gokongwei

JUDY ANN G. NGARANGAD BSA-IV ACTIVITY 2 JOHN GOKONGWEI AND UNIVERSAL ROBINA CORPORATION 1. Trace URC’ !cce "#r$. W%a" are "%e &ac"#r "%a" c#'"r()!"e* "# (" !cce+ The investment of Gokongwei's on his product in order for him to succeed is that he has heart in everything he do. He strive for consistence in developing his product. As a result, the customer patronize the products and services he offers. Gokongwei used the 4p's. roduct with reasona!le price and "uality, knowing the place where to introduce the product and promotion. #ven there are many !oundaries to concur with, he still push himself to produce his products.

Trace URC’ !cce "#r$. $niversal %o!ina &orporation $%&( traced its !eginnings all the way !ack to )*+4. ohn Gokongwei, r. was doing very well then as a trader-importer. He had learned the trade when his father died !efore the war, and had worked hard through the war and postwar years to prosper. However, while he thrived, he took a long hard look at his company, and correctly predicted that trading would remain a lowmargin !usiness. /n the other hand, a successful manufacturer controlling its own production and distri!ution would command more profita!le margins. 0r. ohn decided to construct a corn milling plant to produce glucose and corn starch, $niversal &orn roducts $&(, the first !uilding !lock of the company that would !ecome $%&. 1or a time, !usiness was good. However, 0r. ohn was still looking ahead, working with an eye towards the future. 2hile the !usiness was doing very well, it was producing essentially a commodity, which a customer could easily access elsewhere. To stay ahead in the game, 0r. ohn had to diversify !y producing and marketing his own !randed consumer foods, similar to the multinational companies in the hilippines like 3estle and rocter  Gam!le. 5n a sense, he wanted to put up the first 6local7 03&, !orne out of their !est practices.

Thus, in )*8), &onsolidated 1ood &orporation was !orn. Their first 6home run7 product was 9lend 4+, the first locallymanufactured coffee !lend, du!!ed as the :inoy coffee;. This !ecame the largestselling coffee !rand in the market, even !eating market leaders &af< uro and 3escafe. After coffee came chocolates. 3ips, a panned chocolate similar to 00s, was a staple of 1ilipino childhood. 5n )*8=, %o!ina 1arms started operations, !eginning with poultry products. This was also the !eginning of the vertical integration of the Gokongwei !usinesses, as the farms would !e a!le to purchase feeds from $& in the future. >ater that decade, %o!ichem >a!oratories would !e put up, to cater to the veterinary needs of the farms !usinesses. %o!ina 1arms e?panded as it entered the hogs !usiness in the latter part of the @s. )*88 saw the esta!lishment of $niversal %o!ina &orporation, which pioneered the savoury snacks industry in the hilippines through its &hiz &urls, &hippy, and otato &hips, under the :ack 6n ill; !rand. /ther snack products would follow over the years, as the company successfully introduced market leaders like ack 'n ill retzels pretzels(, iattos fa!ricated potato chips(, and 0a?? hard candy(. The coming decades saw more ac"uisitions and e?pansion. 5n the early )*@s, the Gokongwei family entered the commodities !usiness through the formation of &ontinental 0illing &orporation, for flour milling and production. The late )*Bs !rought the ac"uisition of three sugar mills and refineries, under $%& Cugar. These two !usinesses provided sta!le cash flows, and allowed for further vertical integration in the supply chain, to help $%& weather any volatility in the cyclical commodities markets. 5n line with this strategy, the late )**s saw the entry of $%& into the plastics !usiness, through $%& ackaging.  As the !usinesses !ecame more diversified, the companies were slowly integrated in order to streamline operations and minimize costs. 5n D+, the present structure of the group was completed. All the different companies are now organized under $niversal %o!ina &orporation, divided into three focused groupsE •

the 9randed &onsumer 1oods Group, composed of 9&1G Fomestic including packaging( and $%& 5nternational, for the production and sale of snacks, !everage, and grocery products,

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the Agro5ndustrial Group, composed of $niversal &orn roducts, %o!ina 1arms, and %o!ichem, for the production and sale of animal feeds, dayold chicks, hogs, and veterinary medicine,

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 And the &ommodity 1oods Group, with the Cugar and 1lour divisions, for the production of flour and sugar, and for sugar milling and refining services. $%& is a core su!sidiary of G Cummit Holdings, 5nc. GCH5( which is one of the largest !usiness conglomerates listed in the hilippine Ctock #?change. $%& owned the hilippine 9asket!all Association franchise Great Taste &offee 0akers which played from the inaugural )*@+ season to )**D when the company sold the team to Cta. >ucia %ealty. The &offee 0akers won 8 9A championships.

W%a" are "%e &ac"#r "%a" c#'"r()!"e* "# (" !cce+ ( 1) Managing and developing people  eople today want some direction and structure, !ut they also want freedom and encouragement to develop their skills and knowledge. #ffectively managing people re"uires !alancing constraining forces providing direction, structure, organization, some rules( with li!erating forces encourage personal growth, development and creativity(. 5f you as manager-leader err too much in one direction or the other, your organization will !e either too rigid or too chaotic. To make it more complicated, each person has a different set of needs for structure vs. freedom, order vs. opportunity, logic vs. personal values, factual information vs. meaning and connections, and so on. #ffective managers do not manage all people the same, e?cept for some !asic rules. They manage each person according to what he or she needs, what motivates them to do their !est. This can !e complicated !ut is essential for success.

2) Strategic focus  5n today7s rapidly changing world, it7s not ust enough to have a purpose for e?isting. >eaders have to focus the organization7s resources on the greatest opportunities, which shift with each new day. ust run through your mind what has happened in the world or your organization in the past year or two, and you7ll understand what we mean !y the reality of constant change. Foors open and doors close. 0aor customers or income sources can change or even go out of !usiness at any time. Co it7s

necessary for leaders to keep focused on the desired end results such as increased sales and profits, or more satisfied customers, while constantly steering the organization across the stormy waters of the marketplace. As the illustration shows, the o! of focused leaders is to connect and align all the Cuccess 1actors for optimum performance. (3) Operations, or what people do all day   2hat the people in your organization do day in and day out to create value for customers, to earn or ustify income, strongly determines whether you succeed or fail. >ike the other Top + Cuccess 1actors, you can7t separate operations from strategic focus which gives direction, people which do the work, customers who pay the money and physical resources to do the work. #ffective operations ensure that customers get e?actly what they want at the right time, the right price and the right "uality. Thus effective operations management focuses on what is called cycle time producing a product or service from start to finish(, cost control, and "uality control which re"uires some form of measurement(. Ctrategic focus is largely e?ternally oriented, operations largely internally oriented. 9oth need to !e totally in sync with each other  not something that happens automatically !ut rather re"uiring constant effort. This is why communication is the true life!lood of a successful organization  a high flow of information so everyone and everything is connected. #asy to say, hard to do. (4) Physical resources  1inances, facilities and e"uipment are the !ig = physical resources. 5f you don7t have enough money, you can7t start or sustain an organization.  And one of the !iggest e?penses is providing ade"uate facilities and e"uipment for people to work in and with. #?perienced managers learn that cash flow is king. 5t doesn7t matter how much customers owe you, it7s when their money enters your !ank account so you can use it to sustain the organization. 1ailing to manage cash flow is the 3o. ) reason for !usiness failure. Too many !usiness owners leave the money up to someone else and can easily get !lindsided when suddenly the money isn7t there to keep the doors open. And in a few rare, unfortunate cases, the person tracking the money em!ezzles or cooks the !ooks, then you really are in trou!le. >ikewise nice facilities can !e energizing, something to feel proud a!out, !ut also very e?pensive. The economy is always cyclical, and if you !uy or lease really nice facilities when times are good, paying for them can !e difficult or impossi!le in a downturn. () !usto"er relations  &ustomers are where the money comes from, so in many ways this is the most important success factor. As the famous !usiness guru eter

Frucker said years ago, The purpose of a !usiness is to get and keep customers. Getting customers involves marketing  indeed this success factor includes all kinds of marketing and sales. The key to successful customer relations is to give them what they need, not ust what you want to sell. #ffective sales and marketing !egins with asking e?isting and potential customers what they need, what pro!lem they want solved or deficiency filled. 9y keeping in touch with customers and asking these "uestions often, you7ll do a !etter o! of developing customer loyalty and keeping competitors away. 5n the !roadest sense customer relations can !e considered the organization7s relationships with the e?ternal world. 5t involves tracking competitor actions, analyzing changes in the market environment, and adapting according. This is closely linked to Ctrategic 1ocus.

2. A'a,$e "%e r#(' /ar0e" )ae (' A(a. H# *(* G#0#'e( "a0e a*a'"ae #& ("+ Gokongwei offer "uality products in a cheaper price to his target customers !ecause he knows that customers will give them !enefits in availing the products and services. He consider innovation to the product for him to gain more and loyal customers. Gokongwei managed to succeed in his attempts to penetrate different industries !ecause he is considered as one of the gamechangers in various industries. 2hat is common in his !usiness tactic penetration is his offer of his products at a very low price with good "uality. . Bae* #' J#%' G#0#'e(’ #r* #& (*#/3 %# ca' "%e P%(,(44('e c#/4e"e ,#)a,,$+ Gokongwei !elieves that we can create our very own glo!al !rand. IFon't !e afraid to take on the !ig !oysI. This is one of Gokongwei words of wisdom that awakes me. As a part of the 1ilipino race. /ur passion on what we do is our edge from the other nations. assion that push us not to !e contented on what we have. To find rooms for improvement for our skills and talents. 2e must aware ourselves of the weakness of others. As Gokongwei said, I#very weakness is our opportunityI.

5. Are "%ere %('*ra'ce &#r "%e P%(,(44('e’ ('a)(,("$ "# %ae (" #' ,#)a, )ra'*+ Jes, !ecause dominant of our population does not trust the "uality of our own local products. They often prefer to !uy imported products. 5f only 1ilipino realize of the

!enefits they can give to our country in patronizing the local !rands, it would !e known to other. #specially from other countries. 9y this, we can now compete with imported products.

6. I*e'"(&$ G#0#'e(’ e'"re4re'e!r(a, "ra(" %(c% /a*e %(/ !cce&!,. Gokongwei's entrepreneurial traits which made him successful are his determination and passion. He managed to overcome all the hindrances he encounter during the time he start his !usiness in the market.

7. 8a0e a reearc% #' "%e ac9!(("(#' #& S!' Ce,,!,ar )$ PLDT. 8a0e $#!r c#//e'". Cun &ellular has !ecome a large player in terms of postpaid su!scri!ers and was the first to propose the unlimited te?ts and calls. 2ith regard to these, the >FT which is the largest company in the country ac"uired shares with Cun cellular ad at the same time, !ut at the same time, it has its ownership in C0A%T and TnT. 5 think, >FT ac"uired Cun &ellular in order to Cmart will !e remain in the track to !eat Glo!e Telecom, no other hindrances to think. Cince, >FT is the maority holder, they now have the financial control and influence over the Cun &ellular.

:. I G#0#'e(’ /#e a "ra"e(c #'e3 ("% S!' )e(' '!/)er  (' "e,ec#//!'(ca"(#' ('*!"r$+ Jes, !ecause without his idea of offering unlimited te?t  call !y Cun &ellular, 5t may not !e on the top = in the Telecommunication industry. They gain more customers and patronize its product.