A case study about Henry Sy and John Gokongwei’s success. Case Background Henry Sy and John Gokongwei were both born very poor.
This situation, one may conclude, served as a blessing for the two most celebrated entrepreneurs in the Philippines on their journey to wealth. Shoeless and with only clothes on his back, Henry Sy started his entrepreneurial career by tending at his father’s sari-sari store in Cebu. But Henry dreamed of something big for his future. He dreamed of having his own business to provide him enough money. In 1945, he put up a small shoe store in Carriedo, Quiapo.
From then on, that humble shoe store became Shoemart (commonly known as “SM”). Since there was a constant pouring of capital back into this venture, he then expanded into textiles and household goods and was then opening outlets to selected parts of the country, centering at the Metropolis. On the other hand, John Go (“kongwei” meaning “bright” was suffixed later to his name later) started his road to success by hawking wares in Cebu. This led to his dream of building his own retailing kingdom. He first started by trading and manufacturing corn starch in 1955 and has soon expanded into upplying groceries and animal foodstuffs in bulk. Later, he ventured also in textiles, banking and real estate, hotels and shopping complex developments. The abrupt expansion of the enterprises of the two business tycoons marked the start of a period of transition for the business empire built over the past three decades by these two businessmen. Since then, Henry Sy has always been proud that his SM outlets had been gradually upgraded into larger commercial complexes without drawing on bank credits.
John Gokongwei also managed to put up projects without having major borrowings.He had only relied to the big sums of cash Universal Robina Corporation and Commonwealth Foods Corporation were generating and from the support of his relatives and associates. Strengths •Both Henry Sy and John Gokongwei are health conscious. They value health more than they value their ventures. Henry engaged not in any forms of vices while John has already quitted smoking. •Being Filipino-Chinese, both have good business strategies (i. e.
, no major borrowing), as one may identify this particular characteristic of their race. This helped them put up projects without relying to bank credits.It is important in a business to lesser your liabilities and increase your assets. •As for their businesses, the “innovation technique” they presented towards their shopping malls for example, attract people and may somehow feel that they, the customers, are just a step behind their needs and wants. •One thing that is great about Henry Sy and John Gokongwei is that they are both optimistic. They feel good vibes for whatever step they are taking.
Their minds are focused on a better and brighter future for the Philippines. •John Gokongwei in particular can be described as a prudent person. It is evident with the quote in he case stressing that for him, as some people think; one is safer when he knows he has a pistol tucked under his belt. •There is no doubt with this: they are both competitive.
The rapid expansion of their business empires proves that they are not only competing within the nation but them competing globally. •Learning is a never ending process. These two business tycoons believe that apart from their inherited knowledge, they can still acquire things that may better their businesses. Their minds are open for suggestions and innovations. •Both businessmen view business as an element of life’s quest not just a mere means of ivelihood. •This may be their greatest strength, their affection towards fellow Filipino people. They never stop to expand and improve their craft for the Filipinos.
It may be somehow stated that they want to see a better Filipino having a bright future through their struggles to improve his quality of life. •They have good intuition/visions towards opportunities coupled with enduring faith in the creativity and resilience of the entire Filipino national community.Weaknesses •They devoted so much of their time doing their businesses. They have a limited social life and on’t actually embark on long vacations because, according to Business World, for them, opportunities might crop up anytime and swift decisions have to be made. In other words, opportunities don’t take vacations.
Opportunities •Their businesses created thousands of job openings that eventually solved unemployment problems in the country. This also helped the nation’s economy to improve through the taxes they’ve been paying. •They serve as an inspiration to ordinary people to pursue their dreams/goals as well as to their fellow entrepreneurs.
•They do community services since both have an interest in people and doing it overwhelms their ompetitive instinct. Threats •Monopoly on business – Eventually as their businesses expand to different areas/fields, they can somehow increase the prices of their certain products knowing that they are the only establishment to manufacture that kind. •Too much pressure is automatically bestowed upon their children.
It is because the family themselves and the people surrounding them expect an equal or greater performance in business matters compared to their father. Conclusion It is evident that Henry Sy and John Gokongwei saw something big and sunny ahead of them regardless of their status when they were born.They strive to reach their dreams and proved that poverty is not a hindrance to one’s success. Their optimistic minds see opportunities for every threat that may occur. Both of them are characterized with their long-range visions that helped them to keep away from the frustrations brought by their short-range failures. Lastly, their undying support and affection towards fellow Filipino people serves as the burning flame that enables them to keep moving forward.
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