Chapter 2018 Difficulties in Merging State-Owned Enterprises

"Isn't the North Dacang Group very good? Why did you want to acquire the Hope Group again? They are also very well run, and we have always focused on supporting them."

Zhang Ruiqiang also doesn't quite understand why the two companies should be merged, especially because Beidacang will change from a state-owned holding company to a state-owned shareholding.

If it was ten years earlier, the companies would not make any money at that time, not to mention holding shares while participating in shares, and there would be a lot of direct sales, because in their own hands, they would lose money, which can be regarded as lightening the burden on the government.

But it is different now. Beidacang Group is the fifth in the global agricultural and sideline products industry and the number one in Asia. It is inevitable that many people will comment on the sudden loss of state-owned assets.

"Do you still remember what I said, if small companies merge into big companies, they will become more competitive internationally? Facts have proved that state-owned assets have also merged many companies in recent years. Is it true that they are more competitive and earn more? gone?"

"However, there is also a big problem here, that is, in your state-owned enterprises, the leadership team is still selected from those people. I am not saying that they are not necessarily bad, but everyone may be good at different directions. They are good at management. , but not necessarily good at business operations.”

"That is to say, they may be suitable to be the chairman, but not the general manager. The chairman is very important, but the general manager is a more direct participant in business operations."

"For example, I am the chairman of Taihua Holdings, but my working hours are not even one-tenth of Liu Chuanzhi's. This is the result of the cooperation between Liu Chuanzhi and Zong Qingxian. Their hard work is evident."

State-owned assets have also been doing business mergers, merging small businesses in some places into group companies to increase competitiveness, and then go abroad.

For example, if a company engaged in food trade merges agricultural planting, food processing and packaging, it can form a one-stop industrial chain, greatly reduce costs, and naturally increase profit margins and enhance competitiveness.

For example, if an electrical appliance company forms an industrial chain from the R&D and production of electronic components, to the assembly and production of electrical appliances, and then to sales, it can also earn more money.

Unless it is your unique industry, then the cost will always be the most concern of the enterprise. But even if you are unique for the time being, there will be many competitors who will follow suit and imitate, not only Chinese companies, but even foreign companies.

Even when Microsoft was in full swing, it was not unique, nor did it have competitors?

Like L-PAD, Lianxiang Group was the first to launch it, but within half a year, other PC manufacturers have also developed their own products? Some bought patent licenses from Lianxiang Group, and some simply bypassed these patent blockades and used some alternative technologies.

Although L-PAD is still the best among similar products, its market share is no longer 100%, and some people will share the profits.

At this time, L-PAD will not be in a hurry. In fact, this has great benefits. It is no longer said to be a monopoly, and it can better highlight the superiority of L-PAD products.

Can a product that took several years to develop have the same quality as a product that took half a year to develop? The technology of foreign PC manufacturers is not much stronger than that of Lianxiang Group, and many of them are not as good as Lianxiang Group. Naturally, L-PAD has been differentiated from other tablet computers.

However, the merger of state-owned enterprises, except for some strategic industries, such as banking, communications, energy, steel, etc., other mergers are not very good.

The most fundamental reason is insufficient execution and too strong resistance.

Speaking of the mobile phone industry, in addition to Fengyu and Aihua, there are more than a dozen well-known mobile phone brands in China, and this is not counting those copycat manufacturers that no one knows the brand at all.

Among them, half of them are state-owned enterprises, or are controlled by state-owned assets.

There are also many excellent engineers in these companies, but why can't they surpass Fengyu Mobile? Even compared with other foreign mobile phone manufacturers, the gap is very obvious?

First of all, it is naturally a question of research and development direction.

This is the leading mobile phone in the world. Feng Yu knows what consumers prefer and what functions are more practical.

The second is that these companies have insufficient research and development funds, and technology research and development cannot be done without money.

The last point is that they are too scattered. Ten companies whose size is one-tenth that of Fengyu Mobile, their combined profits are less than one-tenth of Fengyu Mobile. Their costs are too high and their competitiveness is too weak.

If these mobile phone manufacturers are merged, the cost of research and development can be saved a lot, and other costs such as advertising costs can be greatly reduced, but why don't they merge?

There are many people who oppose it.

Some people say that there are Fengfeng and Aihua brands in China, and those excellent foreign manufacturers are not doing well, let alone them, so they naturally put themselves in a lower position.

And the most important point, that is, who will dominate after the merger? You have a brand, we also have a brand, whose brand is kept, and whose brand is abandoned?

Who is the boss of the merged company and who will be forced to leave? There are too many interests involved here, and it is difficult to handle.

In fact, the most direct way at this time is for some people to take the initiative to give in, in order to make the business merger successful and enhance their competitiveness.

Feng Yu once said that if the state-owned assets agree, then Bingcheng Machinery Manufacturing Group can merge with Yiqi, and Yiqi will naturally become a subsidiary company, so that the state-owned assets' shares will also be increased.

Either let Feng Yu contribute and control 51% of the equity, or give Feng Yu a veto, and he can make the state-owned assets become the major shareholder.

But the higher-ups were still studying it, and there was a fuss over there, and they didn't agree at all.

Yiqi felt that his development was pretty good, and all the spare parts were world-class, so why should he merge with others and become a subsidiary company. Especially the boss, who was forced to become a deputy, made him even more dissatisfied.

How can that Li Dafu be able to, I want to be his deputy?

Therefore, there are too many problems in the merger of state-owned enterprises. The most important thing is that some managements are obsessed with power, which is very obstructive. If it weren't for Huaxia's strength to integrate resources, it would definitely produce several companies that monopolize the domestic market. When it comes to the international market, they will also be large companies in the forefront of the industry, and even become the top.

Some forced mergers before, some succeeded, and some failed. The most critical point is to see whether the leadership of the company is excellent, and then to see whether the merged industry is correct, whether the two parties can complement each other's advantages, or expand their advantages in a certain aspect.

"Feng Yu, if you merge, can you give up that one-vote veto?"

"If I keep it, what harm will it do to the company? Don't you think that if I supervise the operation of this company, it will make the company develop better? Without me, will there be Beidacang Group?"

"Okay, I see, I will solve the matter of the North Dacang Group for you."

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