Social Icons

Compilation of ProfJorge Entrep Pics



Monday, March 19, 2018

Was Ray Kroc a real founder, an Entrepreneur?

Ateneo Professor on Entrepreneurship



Ray Kroc


Ray Kroc biography

Last Saturday, this post had the opportunity to watch the movie The Founder which was about the life story of Ray Kroc, the legendary founder of McDonald's

He was  considered a founder but did not actually start anything. He was a milkshake salesman who saw the speedy and efficient operations of MacDonald operated by the brothers with same surname:  Dick and Mac.   But we attributed him to be a founder because:

1. He got the burger chain across USA by franchising.  But he did not earn money on this idea.  He mortgaged his house and got measly $100 per establishment because the  franchise fee was only 1%

2. Somebody a CPA or finance man Harry Sonneborn, who later became the first President who overheard him at the bank suggested that he was in the wrong business. The real business is in real estate:   ie that he buys the land finance the building where the McDo would rise.  and leases this to the franchisee. On day one even while the business has not started, he  earns

In No. 1, he earns only when the store opens.   In this new business model, his venture becomes bankable because he will have real properties to mortgage to the bank to finance his expansion, which when acquired piles up his landholdings which increases his networth. The business is a real estate play.

3. The McDonald brothers did not progress because:

      1.  They were afraid to take risks.  By force of habit, and complacency, they wanted to conduct business the way it was, until now and in the future.  They did not want to take risk.  While Ray wanted to use the powdered milk to save on costs, the McDo brothers disagreed.

     2.  Ray Kroc took the initiative to change the business model eventually buying out the  brothers

4.  Ray Kroc succeeded and eventually became a billionaire (in $) because:

     1.  He had a vision;  he saw great potential in the McDo burger;  He talked about the Golden Arches -
          the golden opportunity.

     2.  He  took risks and  even mortgaging his house to finance his franchise dream

    3.   He had an eye for great talents:   the bible salesman, the other guys he meet at various meeting

    4.  He  was willing to listen to new ideas and was humble enough to listen to advice

   5. H e understood the value of brand.  "You know the secret of McDonald?"  he asked one of the McDo
       brothers after he  paid them say $3M-  and the latter said no.  "You do not know?  The name.  The first
       time he visited the store, he knew it would be a success because of the name.  It was very American.

       Kroc is not.   It sounds like European or Czech  (He was Czech native)

       He even told them of their backwardness.

  6.  He  took the lead and quarreled with the  McDo brothers even cutting short a telephone conversation.

      He was not afraid to let the other guy know what he wanted.  and say No.  One of the secrets of success

One last thing:  He  believed in the  value persistence and  determination

He maintained close relationship with Walt Disney and Ernest Hemingway.   He died at age of 81 of heart attack.  They had 7,500 stores valued at $8 billion.   and was worth $500 million.

They have 37,000 stores in 100 countries worldwide

Lessons learned:
1.  The quotes we learn, the  self improvement lessons we take are more important than PHP.   Armed with only Calvin Coolidge admonition on determination, Kroc put up  the McDo empire.

2. Practice leadership which should come from #1.

3.  Surround yourself with skilled and professional staff;

4.  Know what you want and have a vision.

5.  Learn salesmanship and be a great one.

6.  Innovate and learn. Continue learning
















Friday, January 12, 2018

For want of a nail, a kingdom was lost - Benjamin Franklin

Ateneo Professor on Entrepreneurship

Rizal Philippines
January 12, 2018

Image result for for want of a horseshoe, a horse was lost


What is the reflection learned from this saying?

While we say that  God is in the details, we cant afford to micromanage and stall the progress of the companies. We cant continue admiring the daisies while uprooting the roots

While others may interpret it the other way, sin of omission can have grave consequences, over thriftiness, over detail can have the same consequences.

I have seen some "leaders"  managers over manage and over control stifling initiative and resourcefulness among its people. There was this retail and food establishment whose top  management (its board) was literally the CEO, dictating the accounting policies and inventory system which were not practical and not in accordance with existing practices. They belong to another profession and try to pretend they know-it-all.   Without investing in a POS system and without considering that there is batch production involved, they want every item counted and the poor staff does nothing but count and no longer gives service to the  customer. For want of counting, the business could be lost.

Are you running business this way?  Be aware

Are you micromanaging?   Are you acting your position in the organization.  Are you the chairman, and act as if the CFO?  Are you over managing (enemy of lean system) and counter productive in cost reduction




Saturday, December 9, 2017

New Business Models Propel growth of existing businesses

Ateneo Professor on Entrepreneurship

Rizal Philippines
December 9, 2017



Image result for nissan navara 4x2 el at calibre

I did not fully realize that Business Model Innovation (BMI) is the great way to go.  We were bookish during the professor days. Academic days.  --> on how to really use and apply the concept

We were looking at a pick up, and there was this guy who said he just bought a Navarra Sport 4x2 AT, and wished he bought the premium 4x4 AT.  (That is P300t more than what he just bought)

We sat down and had conversation. And said he changes cars every 3 years, sells the old car for a much better price because he said he needs the car for representation and salesmanship.  His customers has much better respect for you if you come in nice new car.

So he must be rich and asked what his business is. And said he is into meat processing. And based in Tondo.  He said he is a niche player.    And then boasted that I did advisory work for the #3 in the industry.  And quickly mentioned that the #2 reached their stature (4x the sale of #3) arrived where they are using a very different business model.  And was very enterprising, because they did not use their own resource.Want to find out?   Call 0927 459 7888.

After that I had a meeting with a Pres of a real estate company who would not know what they would do with the marketing and operation of the new business.  For advising him and running the firm, without cash out, he would offer me 20% of the company. And using our brand.... Same strategy as what #2 did.  Well we can expand our business faster by employing the same tack.... What do you think

Saturday, November 18, 2017

Resurgence of progress in a leading Rizal town, consumer and investment led

Ateneo Professor on Entrepreneurship

Rizal Philippines
Novemer 18, 2017


                        Tanyag Tiangge ng Taytay
                      for cheap but  quality products
                                Dinadayo ng marami


This town has been famous for garments and sash, wood products for interior design.  It is populated by skilled garments maker and carpenters.

Lately there is a resurgence of progress which are both consumer led -  a growing and booming tiangge sites which boast of local and imported products that are cheaper than Divisoria.  (A good business for the land owner and Tiangge operators.  I studied this business for a while and it is a good and profitable business.

The other is investment led.  A number of buildings and factories are going up in a technopark that has been unproductive for the last twenty years. 

It is a very good sign.

The upscale subdivision project has not been doing so well.
May resort, pinatayuan ng munisipyo at University.  Sana it
works

Consumer led:  tiangges



                            More tiangges sprouting up


                                Some are taking advantage
                                   scams everywhere



                            New tiangges sites being built





                           Parang Bangkok

Thursday, July 13, 2017

Why pursuing the company vision is the great and profitable way to go

What:  ABE on the importance of the company vision statement

Objectives:

1.  To have shared vision among the employees, staff and officers; and to increase the number of believers and BIDDA

2.  To ensure the future growth and profitability of the group

3.  To make sure that every body understands the priority, the right thing to do so that wrong moves are avoided.

Reality:

1.  Many projects:  crematorium are in limbo, recruitment at Chapel Memorial Services do not happen, the Interment Services are neglected, (the funds are not processed at once, and inefficiency on this portion of the business remain.  Repairs of the equipment for the memorial services are unattended to 

2. Not to be outdone in this pursuit are two leading memorial parks aggressively investing huge sums for memorial park jv and /or purchase;  on the other hand SPLP are making it great.

3.  The future of memorialization as foreseen by this post is in the services:   cremation, memorial services (funeral and interment) Thus these three components are in its vision for the next five years:   cremation, chapel services, and columbarium

4.  Many just  pay lip service to the vision statement

     Why funeral services: