Revisiting Managing Asia's 2007 interview with the late John Gokongwei | Managing Asia
Summary
TLDRIn 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
- π John Gokongwei, a Filipino tycoon, is celebrated for his business acumen and his rags-to-riches story, highlighting the entrepreneurial spirit.
- πΌ 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.
- π 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.
- πΆ 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.
- π Emphasizing the value of education through self-study and reading, Gokongwei believes in continuous learning as a key to success.
- π° His first million was made at 30 through cornstarch and battery production, followed by diversification into snack foods and other industries.
- π Gokongwei's business philosophy includes having reserves to weather crises and not declaring default, which helped JG Summit survive the 1997 Asian financial crisis.
- π 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.
- π Gokongwei admits not all ventures are successful, emphasizing the importance of closing unprofitable projects and reallocating resources.
- π His four rules for entering new businesses include feasibility study, capital assessment, competitive analysis, and the personal ability to sleep at night without worrying.
- π 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.
Outlines
π Entrepreneurial Spirit of John Go Kong Way
This paragraph pays tribute to the late Filipino tycoon John Go Kong Way, known as Big John, who was celebrated for his business acumen and courage. It recounts his journey from a peddler to one of Southeast Asia's richest men, emphasizing his ability to seize opportunities and his 90% success rate in ventures. The summary also touches on his early life struggles during World War II, which instilled in him the values of hard work, trustworthiness, and education. His first million came from the cornstarch business, and his empire, JG Summit, expanded into various sectors, including food, airlines, and property, weathering economic crises with strategic diversification.
π Business Expansion and Risk Management
The second paragraph delves into John Go Kong Way's approach to business expansion and risk management. It highlights his four rules for entering new businesses: thorough study, capital availability, competent team, and personal peace of mind. Despite some ventures not being successful, such as an ice cream project, he emphasizes the importance of closing unprofitable projects and moving on. The paragraph also discusses the strategic decisions that led to the company's growth in telecommunications and aviation, and the importance of having reserves during economic downturns. His business ideas stem from travel, reading, and observing global business practices, which he applies with an innovative mindset.
π¨βπ§βπ¦ Family Business and Legacy
In the third paragraph, the focus shifts to the family aspect of John Go Kong Way's business empire. He discusses the importance of keeping the business within the family to ensure continuity and control. The paragraph outlines the structure of the company, with a foundation owning 30% of the shares and family members in key positions, ensuring the company's stability even in his absence. It also touches on his belief in the advantages of family businesses, such as loyalty and understanding each other's capabilities. However, he acknowledges the need to bring in outside talent as the business grows and diversifies.
π Entrepreneurship and Adaptability
This paragraph explores John Go Kong Way's views on the evolution of entrepreneurship and the importance of adaptability. He reflects on the changes in the business landscape since his early days, noting the increased complexity and the need for capital. Despite these changes, he believes that entrepreneurship remains a viable path, with the potential for success in various sectors. The paragraph also discusses his personal regrets, such as not learning Mandarin or playing an instrument, and his advice for aspiring entrepreneurs to adapt to change and capitalize on market opportunities.
π Legacy and Advice for Future Generations
The final paragraph wraps up the tribute with John Go Kong Way's thoughts on legacy and advice for future generations. He expresses his desire for his business to remain a family affair and for his children to carry on his values of honesty, integrity, and hard work. He also shares his belief in giving back to society, particularly through education, and his commitment to this cause by donating a significant portion of his wealth. The paragraph concludes with his hope to be remembered as an example of success achieved through ethical means and his dedication to inspiring young people in the Philippines.
πΊ Managing Asia Special Tribute
This final section is a closing note from the host, Christine Todd, summarizing the special tribute to Mr. John Go Kong Way and inviting viewers to explore more content from CNBC International. It serves as a sign-off, encouraging viewers to subscribe to the channel for more videos and to engage with the content by clicking on the recommended videos displayed on the screen.
Mindmap
Keywords
π‘Industrialist
π‘Philanthropist
π‘Entrepreneur
π‘Rags to Riches
π‘Conglomerate
π‘Diversification
π‘Opportunity
π‘Competition
π‘Reserves
π‘Innovation
π‘Success
π‘Legacy
Highlights
Jongo Conway, a Filipino tycoon, is celebrated for his rags-to-riches story and business acumen.
Conway's success is attributed to his ability to seize opportunities and his 90% success rate in ventures.
With a reputation for being tough, Conway built JJ Summit into a leading conglomerate in the Philippines.
Conway's business philosophy includes competition as a motivator and the importance of reserves during crises.
Despite being born into wealth, Conway lost everything at 15 and had to start from scratch.
Conway's first million was made by 30 through cornstarch and snack food production.
JG Summit's diversification into various sectors like telecoms and petrochemicals helped it survive economic challenges.
Conway's business ideas stem from extensive travel, reading, and observing market trends.
Not all business ventures are successful; Conway mentions closing an unprofitable ice cream project after 20 years.
Conway's four rules for entering new businesses include feasibility, capital, competition, and peace of mind.
Family businesses are valued by Conway for their loyalty, shared knowledge, and long-term commitment.
Conway emphasizes the importance of adapting to change and understanding market needs for business success.
He advises entrepreneurs to be prepared for challenges and to take calculated risks based on thorough research.
Conway's legacy includes his contributions to education and his belief in giving back to society.
The transcript reflects on Conway's life, from his humble beginnings to becoming a business magnate.
Christine Todd pays tribute to Conway's vision, curiosity, and the entrepreneurial spirit he instilled in others.
The interview concludes with Conway's reflections on his life, achievements, and the importance of family in business.
Transcripts
[Music]
an industrialists
a philanthropist the late Filipino
tycoon jongo Conway was hailed for his
business acumen and courage a visionary
with a legendary rags to riches story in
this episode of managing Asia we pay
tribute to the man many called Big John
with this interview from 2007 a true
entrepreneur can find opportunities
anywhere words of John go kong way
filipino tycoon and one of the richest
people in Southeast Asia known for its
sharp intuition and business savvy go
kong way has done exactly that he has
found success by seizing opportunities
even in his semi-retirement days over
the past decade
I see a opportunity I going if that is
an opportunity that I have unfortunate
but before we go into anything we really
make a study of what that's why we have
been 90 percent successful in all our
adventures with this tough-as-nails
reputation but iPod has built up JJ
summit into one of the largest
conglomerates in the Philippines
leading in the food airline and property
sectors when you avoid the business in
your successful you learn and you get
you know you feel you can compete
against anybody that's what I my
personal feeling is I live with from
competition otherwise youuuuuu were
wiser away
Cheers go Conway who turned 80 last year
was born into wealth but he lost
everything when his father died and his
mother moved to China during World War
two
and the young age of 15 he had to fend
for himself
the only thing open for me was either
AdvoCare peddler work for somebody else
so I decided to get a bicycle and become
a peddler and there's a very
exhilarating experience I don't never
forget it if I would look back as well
my best time in my life what only
lessons did you learn from your
childhood struggles and hardships most
important thing is to have people trust
you work hard the usual thing and try to
get as much education as you can by
reading or for the world no schools open
then and austerity to certain degree and
the other world the other virtues of is
a Confuciusornis I think I believe in
that I in fact I practice that up to
this this day
[Music]
go Conway made his first million when he
was 30 running a cornstarch battery but
he struck a bigger gold mine producing
snack foods in the 1990s jg summit
diversified into other businesses
including telecoms petrochemicals
aviation and banking services a timely
move which analysts say helped the
company whether through one of Asia's
most challenging periods than 97 crisis
like a foot business in the recession I
have noticed the last four years it's
never been really affected airplanes
very bad because people have no money to
travel but they eat they have to eat so
it depends on what business but what is
important you must have reserves
you must have reserves that in a crisis
you don't you know declare default
because of your declared in in default
you are in big trouble
since then go Conway has aggressively
expanded the company's footprint abroad
so where does the visionary get his
business ideas from I travel a lot I
read a lot
you asked me about do is very big
interpret know so business people and
the West or Japan or even Asia what they
do and you know I spent two three hours
reading every night how do you spot
business opportunities just by reading
no you read the you know what's going on
then you know travel around see and like
see - that's a very string that this
exceptionally successful we launched it
- two years ago I knew about the thing
by traveling in China I see every
Chinese bring a bottle of wine what's
that for I said it's tea I said with the
Chinese to bring three for free you know
you know this is such a symbol everybody
has that so I had a meeting a more
people we decided to go into it so we
went through the very big way and the
successful
a very big Wade we're we were even have
started but but the results do all your
business ideas come to fruition not all
not all their subject are not very
successful we had an ice cream project
that we had for 20 years we decided to
close it anything that doesn't give us
the return we will just close it you'll
move into aviation and
telecommunications really surprise to
everyone how did you calculate the risks
when it comes to entering new businesses
well first of all I have four rules
first you make a study whether you can
do it
secondly do you have the capital or the
deep pockets needed third do you help
the people and can you compete the
fourth is can you sleep at night I guess
I could have all three sleeping at
nights maybe have a little difficulty
but I actually during the daytime nap so
I I recover sometimes at night you know
when you're interpreting order you're
not ninety five you always think of a
problem you but I usually don't I just
go to sleep I love to sleep that's one
of my my breeches I think I love to
sleep so nothing keeps you up at night
at all nothing some do but surprises
maybe surprises or crisis all crisis
well either one new looking at your
empire the go Kong way impasse spanning
across eight core businesses do you ever
get worried that a company gets too big
too clumsy and too slow footed we're in
eight areas and we feel we're not going
to go beyond that and we're doing very
well the last five years it's been
increasing I have put in place very good
we have a foundation that owns 30% of
the company you know I gave half a mile
shares to the foundation my son is
running it as president my brother is
chairman and the two of them combined
about 50 years of experience in the
company
so if I'm not around they couldn't run
it as well maybe even there who knows
and we have a complete line of very good
professionals down
we had a McKinsey did a thorough job of
analyzing our company about eight years
ago and they recommended some steps that
you are taking and which we feel is with
some revisions was very useful for us
and this has made us a more efficient
company and more willing to to take
risks that are more more understanded
risk so in the end I think we we're in
the right place and are looking at
competition I think we will do well
definitely what what stands out for me
is his innate curiosity he's always he's
always wants to know how things work is
always interested in the new news saying
the new idea and second is really his
long-term vision and courage that he's
willing to take on make large bets and
take on take on giants for instance when
he launched civil Pacific which was the
low-cost carrier or he put up a
petrochemical plant in the in the
Philippines at the curiosity and the
courage or something to me that that
stands out what this is instincts have
you picked up from him I hope they're a
little bit of it rubbed off on me your
ship and you know the ability to I I
think my father's always taught me that
we're we're not in this business for the
next deal we're in this business to
really we want to have a business that
that stands the test of time so really
my role is to be a story but not a
conservative story but to be a you know
to keep the entrepreneurial spirit in
this company you don't you don't survive
by playing safe not you
to take bets from the days he peddled
wears on his bicycle to running one of
Philippe's largest conglomerates jongo
Conway championed entrepreneurship a bad
she wore proudly from start to end how
you think the role of an entrepreneur
has changed in the last 10 years
enterpreneurship in in in in in in in in
the philippines in asia has changed a
little when i started i could start with
a bicycle and end up where i am i don't
think you can do it with a bicycle down
and and where I am that's one big
difference second when I started I was
the gel bondage
I was the purchasing agent I was the
warehouse burn I was you know cashier I
guess now you can't do that anymore
the certain changes in the environment
but use enterpreneurship is still good
you can still log on as a group come
with some capital go into areas just
like in the u.s. your global Yahoo you
have all this Intel Microsoft these are
all interpreter ship it's starting in
the Philippines you have a lot of this
in Taiwan even in Singapore in Malaysia
some but mostly in Korea and Taiwan
that's very strong interpreter ship how
do you know that you have what it takes
to become an entrepreneur well you know
you can do it you can click and some
people just like 9:00 to 5:00 you know
they they don't want to have the
headaches enterpreneurship is very
challenging it's very worthwhile but
it's also an area where you have a lot
of headaches pressure sleepless night
but it passes through rewards I would
choose interpreter ship any time how
much of what you did was based on pure
gut instinct I don't think there's some
gods like we were selling in a bicycle
doesn't you don't need a god you need
hardwork ingenuity but as you grow
bigger now like rush it it's a different
ball game now
you hope to have so many stuff work and
you know I don't know for personally
from my viewpoint there's too much stuff
work being done before we go do any
projects there's so many stuff work from
what I knew before is if Emma it's I
agree with the you set up it's better
that way it's easier to make less this
that make mistakes you can find out
before you do it in today's competitive
environment how do you formulate a
killer strategy it's not good to out
your opponent you must leave them some
part of the market because of Europe the
mounted some some governments may not
like it the Philippines is known for its
political upheavals as a businessman how
do you manage and adapt
when you're building businesses you're
15 you learn you learn I passed through
President Rojas Quirino then you have
monks I say Garcia all the way down to
is really you learn after you better
about that presidential you what is more
important is the the policies of the
country like now we're part of the
globalization efforts whether it's good
for the Philippines I don't know up to
Nam that's quite sure do you have any
advice for entrepreneurs on how to make
it this far and this big to make really
big money adapting to change I think
it's critical because if you are in the
wrong business you may be the smartest
guy alive you can't make any money you
be able to do to to be able to pinpoint
with at least some accuracy where the
economy is going and in that economy
what kind of businesses are required and
then go into it say guys making
carriages the automobile industry comes
in you still get stuck together
whoever the best care is making the
world you know that's that's number one
rule for me now let's talk about this
book that your children gave you for
your 85th birthday the ending goes
something like this
I'm an old man I'm now 85 years old I'm
no longer little John I am now Big John
who weighs over 200 pounds
you really weigh over 200 pounds yes
unfortunately I have a good wife and a
good family
I am happy do you think you've achieved
everything he wanted a to in life no two
things that I wanted to do but I I
didn't have the money or the time to be
able to learn Mandarin I had to play an
instrument I played piano for six years
when my father died I'd no more money to
pay for the piano teacher system and
what there is the same thing these two
things I wish otherwise I have fulfilled
my duty to the family to garden to
country you say you want to keep the
business within a family why is that
important to you the family should be
able to to be able to be responsible for
the business that means they have
control of the sorts of the business
this is important I've seen also in
Europe in the it's not very much in the
US but in Europe a lot of the mostly
companies or maybe 50 percent are run by
families BMW Mercedes in America slowly
out because of taxation and all that for
me I believe that the children it's at
least it's the heritage the hell they
have to take care of it but I as I said
I have given half of my fortune to the
foundation so what did you do that I
like to to help in the education of the
child I've been giving since I was
thirty years old and beginning the
schools I gave a building
there was only 30 that that was still
struggling but I had said it you know
it's a good thing to help help Society
so it wasn't simply to stop your
children from squabbling over their
inheritance no no no this team up half
they want a squabble tickets were over
the other half do you think there's
certain advantages to family businesses
especially we are starting in first you
you know each other you you know so that
they're gonna work
and that just resided and they don't
like it it professionals you you always
have the problem with the resigning
because somebody is offering a better
job Berlin so it's hard to look for a
new one well well if you have a relative
or you know he stays like my brothers
they stayed with me all their lives
loyalty and I think that's this is very
critical and secondly you can tell them
basically all the things that should be
told and thirdly which is most important
you know their capabilities because if
you get a professional you don't really
know their capability I've made some
errors in hiring professionals after you
hired them then you found her that
they're they're lemons you know what's
too late you have to find them but with
your family
you've grown with them you give them a
small job that you know exactly what
they can do but that's changing also
because when your business grows big
enough your relatives so you're forced
to look to outside you having people
also build talent like Airlines
telephone Petro camera you can hire on
concept but they don't know anything
about the business you have to get real
pros for this your son Lance go Conway
will ultimately inherit a company what
advice would you give him on how to run
or carry on the family business as far
as fundamental ii said he should i would
like him to follow my my methods
what's more is running the business
going to new areas
going to that's his business but about
honesty integrity hard work all this
should not change and finally how do you
want to be remembered how does John
become we want to be remembered what
sort of legacy do you want to leave
behind the second example for the young
men young people the Philippines that
you can achieve without really resorting
to or measures that are not exactly
right
you can do it and do you make enough
money you should also give back to
society what you you earned and I have
been doing it in fact it's going to be
more more now because I built half mine
and given is from the shares will be
used to spend for schools and students
that's part of the legacy I want to
stress a lot of education to the youth
a legendary figure who will continue to
inspire for generations to come
mrs. managing Asia special tribute to
mr. John go Kong way I'm Christine Todd
thanks for watching
[Music]
[Music]
hi I'm Christine Todd and thanks for
watching
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