Chapter 188 Business Unit System or Matrix Platform?

A week later, Zhonghuajia and Fengfan Electric Vehicle officially signed a lead-acid battery supply contract.

This also means that Zhonghuajia's two-legged strategy has officially taken an important step.

On May 18, the Zhonghuajia OEM factory building was officially put into use, and the MP3 OEM assembly line and lead-acid battery production line officially entered the intense debugging.

Everything is going on in an intense and orderly manner, but Chen Changliu is a little distressed, sitting in the office writing and drawing.

With the production of lead-acid batteries, the terminal sales business will inevitably be different from the previous MP3 terminal sales that mainly rely on online sales and supplemented by physical stores.

Then the internal organizational structure of Zhonghuajia will inevitably be adjusted.

Although it can be said that it has not reached the point where it must be adjusted, Feng Xiao can also take on this work. After all, I have painted a pie for her before, and let him be responsible for the terminal consumer business in the next step.

Of course, this is not a pie in the sky, Chen Changliu has this idea.

But as Zhonghuajia's pace is faster than he expected, he has to think about more problems.

For example, the future incentive equity issues of the company's executives and technical backbones, etc., all of which he needs to consider in advance.

One of the reasons why these managers came to the company is definitely because they have higher salaries than other companies.

But as the company gets better and better, equity is also what they desire.

Let's put it this way, if the management of a company does not have the incentive of equity, it means that there is no motivation to increase the company's profits.

But Chen Changliu has not yet considered whether the company will take the path of becoming stronger and bigger, and then IPO, which most companies take.

Or take the path of not going public like Yishi Huawei.

How to say it, the two models have their own advantages. The listing path can easily obtain more development funds, allowing the company to go faster on the road of development.

And listed companies can use stocks or options to attract and retain talents to improve loyalty and avoid becoming competitors in the future.

The biggest advantage of the non-listing path is that Chen Changliu can build the flower-growing family into the company he wants according to his own thoughts and ideas, instead of being constrained by capital after listing.

To put it bluntly, if Chen Changliu does not go public, he can firmly control the company's control, which will be more efficient in decision-making and will not be affected by norms and information disclosure.

But if this is the case, without the encouragement of options, when the company develops to a certain stage, it will not be able to retain these successful talents, and even if they stay, their loyalty to the company is not very good.

Of course, the ultimate reason is still the issue of interests. Even if most of the profits are distributed to everyone like Huawei, there will still be a lot of high-tech talents lost because they want to get more.

Who doesn't want to create a large group of billionaires as soon as Alibaba went public in the original time and space, and everyone wants to get the credit of following the dragon.

But during this period, Chen Changliu was thinking about a compromise, which can give equity incentives to the management to make their pockets thicker, and at the same time he can make decisions for the company.

That is to make the lead-acid battery, which is not in his future strategy, into a listed company, so that the options of this company can be awarded to the company's management and technical backbones.

After thinking a lot in his mind, Chen Changliu finally refocused his attention on the present. Those things were still a bit far away, and the present thing was the problem of the company's organizational structure.

He wrote down the division system and Huawei's matrix platform on paper.

The division system is a structure used by many companies. It establishes divisions based on products and markets, which can plan their future development and can flexibly and independently adapt to new situations in the market and respond quickly. This organizational structure has both high stability and good adaptability.

It is also beneficial for Chen Changliu to get rid of the complicated affairs of daily administrative affairs and direct management of specific business work.

But he can become a strong decision-maker, while enabling each division to exert the enthusiasm and creativity of business management and improve efficiency.

The division of products into divisions facilitates the organization of specialized production, forms economies of scale, and enables personal technology and professional knowledge to be maximized in the fields of production and sales.

Moreover, competition between divisions can also enhance the vitality of the enterprise.

Of course, there will be problems with the operation of the division system. For example, all divisions are desperately expanding, telling stories to the company, asking for investment and resources, which makes it easy for the company to diversify rapidly and resources are greatly dispersed.

The resources of each division cannot be shared, and the phenomenon of repeated product development will become more and more serious.

The matrix platform organization has the advantages of both division organization (focusing on profit) and functional organization (focusing on efficiency).

After thinking for a long time, Chen Changliu still crossed out the Huawei structure. In his strategy, he took a different approach from Huawei.

Because Huawei's customers are concentrated and the technology is shared on a unified platform, if a division is set up and divided according to research, production and sales, it is equivalent to splitting customer resources and the R&D technology system, so Huawei's advantages will be gone.

Chen Changliu's strategy is different from Huawei's. He wants to walk on two legs, and there are other minor business assistance.

Moreover, the customer base of the Flower Planting House is ordinary consumers who buy various products without considering the mutual influence. They make independent decisions. Unlike Huawei, which has a large number of B-to-B businesses and provides customers with complete solutions.

In the final analysis, whether to adopt the business unit structure depends on its impact on the core capabilities of the enterprise. An organization that cannot support the formation of core capabilities has no future.

The organization must obey the strategy and can be adopted if it is conducive to business development. Otherwise, it cannot be adopted. This is the underlying logic of organizational formation adjustment.

In the end, Chen Changliu crossed out Huawei's matrix platform and left the words "business unit system".

Although Chen Changliu majored in business administration, he did not get a senior executive position in the company in his previous life. He was at most a middle-level manager. He could only be said to have a half-understanding of these systems.

But with the last experience, for those successful companies, there are too many analyses of their various organizational structures on the Internet.

So Chen Changliu struggled to find a lot of information on the Internet based on his memory and reality, and improved it bit by bit.

He is not in a hurry now, and there is still time for him to improve.

PS: The typos will be updated first and corrected later.