Tony Tan Caktiong: Success Story of Jollibee Tony Tan Caktiong was a Filipino Chinese entrepreneur who set

up a two-outlet ice cream parlor business in the city of Manila. It was 1975 when he began his business. His father used to operate a kitchen in Fujian,China, which was where Tonys association with the food services business began. Eventhough his ice cream parlor business was doing well, Tony wanted to expand in the foods business in the form of a fast-food outlet chain. He was inspired by the global popularity of companies like McDonalds which was planning to enter the Philippines during that time, but Wendys and Burger King already had a presence in the Philippines. Tony established his own chain of seven hamburger outlets in 1978 under the name Jollibee. He did not get a franchise like Wendys or McDonalds. Tony and his brother went to the US in 1979 to study the fast-food business. They spent a couple of weeks looking at the kind of equipment used, the retail outlets, the food served and various other things. Tony decided to copy almost each and every aspect of US fast-food majors, particularly McDonalds and benefited from tested business practices. In so doing he avoided reinventing the wheel. Tony was aware that Jollibee could not compete with McDonalds which had financial muscle and decades of expertise in the business. But by establishing Jollibee in 1978, Tony pre-empted McDonalds entry into the country. Jollibees strong focus on issues such as product development, operational excellence, customer service, marketing and promotion, and social responsibility, and the leadership helped it become the market leader in the Filipino fast-food industry, beating all the multinational companies. The company has globalization strategies and future prospects in the light of the new challenges it is facing in foreign markets. Article : Inspiring Success Stories of Ten Filipino Entrepreneurs by Ciel s cantoria June 19, 2008

History of Entrepreneurship: Twenty-seven years ago we didnt have a firm vision that we would be number one, but we had a rough vision that we would go outside the Philippines. We also had a goal: to take care of our customers and employees and to enjoy what were doing. Once we did all these things, the profits would come. Tony Tan Caktiong Tony Tan Caktiong was born on October 07, 1960 to a working-class family from Fujian, China, who migrated to the Philippines during the post WWII era. Tonys father found work as a cook at a Buddhist temple in downtown Manila and accordingly scrimped and saved so he could open his own Chinese restaurant in order to provide for his family. His fathers hard work and perseverance made it possible for Tony Tan Caktiong to earn a BS in Chemical Engineering at the University of Sto. Tomas, the Philippines oldest university. In 1975, Tony ventured into the food business by buying an ice cream parlor franchise from the once famous Magnolia Ice Cream House. The parlor was small and nondescript, which catered mostly to the well heeled shoppers of Cubao. They were customers who could afford to buy cleverly concocted but rather expensive cobblers, floats, milkshakes, banana splits, sundaes and parfaits. However, most of Tonys regulars wished that the parlor had something else to offer, other than ice-cream concoctions. Hence, the small nondescript store started offering sandwiches, fries and fried chicken, which started to attract the attention of other tired and hungry shoppers, movietheater goers and passers-by. The word fastfood was still unheard of at that time, but it was what the small store had to offer at affordable prices. Soon after, customers started filling the store beyond its capacity as they patiently waited for their turn to be served. By 1978, Tony added six more ice cream parlors around Metro Manila, but the ice cream treats were no longer the attraction. Taking inspiration from Americas fastrising McDonalds food chain, Tony and his family decided to transform the ice cream parlors into fastfood outlets. They strategized with their new venture by coming up with a unique name and symbol. Since Tony personally felt happy by working busily as a bee to produce honey, which in Tonys case

was money, he and his family decided to work on the busy bee concept. Hence, they came up with the large red and yellow bee with an effervescent smile on its face and called it "Jollibee". The once nondescript ice cream kiosk became Jollibee Food Corporation and braved the arrival of the McDonalds fast food chain in the Philippines in 1981. Jollibee came out unscathed as it became the first Philippine food chain to break the one billion peso sales mark in 1989. The groundwork for global expansion was laid out when it became the first food service company to be listed in the Philippine Stock Exchange, for which capitalization funds started pouring in.

Business name: Jollibee Food Corporation

Name of owner : Tony Tan Caktiong

Date of stabilish: 1978

SM Prime Holdings There is no such thing as overnight success or easy money. If you fail, do not be discouraged; try again. When you do well, do not change your ways. Success is not just good luck: it is a combination of hard work, good credit standing, opportunity, readiness and timing. Success will not last if you do not take care of it.- Henry Sy, Sr. Sh ZhChng, (Henrys Chinese name), was born on December 25, 1923, to an impoverished family in Jinjiang, a town near Xiamen, China. The entire family left China for good in 1936, so they could be with their family patriarch who was then a proprietor of a thriving variety store in Manila. Henry remembers having to clear the stores counter, which served as his sleeping place, after helping his father run the store for 12 hours. Unfortunately, World War II came and their family store was burned down; but the wars aftermath gave him the opportunity to earn income by buying and selling post war goods including the shoes of some enterprising G.I. Joes. The success of the shoe-peddling business later gave the young man from Jinjiang, China, the idea of opening his own shoe store. This was how Henry Sy, Sr. came to be the founder of the Philippines largest retailing company known as SM. The acronym stands for Shoe Mart, the name of the small shoe store business he started in 1958 at the Avenida, which was Manilas most popular commercial district during the post war era. Initially, however, the young businessman encountered difficulties in finding a local shoe manufacturer who would cooperate with his ideas on the kind of shoes to sell. He was quite determined and confident in pursuing his plans because they were mostly based on his own research. He continuously learned from his customers, his employees, and his suppliers and practically studied the growing needs of the Philippine market. Henry never lost sight of his goals even as he succeeded with his shoe store venture; he pursued a college degree in one of Manilas top universities, because education for Henry was a means to learn more ways on how to augment his income.

Today, after more than 50 years, the shoe store has evolved into becoming a network of 44 largescale shopping malls not only in the Philippines but throughout Asia and lays claim to three of the worlds top ten shopping centers: the SM City-North EDSA (ranked 3rd), the SM Mall of Asia (ranked 4th) and SM MegaMall (ranked 7th), which are all located in the Philippines. The malls have become typical destinations for family weekend recreation and leisure regardless of social stature, since the stores are strategically scattered throughout the country. Henry Sy, Sr. was listed by Forbes in its 2010 edition as the richest man in the Philippines and was honored by the prestigious magazine in 2009 for being one of the Filipino Heroes of Philanthropy. Through the SM Foundation, solutions to social problems for health, education and spiritual assistance have been extended to people in remote areas, by way of mobile health and dental clinics, scholarship awards, and contributions for building public schools, Catholic chapels and youth centers. History The roots of SM date back to the 1950s when entrepreneur Henry Sy, Sr. established a shoe store in Carriedo, the then-central business district of Manila. His aggressive and adamant strategy helped him gain large profits within a few years and he later expanded his business in Quiapo to become a fully functioning department store named "Shoemart", specialising in the sale of shoes, the sector of which the store originally was. Shoemart was later abbreviated to SM and became commonly known as "SM" or "Shoemart" by the locals. The SM in Carriedo was later abandoned and moved in the present site in Quiapo near the Manila LRT Yellow Line. The old site was demolished in 1982. The first SM Supermall, SM City North EDSA, was opened in 1985 and started the Philippine "malling" phenomenon Sy observed the malling hobby of Filipinos and opted to make every SM Supermall like an amusement park. All SM Supermalls contain at least one or more amusement facilities, such as cinemas, bowling alleys, convention centers and game arcades. Located in several cities and areas in Metro Manila, as well as major provincial cities, each SM is easily accessible and situated by places of public interest (churches, schools, major roads and

highways, etc). SM opened its first department store outside Metro Manila (SM Delgado) in Iloilo City in 1979 and was relaunched in 2004. The first ice skating rink in the Philippines was opened in SM Megamall in 1991. With this first, SM introduced Filipinos to an art-sport otherwise unpopular in tropical countries. The SM Supermalls also house 146 cinemas (with over 103,708 total seating capacity), making SM Prime Holdings the largest cinema operator in the country. As of 2006, SM Prime Holdings is embarking on an aggressive expansion program within the next five years. In preparation for this expansion, SM Prime Holdings, Inc. has amassed a total landbank of 96.6 hectares in 10 strategic locations. Included are attractive properties in provinces where urbanization is steadily underway, such as Cabanatuan, Pangasinan and Bulacan. By 2006, five additional SM Supermalls will be operational, including the SM Mall of Asia. This is SM Prime Holdings most expensive project to date. The SM Group has engaged in other retail endeavors through other SM related companies such as, among others: Watsons Personal Care Stores, Inc., a joint-venture with Hutchison-Whampoa Ltd. of Hong Kong; International Toy World (Toy Kingdom); Ace Hardware Philippines, a jointventure with Ace Hardware Corporation USA; Star Appliance Center; Surplus Shop; Sports Central; Baby and Co.; Home World; and Our Home. The amusement center is SM Storyland. Business Name: SM Prime Holdings, Inc. Name of owner: Henry Sy, Sr. Date of stabilish: 6 January 1994

Business Management 13
SUBMITTED BY : Malit, Mark Kenvin D. ARM 2-B

Business Management 13

SUBMITTED BY: JERYMIE V. VEGA ARM 2-B