How Businessman Rides Out Despite the Extreme Challenges - Essay Example

?This paper accounts an interview conducted with two business executives in the field of buying and selling agricultural products. The main reason behind choosing these individuals as my interviewees is that during the commencement of their business, it was also the time when the agricultural industry in the area was suffering from a rapid decline due to the emerging economies in Southeast Asia, particularly, Thailand, Indonesia, the Philippines and Vietnam. Hence, the demand for agricultural products was severely affected, nearly paralyzing the whole agricultural industry in the area. Seen this way, it is very interesting to know how these businessmen was able to make it through and ride out despite the extreme challenges that he had to contend with. In addition, these two executives belong to the same family such that they are siblings; hence, it would also be interesting to learn how family relations affect the business as a whole. Me: How did you get into this business? Sir Smith: My father was a farmer. I was the eldest child in the family so I was early exposed to the life in the farm. In college, I went to the Colorado State University where I majored in Agricultural Engineering and graduated in 1977. So, I can fairly say that I have a very good background in agricultural stuffs. The decision to engage in this kind of business was mostly rooted from a self-realization that as a man who grew up in a farm, I am one of those few who really know what it takes to be successful in agricultural business. Eventually, in 1980, together with my siblings, I put up my own agricultural business that I called Smith AgriPro. AgriPro stands for “agricultural procurement.” Ms Ada Smith-Rogers: He and I are poles apart. He is the eldest while I am the youngest child in the family. Aside from the fact that we grew up in farm, I was never really interested in agricultural stuffs. What I am interested in is doing business. I majored in business administration in college and went on to complete an MBA from MIT Sloan. I joined the company in 1981 - a year after the company was established. Me: What has been the biggest highlight of your position? Sir Smith: Well, as a president and CEO of the company, I take care of the business communications, creation of new business concepts, the implementation of the company’s mission, vision, and overall direction. Generally, I oversee the overall completion of the operation in all the divisions of the company. So, the biggest highlight of my position, perhaps, would be the opportunity to witness the growth of the company since its birth. I always make the final decision and so my decisions determine where the company would be in several years. As President and CEO, your every move should be a calculated risk. Fortunately, for me, with the help of my subordinates, I was able to clearly evaluate the company’s annual performance since 1980, and through this careful evaluation, I was able to venture in proliferating the company in various locations within the county. Ms Smith-Rogers: I feel probably the same pressure as he [Sir Smith] feels in running and managing this company. As Executive Vice President, I also assume duties and responsibilities that the president and CEO has. I am responsible for the maximization of the overall operating performance of the company and in the attainment of our company’s financial objectives. I supervise the human resource department, finance department, business development, and of course, communicating with the board of directors. The highlight of my position was probably that time when the company is already making its spot in the agricultural industry, surpassing many giant companies. The company needed more workers so as the Executive Vice President, I had to carry out recruitment strategies that would attract highly talented and intelligent workers from all over the state. Gladly, I was successfully at doing that. The company was able to acquire the ideal number of workers for its various operations. Me: What has been the lowest point? Sir Smith: The lowest point would have been that time when we had to lay off a significant number of our employees due to the declining company revenue. Almost all of our products did not sell in the market, and the increasing competition with the new line of agricultural brands was an important challenge. We have eventually found out that the main reason for the decline was the disproportionality between the price of our products and its effectiveness as compared to other brands which were a lot cheaper but delivered the same performance. Ms Ada Smith-Rogers: It is always difficult to lay off employees; they have been part of the company throughout the years, from the tough times to the company’s rise as a big name in the agricultural industry. However, because of the unexpected decline on the company’s revenue, we had to reduce the number of our employees. That must have been the lowest point so far. Me: What have been the biggest lessons learned? Sir Smith: Research is particularly important. We realized that a competitive business knows how to observe and listen to the changing preference of the consumers or buyers. Ms Ada Smith-Rogers: I have learned that a successful business operation does not require a large number of work forces; the key is efficiency. There are positions in a certain company that is not really needed and there are many functions in a company that can be performed effectively by few people. Me: Best advice to anyone considering doing a similar action? Sir Smith: Just go with what you think is more favourable to your interests. It is very important to align our business ventures with our passion and interests. And, once you have finally decided which particular business you would like to venture in, do not haste, take your time, and do some research first before establishing it, proliferating new branches or even in releasing new line of products. You may initially think of research as a waste of time, but as time goes by, the benefit that it will bring to your company will become clearer and advantages become bigger and bigger. Ms Ada Smith-Rogers: In doing business, teamwork is very important. It has to be ensured that every member of the company, from the President, CEO down to the last employee at the bottom of the organizational chart, they have to be excellent and efficient in every way. That way, whatever turmoil that company has to contend with, it can be resolved in much faster and easier way. Reflection So many lessons can be learned from this experience. My interview with two company executives affords me with the idea on how it is really like to put up your own company and manage it yourself. Perhaps, the gist of the whole interview is that “no one can make it alone.” I regard Sir Gary Smith and Ma’am Ada Smith-Rogers as successful people in their own fields. And in that regard, their roles and experience in managing a considerably large company is something they have not developed overnight. They have come through manifold hurdles in the past and effectively confronted the onslaught of new competitions in the agricultural industry such as the emerging markets in Southeast Asia. Their excellent executive skills resulted from a series of trial and errors, figuring out the best approaches in conducting business in such highly competitive yet erratic markets. One of the most important things that I learned is that excellent leadership comes from learning from the people you trusted. Hence, trust should exist between and among every person in the company. Leadership is not an ordinary entry in a dictionary; it is a big word. When you are holding an executive position, you have got to ensure that you are doing the job extremely well as your subordinates look up to you and are influenced by the way they have been managed. With Smith AgriPro, teamwork has been an important factor. They understand not just the need of the business to work out but also the needs of its employees. Once you develop that profound understanding on how different people from different backgrounds can be harmoniously merged for a single objective, gains will come right after. There are a couple of realizations in this interview: 1. Business is not that simple. There is a rather common notion among us that business is just buying or creating goods or services and then selling them. There is more to business than just this simple concept. It involves a lot of factors. When planning to put up a business that targets a large number of consumers, there is more analysis involved. Things such as research, human resource, financial planning, business consultations, effective communication strategy, etc. are only several of the many factors that are necessitated in putting up your own business. 2. Don’t ever regret. Move on. Whenever we stumble across certain hurdles, especially in business, we become discouraged and careless in our decisions. But the most crucial thing of all is that regret is rather inevitable especially when your business is no longer achieving its financial goals. From my interview with the Smith siblings, I have found out that when you are a businessman, especially when you are holding an executive position, you have to be frigid with failures and should avoid feeding your regrets. Smith AgriPro has gone through a lot of challenges in the past particularly when they have to lay off many of its workers in order to save the company from bankruptcy. The interview was fun overall. The Smith siblings were very cordial and accommodating. Also, I have learned new knowledge about putting up your own business and what it takes for it to be successful. Some of the best lessons to be learned pertain to good leadership, human resource management, and attitude towards turmoil in carrying out a business. Read More