Managing innovation for your business

Aug 25, 2011

In today's economy, managing innovation within a company requires a good knowledge of the patent system in order to ensure that the company draws maximum benefit from its own innovative and creative efforts says the Intellectual Property Office of the Philippines. Innovation establishes profitable partnerships with other patent holders and avoids making unathorized use of technology owned by others.

Many innovations nowadays are complex and are based on a number of patented inventions, which may be owned by different patent holders.

So what is the difference between innovation and invention? Invention refers to a technical solution to a technical problem. It may be an innovative idea or may be in the form of a working model or prototype. On the other hand, innovation, refers to the translation of the invention into a marketable product or process.

Businesses innovate to:

1. Improve manufacturing processes in order to save costs and improve productivity

2. Introduce new products that meet customer needs

3. Remain ahead of the competition or expand market share

4. Ensure that technology is developed to meet actual and emerging needs of the business and its clients

5. Prevent technological dependance on other companies technology

If your company has an invention that is crucial to its operation, you should consider patenting it. A patent is an exclusive right granted by the state for an invention that is new, involves an inventive step and is capable of industrial application. A company needs a patent to retain exclusivity over a new product or process.

For more information on registering your patent in the Philippines, check out the Intellectual Property Center web site at www.ipophil.gov.ph

4 tips to make your product stand out from the competition

By Entrepreneur Staff

Sep 06, 2011

Can your customers tell the difference between your product and its closest competitors? If not, it may be time to change your strategy.

The business world is so fast-paced and competitive right now that one must include differentiation as part of long-term success. This is what will make your product unique and stand out from the rest. Your marketing strategy must be original and place a new twist to an old concept.

Let’s take a look at an old slogan. Most of us instantly recognize “Good to the last drop” as belonging to Maxwell House. This venerable slogan has been successful at differentiating the product from scores of competitors, including many that might otherwise appear virtually identical. Not only has it been hammered home year after year, but the slogan also works because it encapsulates the promise of the brand in a way that’s uniquely valuable to the target audience.

Differentiation plays a key role in branding and is the foundation of a competitive advantage. And it profoundly affects your position in the minds of your prospects and customers. Effective differentiation can position you as No. 1 among your competitors—the company or brand customers turn to first—while a poor differentiation strategy can leave you buried in the middle of the pack.

Are you ready to develop your own differentiation strategy? Here are four steps to get you started.

Evaluate competitive messages. Your first step is to gather and evaluate the marketing materials of your chief competitors, including their ads, brochures and website content. Don’t be surprised if you see a lot of “me too” marketing. There’s simply a lot of bad marketing out there, and the fact that many of your competitors have no differentiation strategy will work to your advantage.

At least some of your competitors—usually the category leaders—will make promises that resonate with their target audiences. Carefully review the benefit statements your competitors make, and determine what claims set them apart.

Find what makes you unique. For a company-wide differentiation strategy, consider what separates you from the competitors you’ve evaluated. Whether you market a product or operate a service business, such as an accounting firm or a power-washing company, it’s essential to clearly differentiate through your marketing how what you offer is of unique value.

Your point of differentiation may relate to the way your product or service is provided, priced or even delivered. The most important thing to discover is the principal benefit you offer that is uniquely valuable to customers and gives you a competitive advantage.

Tell the world. Your next step is to create a new marketing message that communicates your product or service’s unique value. This message should become the core of your entire marketing campaign. To gain a competitive advantage successfully, consistently drive this point of differentiation home until it becomes integral to your brand image.

For example, through its slogan, Maxwell House communicates that its coffee will always taste good, not bitter, down to the very bottom of the pot. When repeatedly communicated through marketing, it’s this assertion about being “Good to the last drop” that differentiates the product and has helped make it successful over the years.

Keep your promise. Effective differentiation has everything to do with customer satisfaction, which builds loyalty and often trumps price as a main consideration of consumers. As long as your company can sustain its ability to differentiate in a way that consistently meets consumer expectations, customers may reject lower-cost competitors in favor of what you have to offer.

The bottom line is that customers see the value of what’s offered. Rather than go elsewhere for a similar product or service at a lower price, they’ll stay loyal because of the “intangibles.” Nothing will make you lose customers faster than a disconnection between your promises and the reality of customer experience with your product or brand. So for long-term success, your company or product must live up to its marketing promise.

10 tips to thrive in a competitive market

By Lissa G. Romero

Sep 18, 2011

With the world going through another financial crisis, the cartoon of a chicken screaming “The sky is falling!” is in vogue again. But businessmen don’t have to act like a panicked fowl in times like this.

Four entrepreneurs interviewed for this report— Brian Quebengco of the industrial design firm Inovent Inc., Dondon Atayde of the events company Wishcraft, Richard Cruz of the real-estate consulting company INSPIRE, and Jonathan Dee of Alliance Tuna International Inc.—all agree that instead of yielding to the stress caused by economic instability, SME owners and operators should see the situation as a challenge for their businesses to do even better under great pressure.

1. Know your strengths

Quebengco: “A strength is an activity or talent that makes you feel good while you are doing it, and leaves you energized after,” he explains. “A weakness, on the other hand, leaves you stressed out and tired. Instead of trying to DIY [do it yourself], you need to get partners who are strong where you are weak. You need to build a strong team.”

Cruz: “Instead of spreading the resources of the company thinly, go back to your strengths as a company and focus your resources there,” he explains.

2. Share the load

Quebengco: “Know something about accounting, but if numbers leave you drained, hire an accountant,” he suggests.

Dee: “When my company (it was then called the First Dominion Group) collapsed during the 1997 Asian financial crisis, I found great relief from stress by being with a supportive group of friends and by spending downtime with his family,” he said.

3. Respect the boss

Atayde: “Even if my partners and I have an equal interest in the company and we sometimes clash in the boardroom, we always respect the chain of command. At the end of the day, we are five partners, but there is only one boss.”

4. Stay debt-free

Atayde: “We resisted being greedy and splitting the profits right away when we started,” he says. “We grew the business slowly, a process that allowed us to learn the business better.” The result, he says, is a debt-free company with a very sizable capital base.

5. Protect your capital

Cruz: “Capital is essential in starting a business and protecting that capital is vital especially with the practice of many clients today of paying three to six months after service is rendered to them.”

6. Spend wisely

Atayde on how they grew Wishcraft: “The capital we had put back into our business helped us expand from being simply an events company into a holding company, with businesses in manpower promo activations, staging, rigging and displays, and logistics and vehicle rentals. We are able to keep our costs down because when you own related businesses, you can share resources. In any case, we are cautious about sharing the dividends even until now and would rather invest our capital in new businesses.”

7. Go beyond cost-cutting and strengthen the brand

Atayde: “The old adage, ‘Cut costs to maximize profits,’ still holds true,” he says, “Every year, therefore, we always make it a point to examine where we can cut costs.”

Cruz :“Instead of simply cutting down on advertising, it may be good to study your brand and find a way to make your clients or your customers feel that you care about their situation. In this manner, you can market or advertise your product more effectively to your customers.”

8. Don’t dwell on negatives

Quebengco: “What holds you back or propels you forward is your belief,” he says.

Atayde : “Business is all about opportunity,” he says. “When you’re on the lookout for opportunities, they will present themselves. Dwelling on the negatives will blind you to the good things coming your way.”

9. Look within and make the hard decisions

Cruz: “An internal failure can be a character flaw like laziness or greed, a loss of drive or passion, depression, or simply doing too much too soon. The ability to honestly assess one’s self at all times can alert one to an internal failure before it becomes detrimental to the business.”

For his part, Dee shares his experience as a once floundering entrepreneur: His First Dominion Group had borrowed heavily in US dollars so it could expand and acquire other companies. This exposed the company to a foreign exchange loss of up to P1 billion when the currency exchange rate went up from P26 to P43 to the dollar, and then to over P50 to the dollar.

When interest rates then rose to 30 percent, Dee’s company—at the time considered the second largest exporter of canned tuna in Asia—got starved of badly needed working capital. He says there were no shortcuts to surviving the crisis, which lasted about six years. “We had to make hard decisions and swallow our pride,” he says. “From a work force of 6,000 in 1996, we shrank to 600 in 2002. From five operating factories, we retained only one.”

10. Pick yourself up

Dee: “If you know your business and are committed to it, you will no doubt find a way to bounce back,” says Dee. “You need to pick yourself up every time you hit the pavement.”

Indeed, in 2003, Dee re-established his tuna canning and export business as Alliance Tuna. Today, the company has a strong balance sheet, zero long-term debt, and is listed as the most profitable tuna packer in the country, with plans to expand operations not only in the Philippines buy also to Indonesia and New Zealand.

Smalltalk can be a key in negotiations

By Rafael Santos

Sep 17, 2011

In the Philippines, business matters are always best dealt with on a face-to-face basis in a warm and pleasant atmosphere.

While many Western business people think that time is gold and want to get to the point immediately, the Filipino likes to be indirect, talk about mutual friends and family, exchange pleasantries, and share a joke or two. Only after establishing a cordial atmosphere will people negotiate.

To a Filipino, cultivating a friend, establishing a valuable contact and developing personal rapport are what make business wheels turn. Coming to negotiations armed with a few but great conversation starters can help you get a better for the coming business deal. Only in the Philippines!

Feng Shui forecast for business in the Year of the Metal Rabbit

Text by Carlo P. Mallo, Illustration by Warren Espejo

Feb 02, 2011

If the Feng Shui experts are right, this will be the year that we will see the stock market rally to all time highs and the entertainment industry, well, entertaining.

Most Feng Shui experts see the 2011, the year of the Metal Rabbit, as a bright year for the stock market, the entertainment industry, lighting, restaurants and other businesses that have the element of fire.

“The stock market is promising especially during the summer period,” one Feng Shui expert quipped. “There will be plenty of opportunities as the financial system continuous to look optimistic this year.”

Industries that have the earth element are seen to have a good outlook this year. Property, real estate, building, construction, and hotels, to name a few, will also have plenty of opportunities during the year of the metal rabbit.

However, Feng Shui experts warned that entrepreneurs who are engaged in these businesses, or those who plan to, should “go slowly in order to make the right decisions.”

Investors should also refrain from taking too many risks.

Although water is said to be in contradiction with the metal element, businesses with the water element is seen to have a good year during the year of the metal rabbit. Banking, shipping, transport, alcohol, and fishing will be having a good year due to an auspicious star that brings hidden wealth luck.

“Bargains will be available for investors. But they must only take calculated risks,” a Feng Shui expert advised.

While in the same element with the year, industries with the metal element are only seen to have a competitive outlook this year – in layman’s terms, nothing spectacular.

The metal element is seen in businesses like mining, jewelry, white goods, computers, and airlines. People who are engaged in any of the said businesses are strongly discouraged from taking any “direct combative competition.”

“There will be a need for creative strategies on the business approach,” a Feng Shui expert suggested.

Agriculture, plantations, flowers, plants, publishing, and other businesses with the wood element have a discouraging outlook for the year of the metal rabbit.

“There will be little wealth luck and profit in these businesses as markets are expected to slow down for these products. These businesses must diversify to survive.”

However, the Feng Shui expert added that hard work and perseverance are still the two traits that will pay off, no matter what year it is and what industry your business may belong to.

5 ways to target a niche market

By Entrepreneur Staff

Oct 11, 2011

Marketing and selling your products can be a tricky trade, especially when you are dealing with a niche market. Thus, we asked Entrepreneur’s Young Millionaire for 2005 Barbi Chan, owner of Salon Paradiso and is Maybelline New York’s official Makeup Artist in Manila, to answer five of the most pressing questions on how to market and create a loyal customer base in a niche market.

1. How does one sell to a niche market?

“First, don’t run the business with a calculator. In our niche, we try to come up with reasonably priced flavors from what we have, but we never compromise based on price. For example, we don’t replace our pistachio with peanuts just because peanuts are cheaper. Second, don’t compete with the big players; they cannot develop products and sell a little like we do because their overheads are big. To survive, differentiate. Develop markets different from the big players’.”

2. How should one behave in the first face-to-face meeting with a prospect?

“Don’t speak, but instead listen as the other person talks. Then give appropriate feedback and comments.”

3. How does one get customers to recommend his business to others?

“Give 100 percent to the job at hand. Make them see that sticking their neck out for you is worth it.”

4. How does one create loyal customers?

“Always make them feel they’re number one and that they’re getting their money’s worth. Treat them as friends, and not as profit sources. In my business, personal touch is very important. I can tell a client’s personality by simply talking with him, and based on this conversation, I determine the look that would best fit him.”

5. How can one adjust to the customers’ changing tastes and preferences?

“Travel abroad once or twice a year to update your skills and to keep abreast of trends. Then set your own trend.”

Setting your marketing goals for business success

By Entrepreneur Staff

Oct 11, 2011

To ensure success, the marketing strategy of your startup needs to achieve four specific goals for a particular product or service: strong consumer focus, meaningful segmentation, clear and compelling brand positioning, and a relevant marketing mix.

Strong consumer focus

Nobody buys anything for what it is. Consumers purchase a product or service for what they think it does to them (benefit). Thus, it is a must for companies to be grounded on solid understanding of the consumer or customer. They should find out as much information about their target through relevant consumer researches or studies. They should be aware of what makes their customers/consumers want to buy a specific item or service.

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Marketers have the tendency to want to develop products that carry superior functional claims. Though this is a good thing, it is not always possible to achieve such demonstrable product superiority because of technical or cost limitations.

Meaningful segmentation

To really know their target market, marketers need to identify the group of consumers that has the strongest need for or affinity to the brand. Every consumer is, of course, unique. Each has needs that are different from others, so it would be unwise to custom-fit a product or service offering to a single individual. For the same reason, it would be impractical to expect the needs of all consumers to be satisfied by a single product or service offering. Thus, the most cost-effective, practical way to market a product is to target a specific group of customers and consumers with largely similar needs.

This is where market segmentation comes in—identifying and targeting a group of consumers that are in some demonstrable way similar to one another but different from the rest of the market. Determining the most apt group of consumers for its product or service can, of course, be done through an appropriate market segmentation study.

Clear and compelling brand positioning

Creating an image for your product and clearly positioning it in the minds of the target market—these are musts for establishing a long-term relationship with the consumers. Brand positioning, which sustains the brand image and explains the product’s unique selling proposition (USP), is ultimately what makes the consumers choose a product over its competitors and patronize it over the long term. It is what makes a brand uniquely meaningful to its target markets and what clearly distinguishes it from the other players in the same product category.

Solid marketing mix

A strong marketing mix that is consistent with the brand positioning is a must for ensuring that a brand will continue to sell. The marketing mix is simply the totality of the activities done by the company that affects the marketing and selling of the brand. Each element of the mix—product, packaging, pricing, distribution, promotions, advertising—has its own characteristics, but each must be carefully considered in its relationship with the other elements and with the overall marketing strategy to ensure that the delivery of the brand promise is maximized.

This marketing mix should be balanced and made consistent with the brand’s desired position and image in the market. To have it any other way would just confuse consumers and weaken the standing of the brand in their minds.

Imbibing the entrepreneurial culture

By Debbie J. Pepito

Oct 25, 2011

For three times since 2007, property developer Megaworld Corp. has hit the billion-peso mark in its monthly real-estate sales. The secret behind this performance, says Noli D. Hernandez, vice president for marketing, is the company having successfully inculcated the entrepreneurship culture among its sales staff.

“A company’s culture is very important,” he explains. “In Megaworld, we teach our people to treat themselves as entrepreneurs. If you can get people to think themselves as entrepreneurs, then you’re off to a very good start.”

Hernandez handles Megaworld’s Marketing I unit, which sells residential condominiums, lots, and villas at the company’s projects in McKinley Hill Village in Taguig City and at the Forbes Town Center at the Bonifacio Global City (BGC) in Makati City.

All of the Megaworld sales personnel, Hernandez says, undergo at least a two-week orientation and value-formation training before they are sent to the field to sell real estate. These programs have been designed to appeal to what Hernandez says are two things that ultimately motivate people to work harder: “the pursuit of pleasure, and the avoidance of pain.”

This approach involves explaining to new sales staff recruits how fast it is to achieve financial security if only they would work harder and smarter, and how economically and socially painful it would be if they miss on these opportunities.

“Most of our sales people used to commute by public transportation,” Hernandez says. “Now, almost all of them—and they are still in their 20s to early 30s—already have their own brand-new cars and condos.”

Megaworld’s sales people usually establish initial contact with prospective clients by distributing flyers in places with heavy foot traffic (they call it “flyering”), putting up booths inside malls and department stores, and getting referrals from existing clients as well as from relatives and friends. Since the sales people earn their money through commissions (2.7 percent of the gross sale in the case of Megaworld), they are not treated as employees but rather as the company’s business partners.

Says Hernandez: “I tell them: ‘This is your business and it’s part of our business. If you do your business well, we can go on doing more business and be financially successful together.’”

He elaborates on this approach: “If everybody sees this job as his or her own business, the synergy is there and all we have to do is cultivate it. I’m sitting on top of a well-oiled machine and I’m happy that it’s like that because now I’m counting on people to think for themselves and realize that they’re not working for me but for themselves. As entrepreneurs, they can put in as many hours in this business as they like and I don’t have to breathe down their necks. If we get them to realize this truth, then my job is half done.”

Rachel Peñaflorida, senior sales manager and a one-time protégé of Hernandez, has found the Megaworld culture very contagious and appreciates the fact that it allows each sales staff to do what works for him or her. She recalls that when she was new to the job, some of her colleagues preferred to do flyering to get new clients but she found that the approach didn’t really work for her. Instead, she used the referral approach, made her first sale through it, and has been doing business through referrals ever since. “The best strategy is finding what works for you, then creating a solid reputation among your existing clients,” she explains.

According to Peñaflorida, part of building a reputation is setting limits. Most first-time property consultants would do anything for a prospective client to the point that they may lose out in the end, thus sending the wrong message. “Don’t promise something you can’t deliver, it’ll only hurt you,” she says.

As to dealing with rejections by prospective clients, she gives this advice: “Don’t take rejections personally. Stay nice and courteous even when you don’t make a sale and your clients will likely remember you at a later time when they do want to buy. They may even recommend you to their friends.”

Since she is now a senior sales manager, Peñaflorida no longer makes active client calls but she continues to make sales through referrals from satisfied clients.

According to Hernandez, one major boost to Megaworld’s sales performance is the robust demand from overseas workers and from the work force of the business process outsourcing industry (BPO), coupled with the country’s improving economy.

“When I was a property consultant several years back, we couldn’t even make a billion in a year’s time,” he says. “But now, we can hit that target within a month. In fact, we actually made over P7 billion last year, and that’s just the Marketing 1 department alone, not the whole of Megaworld. In 2008, we made close to P800 million in January, P1.078 billion in February, and another P1 billion in March. So that says a lot about the real estate industry today.”

CONTACT DETAILS
MEGAWORLD CORP.
Forbes Town Center Showroom
26th Street corner Rizal Drive,
Crescent Park West District
Bonifacio Global City, Taguig City
Telephones: (02) 816-2937;
(02) 840-0549 local 124
Fax: (02) 816-2514
Website: www.megaworldcorp.com

5 factors to consider when buying a condominium as an investment

By Carlo P. Mallo

Jun 29, 2011

A lot of people are now buying condominium units left and right but don’t live in them. In most cases, these units are leased to students, young professionals, and young families.

But with the number of projects being developed throughout Metro Manila today, how would a condominium investor know which one to buy and which one to ditch?

During the launch of their condominium project, Marquee Residences in Angeles City, Entrepreneur.com.ph asked Alveo chief operating officer Robert Lao on what factors should a real property investor look for in a condominium project.

Here are his answers:

1. Location
“Even with the best design and aesthetics, but if the location of the project is not nice, it will not be a good investment. No one will buy or rent. Location is still the most critical factor in a real estate investment,” says Lao.

Most, if not all, Alveo projects are part of the mixed-use development projects of Ayala Land. The Marquee Residences is part of the Marquee development in Angeles City which houses the Marquee Mall, and Marquee Place, a subdivision development.

2. Developer
“Most development projects in the country are sold through a pre-selling system and the construction period is long. The project should be of a reliable developer that will allow you to sleep soundly at night knowing that you have entrusted your hard-earned money into developers who will deliver on time, have strong financial background. Their expertise is also a factor that should be considered,” says Lao.

Alveo is a subsidiary of Ayala Land, one of the premiere real estate developers in the country.

3. Community
One critical factor, often overlooked by most investors in condominium projects are the people who will be living in the community. After all, a condominium is a vertical enclave of families and individuals.

“Consider who your neighbors will be. At Alveo, we do not do a ‘chopsuey’ community development. Our market is very selective and does not usually resell their properties,” says Lao.

4. Maintenance
“Even before the construction, we already plan on how we are going to maintain the projects. We make sure that our projects are maintained even after turnover,” says Lao.

5. Look beyond
Aside from the four critical factors mentioned by Lao, if you are considering buying a condominium as an investment, you should also look at property developments available outside Metro Manila.

Alveo is currently developing properties in Angeles City in Pampanga, Cebu City, and Davao City. For more information about Alveo Project, contact us at 09173236123 | 09228236123.

Zoning your business

By Atty. Reeza Singzon

Sep 30, 2011

Putting up your own business can be very rewarding in many ways, but it can also be tricky and confusing particularly in the beginning when you are scrambling to obtain your certificates of registration and various licenses and permits.

Your first stop is, of course, the Department of Trade and Industry if you are registering your enterprise as a single proprietorship, or the Securities and Exchange Commission if you are registering it as a corporation or a partnership.

Then your second and third stops are the municipal or city hall and the barangay hall for their respective clearances. Your fourth stop all the way to the eighth stop are the following registration entities: the Bureau of Internal Revenue, the Social Security System, the Department of Labor and Employment (if you employ five workers or more), the Home Development Mutual Fund (for your workers’ housing fund), and the Philippine Health Insurance Corp. (for your workers’ health insurance).

And these are just for starters. Depending on your type of business, you may also have to register with the following licensing entities: the Movie & Television Review and Classification Board, the Bureau of Food and Drugs, the Bangko Sentral ng Pilipinas, the Philippine Overseas Employment Administration, the National Telecommunication Commission, the Land Transport Franchise and Regulatory Board, the Optical Media Board, and several other bureaus and agencies.

These, of course, are just for the licenses, clearances, and permits required by law for businesses in general. An even more important requirement—one that directly impinges on the kind of business you intend to pursue—are the requirements for where you will be doing your business.

As they say in the business community, the biggest success factor for any enterprise— the one that you really need to plan very carefully—is location, location, location! Do you want to put up your business within an industrial or a commercial area? If you choose commercial, do you want it in a high-density or a medium-density commercial area? Do you want your business located directly in front of or beside your competitor?

Your choice of location obviously will depend on your target market and, consequently, will determine the level of your sales. The most important concept that you will encounter when searching for an appropriate business location is “zoning.” But what precisely is zoning?

Zoning is the division of a community into zones or districts according to the current potential uses of a certain land area. So, anyone who occupies, purchases, or leases property should be familiar with the zoning law in the area. Have you ever wondered why so many competing funeral establishments are lined up in a row on a specific street? Or why drive-in motels tend to be located in clusters in specific areas? The answer is zoning.

The laws on zoning, which usually come in the form of ordinances enacted by local governments, are designed to optimize and regulate the use of land. Among the recognized benefits of zoning are the promotion of public health, welfare, and safety through segregation of residential areas from industrial areas; the promotion of public peace, comfort, and convenience by segregating noisy or malodorous industries; the prevention of unnecessary congestion of buildings and establishments; the promotion of the uniform use of real estate in the district or zone; and the promotion of real-estate values.

There are many zone classifications, but for business purposes, the following two types of zones are the most relevant: commercial zone (which is usually subdivided into areas of low, medium and high density); and industrial zone (subdivided into light, medium, and heavy). Depending on the nature of your business, you may also need to check out the following zones in your municipality or city: agricultural, institutional, residential, parks, and tourism sites.

Every local government unit has its own zoning ordinance, but most of them are merely modified copies of the Revised Model Zoning Ordinance issued by the Housing and Land Use Regulatory Board.

As a business owner, you must ensure that your establishment complies with the zoning ordinance in the area; otherwise, you might expose yourself to potential complaints from neighboring establishments, not to mention possible closure of your establishment as a nuisance.

Opportunities in the business travel industry

By Entrepreneur Staff

Oct 07, 2011

Meetings, Incentive Travel, Conventions, Exhibitions/Events Conference (MICE)
buyers tired of the usual destinations are now on the lookout for cities that can cater their needs and give them world-class experiences.

“The Philippines lacks in securing meetings with the capacity of 2,000 delegates and more, and the preferred meeting venues here are the venues inside hotels,” said Noor Ahmad Hamid, Asia Pacific Regional Director of International Congress and Convention Association (ICCA).

There are opportunities for local organizers, hotels, tour operators, travel agencies and destination management companies to take advantage of the underdeveloped MICE industry. One of the newest five-star hotel to do that is located in Cebu City, the Radisson Blu Hotel Cebu impressed delegates of MICECON 2011 with its “Hi-Tech Connect.”

“We have the facility and space to provide a venue for the MICE needs of business travelers,” said Grant Gaskin, Radisson Blu Hotel Cebu general manager. “With airlines offering direct flights from different countries to Cebu, more people have found a way to go to the city. But if they don’t find a place that can accommodate them, they will probably choose to hold their MICE activities in Manila. As such, Radisson Blu Hotel Cebu continues to innovate its services and offers to answer the ever-changing demands of Cebu as a MICE destination.”

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Known as the local hotel with the biggest outdoor pool, free-flowing and 800 square meters in size, Radisson Blu Hotel Cebu’s amenities offer a balance of work and play to MICE delegates. It has an outdoor events plaza that is perfect for cocktails and socials, and impressive function rooms with state-of-the-art equipment: For banquets set-up, the Santa Maria Ballroom that can seat 1,000 guests, the smaller Niña Ballroom that can seat 600 guests, and ten meeting rooms namely San Antonio, San Martin 1, 2 and 3, San Lucas, San Cristobal 1 and 2, San Pablo and San Pedro Santiago which can accommodate 10 to 100 people.

With Radisson Blu Hotel Cebu setting the tone in satisfying guests’ expectations and more, Cebu is expected to rise as a first-choice destination for international business travelers and help further improve the country’s tourism prospects.

For more information, call 09173236123 | 09228236123.

Understanding real estate investments

By Entrepreneur Staff

Sep 16, 2011

These days, when you go to a mall, it won’t be long before someone offers you a flyer for a new condominium or housing project. And you must have noticed that the newspapers carry a lot of housing loan ads by real- estate developers and banks. This is because so many new real-estate projects are rising within and around the metropolitan area.

People with money thus have a wide pick of real estate properties to buy for immediate use or to invest in. If you are in the investment mode, of course, you’d want to know if real estate is the right investment vehicle for you, and what types of real-estate property you can get for your kind of money.

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“It’s good to invest in real estate because you can see the uptrend especially if the property is really good,” says Ethel Guerrero, a licensed realtor and an investment consultant of Philtown Properties, a major real-estate developer. “In five years, you can already earn back the money you invested.” You definitely won’t get as high a yield when you place your money in the bank, she adds.

The key phrase in such upbeat statements, though, is “good property”—which actually means that real estate is all about location, location, location.

Indeed, according to Edwin P. Siongco, assistant vice president for sales of Megaworld Newport Property Holdings Inc., investing in real estate is better than buying jewelry or fine art because you can have regular income from the property if you rent it out. Of course, real estate can also be used as collateral for a loan that can be used to finance a business or another investment.

As for the cons, there’s the risk of the property not appreciating as much as you expected. This may happen when the development plans for the area where the property is located somehow don’t materialize, or when the surroundings of the property deteriorate.

Another disadvantage is that since real estate is a fixed asset, it may take a much longer time to turn it into cash if the need arises. Moreover, if the real-estate market is down, buyers will definitely be scarce so you may end up selling your property below your acquisition price.

There are many kinds of properties you can invest in—from condominium units and townhouses to house-and-lot packages and vacant housing lots or commercial lots.

Siongco says that over the years, there has been an increasingly greater demand for condos than for house-and-lot packages. “It’s because condos are easier to rent out and easier to resell, and they entail lesser maintenance,” he explains. “Also, condos have become a status symbol because there are many successful and famous people—Manny Pangilinan and Henry Sy, for instance—who prefer to live in condos.”

He also points out that foreigners, particularly Filipino-Americans, prefer to invest in condos instead of houses and land because the law allows them to own and have the properly titled in their name. “Many Fil-Am balikbayans want a place of their own here whenever they come back,” he adds. “One reason for this is, of course, that the conversion rate of the dollar against the peso makes buying condo units affordable for them.”

The promise of a cosmopolitan lifestyle is, of course, one of the strongest appeals of condos. According to Guerrero, condos attract people who like to eat out and go out a lot, and who want everything they need around them the minute they go out of their condo unit.

For FREE Real Estate Consultation, call 09173236123 | 09228236123.

Expanding to the Visayas? New mixed-use condo to open next year

Sep 23, 2011

Thinking of exploring the Visayas market? A new mixed-use condominium development is set for completion in Cebu next year called the AppleOne Tower. The project is located at the heart of the Cebu Business Park, the city's commercial and financial district.

It is the flagship project of AppleOne Properties Inc., a homegrown company in Cebu with close to 20 years of experience in real estate development. The building is 16-storeys high and is Philippine Economic Zone Authority (PEZA) accredited.

AppleOne Tower is ideally located right next to the Marriott and is only a few steps away from the Ayala Terraces and the colorful Ayala Center that offers great shopping, varied dining experiences and exciting entertainment. It is also close to offices of major corporations, financial establishments, banks, telecommunication companies, shopping and entertainment centers. Public and private transportation are conveniently available.

The 48 office units of AppleOne are designed to meet the basic requirements of global offices – making it ideal for business and knowledge process outsourcing companies.

“We are extremely excited to be involved with this project. It is definitely unique in its mixed-use nature, and is in one of the best locations that can be had in Cebu. With the processes, people, and systems the developer AppleOne Properties, Inc. and CBRE will be providing, locators can be confident of having world class, reliable services. We intend to help keep AppleOne a premier address for many years to come,” said Lui Matti, executive director of CBRE’s asset services group. CB Richard Ellis (CBRE) Philippines is the property management consultant for the building.

The office floors of AppleOne Tower have maximized office space and are also available for fit-outs as needed. It has a hotel-like lobby entrance that leads to three high-speed elevators for offices with one of them as the dedicated private elevator for the residential levels. It also has high capacity telecommunication system which allows flexible voice/data transmission, a fiber optic backbone and 100 percent back-up power provides support to all office operations.

For more information, pls contact us at (032) 3181589 | 09173236123.

Shipping container vans turned into affordable housing

By Carlo P. Mallo

Oct 28, 2011

Seeing the need of more and more workers for a decent place to sleep in, Panya Go Boonsirithum launched the Citihub Mandaluyong project. A housing project that converts container vans into decent and clean living spaces that are leased at an affordable rate.

Entrepreneur.com.ph asked Mr. Boonsirithum about his innovative project.

"I am first to admit that I can’t take credit for pioneering the use of container vans as mode of shelter. Due to its cheap cost and versatility it has been used in a wide range from temporary office in construction sites to mobile police stations you see around Manila. Our company just went a little further and used it as the main structure for our buildings. It met all the criteria that we ask for the project to be structurally sound, mobile and cheap to construct. Plus it is environmentally friendly since we are recycling old discarded shipping container vans,” Boonsirithum said.

The plan is simple. The group started with 4 container vans (40ft) fully fitted with beds, cabinets and lockers with each container van having a maximum capacity of 22 beds.

“The public reception has been great. I am happy to announce that since our operation April of this year we have achieved 60 percent occupancy. At CITIHUB Mandaluyong you get fully furnished and fully air-conditioned rooms, free cable TV, 24/7 security, common dining and cooking area, for only P1,500 a month and this is inclusive of water."

Citihub Mandaluyong is the brain child of Boonsirithum, Arcya Commercial Corporation’s Property Manager. The project aims to provide safe, clean, affordable housing for the average minimum wage Filipino worker. This is the company’s corporate social responsibility project, which they hope will inspire other entrepreneurs to build with social conscience.

“Our company’s vision is to see more Citihub around the metro in the near future. And maybe with collaboration with other companies and government agencies we can even extent the concept of CITIHUB to build the much needed schools, clinics and much more,” Boonsirithum said.

Citihub Mandaluyong is located at 302 J.P. Rizal St., Brgy. Mabini, 1551 Mandaluyong. Check out their Facebook page here or email them at citihub_mandaluyong@yahoo.com. You can also call them at (02) 585.5893 or 0917.871.7498

PLDT completes Digitel deal

Wednesday, October 26, 2011

MANILA - Philippine Long Distance Telephone said yesterday it had completed a $1.6-billion deal to acquire a local rival in what would likely become the largest corporate buyout in the country’s history.

The dominant carrier, also known as PLDT, secured all regulatory approvals required to acquire a 51.55 percent stake in Digital Telecommunications Philippines Inc. (Digitel), the two companies said in a joint statement.

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The P69.2-billion share swap would be followed by a mandatory tender offer for the remaining publicly held shares of Digitel and divestment by PLDT in a unit that owns so-called 3G telecom frequency.

“If fully taken up, the tender offer would bring the total transaction value to P74.1 billion, making it the largest buyout in Philippine corporate history,” the joint statement said.

The acquisition of Digitel’s majority stake itself was initiated in March but completed only on Wednesday after regulators had made sure it did not create a potential monopoly.

The buyout leaves JG Summit of aviation and property tycoon John Gokongwei, the country’s third-richest man, with a 12.9 percent share of PLDT.

The joint statement said the two sides had agreed to let JG Summit sell some of its PLDT stocks to fellow shareholders First Pacific Co. Ltd. of Hong Kong and Japan’s NTT Docomo Inc.

After these separate transactions, JG Summit would own about 8.0 percent of PLDT, it added.

PLDT, Digitel and Globe Telecom, a joint venture between the Philippines’ Ayala Group and Singapore Telecom, dominate the Philippines’ fiercely competitive
telecommunications sector.

Listed PLDT closed 1.04 percent higher to P2,330 earlier yesterday while JG Summit added 1.78 percent to P25.70.

Digitel rose 0.65 percent to P1.54.

In a press statement, Globe head of corporate legal services group Froilan Castelo said, “The approval of the joint application with condition to divest PLDT’s 10Mhz 3G frequency is a progressive step for the NTC in promoting consumer welfare and fair competition.”

“Given the length of time this deal has been discussed by several authorities in the government, the media, and private sector, the decision of the regulatory body upholds its support to the industry, ensuring equal opportunities among players to compete, and allowing consumers to enjoy quality services from their chosen service provider,” he said. (AFP/With PR)

Published in the Sun.Star Cebu newspaper on October 27, 2011.

Erramon Aboitiz wins successive awards

Wednesday, October 26, 2011

AFTER having been named entrepreneur of the year by Ernst and Young, another distinction was awarded to Aboitiz Equity Ventures (AEV) and AboitizPower Corp. president and chief executive officer Erramon Aboitiz.

The Management Association of the Philippines (Map) named Aboitiz management man of the year for his “unquestioned distinction,” in the practice of management and for contributing to the country’s progress, the Philippine News Agency reported.

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Just recently, SGV and Co. awarded him entrepreneur of year. Aboitiz will represent the Philippines in the Ernst and Young entrepreneur of the year 2012 awards in Monte Carlo, Monaco. The award seeks to recognize the achievments of the most successful and innovative entrepreneurs worldwide.

According to the SGV website, Aboitiz exhibited “exemplary vision in leadership and financial expertise” which allowed him to turn AboitizPower from a regional power distributor into a national distributor.

They credited his vision of providing stable, affordable and environment-friendly energy for the corporation’s success in acquiring a diverse range of power assets that “tailor-fit” their offerings to the need of consumers while at the same time promoting the use of clean and renewable energy.

He was also awarded master entrepreneur for applying sound management practices in the areas of finance, marketing, human resources and sales.

Model

MAP, for its part, described Aboitiz as a “model of management excellence and dedication” for being able to transform a regional business group into a “geographically and technologically diversified” conglomerate.

AEV has operations in power, banking, food, transportation, property development and construction.

MAP said AEV’s contribution to national development was in power generation, job creation and income generation.

The organization also lauded the company’s corporate social responsibility initiatives, which they said, uplifted the quality of life in many communities by contributing in the fields of education, healthcare, enterprise development and the environment.

They also took note of Aboitiz’s role in the formulation and implementation of professional management practices in a family-owned enterprise, which they see as an example for many families and entrepreneurs.

They also lauded Aboitiz for serving as an “exemplary practitioner” who has good corporate governance characterized by integrity, honesty, fairness, transparency and accountability in his management career.

Published in the Sun.Star Cebu newspaper on October 27, 2011.

Cedf-it to get P5M of stimulus fund for IT-BPO sector

Wednesday, October 26, 2011

THE Cebu Educational Development Foundation for Information Technology (Cedf-it) will get part of the P500-million stimulus fund committed by the Aquino government to facilitate “near-hire” training programs of Information Technology-Business Process Outsourcing (IT-BPO) companies.

Cedf-it executive director Jun Saa, in an interview on Tuesday, said the organization will get P5 million worth of scholarships from the Technical Education and Skills Development Authority (Tesda), which will be used to conduct “near-hire” trainings for 1,000 prospective IT-BPO employees.

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Saa said the program is expected to bridge the gap in workforce requirement of IT-BPO companies here. In a recent survey by Cedf-it, IT-BPO companies in Cebu need 3,800 additional employees for the last quarter of this year.

Last week, Tesda and the Business Processing Association of the Philippines (BPAP) signed a memorandum of agreement on the P500-million expansion of the IT-BPO Industry-based Training for Work Scholarship Program (I-TWSP) for 65,000 “near hires”.

Near hires are applicants who have applied for jobs in the IT-BPO sector but fell short of the requirements, requiring more training to meet the industry standard.

The bulk of the fund, or P400 million, is set aside to train near hires while the remaining P100 million has been set aside for the training of trainors and students, who need longer training to be qualified employees in the IT-BPO sector.

According to Saa, “near hire” training programs improve the industry’s hiring rate by 30 to 70 percent.

“This is a big opportunity for the industry and for Cedf-it, considering that we are moving toward sustaining and honing the local work pool for Cebu’s IT-BPO industry,” Saa said.

Published in the Sun.Star Cebu newspaper on October 27, 2011.

Hanaya doing well, says Aboitizland

ABOITIZLAND’S latest project, the Hanaya Resort Residences, is gaining popularity in Cebu’s property market since it officially launched last Friday, an official said.Thursday, October 27, 2011

Aboitizland Inc. sales manager Grace Lepiten said the project is “gaining popularity” with 50 percent of the letters of intent converted into reservations. She said sales are coming from an even mix of the international Filipino market, early nesters and retirees.

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“There are apparently other factors that affect sales of residential units – locations, design, amenities, among others – but the sales level that we achieved in the first month of Hanaya’s introduction is an indicator of a healthy property market at present,” Lepiten said.

She said innovative condominium developments are “very encouraging” in the property market.

Hanaya is the company’s latest mid-rise condominium project. It is located in a 5.2-hectare property in Barangay Canduman, Mandaue City. Officials said the property has a resort theme.

Hanaya’s Phase 1 construction is scheduled to be completed by the second quarter of 2013 and will have four six-storey residential buildings with about 400 condominium units.

Among the unit types are standard, deluxe and suite units in two-or-three bedroom designs.

Aboitizland has set aside P750 million as total investment for Hanaya’s Phase 1 construction.

The project’s amenities include two pools, pavilion and gazebos, themed gardens and parks, barbecue stations, exercise stations, jogging trails, basketball court with benches, clubhouse, function rooms, gym, game room, karaoke rooms and playroom.

Aboitizland will start site construction in the first quarter of 2012 with delivery of units and amenities scheduled in 2013. For more information on our Project, contact (032) 3181589 | 09173236123.

Published in the Sun.Star Cebu newspaper on October 28, 2011.

PH to grow 5%-6%: bank analyst

Thursday, October 27, 2011

DESPITE economic woes in Europe and the United States, the Philippines is still poised to grow by five to six percent between this year and 2012. The country is buoyed by its strong market fundamentals, according to forecasts of the Banco de Oro Universal Bank (BDO).

“We are quite optimistic (with the forecast) but it would be a challenging quarter. This would depend on how the government would institute and aid processes in trying to keep the growth targets,” said Jonathan Ravelas, BDO first vice president and chief market strategist in an economic briefing last Wednesday.

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Ravelas said the growth target is attainable despite the troubled economies of Europe and US. He pointed out that the Philippines has the right market fundamentals which the government could bank on to sustain growth.

“We have a stable exchange and interest rates. Our budget deficit is no longer a problem as we are now starting to see revenues in the government. What the country needs are additional growth drivers,” he said.

Investment

Ravelas suggested that government invest heavily in infrastructure, focus on low energy cost and streamline business processes so it could attract more investments, generate more jobs and increase consumer consumption.

“The challenge now is to mobilize the ample liquidity and take advantage of the low interest rate environment,” he said.

Ravelas reported that there is so much domestic liquidity that can be used to fund big ticket infrastructure and the Aquino administration’s private-public partnership initiatives, but he pointed out that the government should streamline first its processes and identify priority programs.

BDO also forecast inflation to end at 4.7 percent this year. Ravelas warned that the recent calamities in Vietnam and Thailand might affect commodity prices and result in “supply battle” similar to what happened in Japan last March. He noted, however, that the inflation rise is temporary and manageable. The country’s inflation is projected to go down 4.5 percent in 2012.

Ravelas also encouraged consumers to take advantage of the low interest environment.

“Now is the time to borrow,” he said, adding that the current interest rate may stay for at least a year just to facilitate growth but might increase by 2013 or 2014.

Foreign exchange rate, on the other, hand might settle at P38-39 to a dollar over the next two years due to problems in Europe.

“We are looking at a P43.80 to a dollar by the end of the year depending on how Europe will play-out over the next two weeks,” he said.

Ravelas pointed out that an important indicator for recovery is the fourth quarter, when the country expects a surge of remittances, and the purchasing power of Americans and Europeans during the holidays.

He identified agribusiness, consumer durables, construction and real estate, education, health, beauty and wellness; infrastructure, IT-enabled and IT services; logistics and retailing; transport, telecommunications and tourism as “sunrise” industries.

Ravelas admitted, the jobless recovery in the US, debt crisis in the eurozone, Middle East and North African crises and the rising inflation in emerging markets are the challenges to sustain growth.

The global growth rate is forecast to slow down to four percent, he said.

Competitiveness

Meanwhile, Canadian Chamber of Commerce of the Philippines president Julian Payne said that for the country to maximize its growth potential, it should improve its competitiveness.

“The Philippines is in a wonderful position in terms of remittances. It is well protected because of the overseas workers’ diversification. However, as much as the country needs more foreign direct investments (FDIs), it should also improve its ability to compete with neighboring countries,” Payne said.

He said FDIs are needed because they bring in technology and additional money to the country.

“FDIs are here to stay provided that the government will implement the right policies and avoid changes in the middle of the game,” Ravelas said.

Published in the Sun.Star Cebu newspaper on October 28, 2011.