ASSIGNMENT 1 ENGG437ENTREPRENEURSHIP AND LEADERSHIPSubmitted by Ercan ALTUNSubmitted to Karen Howells
Carlos Slim was born 1940 is a Mexican businessmagnate and philanthropist. He is currently ranked asthe richest person in the world in 2012. Slim has beenranked the richest person in the world since 2010.His extensive holdings in a considerable number ofMexican companies throughhis conglomerate, Grupo Carso, SA de CV, haveamassed interests in the fields of communications,technology, retailing, and finance. Presently he is thechairman and chief executive of telecommunicationscompanies Telmex and America Movil. America Movil, which in 2010 was Latin America’slargest mobile-phone carrier, accounted for around$49 billion of Slims wealth by the end of 2010. Hiscorporate holdings as of March 2012 have beenestimated at $69 billion.
Carlos Slim was born 1940 is a Mexican business magnate and philanthropist. He iscurrently ranked as the richest person in the world in 2012. Slim has been ranked therichest person in the world since 2010. His extensive holdings in a considerable number ofMexican companies through his conglomerate, Grupo Carso, SA de CV, have amassedinterests in the fields of communications, technology, retailing, and finance. Presently heis the chairman and chief executive of telecommunications companies Telmex andAmerica Movil. America Movil, which in 2010 was Latin America’s largest mobile-phone carrier,accounted for around $49 billion of Slims wealth by the end of 2010. His corporateholdings as of March 2012 have been estimated at $69 billion.
Slim was born in Mexico city, Mexico in 1940 to Maronite Christian parents Julián SlimHaddad and Linda Helú, both of Lebanese descent. His father, born Khalil Slim Haddad,immigrated to Mexico at the age of 14 in 1902 and changed his first name to Julián. As itwas not uncommon for Lebanese children to be sent abroad before they reached the age of15 to avoid being conscripted into the Ottoman army, four of Haddads older brothers werealready living in Mexico at the time of his arrival. Carlos Slims mother, Linda Helú Atta, was born in Parral, Chihuahua, of Lebaneseparents who had immigrated to Mexico in the late 19th century. Her parents uponimmigrating to Mexico had founded one of the first Arabic language magazines forthe Lebanese-Mexican community, using a printing press they had brought with them. In 1911, Julián established a dry goods store, La Estrella del Oriente (The Star of theOrient). By 1921, he had purchased real estate in the flourishing commercial district ofMexico City. These enterprises became the source of considerable wealth.In August 1926, Julián Slim and Linda Helú married. They had six children: Nour, Alma,Julián, José, Carlos and Linda. Julián senior, who had been influential in the Lebanese-Mexican business community, died in 1953.
Slim and his siblings were taught basic business practices by their father, and at the age of12, Slim bought shares in a Mexican bank. At the age of 17, he earned 200 pesos a weekworking for his fathers company. He went on to study civil engineering at the NationalAutonomousUniversity of Mexico, while simultaneously teaching algebra and linearprogramming there. Slim began his career as a trader in Mexico. He would go on to form hisown brokerage firm -- a firm that later expanded to invest in individual businesses, rangingfrom construction and manufacturing to retail and restaurants. In 1965 he incorporatedInversora Bursátil and then bought Jarritos del Sur. In 1966, already worthUS$40 million, he founded Inmobiliaria Carso. Three months later he married SoumayaDomit Gemayel (the Carso name derives from the first three letters of Carlos and the firsttwo of Soumaya) and they remained married until her death in 1999. Construction, real estate and mining businesses were the focus of his early career. By 1972he had established or acquired a further seven businesses in these categories, including onewhich rented construction equipment. In 1976 he branched out by buying a 60% interest in aprinting business and in 1980 he consolidated his business interests by forming Grupo Galasas the parent company of a conglomerate that had interests in industry, construction, mining,retail, food and tobacco.
In 1982 the Mexican economy, which had substantially relied on oil exports, contractedrapidly as the price of oil fell and interest rates rose worldwide. Banks and other businesseswere nationalized, crippled or collapsed and the peso was devalued. At this time, and duringthe period of recovery to 1985, Slim invested heavily. He bought outright, or a largepercentage of, numerous Mexican businesses, including Reynolds Aluminio, General Popo(General tire’s trading name in Mexico), Bimex hotels andSanborns, a food retailer. He alsoacquired a 40% interest in the Mexican arms of British American Tobacco and 50% of thatof The Hershey Company. He moved into financial services as well, buying Seguros deMéxico and creating from it, along with other purchases such as Fianzas La Guardiana andCasa de Bolsa Inbursa, the Grupo Financiero Inbursa. Many of these acquisitions werefinanced by the cash flows from Cigatam, a tobacco business which he bought early in theeconomic downturn.He added the Nacrobre group of companies – which trade in copper and aluminiumproducts – in 1986, along with a chemicals business, Química Fluor, and others. In 1990 the Grupo Carso was floated as a public company, with share placements initiallyin Mexico and then worldwide..
In 1991 he acquired Hoteles Calinda (today, OSTAR Grupo Hotelero) and in 1993increased his stakes in General Tire and Grupo Aluminio to the point where he had amajority interest. In 1996 Grupo Carso was split into three companies – Carso Global Telecom, GrupoCarso, and Invercorporación – and the following year Slim bought the Mexican armof Sears Roebuck. 1999 saw Slim expanding his business interests beyond Latin America. He set up TelmexUSA and also acquired a stake in Tracfone, a US cellular telephone company. At the sametime he established Carso Infraestructura y Construcción, S. A. (CICSA) as a part of theGrupo Carso, this being a construction and engineering company. It was also at this timethat he had heart surgery and subsequently passed on much of the day-to-day involvement inthe businesses to his children and their spouses. América Telecom, the holding company for América Móvil was incorporated in 2000. Ittook stakes in various cellular telephone companies outside Mexico, including the BrazilianATL and Telecom Americas concerns, Techtel in Argentina, and others in Guatemala andEcuador. In subsequent years there was further investment in this sphere, including dealsinvolving companies in Colombia, Nicaragua, Peru, Chile, Honduras and El Salvador. 2000also saw a venture with Microsoft which led to the start of the Spanish T1msn portal, laterrenamed ProdigyMSN.
Having amassed a 50.1% stake in Cigatam, the tobacco company, Slim reduced hisholdings by selling a large part of that to Philip Morris in 2007 for $1.1bn, while in the sameyear also selling his entire interest in a tile company, Porcelanite, for $800m. He alsolicensed the Saks name and opened Saks Fifth Avenue in Santa Fe, Mexico. The followingyear saw him take a 6.4% stake in The New York Times Company. On December 8, 2007, Grupo Carso announced that the remaining 103 CompUSA storeswould be either liquidated or sold, bringing an end to the struggling company as it was thenknown, although the brand continues. After 28 years he became the Honorary LifetimeChairman of the business. He is also Chairman of Telefonos de Mexico, America Movil,and Grupo Financiero Inbursa.
On March 29, 2007, Slim surpassed Warren Buffett as the worlds second richest personwith an estimated net worth of $53.1 billion compared to Buffets $52.4 billion. On August 4, 2007, The Wall Street Journal ran a cover story profiling Slim. The articlesaid, "While the market value of his stake in publicly traded companies could decline at anytime, at the moment he is probably wealthier than Bill Gates". According to The Wall StreetJournal, Slim credits part of his ability to "discover investment opportunities" early to thewritings of his friend, futurist author Alvin Toffler. On August 8, 2007, Fortune reported that Slim had overtaken Gates as the worlds richestman. Slims estimated fortune soared to $59 billion, based on the value of his publicholdings at the end of July. Gates net worth was estimated to be at least $58 billion. On March 5, 2008, Forbes ranked Slim as the worlds second-richest person, behindWarren Buffett and ahead of Bill Gates. On March 11, 2009, Forbes ranked Slim as the worlds third-richest person, behind Gatesand Buffett and ahead of Lawrance Ellison. On March 10, 2010, Forbes once again reported that Slim had overtaken Gates as theworlds richest man, with a net worth of $53.5 billion.At the time, Gates and Buffett had anet worth of $53 billion and $47 billion respectively. He was the first Mexican to top thelist. It was the first time in 16 years that the person on top of the list was not from the UnitedStates. It was also the first time the person at the top of the list was from an "emergingeconomy."
In 1995 he established Fundación Telmex, a broad-ranging philanthropic foundation. Thisfollowed the creation of his eponymous non-profit philanthropic foundation, FundaciónCarlos Slim Helú in 1986. In 2007 Slim announced that the latter body had been providedwith an asset base of $4 billion and that it would be establishing Carso Institutes for Health,Sports and Education. Furthermore, it was to work in support of an initiative of BillClinton to aid the people of Latin America. Because Mexican foundations are not requiredto publish their financial information, it is not possible to confirm Slim’s claims ofcharitable giving through a public source. Among the activities of Fundación Telmex has been the organisation of Copa Telmex, anamateur sports tournament which in 2007 was recognised by Guinness World Records ashaving the most participants of any such tournament in the world, a record which itextended in 2008. Together with Fundación Carlos Slim Helú, this organisation announcedin the same year that it was to invest more than $250 million in Mexican sportsprogrammes, from grass-roots level to Olympic standard.
The Fundación Carlos Slim Helú sponsors the Museo Soumaya in Mexico City whichcontains the worlds second-largest (and largest private) collection of Rodin sculptures,including The Kiss. Named after Slims late wife, Soumaya Domit, the Museo Soumayaholds 66,000 pieces, including religious relics, works by Leonardo Da Vinci, Pablo Picasso,Pierre-Auguste Renoir and coins from the viceroys of Spain. In particular, the museumholds the largest Dali collection in Latin America. In 2000, Slim, along with ex-broadcaster Jacobo Zabludowsky organized the Fundacióndel Centro Histórico de la Ciudad de México A.C. (Mexico City Historic DowntownFoundation), with the objective to revitalizing and rescuing Mexico Citys historicdowntown area to enable more people to live, work and find entertainment there. He hasbeen Chairman of the Executive Committee for the Restoration of the Historic Jeripollassince 2001. In 2010 he inaugurated the first phase of the Plaza Mariana project in the Basilica deGuadalupe to reorganize tolerated commerce in the atrium and adjacent space. He alsoinaugurated his version of the Rockefeller Center where most of his ventures will now sharea common headquarters address, Plaza Carso.In May 2011, Slim was mentioned in Forbes Worlds Biggest Givers after donating $4billion to his foundation.
Slim has been vice-president of the Mexican Stock Exchange and president of theMexican Association of Brokerage Houses He was the first president of the Latin-AmericanCommittee of the New York Stock Exchange Administration Council, and was in officefrom 1996 through 1998. Slim was on the Board of Directors of the Altria Group (previously known as PhilipMorris) until his resignation in April 2006. Slim was also on the Board of Directorsof Alcatel. Slim currently sits on the Board of Directors for Philip Morris International. Hewas on the Board of Directors of SBC Communications until July 2004, when he quit todevote more time to the World Education & Development Fund, which is focused oninfrastructure, health and education projects. In 1997, just before the company introduced itsiMAC line, Slim bought 3% of Apple Inc.s stock. In 2008 it was reported that Slim had shown an interest in buying the Honda FormulaOne team. Telmex is sponsoring the Sauber F1 team for the 2011 season.
The Mexican magnates growing fortune has caused a controversy because it has beenamassed in a developing country where per capita income does not surpass $14,500 a year,and nearly 17% of the population lives in poverty. Critics claim that Slim is a monopolist,pointing to Telmexs control of 90% of the Mexican landline telephone market. Slimswealth is the equivalent of roughly 5% of Mexicos annual economic output. Telmex, ofwhich 49.1% is owned by Slim and his family, charges among the highest usage fees in theworld, according to the Organisation for Economic Co-operation and Development. According to Professor Celso Garrido, an economist at the Universidad NacionalAutonoma de Mexico. Slims domination of Mexicos conglomerates prevents the growth ofsmaller companies, resulting in a shortage of paying jobs and forcing many Mexicans toseek better lives in the United States of America.
Slim has been awarded the Entrepreneurial Merit Medal of Honor from Mexicos Chamberof Commerce. He is a "gold patron" of the American Academy of Achievement, aCommander in the Belgian Order of Leopold , CEO of the year in 2003 by LatinTrade magazine, and one year later CEO of the decade by the same magazine. In 2008 his philanthropy was recognised with the award of The National Order of theCedar by the Lebanese government. On May 20, 2012 Slim was awarded an honorary degree from George WashingtonUniversity.