Pablo Escobar was a Columbian-born drug dealer who is regarded as the most notorious in history. He headed a well-organized cartel network of cocaine processing and distribution all over the world. He accumulated a lot of wealth during his reign, and at one time, he was listed as one of the wealthiest people in the world. He was very influential in his native country, and due to his wealth, he was feared by many. He had political relations with two Columbian presidents, among many other politicians, which made him even more powerful. His legacy and history were still in the minds of the people in his country as well as the world since his death in 1993. Escobar was very successful due to his entrepreneurial skills and knowledge, which made him manage his entire business network. These skills are discussed in detail in this essay.
Pablo used his skills of influence to popularize drugs around the world. Pablo made a brand name for cocaine when it was introduced and made it a global product in the market. He utilized his popularity strength to grow his business. Pablo was aged twenty-two when he got into his drug scheme. He was employed by a local smuggler named Alvaro Pietro, in his hometown of Medellin, Columbia. At this age, he had made millions of dollars from the sales as he had already established a name in the drug trafficking network. He could retain his customers and attract new ones as he created a sophisticated network that had enormous influence among the people around the world.
He mastered the pivot of his business. He initially smuggled contraband products, mainly contraband tobacco and liquor. He earned some excellent profit, but this business was slowly getting risky since the quantities being smuggled increased, and it was difficult to handle them. Pablo realized that he could earn more with a small quantity of cocaine than large quantities of liquor and cigarettes. He knew where to invest and amass more profit. Cocaine is among the most expensive drugs in the world. He realized he could make huge profits by selling a small amount due to the vast amounts involved in transactions.
Pablo knew his market. He understood all the dynamics and aspects of his market. In the 1970s, the estimated cost of production of a kilo of cocaine in Colombia was about $1,500. That kilo of cocaine would generate double profits when sold in the Colombian streets. But Palo noted that the price of that kilo in America was approximately $50,000. Pablo saw this as an opportunity to direct his business to the profitable market. He was initially endorsed by American movie stars, musicians, and models (Naef, 2018). This was a massive boost to his business.
He locked up his distribution network. Pablo had sophisticated shipping routes that he created in the US, which made his business successful. He would rent planes and pilots and owned jetliners and built his airports. He operated the routes through Jamaica and Mexico. These distribution lines earned him double revenue as he charged his competitors for transporting their product out of Colombia. The distribution channels helped him evade the authorities since they would easily interfere with his business. He was a smart entrepreneur who could plan and forecast any eventualities like to occur and take necessary precautions.
Pablo Escobar kept his competitors close to him. He had treaties and agreements with his competitors. Pablo was the chairman of the Medellin Cartel group made up of drug lords. They shared a vision of prosperity and faced a common enemy; the Colombian government. This united them. Pablo negotiated business dealings with the Cali Cartel, who regarded as an enemy. They later turned out to be Pablo's biggest customers. Escobar charged Cali Cartel for using his trade routes. He cost them some tax for his help in overturning the Colombian government's position on extradition. By doing this, he quickly contained them and avoided cases where they would plot of eliminating him and killing his business. This was a smart precaution as he could predict their movements and plans to avoid being killed (Naef, 2018). In many enterprises, competitors work to bring down others and try to rise above everyone else.
Starting a business empire entails several activities, and all of them are geared towards making sure that every event that occurs, later on, is thriving. In that case, there is a need to understand and also practice all that it takes to be an entrepreneur. Professional expertise, knowledge, and even training in business are vital before getting to start one's own company. This is followed by coming up with the right business ideas and those that can be executed using the existing resources (Naef, 2018). The sources of funds also need to be stated clearly and be sure of the fact that adequate finances will be provided by the time when the process gets underway. The tax authorities also have to come in during the starting up of a company because they are the ones that determine the legal aspects of the business at hand.
There is a need to understand the fact that the start-up phase of a company is supposed to be carried out collectively so that all the essential ideas can be implemented. In that case, I would seek help financially, and this would come from different financial institutions that support small businesses. They offer funds in the form of loans and grants, especially to businesses that have proved or shown to have a successful future. I would also need help on how to get the right information with regards to the payment of taxes and even the signing of legal documents. This help would come from legal firms and also by being in contact with attorneys. Covering business in this way is essential because there is no instance when I will be hit by a disaster and remain in the same position for an extended period. The legal bodies and insurance firms are likely to come in and provide different kinds of covers.
Entrepreneurial leadership is some of the ways of making sure that a business is doing well. The kind of leadership that one applies in business is essential in making sure that all the resources are utilized and that the correct output is obtained. The other important finding is that business is supposed to differentiate between innovation and imitation, and this should go hand in hand with the set organizational culture. Change is supposed to be embraced at all times as it helps in coming up with new ideas and new products that will bring about the aspect of differentiation in the industry. It is also important to note the fact that imitation is not advisable as it prevents a company or business from improving with regards to the kind of products that are in the market (Naef, 2018).
Pablo Escobar assessed the risks from time to time. He was aware of the risks related to the business he was taking. He made proper plans for his routes and asserted his strategic influence whenever necessary. He monitored his enemy's every move. His enemies were competing cartels and the Colombian government. Pablo at once negotiated for terms of his surrender. He said that he would build and operate his prison, popularly known as La Cathedral. He was to pay the staff and all the operational costs.
My reflection from Pablo's entrepreneurial skills
To be a successful entrepreneur, one has to possess the skills necessary to succeed in your business. A business is started with the sole aim of making a profit. But if not carefully managed, it can cause significant losses and eventual shutdown. Pablo was a successful entrepreneur due to his expertise and vast skills in business. Business people should be flexible to adopt new models when presented to them. They should feel no fear to leave behind their current successful product for a potentially better one. Pablo chose to specialize in cocaine and dropped the other drugs due to the high profits in the cocaine business (Naef, 2018). As an entrepreneur, I learn that I should be ready to take up a new path after careful analysis of the current path. The original path may be more successful with more value for money than the current one.
I learn that I should explore more markets beyond the local markets. A large market may be less competitive and worth investing than the initial one in terms of infrastructure costs. Pablo studied many different markets away from Columbia. He established markets in the USA, Mexico, and many other countries. This contributed to the growth of his business as he had more customers and, consequently, more profits. This has changed my business perspective, whereby I will be to increase the market by exploring new ones in many countries all over the world.
I learn that I should never outstretch my abilities. Pablo was aware that his business was moving products from points to points, and therefore he managed the whole supply chain from the production stage to the end-user consumer. I should establish that I can easily control without relying on others. The business should be within my abilities and limits. As an entrepreneur, I should aim at minimizing the chain of production to ensure the product gets to the end-user within a short time within a manageable channel. Pablo was successful because he could easily control the whole channel of his business. He was involved in every stage of distribution.
In business, one should work with their competitors to gain proper market penetration. They will be able to help each other during difficult times due to mutual working relations. Pablo worked closely with his competitors in his business. He reduced their influence in the market and contained them. They could help him during times of challenges. As an entrepreneur, I learn to view my competitors as partners rather than enemies. I should work closely with them to realize our dreams together.
I learn to identify the risks in the business and take necessary mitigations against them. There should be proper planning with negotiation skills, which help resolve difficult situations. Pablo knew the authorities could intercept him as cocaine is an illegal drug. He had to plan well to evade arrest while at the same satisfying his customers. In entrepreneurship, risk assessment is vital. Then a road to design and implement an enterprise risk management program should be developed.
Effects of entrepreneurship skills on the economy, business, society, and the environment
Entrepreneurship forms part of our daily lives. Our entrepreneurial skills affect how we run our business and in turn, the effect on the economy. Pablo Escobar dealt in the sale of cocaine all over the world. He accumulated a lot of wealth from this business. He collected a lot of cash in liquid form and also in assets. He was estimated to have more money than the Columbian government. This consequently affected the economy of Columbia and the world. He also engaged in money smuggling and held vast amounts of money, thus reducing the costs of money in circulation. He hindered the growth of the economy.
Escobar rallied support among Colombians who were regarded as the poorest. He stepped to help them, whereas the government couldn't or wasn't willing to help. He built for them an apartment near his home town of Medellin and named it after him. The people who benefited praise him to date for what he did for them and the community. Escobar built tens of hundreds of homes in an area that previously had been a vast garbage dumpsite. He was respected, and everybody behaved well in Medellin and in the neighborhoods to demonstrate their respect for him. He left a positive impact on the people, especially the poor.
My view on Pablo's entrepreneurial skills' effect on business and economy
Pablo was a successful entrepreneur. He had marvelous skills, which enabled him to succeed, b...
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