Section 120 Development
It is easy to start a small business, but it is not easy to make it big. Many companies die in the process of becoming bigger.
After the meeting, Li Cong was thinking about these two sentences. His company is already very popular, and now this year's list and that list have predicted that his company will enter China's top 500 by the end of the year, and he is already sitting firmly. China's richest man, and even the first person in mainland China to enter the world's top ten richest people. He is only 25 years old this year and is also the youngest rich man in the world. Everyone believes that he can beat Buffett ( American stock god) catches up to the throne of the richest man in the world.
But how should his own business develop? Although Li Cong already wants to develop in an all-round way, he is a layman in other aspects. Strictly speaking, he was just a small employee in a small company before, and he is a layman in everything. If it's not lucky, I'm afraid I'm already a little ghost in the Palace of the King of Hades.
The company now has two energy production bases, a chain group of hundreds of cooperative gas stations, hundreds of Samsung Electronics stores, and a city park under construction. Korea National Oil Corporation has 15% of the shares. There is a company in Jinan and Qingdao each, with tens of thousands of employees, and an ocean-going fleet and tens of thousands of employees will be added soon.
Looking at the report on the table, Li Cong really didn't know that he was already the boss of so many people. Every decision he made could affect the jobs of tens of thousands of people, and his scale would increase in the future. When there are millions of employees, can the government dictate to itself? You are forcing me, I just quit, I don't believe you can watch millions of people lose their jobs.
"Jenny, come in." Li Cong felt that his wild thinking was fruitless, and it was better to ask professionals. They knew the development history of some large companies and would give him better advice.
"Gianni, please take a look at these first, and then tell me how to invest and how to make my company continue to develop in an all-round way, not limited to one aspect." Jenni took the document handed over by Li Cong Jia was very surprised, this is the company's top secret information, I didn't expect Li Cong to believe so much in a newcomer, which was unimaginable in the companies she had experienced before.
It took about half an hour for Jenny to read it carefully. Before, he only knew that the company he was in was powerful, but he really didn’t expect it to be so strong. A few months ago, he still owed the country tens of billions. All the payments have been paid off, and there are still tens of billions of working capital and more than one billion in income every day. Does it mean that your company does not spend money to produce environmentally friendly oil? Of course it doesn't cost money, does Sunshine ask for money?
"President, first of all, I have to congratulate you on your success. It is very gratifying for a company as large as ours to have no debts and have such abundant cash flow. I am even more pleased that you are so enterprising. Heart, not satisfied with the status quo." Anyway, the director of this think tank is very good at flattering, and that alone is worth it. "If you want to make your company bigger, there are generally three ways: horizontal merger, vertical merger, and cross-industry merger. Horizontal merger is a merger between companies with the same product, that is, to increase the output of a product to achieve economies of scale , and reduce costs. In many industries, only when the scale reaches a certain level can technical efficiency and cost reduction be achieved, which requires expanding output and enterprise scale. This expansion can be achieved by enterprises investing profits in production, and also It can be realized by merging other enterprises. However, it is too slow to use the former method to achieve economies of scale, so the latter method is generally used. This kind of horizontal merger can be the unification of several enterprises through the shareholding system, or it can be Large companies merge small companies. As far as our company is concerned, we can invest in the construction of an energy base in the inland area of China, but currently this road is basically not allowed. We do not have so much energy to complete it, and we do not Companies similar to ours want us to merge.
"Li Cong feels the same way. It will be impossible to establish a base within a year, and the government will not help.
"Don't talk about mergers, what I want is comprehensive development across industries." Mergers are impossible, let's just skip it.
"Good CEO, cross-industry mergers, also known as diversified operations, are also the development strategy of many multinational companies in the world. Cross-industry mergers can bring many benefits to enterprises. First, they can make full use of resources. The resources of enterprises can Divided into dedicated resources and general resources, diversification can make more full use of general resources. Secondly, it can avoid risks caused by the deterioration of market demand for individual products. Finally, diversification is also conducive to the adjustment of product structure of enterprises. When the original When the leading product loses the market, it can be smoothly transferred to the products or industries that are already in operation. These benefits brought by diversified operations are called economies of scope.” Basically, it is an economics class, and it really is an existing major. Culture, and practical operation, Li Cong felt more and more that the person he hired was worthwhile.
"President, I have to remind you that in theory, the three roads to making a company bigger are clear, but in reality, each road is full of pitfalls and mines, and if you are not careful, the road to success will be changed." For the road of death." I also know these things, but what's the point of living without challenging people.
"I have a few ideas. I don't know if it is possible. Let me analyze it. Since we have decided to cross-industry, we must become bigger and stronger. First of all, I want to enter the home appliance sales based on the company's 300 Samsung stores."
"President, you must know that this industry has no profit at all, and I prefer to develop ocean transportation."
"We are already developing, but the sales of home appliances is a hugely influential industry. Take China Shipbuilding Industry Corporation as an example. Its assets are twice that of Gome, but I can guarantee that more people know about Gome than those who know about China Shipbuilding Industry Corporation. The cost is more than double, what I want is the popularity of the company, so I think you can help me formulate a development plan, the total investment should not exceed 30 billion yuan, and we will build a third base next year." Jenny was helpless He shrugged his shoulders with Li Cong. He is the boss, and his opinion can only be a suggestion, and he never thought that his words could determine the direction of a large company.
Li Cong's consideration is also correct. After all, the energy group can get in touch with end customers through PetroChina and Sinopec. He is eager to let the public know his strength and improve his social image.