Days of conglomerates are over; only focus works?

Every generation needs a revolution - an entrepreneurial revolution

In the 70s and 80s, conglomerates were the in thing.    Harold Geneen and Jack Welch excelled in this by the sheer power of their intellect energy and passion.  The thing is when they were gone, the conglomerates fells by the wayside and collapsed.

These though still followed Welch to be number 1 or No 2 in their market.  Niching was very important.

ITT spun off? What ever remained of it?   How about GE of Welch

The winners are Apple Microsoft, JP Morgan

Only focused business grew and even then it was not enough.  Some are still collapsing as in food business. 

San Miguel would still be a big conglomerate:    food, beverage, alcohol,  infrastructure. energy

Summit:  publication, real estate, airlines, food production, petrochem, power gen

LT - airlines, real estate, tobacco, liquor

Ayala - banking real estate, water (divested) electronics and telecon

Lopez -  broadcasting, energy (divested from DUI)

MVP -  only in telecoms and infrastructure

Conglomerates can only succeed if they have excellent CEO

Berkshire (W. Buffet) succeeded because he focused on stock picking and studying companies.  He did not run companies.  He let their managers do their thing

Toyota focusses on ICE cars.  and quality.  No 1 in car manufacturing for several years.  

MVP, business icon, master strategist and compleat business executive

Every generation needs a revolution - an entrepreneurial revolution

Manny Pangilinan, heads of mega businesses which include hospitals, water company, sugar mills, telco, expressway now 76, holds the distinction of having businesses that encompass all the persons daily needs in cash.  (While we are both senior and both graduated  at same university, the same can not be said of accomplishments)

    1. Health care -  via hospitals

    2  Communications via PLDT

    3   Entertainment -  TV5

    4.  Food - Sugar

    5.  Transportation  via expressway

    6   Water company 

While it was reported he does not make money with  TV 5, most of his businesses are enviable.  He left the BGC project to focus on Telco.    Went for a while in investment in Meralco

Lately he has made investments in Agriculture.

His advice: to graduates:

 “Success springs from old-fashioned values — values as fundamental as being honest and truthful — with yourself and with others. And so is being diligent, hard-working and disciplined. But most of all, success is about passion— passion to succeed, passion for excellence, passion to compete.”

To his company:

“We confidently face the future – resolute to do our duty well, resolute to uphold our values by deed and by word, resolute to attain our highest goals, in keeping families connected, entertained, and educated; enabling businesses to operate at home or in the office – and simply being a source of strength amidst extraordinary adversity and affliction, and above all, resolute in preserving the ground we have retaken; never again shall we yield.

More power Mr MVP.  

Health care will continue to be a driver of entrepreneurship, business, and Philippine economy

Every generation needs a revolution - an entrepreneurial revolution

Metro Pacific Hospitals - target 40 hospitals

A famous surgeon in working with a billionaire businessman owning strings of hospital across the country,  mentioned while doing a surgery on my elbow that a hospital where he has invested in now valued at P60m  That was the bid of the billionaire.   And that was from an investment of only P1 million 4 years ago.  Tnat is a lot  of ROI

I mentioned that health care will continue to be source of growth in the economy  Everybody gets sick (and for the memorial park, everybody dies;  it cant be avoided)   Health care will continue to flourish despite all negative predictions about global economy

The good surgeon was former student at GSB, and he must have learned a couple of great things about business while under my tutelage  This post was also engaged to conduct an organizational and strategic planning for the said hospital during the formative stage

Creating opportunities and wealth from what one has

Every generation needs a revolution - an entrepreneurial revolution

Rizal Philippines
August 16, 2016

Today I brainstormed with a lady Chairman of a group of companies and former CEO of a huge financing company, chemical company that supplied all the chemical needs of the detergent FMCG in the country. She is 55, he is 73 but still very creative and innovative.

He invited me to be executive director of the group who will form a holding company:

The holding company will gather capital and invest 50%-50% in the following ventures:

            1. Bank (the rural bank which we are working on now)

            2,  Real Estate (horizontal and vertical)

            3. Schools

            4. Health Care (nursing and hospitals

            5. Energy (solar)

            6  Telecom  (e Pole)   from Enersphere  designed to solve telecom congestion, dropped calls and slow internet speed

The various groups will have their own CEO and be profit center, and funds will be raised through ordinary subscriptions and even IPO.  This calls for a hard driving CEO who will kick ass. The elderly CEO thinks I am talented enough to run this complexity and kick ass (or more mildly nudge

This will be a conglomerate approach just like MVP group (energy, telecom/utilities), Aboitiz (power and banking or San Miguel (food energy, and construction) or Phinma which is into schools, real estate and energy (divested from  cement and construction/technology

How will I be compensated, do I have time for this.?  Initially once a week and as a consultant. Or be fee based on projects.  He likes my approach as an academician businessman which is methodical, organized and scientific

 The businesses we talk about amount to:

1.  School   -   100,000,000 million

2.  Solar manufacturing -   100,000,000 million

3.  Bank                         -   100,000,000 million

4.  Real estate               -    400,000,000 million raw land value

We now have a asset for stock swap capitalization for the holding company:  200,000,000 million (conservative appraisal) consisting of 24 hectares of prime land (along the highway) near the Philippine Sports Arena.    Earlier, raising capital for holding company was problem, today, we have a solution

Wow.  Just brainstorming and manipulating the assets and applying innovation can create more wealth and opportunities for many people

Product concept must be enchanting, magic, amazing, seductive, irrestible

Rizal, Philippines  |January 7, 2014

 




From Lean Start up


Everything starts from the mind.  It starts from your mind and your creativity.

The new methodology is come up with an MVP (Minimum Viable Product, from Lean Start up

However, for that idea to capture many buyers, followers and disciples, that concept (and the 3 word tag:  Coke is it, Damit lilinis, bagong inimproved tide, hayop sa kaputian, etc. absolutely no sugar, clean and cool, gamot laging bago.  Many fail in this 3 word standard) must be

MAGIC
AMAZING
MESMERIZING
IRRESISTIBLE
CAPTIVATING
UNIQUE 
SEDUCTIVE
ENCHANTING

 

FOOD TRIP: NOV 09 @ MERCATO, BGC by Gio Mendoza

SPENTREP 2013 Food Trip: Mercato BGC, 09^th November

By: Gio Mendoza

FOOD STALL #1: GFL

Business Concept:

¡  Promote organic farming and produce, such as Milk/dairy, fruits and fish and also sell popular street snack food & fresh coconut juice to take advantage of the foot traffic in their stall.

¡  Started business offering Goat's Milk & Goat Cheeze, their goats are imported from US, Switzerland and Australia. Organic, owner are experts in proper care of their goats and keeping their product organic

¡  Other offerings, non-core products are: fresh young coconut drink/meat, Japanese Sweet Corn, Milk with Jelly, Rambutan, Durian, Tilapia, Salted Eggs & Balut

¡  They also offer a farm tour at their place in Pila, Laguna. This will be a combination of seeing their livestocks, how they make organic produce, experience life in the farm and also get a load of organic products served as meals during the course of the tour.

Main Value Proposition:

Organic, Healthy & Nutritious Food and Beverage

FOOD STALL #2: EDGY'S FOODTRIP BOTTLED BEVERAGES

Business Concept:

¡  Focused only to sell bottled beverages made from fresh tropical fruits in the Philippines. Intended for the sporty crowd around their stall, a good complement to stalls that offer only light snacks and food.

¡  They have partially-frozen or icy beverages made with natural fruit like Dalandan, Watermelon, Buko Pandan, Melon.

Main Value Proposition:

All-natural summer thirst-quenchers and coolers

FOOD STALL #3: BREADED FRIED SEAFOOD VARIETY

Business Concept:

¡  Sell breaded seafood variety such as squid, prawn, crablets, tawilis & quail egg as snacks. A special vinegar goes as a dip. They sell to those who are not that hungry, loves seafood and love 'em crispy and freshly cooked.

Main Value Proposition:

¡  Tasty crispy seafood, crunchy and right-sized for easy munching. The special breading ensures that the intended flavor/spices in each of the food will be savoured in every bite.

Food Trip Activity by Eliza Guades, an exercise in business concept, MVP writing

Food Trip Activity @ Mezza Norte – Mindanao Parking, Trinoma

By Eliza T. Guades

1.      Giga Bite

Ø  Business concept - famous street food like grilled isaw, tenga, barbeque, chicken inasal etc.

Ø  Main value proposition - attracts customer because of it big serving at an affordable price of only Php 20.00 per stick. Served together with sweet sauce or vinegar that adds to its flavor.

2.      Little Donkey Burrito Fiesta

Ø  Business concept – Mexican favorites like burrito, nachos, crepe and quesadillas

Ø  Main value proposition - have a classy and clean ambiance. Also have a big serving good for two with good plating design.

3.      Manila Q

Ø  Business concept – brings the local food of Vigan - bagnet and longganisa with a twist

Ø  Main value proposition – called their bagnet as bagwang wherein the meat is sliced as thin as bacon so it's crunchier and crispier. They also serve spicy Vigan longganisa, bagwang sisig and fish ham together with their special rice.  

Food trip report by Anna Mae de La Cruz practice on business concept and MVP

Hello sir:)

Here's the slideshare link to my powerpoint presentation on the Mercato food trip.

http://www.slideshare.net/annamaedelacruz18/mercato-food-trip-a-dela-cruz

Great presentation from a student with beautiful mind and face.  Keep up the great work

Mercato food trip a. dela cruz from Anna Mae Dela Cruz

Business Concept and Food Trip Exercise by Rachelle Roque

Hi Sir,

Food Kiosk in Mercato Centrale, The Fort

1.      Isaw, Tenga atbp

Ø  One of the famous street foods in the Philippines, grilled/barbecued isaw, tenga etc.  

Ø  Main Value Proposition:

§  Price – relative to other food items in Mercato, it is the cheapest at P30 per stick that makes it one of the best-selling food there

§  Size – Mercato's version of isaw has a twist in terms of size, serving is 3x the size of isaw sold in streets. Customers are easily encouraged to try it one they see it.

§  Taste – The taste of Isaw & the vinegar sauce is good; better presentation compared to street foods make it also looks clean.

2.      Carlo's Kitchen Crunchy Belly

Ø  It's a deep fried thin slice of liempo

Ø  Main Value Proposition:

§  Uniqueness – a good alternative to chicharon. Given that Filipinos like crunchy food, it's a sure hit.

§  Serving – super crispy, served in small size that makes it addicting. Customers like it as pica-pica, while other also like it to pair with rice.

3.      Shabu-Shabu

Ø  Hotpot with noodles & meat

Ø  Main Value Proposition:

§  Presentation – hot pot items like lobster balls looks cute that encourage customers, especially the young ones

§  Hot Serving – it's served hot that is good for customers after drinking w/ friends. Since it also served with noodles, it's a good alternative for those who doesn't want to eat rice nor sandwiches. 

<It is really tough doing this because the concepts are so similar and close>

Regards,

Rachelle