Revisiting Managing Asia's 2007 interview with the late John Gokongwei | Managing Asia

Summary

In this tribute episode of 'Managing Asia,' we honor the late Filipino tycoon John Gokongwei, known as 'Big John.' The episode revisits a 2007 interview, highlighting his rags-to-riches journey and business acumen. Gokongwei, who built JG Summit into a leading conglomerate in the Philippines, shares his strategies for success, emphasizing the importance of seizing opportunities, having reserves during crises, and maintaining a balance between family-run businesses and professional management. His legacy is one of entrepreneurship, innovation, and giving back to society through education.

Takeaways

• 😀 John Gokongwei, a Filipino tycoon, is celebrated for his business acumen and his rags-to-riches story, highlighting the entrepreneurial spirit.
• 💼 Gokongwei's success is attributed to seizing opportunities and his 90% success rate due to thorough research and study before venturing into new business areas.
• 🏭 With a reputation for being tough and competitive, Gokongwei built JG Summit into a conglomerate leading in food, airline, and property sectors in the Philippines.
• 👶 Born into wealth, Gokongwei lost everything at 15 and had to start as a peddler, learning the importance of hard work and gaining people's trust.
• 📚 Emphasizing the value of education through self-study and reading, Gokongwei believes in continuous learning as a key to success.
• 💰 His first million was made at 30 through cornstarch and battery production, followed by diversification into snack foods and other industries.
• 🌐 Gokongwei's business philosophy includes having reserves to weather crises and not declaring default, which helped JG Summit survive the 1997 Asian financial crisis.
• 🔍 He actively seeks business ideas through travel, reading, and observing consumer behaviors, like noticing the popularity of tea among Chinese travelers, leading to new business ventures.
• 📉 Gokongwei admits not all ventures are successful, emphasizing the importance of closing unprofitable projects and reallocating resources.
• 🛑 His four rules for entering new businesses include feasibility study, capital assessment, competitive analysis, and the personal ability to sleep at night without worrying.
• 🏛 Gokongwei's vision for the company involves maintaining a manageable size, good governance, and a foundation that supports education and societal development.

Q & A

Who was the late Filipino tycoon Jongo Conway known as?

Jongo Conway was known as 'Big John,' a visionary entrepreneur with a rags-to-riches story.

What is Jongo Conway's business philosophy according to the 2007 interview?

Jongo Conway believed in seizing opportunities and conducting thorough studies before venturing into new business areas, which contributed to his 90 percent success rate.

How did Jongo Conway's reputation for being tough-as-nails help in building JJ Summit?

His tough-as-nails reputation helped him build JJ Summit into one of the largest conglomerates in the Philippines, leading in food, airline, and property sectors.

What was Jongo Conway's first successful business venture?

Jongo Conway made his first million by running a cornstarch battery business when he was 30.

How did the 1997 Asian financial crisis impact Jongo Conway's business strategy?

The crisis led to diversification into other businesses such as telecoms, petrochemicals, aviation, and banking services, which helped the company weather the economic downturn.

What is Jongo Conway's approach to spotting business opportunities?

He spots business opportunities through extensive travel, reading, and observing consumer behavior, as exemplified by his entry into the tea business after noticing Chinese travelers carrying tea.

What are Jongo Conway's four rules for entering new businesses?

The four rules are: 1) Conduct a study to determine feasibility, 2) Ensure having the necessary capital, 3) Assess if the business can serve the people and compete effectively, 4) Evaluate if the venture allows for peaceful sleep, indicating manageable risk.

How does Jongo Conway manage the risk of expanding the company's footprint abroad?

He expands by following his four rules for risk assessment and ensuring that the company has a solid foundation and competent professionals to manage operations.

What is Jongo Conway's view on the role of an entrepreneur in the changing business landscape?

He believes that entrepreneurship has evolved, with less ability to start from scratch with minimal resources, but still offers opportunities for those willing to take on challenges and adapt to change.

What advice does Jongo Conway have for aspiring entrepreneurs?

He advises them to adapt to change, understand market needs, and be willing to take calculated risks while maintaining a focus on long-term vision and hard work.

What legacy does Jongo Conway wish to leave behind?

Jongo Conway wishes to be remembered as an example for young people that success can be achieved through hard work and integrity, and that those who make money should also contribute back to society, particularly through education.