Dick Smith Australian entrepreneur, explorer and philanthropist

Dick Smith, born in Sydney in 1944, is a well-known Australian entrepreneur with many talents. Throughout his career, he
has been a pioneer of the concepts of Australian Made and Australian Owned. Today, his message of Buy Australian
Made and Owned can be found on television and radio, in newspapers and in the local supermarket. With the worry
about the speed of globalisation, other Australian companies are eager to copy his success.
Dick Smith is also an explorer and an accomplished aviator. In 1983, he made the first solo helicopter flight to the North
Pole. In 1993 he made the first non-stop balloon crossing of the Australian continent, and in 2000 he became the first man
to fly a hot-air balloon against the wind for 2500 kilometres from New Zealand to Australia.
Between 1990 and 2000, Dick Smith held several positions as chairman of boards. He served 2 terms as chairman of the
Civil Aviation Safety Authority board, from 1990 to 1992, and from 1997 to 1999. From 1996 to 2000, he was Chairman of
the National Centenary of Federation Council. In 1998, he was appointed as ambassador for the council for Aboriginal
Reconciliation. However, it is for his entrepreneurial talents that Dick Smith is best known. After he left tertiary studies, he
worked for an electronics firm. In 1968, he started a business venture that later became Dick Smith Electronics.
Dick Smith Electronics
In 1968, Dick Smith began his first business car radio installation in tin, rented premises under a car park in suburban
Sydney. His superior customer service and flair for publicity saw him move to larger premises only a year later. In 1973,
he decided to leave the car radio business and focus on the growing electronics market. He flew to the United States and
the United Kingdom to see how the big electronic retailers do business. Dick Smith became the first electronics retailer in
Australia not only to sell components in self-service display bins but also to carpet his store.
Dick Smiths patriotic pride was a key factor in his business philosophy, but it became a public issue in 1975 when
American firm Tandy Electronics opened a store a few doors from one of his. He and his staff demonstrated outside the
Tandy store, and their story of being squeezed to death by American big business received much attention in the press. A
key part of Dick Smith Electronics promotion was its 100% Aussie ownership and the fact that its profits stayed in
Australia.
By 1976, the company was hugely successful, with three more stores in Sydney, and the decision was made to set up two
new stores in Melbourne and Brisbane. The business model made managing a store easier: all stores would look the
same, stock the same products, be run under the same strict guidelines and focus on customer service. Purchasing was
centralised; stock was housed in the Sydney warehouse and then shipped to the stores, complete with the price tag.
The sale to Woolworths and the new publishing venture
By 1980 the company had grown to over 20 stores. Dick Smith sold a 60% share of his firm to Woolworths because the
firms required working capital was so large he could not supply it alone. In 1982 Woolworths bought the company
outright, including the rights to the black and yellow logo with Dick Smiths name and face because market research had
shown the consumers equated the name of the company with being an Australian retail success. Today, the name and
face of Dick Smith is still strongly connected with the company for the same reason. Dick Smith Electronics continues to
be a success. It has grown to over 130 metropolitan company-owned stores, 10 franchise stores in smaller towns and
country areas and 70 authorised stockists in Australia and New Zealand, and employs over 2000 people.
After selling the company to Woolworths, Dick Smith left the electronic industry to explore interests in publishing,
exploration and philanthropy. In 1985 he began the quarterly magazine Australian Geographic, which was sold to
Australian-owned John Fairfax Publications Pty Ltd in 1995. The magazine is now privately owned after a management
buy-out in 1998.
A new tasty adventure: Dick Smith Foods
Dick Smith is passionate about Australian made and owned food and food companies and publicising those
quintessentially Australian foods like Vegemite, Rosella, Life Savers and Arnotts which are now foreign-owned. In 1999
he invested A$5 million to launch Dick Smith Foods. Australians are patriotic but at the moment the labelling is so
deceptive you dont know whats Australian. What I can say to people (is) if you buy a product with a Dick Smith Foods
label on it its as Australian as you can get.
Less than a year after it was established, Dick Smith Foods was selling over 80 supermarket products, including peanut
butter, ice cream, cereals and soups. The products are manufactured by local companies such as Greens Foods, Bega
Cheese, SPC, Golden Circle and Sanitarium, and are sold under licence with the Dick Smith logo.
The manufacturers pay Dick Smith a royalty, which is donated to charities. From 1999 to 2002, Dick Smith Foods
generated A$157 million in retail sales and donated A$1.3 million to charities such as the Salvation Army.
In 2002, Dick Smith granted a 10-year licence to Sanitarium health Food Company to run the everyday business of his
food label. He approached Sanitarium, which is owned by the Seventh Day Adventist Church, because he wanted to lift
sales and expand the product range. To achieve this he sought the expertise of an Australian company known to have the
strength, integrity and experience in the food industry. By joining forces with Sanitarium, Dick Smith Foods received the
backing it needed to compete on a more even footing with the big foreign-owned companies. But one important reason for
the Sanitarium choice was the pursuit of Dick Smith Foods philosophy to support Australian owned businesses and
Australian farmers. Another benefit of the new growth potential will be increased funding for important charities and
sponsorships. This is an important social commitment that combines the philanthropic policies adopted by both Dick
Smith and Sanitarium.
Questions
1. Identify the multiple entrepreneurial outcomes described in the case study.
A key part of Dick Smith Electronics promotion was its 100% Aussie ownership and the fact that its profits
stayed in Australia. After selling the company to Woolworths, Dick Smith left the electronic industry to explore
interests in publishing, exploration and philanthropy. Dick Smith is passionate about Australian made and
owned food and food companies and publicising those quintessentially Australian foods like Vegemite,
Rosella, Life Savers and Arnotts which are now foreign-owned. In 1999 he invested A$5 million to launch Dick
 Smith Foods. Australians are patriotic but at the moment the labelling is so deceptive you dont know whats
Australian. What I can say to people (is) if you buy a product with a Dick Smith Foods label on it its as
Australian as you can get. The manufacturers pay Dick Smith a royalty, which is donated to charities. From
1999 to 2002, Dick Smith Foods generated A$157 million in retail sales and donated A$1.3 million to charities
such as the Salvation Army. Another benefit of the new growth potential will be increased funding for important
charities and sponsorships. This is an important social commitment that combines the philanthropic policies
adopted by both Dick Smith and Sanitarium.
2. To what extent does an entrepreneur like Dick Smith foster the economic growth of Australia?
As we know, in the passage said that Dick Smith is a philanthropic, it means that he not only think about
expanding and make his business more successful, but he also think about his country. He wants to make his
country also become well and the people. In his business, Dick Smith uses the material originally from
Australia. By doing that, it means Dick Smith also support his country. He also reduce the unemployment rate
in Australia because he opens some branch.
3. What entrepreneurial traits does Dick Smith exhibit?
Dick has an entrepreneurial trait as an entrepreneur. He has strategy to make the company more successful.
He does franchising with company, which has more experience in their sector and later can expand his
business. Beside that, he also does charity. His company and Sanitarium for example. From that, Dick Smith
will be increased funding for important charities and sponsorships. This is an important social commitment that
combines the philanthropic policies adopted by both Dick Smith and Sanitarium.