Why David and Vicky Are Considered Entrepreneurs - Term Paper Example

Entrepreneurial Business Planning Analysis of David and Vicky Teoh La Trobe University Author names Executive Summary David and Vicky Teoh dominate the Australian Telecommunications industry. Besides that, they have invested in several other businesses that are mainly start-ups . David Teoh emigrated from Malaysia to Australia in 1986 and together with his Taiwanese wife Vicky Teoh set up a computer retail group called Total Peripherals. By the early 2000s, Total Peripherals became TPG and shifted its focus from hardware to internet services. Their total wealth combined is estimated to be 2.63 billion. Each pair owns about 145 million TPG shares. David Teoh is the executive chairman for TPG. They have four sons who help them manage their businesses. The couple is best known for their telecommunications empire, but less is about their expanding network of start-ups selling accessories, consumer technology and clothes that is managed by Vicky and the four sons. Their success is based on their ability to embrace change, diversification of their business and stifling competition. They can be described as innovative entrepreneurs who have invested most of their money in the tech industry. As entrepreneurs, they are driven with the desire to provide solutions to everyday problems. Unlike most wealthy entrepreneurs, the Teoh’s are media shy. Their four sons assist them in managing their businesses. Table of Contents 1.1Brief Background of David Teoh and Vicky Teoh 5 2.1They are risk takers 5 2.2They have generated wealth from entrepreneurship: 6 2.3They are Innovative 6 3.1They are innovative entrepreneurs 6 4.1Ability to embrace change 6 They moved from dealing with the sale of computers to offering internet services. It is important that entrepreneurs adapt to the changing business environment as businesses are usually affected by external factors such as politics, social, environment and social factors. 7 4.2Ability to spot a good deal 7 4.3Media Shy 7 5.1They are media shy 7 6.1They are innovative entrepreneurs 8 7.1 Providing solutions to problems 8 7.2Dominance 8 8.1The Teoh’s are media shy 9 9.1Entrepreneurs are risk takers 9 9.2Entrepreneurs are problem solvers 9 10.1Managing competition 9 10.2How important is teamwork to your entrepreneur? 10 10.3Teamwork is essential for all businesses 10 11.1Hostility from shareholders: 10 12.1Helps in finding the right business partners: 11 12.2Helps in developing connections 11 13.1Acquisition 11 13.2Strategic Planning 12 13.3 Diversification 12 14.1Availability of capital: 12 15.1Innovativeness: 12 15.2Diversification 13 Appendix A: David Teoh’s Wealth 14 1 Introduction Successful entrepreneurs are innovative. Innovation allows entrepreneurs to provide better services at lower costs. The Internet as provided a platform for many businesses to thrive. Through the Internet, the provision of goods and services has been made easier to consumers. Example of successful entrepreneurs who both internet services and have start-ups are David and Vicky Teoh. 1.1 Brief Background of David Teoh and Vicky Teoh David Teoh emigrated from Malaysia to Australia in 1986 and together with his Taiwanese wife Vicky Teoh set up a computer retail group called Total Peripherals. By the early 2000s, Total Peripherals became TPG and shifted its focus from hardware to internet services. Their total wealth combined is estimated to be 2.63 billion. Each pair owns about 145 million TPG shares. David Teoh is the executive chairman for TPG. They have four sons who help them manage their businesses. The couple is best known for their telecommunications empire, but less is about their expanding network of start-ups selling accessories, consumer technology and clothes that is managed by Vicky and the four sons. Forbes attributes to the success of the Teoh’s to a series of smart acquisitions that have transformed TPG from a computer retailer into a major internet service provider in Australia (Forbes.com, n.d.). In 2009, Vicky Teoh was named as Australia’s richest self-made woman in the inaugural BRW Rich Women list. The success of the Teoh’s lies in making strategic business decisions and the acquisitions of competitors. 2. Why David and Vicky are considered an Entrepreneur 2.1 They are risk takers David and Vicky Teoh can be classified as entrepreneurs due to their diverse investments in different markets. The duo organizes and operates several businesses starting with their main investments telecommunications to various businesses. 2.2 They have generated wealth from entrepreneurship: The Teoh’s have managed to generate substantial wealth from their businesses. David and Teoh have a $2.6 billion shares in their companies TPG. They are ranked in the top 10 wealthiest people on the BRW Rich List. Vicky Teoh was named Australia’s richest self-made woman (Stensholt, 2015). Entrepreneurs unlike small business persons usually generate lot of wealth. 2.3 They are Innovative David and Vicky Teoh are innovative. Apart from investing in the Australia telecommunications industry, the two are known for putting their money in start-ups (Hurley, 2014). Start-ups are usually modelled and innovative product. Investing in the future is one of the reasons the Teoh’s are successful entrepreneurs. 3. What type of entrepreneur is your chosen entrepreneur? 3.1 They are innovative entrepreneurs Their main focus is on new product, new markets and new production methods. Using their technology, they have managed to set up several businesses that link the buyers and sellers via the internet. Some of their businesses such as the online furniture shop allows buyers to shop from the comfort of their homes. 4. Major talents and shortcomings 4.1 Ability to embrace change They moved from dealing with the sale of computers to offering internet services. It is important that entrepreneurs adapt to the changing business environment as businesses are usually affected by external factors such as politics, social, environment and social factors. 4.2 Ability to spot a good deal David Teoh can spot a good deal and seize it. He is known as a master acquirer after buying several rivals which he does without the aid of investment banks (Financial Review, 2013). So big has TPG become that the Australian Competition and Consumer Commission is limiting its takeover of many more of its rivals. 4.3 Media Shy Perhaps their main shortcoming is not taking advantage of the media to increase publicity of their business. The fact that few people know them means that they may miss out on the main opportunities that are brought by publicity. Rivero and Theodore (2014) argue that publicity is important for a corporate sustainability. It is important that the Teoh’s use the media to advance their business interests. 5. How would you describe your entrepreneur’s temperament? 5.1 They are media shy The Teoh’s are media shy. They have managed to avoid media photographers until 2015 when a photographer staked out his Sydney home for three days. Even though Teoh and four sons have invested tens of millions of dollars in many start-up companies, hardly anybody in the startup world seems to know David Teoh, his wife and four sons (Hurley, 2014). During TPF events, everything is done to ensure that no photo of David Teoh is taken. 6. How would you describe the entrepreneurial orientation of the person you are studying? 6.1 They are innovative entrepreneurs The Teoh’s can be described as innovative entrepreneurs. Their major investment is in the telecommunication industry and in particular the provision of internet services. Their company TPG started as a store selling computer equipment before entering the internet market. Additionally, Vicky and his four sons have invested in several start-ups some of which are online companies. They are relying on technology to provide more efficient services to their customers. Most of the companies that TPG has launched or acquired over the years fall within the telecommunications industry (Hurley, 2014). Particularly, the acquisitions are part of controlling competition in the market. Businesses that have few or no competitors tend to perform well that those with stiff competition. 7. Motivation to pursue entrepreneurial opportunities 7.1 Providing solutions to problems The need to provide solutions to everyday problems is one of the things that motivate the Teoh’s to pursue entrepreneurial opportunities. For example, they set up an online furniture shop after realizing that middle men were taking advantage of the public (Hurley, 2014).. Their online shop links customers directly with the manufacturers. 7.2 Dominance The other factor that drives the Teoh’s is the need to control the largest market share in their areas of interests. The company, for instance, acquired iiNet who were the main rivals of their company TPG. Some entrepreneurs may be driven by the passion of exerting their dominance in a particular market. 8. What surprised you most about your entrepreneur’s behavior? 8.1 The Teoh’s are media shy Unlike most wealthy entrepreneurs, the Teoh’s are media shy. Not much about them was known to the public until when their company TPG started doing extremely well which made them billionaires (Stensholt, 2015).. The ability to separate their personal lives from their business is something that has baffled many. 9. What was confirmed /contradicted about entrepreneurship? 9.1 Entrepreneurs are risk takers I have confirmed that entrepreneurs are risk takers. Entrepreneurs choose to invest in available business opportunities or come up with new ideas by investing their resources and time. The Teoh’s have invested money in different startup companies with the hope that the start-ups will grow into successful businesses (Stensholt, 2015). 9.2 Entrepreneurs are problem solvers Some of the businesses that the Teoh’s have invested in such as the online furniture shop are to solve the everyday challenges that people face in the market. In this case, they wanted to eliminate middle men by linking buyers with the sellers directly through the internet. 10. What new insights emerged? 10.1 Managing competition I have learned that the most effective way of managing competitors is by either acquiring them in whole or buy their shares. Business people should always be on the lookout for their competitors who may drive them out of the market. Additionally, it is crucial that entrepreneurs invest in as many areas of opportunity that are available to spread risks. Moreover, I have learned that different people contribute money to raise capital for companies and they are known as shareholders. 10.2 How important is teamwork to your entrepreneur? 10.3 Teamwork is essential for all businesses TPG is a large organization that requires employees work collectively to achieve their targets. Teamwork is important to TPG as it enables employees to support each other on the many challenges that face them daily. Team work is important for employee motivation as workers can have their problems solved with other members (Root III, n.d.). Through cooperation, staff can exchange ideas when offering solutions during brainstorming sessions. A company, therefore, stands to benefit from active teams. 11. What hurdles did he/she overcome? 11.1 Hostility from shareholders: TPG has faced is shareholders hostility from the companies that they have acquired. However, David Teoh has always strived to reach a common ground with the disgruntled shareholders for the benefit of their businesses. For example, iiNet founder and former chief Michael Malone and 25% per cent of the company’s shareholders voted against TPG takeover (Bingemann, 2015). Most employees and shareholders fear organizational change, especially when a new company takes over their business. It is the function of the new management to ensure a smooth takeover of newly acquired business by involving all the shareholders and employees fully. During this process, there should be open communication between the new management and shareholders to address any existing issues. 12. Of what importance was networking to your entrepreneur? 12.1 Helps in finding the right business partners: Most of the business partners of the Teoh’s are Jack’s former campus mates. For example, he partnered with Steve Davis his former friend at the University of NSW to start an online furniture retailer known as Sofia Furniture. While executing this plan, Vicky had borrowed a warehouse from a family friend and created a fabulous showroom. Jonh Teoh had also co-founded a new start-up incubator –PS1875 with a University friend know as Oscar Wylee (Hurley, 2014). The family runs a lean start model out of their home, launching business after business, aided with money, property, and connections. 12.2 Helps in developing connections Networking is important for entrepreneurs as it allows them to develop connections with other business people and learn of new or existing opportunities in the market. Through networking, entrepreneurs can also find solutions to their problems by seeking advice from their friends or coming together to provide answers to pertinent issues. 13. Which “tools of the trade” is he/she using? 13.1 Acquisition The Teoh’s have managed to acquire several businesses that are rivals to their companies. David Teoh has managed to increase TPG capitalization by buying several competitors (Financial Review, 2013). 13.2 Strategic Planning The Teoh’s are known for strategic moves such as shifting from selling computer hardware to providing internet services. In the competitive business environment, it requires that companies take advantage of available opportunities to increase their market share. 13.3 Diversification Business diversification is useful for entrepreneurs as it enables them to spread risks. It also allows them to create new products and services that present new revenue generation opportunities for them. Entrepreneurs use a variety of methods to keep their businesses floating. These methods may vary from one entrepreneur to another. 14. What factors support/hinder his/her entrepreneurial behavior? 14.1 Availability of capital: The Teoh’s are wealthy and can acquire other businesses or fund start-ups. The readily available capital has made them start several businesses such as an online furniture selling shop and the acquisition of iiNet among others (Hurley, 2014). Secondly, market dynamics play a crucial role in their decisions. 15. In what ways does this study inform your knowledge of entrepreneurship? 15.1 Innovativeness: It is important for entrepreneurs to be innovative. Innovativeness allows businesses to take advantage of new opportunities that are available in the market. Besides, it allows businesses to change with the changing times. The Teoh’s manage to shift their focus from selling computers to providing internet services. Nowadays, all businesses are moving online something that the business family has capitalized on to start several ventures that are web based. The other important lesson is the need for diversification which allows entrepreneurs to spread risks. The Teoh’s have interests ranging from telecommunications to several other start-ups (Hurley, 2014). They are serial entrepreneurs. 15.2 Diversification Diversification allows entrepreneurs to spread risks. The Teoh’s have interests ranging from telecommunications to several other start-ups (Hurley, 2014). Additionally, I found out that an entrepreneur should always be wary of competition. Stiff competition from rivals could mean the death of a business. To counter competition, it is prudent that an organization provides quality services and products. Established business can reduce competition by acquiring their competitors just like Teoh’s TPG bought iiNet. 16. Appendices Appendix A: David Teoh’s Wealth Source: Forbes.com 17. Reference List Bingemann, M. (2015). Teoh ‘to respect’ iiNet’s culture. [online] Theaustralian.com.au. Available at: http://www.theaustralian.com.au/business/mergers-acquisitions/tpg-boss-david-teoh-will-respect-iinets-customercentric-culture/news-story/adcef03656d584b5f35ae09d6d164674 [Accessed 16 Aug. 2017]. Financial Review. (2013). David Teoh and Vicky Teoh. [online] Available at: http://www.afr.com/business/34-david-teoh-and-vicky-teoh-20130522-jyfrk [Accessed 16 Aug. 2017]. Forbes.com. (n.d.). Forbes. [online] Available at: https://www.forbes.com/profile/david-teoh/ [Accessed 16 Aug. 2017]. Garnaut, J. (2015). The tycoon, the money and the politicians: How China-Australia relations really work. [online] The Sydney Morning Herald. Available at: http://www.smh.com.au/national/are-chau-chak-wings-circles-of-influence-in-australiachina-ties-built-on-hot-air-20151015-gkalg8.html [Accessed 15 Aug. 2017]. Hurley, B. (2014). David Teoh: Untangling the start-up web of TPG’s reclusive billionaire and his family. [online] Financial Review. Available at: http://www.afr.com/leadership/entrepreneur/david-teoh-untangling-the-startup-web-of-tpgs-reclusive-billionaire-and-his-family-20131030-jyagw [Accessed 16 Aug. 2017]. Rivero, O. and Theodore, J. (2014). Global Journal of Management and Business Research: B Economics and Commerce. Global Journals Inc. (USA), 14(4). Root III, G. (n.d.). Importance of Teamwork at Work. [online] Smallbusiness.chron.com. Available at: http://smallbusiness.chron.com/importance-teamwork-work-11196.html [Accessed 16 Aug. 2017]. Stensholt, J. (2015). TPG's David and Vicky Teoh hit $2.6bn wealth mark. [online] Financial Review. Available at: http://www.afr.com/technology/web/tpgs-david-and-vicky-teoh-hit-26bn-wealth-mark-20150313-1433uw [Accessed 16 Aug. 2017].   Read More