Tom Monaghan: Life and Business Ventures - Essay Example

TOM MONAGHAN Introduction Tom Monaghan is a popular entrepreneur in America. He has made major contributions in the American economy. He successfully founded the Domino Pizza in Ypsilanti, Michigan in 1960 among many other great achievements such as managing the Detroit Tigers for over five years. His life is a success story and is captivating and motivating to all people who feel they are less advantaged in the community. He was from a poor family and had a rough time catching up with his studies, yet he still kept vigil. He amassed great wealth estimated to about $1 billion by turning the pizza parlor into the second largest pizza chain in the Nation. His is a story of determination and hard work. His success story greatly inspired me and I felt the need to dig deeper to get more inspiration (Soucy & Huber 2006). Peter Drucker’s Biography Peter Drucker was a popular economist who was born in 1909 in Vienna, Australia. He was born and raised in a well cultured family where his father worked as a lawyer and his mother as a doctor. He did his studies in the best schools and completed his undergraduate at the University of Frankfurt in 1931. He left Germany and moved to London. He spent four years in the new country and later moved to the United States where he was finally elevated to U.S citizen status in 1943. Drucker has written over 40 books, most of his books have been recognized internationally owing to the fact that they have been translated into more than 20 languages. He was called the father of management. He was awarded the presidential Medal of Freedom in July 2002 by President George W. Bush in recognition for his great works in the field of management. He died on 11th November 2005 in the state of California (Drucker 2007). Peter Drucker is the father of management and he has excellent knowledge in the field. Retrieving lessons from his famous books would be of great help us to understand the subject more. His life experiences in the field of management can be related to the current experiences we are facing in our world today. His excellent knowledge from the books he has written will help us to tap the goodness he has brought forward in his many books. The knowledge is practical and it is applicable in the day to day activities that take place in our modern world. This famous business author and consultant had so much knowledge which has shaped so many lives in our modern world today; this is very essential in our studies (Drucker 2007). The book, “The Theory and it Points”, was written by Peter Drucker. It is organized into thre parts; the first part: 1) The practice of Innovation Unexpected Incongruities Process need Industry and Marketing Structures Demographics Perception New knowledge 2) The Practice of Entrepreneurship Entrepreneurial Management Established Business Entrepreneurship in the service Institution New Venture 3) Entrepreneurial Strategies Being “Fustest with the Mostest” Hitting them where they ain’t Finding and Occupying the “Ecological Niche” Changing the Market, Product or an Industry While conducting the research, I have learnt how to work in a team, to delegate tasks and to arrive at a decision on topics that raised many controversies among the group members. Our group held a meeting on one occasion to delegate individual tasks and responsibilities. The tasks were to be done and later emailed to the group leader who compiled them and made a write up. This strategy helped us to manage our time wisely and to make good use of the technology we had at our disposal. My Definition of Entrepreneurship Entrepreneurship is the ability to take risks and invest in an opportunity that one has found with the aim of making profit. This is my idea of entrepreneurship. An entrepreneur should take risks and be ready to bear the consequences of their actions. In risk taking money and other factors are involved. For example, when one decides to set up a hotel and be fully involved in its operations, the person has to quit their job. Resigning from a stable job is tricky and this is a price which one has to pay. The person is not sure whether the hotel is going to be a success or not. It is a big risk. In the same breath, it is only risk takers who have success stories; cowards do not have a story to tell. Successful entrepreneurs such as Tom Monaghan are my great source of inspiration. Tom was a risk taker and he did many investments at a tender age before he found his niche. He never gave up despite the setbacks that he stumbled on along his success path. His determination and thirst for success made him achieve more and he gave the best services to his customers. The best way to succeed is by beating the competition and aiming at being the best in what you do. I have learnt that customer satisfaction and delivering the best services is the sure way to greatness. Proper management strategies and developing a success formula also aid in achieving the best results. For example Tom discovered that, by reducing the ingredient cost, the size and the toppings on the pizza, he would make more profit. He also delivered his pizza in less than thirty minutes. This was with the aim of beating his competitors who made late deliveries. He said that there was no point of delivering cold delicious pizzas to people. They had to be warm too (Domino’s Pizza 2012). The story of Tom inspires me to be more careful when taking risks. Tom wanted to expand rapidly and he made a strategy of opening a new pizza shop every week. This strategy failed since he took less time to make the decisions and he experienced difficulty in management. His business failed at some point but he sprung back to position after discovering his mistakes. He made proper plans before setting up a new restaurant. He minimized the goal to 20 new stores annually. He succeeded more. This taught me to be very careful before I make any decisions on risk taking. Risks can be a major setback and careful planning needs to be done. Persistence and patience is also needed in business. It is natural for new concepts and ideas to take time before they are embraced in the society. This is a vital virtue in any business venture and should be considered at any given time. However, one has to be ready to face the challenges that come with risk taking. The challenges may be overwhelming; this is why it is important to have endurance. Having a backup plan and the courage to stomach disappointments is also a key ingredient in business. Disappointments are always experienced and ne has to find a way of dealing with them. Entrepreneur’s Biography Successful entrepreneurs are self motivated individuals who grab the slightest business opportunity identified in the society. This is one characteristic of entrepreneurs; the ability to identify any business opportunity and make it come to a realization. Tom Monaghan’s success story starts from his discovery of an abandoned restaurant which was up for sale. He bought the store and concentrated all his energies on making it a success. He gave his time and he was dedicated to providing the best pizzas n the area where his store was established. This is a marketing strategy to beat his competitors and have more customers coming to his store. These are essential skills needed for entrepreneurship (Gallagher 2012). Good management skills are also required in business. Tom emphasized on time management and good employee relations. He treated his employees with uttermost respect and gave them bonuses to drivers who delivered pizzas in time to motivate them. This relationship is essential in creating a good working environment. Tom had a business plan to keep him focused to achieving his goals. He planned to set up a new restaurant every week and he aimed at doing this. Planning is essential in any business. It helps to make new progress and to identify any loopholes in any organization (Soucy & Huber 2006). Patience, persistence and determination are the key components in any business set up. Businesses have many drawbacks that may weaken the spirit. Tom did not give up once he started the store, his brother quit the partnership and this did not dull his persistent. He kept vigil and this bore him the fruits he enjoys to date. New ways of making the business better is learned in this manner and it encourages growth. Without these three aspects, it is futile to run any organization since they play a key role in setting up any new venture. Growth is essential in any business venture, business is aimed at making profit, if losses are incurred frequently, and no growth is experienced, then the project has to be evaluated (Burdus 2010). Effective organization strategies are also essential for any business. Proper management of finances and gaining control over the entire business ensures that the organization runs smoothly and effectively (Burdus 2010). Domino pizza is a success story as a result of good organization skills; proper control of finances and management of the entire entity. Customer satisfaction is a sure way of success. Any entrepreneur should have this in mind and make it the center of the business. Quality and efficiency should be guaranteed at all times (Monaghan & Anderson 1986). Location is an important aspect in setting up any business venture. The business should be located where it would attract millions of customers and is more convenient. Tom discovered this and he took more time to plan for his business. He realized this from the mistake he made that almost cost him his entire fortune. This brings in an important aspect of evaluation. Business has to be evaluated at all times to check on the losses, the setbacks and the changes that need to be made to make the results more productive (Hadzima 2005). Enterprising Activity: Famous Quotes that are Enterprising and Motivating “Believe in yourself! Have faith in your abilities! Without a humble but reasonable confidence in your own powers you cannot be successful or happy”, Norman Vincent Peale. This quote keeps me motivated and to have confident in my abilities. It gives me the strength to brave challenges and to have faith in the abilities I have. “Opportunities don’t happen, you create them”, Chris Grosser. This motivates me to look out for any business venture that I can invest my money and energy in. people who are lazy and not keen do not get inspiration to look out for opportunities that favor growth and development. I have to be keen and always on the look out to position myself in an advantage zone (Brainy Quote 2012). “If you can dream it, you can do it”, Walt Disney. Walt Disney had a dream. He shared his dream with his friends and family and they dismissed him saying it was only a dream. Today he is rich and famous because he visualized his dream and made it work for him. Every time I look at cartoons and the beautiful Disney world created by Walt, I dare to dream. I keep myself motivated with the thought that if he did it, I will definitely achieve the desires of my heart (Brainy Quote 2012). Benjamin Franklin’s famous quote, “by failing to prepare, you are preparing to fail”. I am always encouraged to give my best and to be ready for any setbacks. This quote motivates me to have a plan and be ready with a back up one. This is an important aspect to any person who is aspiring to be an entrepreneur. It involves planning every stage of the business and having means of maneuvering any drawbacks. Tom had to plan before he set up a new restaurant because he had learned that lack of preparedness would only land his business in losses (Brainy Quote 2012). Thomas Edison says, “Our greatest weakness lies in giving up. The most certain way to succeed is always to try just one more time”. Giving up is a component of failure. If one of the ventures fails, never give up. Keep vigil and focused to the goal. This is the essence of entrepreneurship. Many challenges come with risk taking; no one is guaranteed of 100% success neither is failure predicted. In case of failure in business, persistence is the key to unlock all the goals to success. This is my major driving force (Black 2003). John F. Kennedy, the former president of America once said, “Things do not happen. Things are made to Happen. Success in business is achieved through the effort of an individual. It is never a story of sheer luck. I chose not to think of success in terms of favor or luck. Success is worked for and I have to employ the correct strategies to achieve the desires of my heart. Success does not come to people who do not make an effort; it is only a result of all the aspects of business management combined in the most effective way to yield the expected results (Black 2003). Conclusion In conclusion, Tom Monaghan is an icon in the society who has transformed the business world. His is a life changing story on how he braved the numerous challenges he faced in his life and came out a success. His story is related to the topic; he started off as an entrepreneur and he beat all odds. He is a successful business man with a chain of stores; this means he is more experienced in the area and has a niche in the hospitality industry. Research about his life and his business ventures has inspired me to be more optimistic in life and to have a focused mind. I am impressed by the impact his business has had in the world and yet he had faced many challenges in his life before he became a success story. He is an icon in the business world and a force to reckon. Reference List; Black, A. C., 2003. Talking Shop. A & C Black Publishers, New York. Brainy Quote, 2012. Motivational Quotes. [Online] Available at: [Accessed 9 December 2012]. Burdus, E., 2010. ‘Fundamentals of Entrepreneurship’. International Comparative Management. Vol. 11. Issue. 1. Pp 32- 40. Domino’s Pizza. Inc., 2012. Monaghan Thomas. [Online] Available at: http://encyclopedia.jrank.org/articles/pages/6312/Monaghan-Thomas.html> [Accessed 9 December, 2012]. Drucker, P. 2007. Innovation and Entrepreneurship.Oxford.Butterworth-Heinemann Gallagher, J., 2012. ‘Tom Monaghan tells Fund-Risers about his Philanthropy’. Detroit Free Press. [Online] Available at: [Accessed 9 December, 2012]. Hadzima, J., 2005. ‘Seven Characteristics of Highly Entrepreneurial Employees’. Boston Business Journal. Vol. 2. Issue 14. Pp 5-12 Kumar, A. S., 2003. ‘Entrepreneur and Entrepreneurship’. Entrepreneurship Development. Pp 4-8. New Age International Publishers, New Delhi. Monaghan, T. & Anderson, R., 1986. Pizza Tiger. Random House, the University of Michigan. Michigan. Soucy, J. & Huber, J., 2006. Tom Monaghan’s Pizza Pilgrimage. [Online] Available at: Accessed 9 December 2012. Read More