COMMENT ON BOO CHANCO'S: FAVORABLE BIZ CLIMATE OPTIONAL

While waiting for my lunch at Pancake House,Katipunan the other day, I picked up a copy of The Star and after checking the price of Jollibee stock (P 74,) I decided to kill more time by reading Boo Chanco's column.

He wrote about Ramon S. Ang (RSA) of San Miguel, who when asked to comment about the poor rating Philippines got re: its business climate, was heard to remark: "Eh di mabuti!" Boo went on to explain that RSA took a different view of things...if the bad climate discouraged foreign investors,then there would be more opportunities for Filipino businessmen to exploit.

It just struck me how maverick types like RSA viewed things, and I guess that's why they're on a class of their own. He seemed to me like an iconoclast, not happy with San Miguel's old portfolio of beer, food etc., he diversified the business, going into businesses that were not within the old SMC's "core competencies" (read: "comfort zones") It appears though that the risk taking is paying off, at least for stockholders, who have seen the price of SMC stock rise since RSA made major changes.

It kind of reminded me of TTC (Tony Tancaktiong) of Jollibee. He was always breaking Jollibee out of its comfort zone so we could rise to the next level.

For instance, when he seriously envisioned that Jollibee would have 100 stores by 1988, no one thought it possible...mainly because our batting average for opening stores was only 2 stores a year. The 100 store vision would demand that we open at least 20 stores every year for three years (from 1985,when I joined.)

But lo and behold! In 1990 and 1991, we were able to open more than 20 stores within a year. The sudden spurt in growth of our store base left McDonald's eating our dust. George Yang didn't know what hit him.

Again, in 1995, TTC declared that we should hit 500 stores by the start of the new millenium. Once more, he was dreaming the impossible because that meant opening about 50 stores a year when our current capability then was only 20+.I remember having to meet my Training staff and telling them we have to re-think our current way of doing things because no way could we keep up with the demand for trained managers if we did things "as usual."

The new direction gave birth to our memorable MDP sessions, which introduced new management programs to Jollibee. Those who went through these eventually became heads of RBUs, and core of the middle management of the Jollibee brand.

TTC has set his sights on Jollibee becoming recognized as one of the top three QSR brands, not only in the Asia Pacifi region, but in the whole world. He and the JFC group are doing that slowly but surely...whether the business climate is good or bad. One of these days, I will not be surprised if one day Boo Chanco will write about Jollibee, as a brand that made it to the top of the world...in spite of the unfavorable Philippine business climate.