Chapter 555 Lessons From the Failure of Family Management! Professional Manager System

Chapter 555 Lessons from the failure of family management! The importance of the professional manager system! !

When Wang An Computer Company was conquering cities and territories, another technology company in the United States was also rising, that is, Pingguo Company, which is known for its personal computers (PCs).

His subordinates once suggested to Wang An that he should develop personal computers, but Wang An thought that developing personal computers was a ridiculous thing.

After Apple personal computers were put on the market, they were soon in short supply.

IBM also quickly followed suit and invested heavily in the development of PCs.

As the functions of PCs became more and more powerful, Wang An Computer Company's minicomputers and word processors had no advantages.

Wang An Computer Company quickly developed PC products that were better and faster than IBM and Apple personal computers, but because of personal grievances with IBM, Wang An insisted that Wang An personal computers were not compatible with IBM, and he fought against the trend on his own.

Wang An once persuaded Bill Gates of Microsoft and Andy Grove of Intel to give up cooperation with IBM and cooperate with him instead, but they refused.

Bill Gates refused because Microsoft was still very weak and still under the protection of IBM. It was precisely because of the cooperation of IBM that he needed it. He could not betray IBM.

Andy Grove had visited Wang An in his early years, hoping that Wang An would give some suggestions for a memory device of Intel.

Wang An said: "If you had come to me earlier, you would not have produced such a poor product at all."

Grove, who had a strong self-esteem, left the scene angrily and held a grudge against Wang An from then on. How could he cooperate with Wang An?

At this time, Wang An Computer Company still had strength and would not collapse. However, Wang An made a huge mistake in his next decision, and he was powerless to turn the tide.

Despite the repeated opposition of the board of directors, Wang An insisted on selecting his eldest son Wang Lie as the company's CEO and his youngest son as the president of Wang An Communication Company.

Wang An's actions directly led to strong dissatisfaction within the company, and many capable people sought other jobs, including Harold Koppel and John Cunningham.

Especially Harold Koppel, who once proposed to Wang An to create a modern workstation.

If Wang An had adopted Harold Koppel's product development suggestions, Wang An Computer Company could have taken a different approach and become a leader in the business computer market, but the business world is like a battlefield, there is no if.

It turned out that Wang Lie did not have the qualities and abilities of a leader. In just over a year after he became CEO, the company's financial situation deteriorated sharply.

In 1988, the company lost as much as $424 million and its stock price plummeted by 90%.

In order to reverse the financial difficulties, Wang Lie made a series of operations, such as: significantly increasing software fees, and customers had to pay $175 for each consultation call.

This greatly hurt the feelings of old customers and lost the trust of partners.

In September 1989, Wang An was already seriously ill, but despite this, he personally announced that his son Wang Lie resigned as president of Wang An Computer Company.

After Wang Lie resigned, Wang An hired former GE President Richard Miller as president of Wang An Computer Company because Richard Miller had a successful record of saving endangered companies.

However, Richard Miller lacked understanding of the computer industry and made some unfulfilled promises to customers, further reducing the company's credibility, and the rescue operation ultimately failed.

Wang An Computer Company fell rapidly, and Wang An's health also deteriorated sharply.

On March 24, 1990, Wang An died of "esophageal cancer" at the Massachusetts Hospital at the age of 70.

In August 1992, Wang An Computer Company went bankrupt and reorganized into Wang An Global. In 1999, "Wang An Global" was acquired by a Dutch company for US$2 billion, and the companies related to Wang An disappeared completely.

Wang An once wrote in his autobiography: "If you want to be invincible in the fiercely competitive world computer industry, you must keep up with the constant changes in the world economy and always stay ahead of your peers."

Wang An did it in the early days of his business, but he did not do it in the later stages of his career.

Wang An's initial success relied on his ability to continuously invent and create, and constantly launch new technologies and new products.

His ultimate failure was also due to the weakening of his later innovation ability, and he could no longer launch new products.

In addition, he did not handle the relationship with IBM and its subsidiaries well, did not cooperate and communicate well with IBM and its subsidiaries, and at the same time, the company adopted family management, over-emphasized blood relations, appointed people based on kinship, and did not choose more suitable talents as the company's successors, resulting in the failure of transformation.

Therefore, his company eventually became a tragedy.

Century-old companies in Europe and the United States will first create a set of scientific, reasonable and feasible rules and regulations, and then hand over the management of the company to professionals. The cooperative relationship based on mature systems can bring full trust.

However, Chinese companies, because of different cultures, tend to trust people who are related to them by blood, and the company and the family are inseparable.

Family management of enterprises is the reason why Chinese companies are difficult to transform.

The family management of Wang An Computer Company is the root cause of his failure.

In the fiercely competitive international market, if Chinese companies with family management want to grow bigger and stronger and go far, it is a problem that must be solved urgently.

From the success, peak, and decline of Wang An and Wang An Computer, there are only lessons left for Yang Ming and Empire Group now.

Of course, at this time, Wang An and Wang An Computer were still in the process of development, and had not even begun to reach their peak.

Yang Ming initially considered that Windows and Wang An Computer's main product WPS had similar functions, that is, it was impossible to cooperate.

He did not think of looking for Wang An, nor did he think of cooperating with Wang An Computer.

Even though Wang An was also Chinese.

Now Wang An actually brought his son and even the sales manager to the door.

Maybe Wang An did not know Yang Ming's condition.

Compared with what he knew about Sir Yang in Hong Kong these days, Wang An and his son really admired Sir Yang.

"Sir Yang, I'm really happy to meet you." Wang An said.

"Sir Yang, we also flew to Hong Kong to find you in person." Wang Lie said.

Yang Ming certainly knew why the other party flew to Hong Kong to find him.

But this is not a big deal.

Now Wang An Computer wants to get an order from Empire Group, and it is normal for Wang An and his son to fly to Hong Kong, which does not mean anything.

From this point, Yang Ming can see that Wang An's son is not very emotionally intelligent.

If he had high emotional intelligence, he wouldn't bring this up.

Because there are many people who want to see him.

No wonder, in history, after Wang An let his son take over the company, the company declined even more seriously.

"Dr. Wang, Mr. Wang, Mr. John, let's have coffee first."

Yang Ming was not in a hurry at all.

It was Wang An and his son who were in a hurry.

Seeing Sir Yang's look, Wang An and his son could only bear it.

Yang Ming and them were drinking coffee and enjoying afternoon tea.

After almost half an hour, Wang Lie couldn't help it anymore, so he said, "Sir Yang, we came here to talk about the Empire Group's order for 200,000 computers."

Yang Ming was not in a hurry, the initiative was in his hands, not to mention that he knew Wang An would never cooperate with him, just because the other party's main product WPS and Yang Ming's supercomputer software company's Windows system functions were similar.

In this case, how could the two sides cooperate?

Instead, the two sides are likely to be competitors.

"Don't worry."

"Sir Yang, do you mean you want to cooperate with us?" Wang An also asked.

Yang Ming shook his head and said.

"You will know soon."

After finishing afternoon tea.

Yang Ming took Wang An to his study alone. When Wang An saw Yang Ming's demonstration of Windows 1, he was a little shocked.

Sir Yang's supercomputer software company has actually developed such an operating system?

Then his company's WPS seems to be worse than this Windows 1.

Because Windows 1 has all the functions that the WPS system should have.

And Windows 1 also has the functions that the WPS system does not have.

The most important thing is that this operating system is priced at only US$99 per set.

It is much cheaper than his company's WPS.

At that time, Wang An knew that Sir Yang and him were not partners, but competitors.

Empire Group did not produce computers, but it had this operating system.

Wang An Computer not only produces hardware, but also software, which is similar to Pingguo Company, but also different.

That is, Pingguo Company began to develop towards personal computers, while Wang An Computer was still stubbornly developing towards office computers, which doomed Wang An Computer to fail or even be eliminated by the market.

Chapter 5!

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