John Zoren A.

Hugo
BSA IV-01

Prof. Don M. Magpantay, PhD, DPA, SPBE

December 4, 2016

1. Trace URCs success story. What are the factors that contributed to its success?
URC began its operations in 1954 headed by John Gokongwei who first constructed a
corn milling plant that produces glucose and cornstarch through which he was able to produce
his first product called Panda Cornstarch until such time he felt that he should not just be on
status quo. Through such instinct, the URC started dealing with Consolidated Food Corporation
after which Gokongwei established Robina Farms, a hog raising business. Gokongwei wasnt
satisfied so he acquires Jack n Jill and the Continetal Milling Corporation. URC diversified
again its operations by investing in an airline industry by which URC acquired Cebu Pacific.
Gokongwei didnt stop and continued in investing more in telecommunication industry where he
owned Sun Cellular. Furthermore, URC then was able to produce product in local beverage
industry called C2, a green-tea drink which had a huge sales after 3 years and was able to reach
global market until this present time in Vietnam together with the Jack n Jills Patato Chips in
Malaysia
and
Singapore.
Some factors that contributed to the success of URC are the wisdom, entrepreneurial
skills and vision of Mr. Gokongwei. He is a man that never stops thinking great ideas even if his
company already does well in the business industry which makes him great and truly competitive
that lets URC maintain a continuous growth in the industry. Since then, Mr. Gokonwei has
strategic focus and though the use of his physical resources, he then was able to meet his goals
that lead him to be successful in the field of industry he belongs.
2. Analyze the growing market base in Asia. How did Gokongwei take advantage of it?
Since Mr. Gokongwei is considered to be one of the game-changers in various industries,
he was then able to diversify and expand the operation of URC by attempting to penetrate
different industries. As the market base in Asia widely growing, Gokongwei took advantage of it
by way of diversification of the companys operation. Some of the great ideas thought by him
was establishing an airline company which could serve high quality services yet in low and
affordable cost. The Cebu pacific air has been successful after having 5 million passengers after
10 years of operations competing with Philippine Airlines. Another one is when he thought of
making a difference in a local beverage industry by which he introduced C2 which had a huge
sales from 100,000 bottles in its first month to 30 million bottles per month after 3 years which
obviously embraced and loved by many Filipinos.
3. Based on John Gokongweis words of wisdom, how can the Philippines compete
globally?

The Philippines can compete globally if only all Filipinos around make use wisely and
fully of their resources. In fact, our country is even richer than other countries of natural
resources and manpower who are highly intellectual. Filipino businessmen should believe in
themselves that they can compete globally with full determination. If other countries having
lesser resources can do it, then what more the Philippines could do. Filipinos also have to think
well and believe in themselves that they can do what actually Mr. Gokongwei did way back then.
4. Are there hindrances for the Philippines inability to have its own global brand? Explain.
Yes, there are. Some instances are some Filipinos tend to easily put themselves down that
they cant do more than what other countries could do especially those countries belonging in
first world that produce high-quality products. Some or even many experts who do different and
new products or inventions in the Philippines are being pirated abroad because the government
doesnt have direct support to them which make them also forced to go abroad and find for better
life there. Many Filipinos dont change by themselves alone because if they want change the
change must begin to them. Its the strong desire of someone to be different that should never be
gone which some Filipinos fail to possess especially those who think they have nothing at all.
Also, the continuous corruption in the government way back then from the previous
administrations has become great barrier of the Philippine industry in establishing a global brand.
5. Identify Gokongweis entrepreneurial traits to have its own global brand? Explain.
Determination
Mr.Gokongwei has the ability to keep going in the face of hardship because even if he
had struggles of having poor life he didnt stop. He still pursued his ambitions regardless of the
challenges he faced during his humble beginnings.
Risk-taker
Based from the excerpt I read, Mr. Gokongwei has had large investments which are too
risky, but then all of them favors upon him. He wasnt afraid and didnt give up even if there
were other businessmen who could beat him in the industry.
Possesses commercial awareness
Mr. Gokongwei is always aware of the possible growth of business due to changes in the
economy. As time goes by, tastes and preferences of people change. So the decisions on product
diversification and expanding of company operations made by Mr. Gokongwei was good a great
idea for the URC to maintain its current standing in the business market industry.
Creative and innovative thinking

Mr. Gokongwei never stops pursuing something different when the market was
continuously growing. It was his innovative idea that put the URC to its success. For instance, he
then thought of producing different high-quality products yet affordable price like C2 which was
able to compete successfully with Coke in local beverage industry.
6. Make a research on the acquisition of Sun Cellular by PLDT. Make your comments.
For me it was a challenging decision because its not good to see your company being
acquired by someone else. It degrades ones self-confidence and self-esteem when you hear bad
comments and negative reactions from your loyal consumers or from the people around you but
then Im still amazed by Mr. Gokongweis decision for he doesnt let his pride prevail. I can say
that he was just become wise and practical. A real businessman should be practical enough to
deal with such situation considering the factors if he still tried to compete with the number one
brand. Mr. Gokongwei knew in fact that merging with PLDT group would enable to create more
capable telecommunication which in effect could provide higher quality service. In this way,
URC still manage to gain more profits upon merging with PLDT being the number 1 in the
telecommunications industry.
7. Is Gokongweis move a strategic one with Sun being number 3 in the telecommunications
industry?
Yes, it was indeed a strategic decision. Although it was a challenging decision, Mr.
Gokongwei was just become wise and practical. If he opts not to merge with PLDT chances are
his company might experience downfall and be beaten by other industries. Currently, Sun
Cellular does well in the telecommunications industry but oftentimes heard and advertised since
Smart and Globe are the only networks that dominate the industry in the Philippines. Hence,
Gokongwei only had strategic move. He truly was great for considering significant effects in
future of his actions. After all, business is not about ranking in the industry, its the profits that
could be generated out of such particular business that matters at all in a viewpoint of every
businessman.