Prompt #1 - After reading the Than Quoc Lam article (in the Research section abo
ID: 389200 • Letter: P
Question
Prompt #1 - After reading the Than Quoc Lam article (in the Research section above), identify the main concepts that you saw which related to what you have already learned this semester (i.e. ethics/social responsibility, types of business ownership, global business, etc.). Explain how Lam's story points to each of these concepts.
Prompt #2 - Briefly recap some of the interesting points that you discovered while browsing through the Small Business Administration website in the Narrative/Study Guide section. What did you learn?
The Article:
Thanh Lam President
When he fled Vietnam in 1979 in a frail boat with 186 others, bound over the open sea for a refugee camp in Malaysia, there was virtually no room to sit down and almost nothing to eat for Thanh Quoc Lam. Today, however, Thanh is surrounded by food. At the age of 43, he’s a successful retailer of Vietnamese-style sandwiches, pastries and noodle dishes, and a wholesaler of baked goods and deli sandwiches to airlines, food caterers, hotels, supermarkets and restaurants throughout Hawaii. Food critics say Thanh makes the best French bread in Honolulu. With his entrepreneurial skills, his business conduct, his success and his unselfish support of his employees, the story of Thanh is indeed remarkable. It is a story of success that won him recognition from the U.S. Small Business Administration in May as the 2002 National Small Business Person of the Year. When Thanh arrived in the United States from the Malaysian refugee camp in 1979, he had little money and only a minimal knowledge of English. With the help of the Red Cross, Thanh relocated to San Jose and held a series of low-paying jobs before starting his own business organizing overnight gambling trips to Reno. For $27 each, passengers received round-trip transportation, a night in a hotel, some gaming chips and sandwiches Thanh made himself. His business grew to the point where Thanh didn’t have time to make sandwiches. Instead, he purchased them from the Ba-Le sandwich shop owned by another Vietnamese immigrant, Le Vo. When competition in the Reno junket businesses stiffened, Thanh decided to look for other opportunities. He discussed them with Vo, who had been encouraged by his customers to open another shop in Honolulu. Vo wanted Thanh to be his business partner in the new venture and the two traveled to Hawaii. Shortly after their arrival to open their Ba-Le (“Ba-Le” means Paris in Vietnamese) sandwich shop, Thanh and Vo were confronted with an unexpected development that forced them to think and act swiftly – a decision that would determine the course of their business in Hawaii. The two made a verbal agreement with the owner of a grocery store in the Chinatown section of downtown Honolulu to lease the property for $20,000. When they showed up a week later to sign the papers, the owner raised the price to $40,000. Vo didn’t like the new terms and wanted to instead purchase a Vietnamese restaurant in midtown Honolulu for $35,000. Thanh was skeptical about the restaurant and its location. He noticed that Vietnamese who traveled to Hawaii were usually drawn to the Chinatown area of Honolulu. Thanh believed, at least initially, that it would be better to target the Vietnamese-American market. Even at the inflated price, the partners decided to lease the Chinatown grocery store. The first Ba-Le sandwich shop opened in December 1984. It was so popular that local suppliers could not keep up with his demand for fresh-baked French bread. Six months later, Thanh was baking and selling his own bread. In 1986, Thanh opened a second Ba-Le shop and bought out Vo’s interest in the business. That same year, Thanh realized that his expanding bakery operations required new and better equipment, specifically a $17,000 French-made Pavailler automated oven capable of producing almost 500 loaves an hour. After being turned down by two banks, Thanh secured an $80,000 direct loan from the U.S. Small Business Administration which allowed him to pay off a prior business loan and finance his new oven. In March 1986, the same year he became a U.S. citizen, Thanh became the sole owner of Ba-Le. The terms of Thanh’s SBA loan required full payment within seven years. He paid the loan off in two years. Respectful of the financing sources, Thanh worked many long hours because he was determined to pay off the loan as quickly as possible. In 1987, a restaurant critic at Honolulu Magazine wrote, “The best French bread in Honolulu is baked by a Vietnamese in Chinatown.” That review opened new markets for Thanh, who added on average at least one new outlet per year throughout the 1980s and 1990s. By the new millennium, shops had been opened on Maui and the Big Island of Hawaii, despite a soft economy. Meanwhile, Thanh’s bakery operation also grew. In 1996, when he began offering catering services, four established bakeries were ahead of him. That year, Thanh moved his headquarters and bakery to a 15,000 square-foot warehouse and expanded his bakery operations by paying meticulous attention to the quality of his products and working long hours to keep his customers happy. By 1999, Thanh was number one, increasing his revenues 1.5 times over the previous year. Satisfied customers included the Hilton and Sheraton hotel chains, as well as such airlines as Continental, Japan Airlines, Delta, American, United, China Airlines and Air New Zealand. In the late 1990s, Thanh’s business really took off when he secured a lucrative contract to produce fresh pizza dough for Papa John’s Pizza expansion in Hawaii. Thanh now delivers 40 tons of pizza dough every month to the pizza chain. Between 1998 and 2000 alone, Ba-Le’s gross revenues rose from $2.6 million to $4.8 million. Earnings for 2001 exceeded $5 million. Since opening his first sandwich shop in 1984 with four employees, Thanh has expanded to 22 outlets, each of which employs between two and 10 people, depending on the location. At his headquarters and bakery plant, he employs 70 people. Over the past three years, he’s increased his staff by 15 employees. Thanh has unselfishly shared his success with others. He currently owns only one of his 22 sandwich shops, rewarding his loyal employees with opportunities to own and operate their own businesses. Thanh finds time to participate in community affairs. He donates his services and products to various temple, church and community groups and is also a regular contributor to the American Red Cross. For his employees, Thanh offers every possible opportunity to succeed. He starts them at a rate higher than minimum wage. He provides zero-interest financing on loans to franchisees. He also stresses education, with an emphasis on learning the English language. To this end, he offers flexible working hours to encourage employees to attend classes. For the future, Thanh is expanding his sandwich and bakery business to Japan and China. Two Ba-Le French Vietnamese restaurant cafes have opened in Tokyo and Nagoya. Thanh is grooming his two sons to take over the international operations after they complete their schooling. In Hawaii, Thanh plans to grow his business further by expanding his kitchen at the bakery to meet USDA requirements, allowing him to supply meats and other prepared foods which he’s not been able to previously offer. Ever the vigilant entrepreneur, Thanh is always looking for growth opportunities.
Explanation / Answer
Prompt #1:
The concepts which can be identified are:
Prompt #2:
Following are the key points learned from Small Business Administration Website:
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