JUDY ANN G. NGARANGADBSA-IVACTIVITY 2JOHN GOKONGWEI AND UNIVERSAL ROBINA CORPORATION1. Trace URCs success story. What are the factors that contributed to its success?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. Product with reasonable price and quality, knowing the place where to introduce the product and promotion. Even there are many boundaries to concur with, he still push himself to produce his products.

Trace URCs success story.Universal Robina Corporation (URC) traced its beginnings all the way back to 1954.John Gokongwei, Jr.was doing very well then as a trader/importer. He had learned the trade when his father died before 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 business.On the other hand, a successful manufacturer controlling its own production and distribution would command more profitable margins. Mr. John decided to construct a corn milling plant to produce glucose and corn starch, Universal Corn Products (UCP), the first building block of the company that would become URC.For a time, business was good. However, Mr. John was still looking ahead, working with an eye towards the future. While the business was doing very well, it was producing essentially a commodity, which a customer could easily access elsewhere. To stay ahead in the game, Mr. John had to diversify by producing and marketing his own branded consumer foods, similar to the multinational companies in the Philippines like Nestle and Procter & Gamble. In a sense, he wanted to put up the first local MNC, borne out of their best practices.Thus, in 1961, Consolidated Food Corporation was born. Their first home run product was Blend 45, the first locally-manufactured coffee blend, dubbed as the Pinoy coffee. This became the largest-selling coffee brand in the market, even beating market leaders Caf Puro and Nescafe. After coffee came chocolates. Nips, a panned chocolate similar to M&Ms, was a staple of Filipino childhood.In 1963, Robina Farms started operations, beginning with poultry products. This was also the beginning of the vertical integration of the Gokongwei businesses, as the farms would be able to purchase feeds from UCP in the future. Later that decade, Robichem Laboratories would be put up, to cater to the veterinary needs of the farms businesses. Robina Farms expanded as it entered the hogs business in the latter part of the 70s.1966 saw the establishment of Universal Robina Corporation, which pioneered the savoury snacks industry in the Philippines through its Chiz Curls, Chippy, and Potato Chips, under the Jack n Jill brand. Other snack products would follow over the years, as the company successfully introduced market leaders like Jack 'n Jill Pretzels (pretzels), Piattos (fabricated potato chips), and Maxx (hard candy).The coming decades saw more acquisitions and expansion. In the early 1970s, the Gokongwei family entered the commodities business through the formation of Continental Milling Corporation, for flour milling and production. The late 1980s brought the acquisition of three sugar mills and refineries, under URC Sugar. These two businesses provided stable cash flows, and allowed for further vertical integration in the supply chain, to help URC weather any volatility in the cyclical commodities markets. In line with this strategy, the late 1990s saw the entry of URC into the plastics business, through URC Packaging.As the businesses became more diversified, the companies were slowly integrated in order to streamline operations and minimize costs. In 2005, the present structure of the group was completed. All the different companies are now organized under Universal Robina Corporation, divided into three focused groups:1. the Branded Consumer Foods Group, composed of BCFG Domestic (including packaging) and URC International, for the production and sale of snacks, beverage, and grocery products,1. the Agro-Industrial Group, composed of Universal Corn Products, Robina Farms, and Robichem, for the production and sale of animal feeds, day-old chicks, hogs, and veterinary medicine,1. And the Commodity Foods Group, with the Sugar and Flour divisions, for the production of flour and sugar, and for sugar milling and refining services.URC is a core subsidiary ofJG Summit Holdings, Inc.(JGSHI) which is one of the largest business conglomerates listed in thePhilippine Stock Exchange. URC owned thePhilippine Basketball AssociationfranchiseGreat Taste Coffee Makerswhich played fromthe inaugural 1975 seasonto1992when the company sold the team to Sta. Lucia Realty. The Coffee Makers won 6 PBA championships.

What are the factors that contributed to its success?(1)Managing and developing people- People today want some direction and structure, but they also want freedom and encouragement to develop their skills and knowledge. Effectively managing people requires balancing constraining forces (providing direction, structure, organization, some rules) with liberating forces (encourage personal growth, development and creativity). If you as manager/leader err too much in one direction or the other, your organization will be 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. Effective managers do not manage all people the same, except for some basic rules. They manage each person according to what he or she needs, what motivates them to do their best. This can be complicated but is essential for success.

(2)Strategic focus- In todays rapidly changing world, its not just enough to have a purpose for existing. Leaders have to focus the organizations resources on the greatest opportunities, which shift with each new day. Just run through your mind what has happened in the world or your organization in the past year or two, and youll understand what we mean by the reality of constant change. Doors open and doors close. Major customers or income sources can change or even go out of business at any time.So its 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 job of focused leaders is to connect and align all the Success Factors for optimum performance.(3)Operations, or what people do all day- What the people in your organization do day in and day out to create value for customers, to earn or justify income, strongly determines whether you succeed or fail. Like the other Top 5 Success Factors, you cant 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. Effective operations ensure that customers get exactly what they want at the right time, the right price and the right quality. Thus effective operations management focuses on what is called cycle time (producing a product or service from start to finish), cost control, and quality control (which requires some form of measurement). Strategic focus is largely externally oriented, operations largely internally oriented. Both need to be totally in sync with each other not something that happens automatically but rather requiring constant effort. This is why communication is the true lifeblood of a successful organization a high flow of information so everyone and everything is connected. Easy to say, hard to do.(4)Physical resources- Finances, facilities and equipment are the big 3 physical resources. If you dont have enough money, you cant start or sustain an organization. And one of the biggest expenses is providing adequate facilities and equipment for people to work in and with. Experienced managers learn that cash flow is king. It doesnt matter how much customers owe you, its when their money enters your bank account so you can use it to sustain the organization. Failing to manage cash flow is the No. 1 reason for business failure. Too many business owners leave the money up to someone else and can easily get blind-sided when suddenly the money isnt there to keep the doors open. And in a few rare, unfortunate cases, the person tracking the money embezzles or cooks the books, then you really are in trouble. Likewise nice facilities can be energizing, something to feel proud about, but also very expensive. The economy is always cyclical, and if you buy or lease really nice facilities when times are good, paying for them can be difficult or impossible in a downturn.(5)Customer relations- Customers are where the money comes from, so in many ways this is the most important success factor. As the famous business guru Peter Drucker said years ago, The purpose of a business 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 just what you want to sell. Effective sales and marketing begins with asking existing and potential customers what they need, what problem they want solved or deficiency filled. By keeping in touch with customers and asking these questions often, youll do a better job of developing customer loyalty and keeping competitors away. In the broadest sense customer relations can be considered the organizations relationships with the external world. It involves tracking competitor actions, analyzing changes in the market environment, and adapting according. This is closely linked to Strategic Focus.

2. Analyse the growing market base in Asia. How did Gokongwei take advantage of it?Gokongwei offer quality products in a cheaper price to his target customers because he knows that customers will give them benefits 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 because he is considered as one of the game-changers in various industries. What is common in his business tactic penetration is his offer of his products at a very low price with good quality. 3. Based on John Gokongweis words of wisdom, how can the Philippines compete globally?Gokongwei believes that we can create our very own global brand."Don't be afraid to take on the big boys". This is one of Gokongwei words of wisdom that awakes me. As a part of the Filipino race. Our passion on what we do is our edge from the other nations. Passion that push us not to be contented on what we have. To find rooms for improvement for our skills and talents. We must aware ourselves of the weakness of others. As Gokongwei said, "Every weakness is our opportunity".

4. Are there hindrances for the Philippines inability to have its own global brand?Yes, because dominant of our population does not trust the quality of our own local products. They often prefer to buy imported products. If only Filipino realize of the benefits they can give to our country in patronizing the local brands, it would be known to other. Especially from other countries. By this, we can now compete with imported products.

5. Identify Gokongweis entrepreneurial traits which made him successful.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 business in the market.

6. Make a research on the acquisition of Sun Cellular by PLDT. Make your comments.Sun Cellular has become a large player in terms of post-paid subscribers and was the first to propose the unlimited texts and calls. With regard to these, the PLDT which is the largest company in the country acquired shares withSun cellular ad at the same time, but at the same time, it has its ownership inSMART and TnT. I think, PLDT acquired Sun Cellular in order to Smart will be remain in the track to beat Globe Telecom, no other hindrances to think. Since, PLDT is the majority holder, they now have the financial control and influence over the Sun Cellular.

7. Is Gokongweis move a strategic one, with Sun being number 3 in telecommunications industry?Yes, because without his idea of offering unlimited text & call by Sun Cellular,It may not be on the top 3 in theTelecommunication industry. They gain more customers and patronize its product.