Sy and Gokongwei PDF

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Specifics The case focuses on the business successes of Henry Sy and John Gokongwei from Late 1980s to early 1990s. The following are the persons involved:          

Henry Sy – a retailing tycoon, owner of successful SM Shoemart chain of department stores. Henry Sy Jr. – eldest son of Henry, based in Hong Kong and handles his father’s foreign investments. He likewise functions as set up together with Novotel, a French hotel chain. Teresita Sy – eldest daughter of Henry, handles finance and Banco de Oro Operations. Hans Sy – in charge of operations and engineering of Shoemart. Herbert Sy – takes care of SM ACA and the supermarket. Harley Sy – overseas merchandising of all department stores. Elizabeth Sy – takes care of the pastries and food dividion. John Robinson Gokongwei – Banker-industrialist, owner of Robinson Commercial, Inc. outlets. Robina Gokongwei – eldest daughter of John. Lance Gokongwei – son of John, who has a degree in finance and science ( summa cum laude), who has been assigned to the Philippine Commercial International Bank as assistant treasurer and at Robinson’s Galleria, a two-billion-peso complex hotel, department stores, flats, shops, cinemas, restaurants and offices.

Key Issue Both tycoons are building multi-storey commercial centers that cause them a competition for land in manila. The race between Henry Sy and John Gokongwei to case is on the Philippine’s consumer boom was coined as Manila’s “store wars”, ringing the metropolis with vast concrete shopping malls Both of them are taking the concept of shopping center as community center to the extreme with their new plans. Also, Sy and Gokongwei developments will include hotels, apartments, shops and cinemas. Both group have also tried to boost access to financing through buying local banks. In the impending retirement, how can the two celebrated business tycoons in the Philippines, How can Henry Sy and John Gokongwei sustain the continued growth of their business empire?

Findings Henry Sy Henry Sy took inspiration on being shoeless when he was young to put up a small shoe store in Carriedo, Quiapo that soon became Shoemart. Gaining success in this, he expanded into textiles and household goods. Henry was ridiculed in building “SM City” in the outskirts of the city. He was ridiculed but he succeded despite the recession and gained more substantial funding. Henry Sy Purchased a closed end investment company from ayala group while Gokongwei filed with the securities and exchange commission to offer 40% of Robinson Land Corporation to the public.

Henry Sy’s succession problem is less difficult since his four sons and daughter have been doing businesses by his side for several years and he has only diversified his Shoemart asset into hotels and real estate developments. Henry Sy now lives in forbes park and own his own lear jet, he dresses dapperly in elegant designer suits and ties but insists in wearing t-shirts which he often wears to work. He also leads a very limited social life because he values his health. He hardly goes on vacation; he believes that “Opportunities don’t take vacations”. He is happiest when he is working and his family follows his example. John Robin Robinson son Gokongwei Gokongwei has his focus majorly in food production, manufacturing and wholesaling. Later on, he also invested in textiles, real estates and stock investment. He vary from real estate and dep. Stores to hotels and sugar mills creating the nickname “Vast Somewhat shapeless, empire” majority of business empire is wholly owned by the Go Family. Being an aggressive arriviste, he turned to the stock market using cash from his manufacturing business to help pay for his ambitions. He was successful in getting major holdings in several companies putting him in the timelight more often than he cares to but it also aided his expansion and acquisition binge. He also welcomes the infusion of new blood to make management more dynamic. He believes that a family-owned businesses that goes to the second or third generation has a tendency to go back to the ash heap because there is no new blood push it.

Conclusions Henry sy and John Gokongwei’s success is something to be admired. Their businesses have indeed catapulted them to the lifestyle that they have dreamed of. But it also helped the Philippines by creating Public places for the masses and jobs for the people. In their impending retirement, succession is not that of a problem for they can rely with their children and relatives to continue and improve their legacy in running their business empire. Both Sy and Gokongwei’s children are trained and honed to take over the businesses that they will leave behind. But leaving it behind does not mean that they cannot participate in it. Business run in Sy and Gokongwei’s blood, it is inherent. Also, external business investors and partners can make their businesses more stable since it will open new doors for opportunities for business expansions.

Recomm Recommendations endations Henry Sy and John Gokongwei can rely on their children to continue their legacy of their business empire. Their Children are well-versed and well-educated that they can easily catch and manage what their parents will let off. Outside investors and Partners can make management more dynamic. Different creative ideas and thoughts will pour in and it can open opportunities for more success and expansion....