us. A lot of my friends whom I share stories of how great our class is got disappointed when they found out you didn't teach this sem.

Anyway sir, I just wanted you to know how much I appreciated our time together as a class. I wish you all the best both in business and your passions. 

I cannot say that our class was easy but I would've preferred our class from other easier classes.

Thank you sir,

JP 

Spentrep Red Crab Case Analysis by JP Molina

J.P. Molina
SENTREP

Red Crab Case

Relevant Facts

• ·         Red Crab started in 1998 by Raymond’s mother in Clark, Pampanga. She herself made the recipes herself and ran the restaurant.
• ·         The initial store was very simple and had no personality yet but everyone knew that the food was very good.
• ·         1 year later they seized the opportunity to open another branch in Malate, Manila. The sales was good at first but eventually declined because of emergence of different locations where the people go to.
• ·         In 2001 two more branches opened. One in Morato in March, the other in Alabang in November. When the Alabang branch opened, that’s when they started to do a little market research. They found out their market was from the 26 – 35 age group bracket.
• ·         In 2002 they were invited to open a new restaurant in Greenbelt 3, a new upscale mall. They had to change the name and the concept of their brand as per requirement of Greenbelt so they came out with seafood club.
• ·         By 2004, they already have 5 restaurants up and running and all were profitable when they opened Crustasia in Rockwell. By 2005 they had 13 restaurants including Blackbeard’s Seafood Island.
• ·         It seemed to the owners that the formula is to find a spot with a big market and then tailor-fit the restaurant for the market in that spot.

Problem

                The restaurants that Red Crab group made were all large successes. Each though was not planned in a clear cut set of standards. It even seems that they just got lucky.

                The problem for me is that 13 restaurants doesn’t prove market dominance. The market is big and people have to eat every day. No one eats in the same restaurant all the time. The problem for me is how to create more restaurants and differentiate it from the existing ones. To be the best

Objective

                Therefore the objective is to create more brand names and give alternatives for people to eat in.

Analysis

                Red Crap Goup is primarily a seafood group. They have found a niche and they are very successful. But as a businessman, one must never be satisfied with current earnings even if they’re good. As our leaders in our company have said in the wake of our current success in the market, “one must not get drunk with success”.

                At Red Crab, if I were in charge, this is what I would also tell myself. As an entrepreneur, I can see that the opportunities for more growth is close to endless. Now they have the capital backed up by great food researchers and cutting edge workforce, I believe the Red Crab group has the potential to be a big force in the restaurant industry and perhaps the food industry as a whole.

Possible Alternatives

1.       Expand more in NCR and eventually to the provinces using the Red Crab/Seafood Island/Crustacia brand names which already have goodwill.

2.       Create another brand name and move into the Quick Service Industry.

3.       Diversify further and create other themes other than seafood.

Decision

I

                Number one alternative is a good direction for the company. 13 restaurants I believe is not enough to saturate the Restaurant Industry. But as you add more restaurant, I believe laws in economics can catch up with the Red Crab Group.

                The law of diminishing marginal returns states that for every input of resources, the income generated from the additional input will be smaller than the previous inputs’ contribution to income.

                People from the different target expansion areas might already be going a lot to the current red crab restaurants and when you put up one that is near to this people, they will just switch restaurants that is why profit from one restaurant will just move to another restaurant.

II

                The number 2 alternative seems logical, related and doable but not feasible at the moment. For one, the Group’s strength lies in the Restaurant business. They do not have the expertise in running a quick service food chain thus it would be inefficient and they might not be able to compete with the big market players like Mc Donalds, Jollibee, KFC etc.

                The market is already saturated with the big companies, that is why many good business die in the first place. Take the place of Texas Chicken which used to be a great up and coming QSR in the early 20’s. The chickens they serve were big and tasty and it seemed that they had great value for money. Eventually however they were not really able to compete with the big market players like Mc Donalds, Jollibee, and KFC.

III

                I believe the third alternative to be the most logical because offering a new choice to customers would not necessarily eat up the market of the other restaurants.  One may argue that if they put up additional restaurants, they may shoot themselves in the foot and current customers will just transfer to the new restaurant.

                But I believe this is not always true in the case of Phohoa and Jack’s loft in Eastwood city which shares the same venue, same kitchen, but customers of Phohoa do not necessarily go to jacks loft. This is because the theme for the two restaurants are not the same.

                People also cannot eat in the same restaurant every day. I for one eat only twice a month at my favorite restaurant in Eastwood because I do not want to eat the same kind of food everyday.

                Making a new restaurant with a different theme like a steakhouse will deliver the same kind of experience that his previous restaurants would offer, same excellent quality of food, but a different theme for a change.

Starting Early - JP Molina as guest speaker for MBAH 10 Mentrep on FS spread sheet.

APS, Rockwell Center Makati City PHL| March 16, 2013

Thanks again JP Molina!

                                 JP making his presentation before MBAH 10B students

Employers look for leadership in their employees thus leadership is one of the more important graduation skills to be developed among students.

The Financial Spreadsheet may not be well understood by some of the students thus I requested JP Molina, an accounting manager of a wine company to help me present the spreadsheet to to the Sentrep and Mentrep classes.  (Rose said, employ subject experts, and JP is an expert ) I profusely thank him for acceding to this request.

Thus, despite delays and waiting and being put from the first part of the class agenda to the class, he cheerfully went on with the requested task.  Thank you JP and please fulfill your promise that you can be contacted for further consultation.  The spreadsheet would be an important tool for:  BP, strama and managing your own hospitals.   As you can see, a single entry can produce changes in cash flow and balance sheet and ratios.  Please save that file.

                                    ProfJorge thanks JP as Dra Dimaano, Class Pres looks on

Dr. Afable must be given a chance on how he prepared his BP for his hospital.

Three Great Guests at MBAH 10B Entrep Class Today

Room 210, APS Building, Rockwell Center, Makati City PHL   | March 16, 2013.

 Prof Jorge  and class in group picture with Mr. Joven Reyes, Dr. Eric Schulze, Rose Montenegro and Dr. Elsie Dimaano, Class President.

Three great guests came to the MBAH 10B entrepreneurship class today:   Ms. Rose Montenegro, CEO of Makati Medical Center,  Dr. Eric Schulze an expert in Teleradiology,  and Mr. Jose Paolo Molina Accounting Manager of Emperador Brandy.

Ms. Rose was most passionate and amazing in her presentation of the turn around of Makati Medical Center (when she is supposed to be retired). This she accomplished, despite being a non doctor, proving that your expertise can be applied in other field.  Rose came with her husband, Joven, the class valedictorian, summa cum laude of Ateneo College Class l972 (a classmate) a Harvard Graduate, and now COO CFO of SBMA.  (He is turning around SBMA)

Rose was most entrepreneurial in applying innovation to Makati Medical center - to processes, and simple things like lighting, furniture, mural on top of a roof, waiting area  -  things that count most to customers (having come from consumer goods and financial services companies.  She was responsible for phone banking at Citibank, which was a novelty for banking at that time it was launched)

Just by working on infrastructure and and processes she was able to ramp up revenues of  MMC;  the second phase of the restructuring, the soft issues is now underway.

 Rose and Prof Jorge Dra Elsie,  Dra Judz, Dra Thea, Dra Hope and Dra Miranda present token flowers, and certificate to the MMC CEO.

Dr. Eric Schulze of Telerad.Asia being presented Certificate of Appreciation and tokens by the sponsoring group:   Danae, Dr. Janice, Deo, and Roslyn

JP Molina, an Accounting Manager for Emperador Brandy was given a certificate of appreciation by the Class for explaining very slowly and clearly how to use the financial spreadsheet for FS projections for business plan and strama.

FoodTrip Report by JP Molina - Sentrep

JP Molina                                                                                                                                 Prof. Jorge Saguinsin
SPENTREP

Food Trip

My mom thought me that I should always finish my food because they are blessings from God. Last March 5,2013, I almost didn't follow my mom because of the many dishes that I had to try on our "Food Trip".

Our Entrep class went to A.venue Mall in Makati to try 3 different themes and 3 different restaurants to experience entrepreneurship at its purest form.

Parking Lot

Our first stop was street food at a converted parking lot beside A.venue Mall. We had a taste of middle eastern food plus a mix of Filipino delicacies like empanada and isaw.

The parking lot had a relaxing ambiance. It wasn't too crowded (probably because it was still early), there were unique lights which were dimmed and monoblock tables and chairs covered by big tents.

I believe the key here is the number of stalls that people can choose from. Variety gives the customers more options on what he wants to eat. Plus the place was a bit dark which studies show, helps in the tasting of food. When your eyesight is diminished, your other senses take over. In this case, your sense of smell and taste is heightened.

I also noticed a stage where bands could perform and this got me thinking what the place could look like when there is a good band, more people, plus great food at a simple dining venue. This is really a place where you can relax.

During busy days, the seating capacity might be a bit short so I noticed that there were stalls that were selling garments. I think if we were going for a dining experience the garment stalls are not related that's why I think this could be converted to more seats if the need arises. However as a businessman, the seats could be based on the normal number of people who come to the place and thus the excess space could've been creatively rented out to others to make more money.

The food itself wasn't all that good in my opinion. The pig isaw didn't taste good because we felt that it wasn't washed properly. The chicken isaw and bell pepper were good though and the empanada was just average.

The price was affordable but it wasn't cheap at all. I said affordable because you could easily pay for it but it wasn't cheap because the quality of the food available was better than average. All in all, I'd say you get what you pay for.

The overall consideration for going to this place is the ambiance of a laid back place where you and your barkada can go to before or after parties. Have snacks, a few drinks, and chill.

Korean

Next stop is this Korean restaurant "Donna Donna" which serves Korean BBQ. It was located walking distance from the parking lot and from outside you could tell that it was a cozy establishment. I've always liked restaurants with glass walls because it gives me that inviting feeling that says "come in". Donna Donna is exactly like that

There was parking space which hints that its target are the people from B and C who also have cars. Inside you see different Korean ornaments that give the store that Korean feel. Also a Korean flag and Philippine Flag is painted side by side on a wall.

The food was served by the staff raw because they will grill the meat in front of you. There were free side dishes (I think it was called Banchan) which I feel are customary for Korean restaurants these days.

The owner "Donna" was kind enough to serve us and cook the food in front of us. I guess she noticed who the alpha male was so she went to the side of our professor. She engaged us in casual conversation and from there we found out that the restaurant had been running for 5 years already and she started it the year she came to the Philippines (talk about entrepreneurial mindset).

She was very warm and hospitable which was surprising a bit because Koreans are not known for their hospitality. This reminds me of a case study I've read about the Red Crab Group.

The owner of the Red Crab Group tells that their first restaurant was in Clark, Pampanga and the ambiance reflected the personality of the owner which at that time was here mother.

In the restaurant, the same situation is apparent. Donna Donna is really Donna!

For the price however, I think the food was expensive. When you go there you have to be prepared to spend about 300-500 pesos per head depending on the number of guests.

The taste was so-so compared with other Korean restaurants I go to. The Kimchi wasn't all that good but what I like about it was you know that the BBQ was fresh as it was cooked in front of you.

The Ssambbap (BBQ which was wrapped in veggies) was tasty though I think it should've contained rice.

Overall the place was average meaning I won't go to Makati just to eat there because there are a lot more places who offer better value but if I happen to be in the neighborhood, I won't think twice if someone invites me for lunch there.

"Dessert"

Our next destination is dessert back at A.Venue Mall. We decided to have coffee and pastries at Goldilocks.

This particular branch of Goldilocks wasn't made for dine-in customers. They served coffee in disposable cups and they had no utensils for pastries. But the most glaring is that they do not have tables and chairs which meant if you buy, get out.

Good thing is that Domino's Pizza is a sister company of Goldilocks and they were kind enough to let us use their space outside. Goldilocks for their part provided us with forks so that can eat their cake.

It was like a boodle fight (eating tradition in the army) because there were no plates whatsoever and we were left to get our food from the cake itself straight to our mouths.

The ambiance was almost the same as the parking lot because we were eating outside and we were just relaxing from a night full of light bonding moments.

The cake was okay, around 7 out of 10 while the coffee was nothing to cheer about because it was instant. But the people that were there with me was the nicest part of the store (my classmates).

The price was affordable but what I could point out is the inconvenience because as I've said, it wasn't made for sitting customers.

Reflection

Things I learned from this trip was the venues  made their establishments attractive to their target market. In all 3 venues that we went to, they were all different but what I could notice is that they appeal to certain classes of people.

For the Parking lot, it was for yuppies who are from work who probably wants to get some no frill snacks, or probably hang out with friends. For the Donna Donna, it was for the B and C class in Makati who wants a different theme for food while goldilocks was really for take-out customers who want to bring home pasalubong to their loved ones.

The most important and personal thing I've learned though is that people enjoy any venue as long as they are with people they enjoy to be with.

I wouldn't dream of going to some of the places that I eat at but if by chance I go there with people I enjoy, then that would mean the difference.

As a future entrepreneur who wants to put up his own food business, this is important for me. I must make my venue as inviting as possible to groups of people who want to have a good time. Dining out is not just about making your stomach full but it should be an experience for you and the people close to you.

Schedule for next Saturday, March 16, 2013

Angono, Rizal   PHL   |  March 9, 2013

                               JP Molina at my back, future Finacc Professor at AGSB?

What significant event took place on March 16 400+ years ago?

This Saturday, I understand we hold the usual PM class and our schedule shall be:  2 entrep guests, some more discussions on bp and other left subject matters. And financial.  I have invited a Sentrep student, JP Molina a CPA, and an accounting manager for a wine company, to help the class navigate the accounting spreadsheet, and review the finance and accounting lessons/principles.

Dra. Gina promised to invite Rose Montenegro of Makati Med to be the Entrep Guest on the last Day to talk on how she turned around MMC despite being a non Medic. She is a Six Sigma black belter though.   I look forward to that. She is married to an AdeMU schoolmate way back -  our class Valedictorian

                                 Is Rose going to be our guest on the last day?

Kevin and JP did well as Victoria Court Gurus

 Entrep Class, AGSB, H de la Costa Campus | February 19, 2012

Kevin and JP were assigned as as the panelists to lead the class in Victoria Case Analysis.  They seemed to have prepared well for this as they touched on the key relevant points of the case.  I always noticed that the class were more open to discussion if classmates were the case facilitator.

The key points mentioned were:  rebranding, repositioning, brand equity, feasibility of other alternatives, PTM.

Joseph noted that the change would have been complete if there were total overhaul of the structures.  Evan noted that a brand equity can not be abandoned because there was money and value in it.

It was a very satisfactory and very much improved case analysis.

I told the panelists earlier in the class that they must train to be future  GSB professors to which I think they positively responded.  (JP even wore an expensive suit)