—— Li Dongsheng, President of ——TCL Group
After more than ten years of development, TCL Group, under the favorable environment of reform and opening up, relied on the dedication and unremitting efforts of TCL people, from scratch, from small to large, without any state capital investment, made TCL among the top ten electronic enterprises in China, creating the myth of rapid growth of national enterprises. However, TCL is also very clear: at present, enterprises are in a critical period of development, and the market they are facing is becoming more and more open and the competition is becoming more and more fierce. Under the general trend of global economic integration, great changes have taken place in the present situation and external economic environment of TCL enterprises, and various factors that contributed to TCL's success in the past are not enough to ensure TCL's continued success in the future. Only when TCL is determined to change, innovate and forge ahead, improve its management level, reform its management system and integrate into TCL's corporate culture can it establish and maintain its competitive advantage, and then build TCL into a truly large-scale enterprise capable of participating in international competition.
TCL Group was developed by a small local state-owned enterprise. Although it has developed to a relatively large scale at present, compared with foreign enterprises, the overall foundation of TCL is still relatively weak, and enterprises still have many places that are not suitable for modern enterprise management system and market economic mechanism. Therefore, at the beginning of last year, TCL Group put forward a second venture, formulated specific goals and tasks, and made remarkable progress in many aspects, completed the system reform of some enterprises, developed new technologies and products, and implemented a comprehensive management strategy. It is also advancing in an orderly way in updating business philosophy, establishing new business mechanism and building corporate culture. Why should TCL carry out business reform? This is because China's economic system is undergoing fundamental changes, and the business environment of enterprises is also undergoing tremendous changes. If enterprises can't adapt to the needs of market competition, take the initiative to change and innovate, improve management level and competitiveness, it will be difficult for them to continue to survive and develop.
In terms of market, we have changed from a planned economy to a market economy, and a buyer's market has been formed, especially in recent years, the growth of effective market demand is declining. According to the information provided by the Ministry of Internal Trade, the rapid growth of China's consumer market has been the main driving force for China's economic growth, but the growth rate of the consumer market has been declining year by year:
1997 will increase by 13%, and 1998 will decrease to 10.5%. The economic growth model driven by high-speed growth market in the past has changed. The oversupply of most consumer goods leads to excessive competition in many product fields. Color TV, VCD, etc. All of them are facing a competitive market with oversupply, which will inevitably eliminate some enterprises, and this elimination trend is accelerating and the market competition is more intense.
In terms of competitors, small and medium-sized enterprises with poor management, backward products and weak marketing ability are gradually eliminated. At present, TCL faces three main competitors: the first category is large state-owned holding enterprises with good original foundation and early transformation of operating mechanism, such as Lenovo, Founder, Changhong, Haier, Konka and Hisense; The second category is private or mixed economic enterprises developed with new operating mechanism in recent years, such as Huawei, Skyworth, Xoceco, BBK, Aiduo and Qiaoxing, and the third category is enterprises established by multinational companies in China, such as Sony, Toshiba, Panasonic, Bell, Samsung, LG and Philips. Compared with these international multinational enterprises and large domestic enterprises that have completed the transformation of management mechanism, TCL has no advantage in comprehensive strength, management level and technology development ability. Compared with private and mixed economy enterprises, TCL has few advantages in operating mechanism, marketing strategy, adaptability and operating cost.
On the other hand, market competition also puts forward higher requirements for enterprises. In the past, enterprises could win a place by virtue of their own advantages in some aspects. When TCL started the color TV project on 1993, it did not have any advantages in technology and production. Just give full play to the advantages of market and management system, and then gradually strengthen product research and development and production capacity, making TCL rise in a short time. However, in today's market environment, it is almost impossible to carry out the same new projects in this way, because the competitors and markets faced by enterprises have changed. Now, in order to survive and develop in the market competition, enterprises must have comprehensive advantages, adapt to the requirements of economic development and market competition, and constantly improve their management level and competitiveness.
It is precisely because of this harsh competitive reality that a large number of once brilliant China enterprises are now in trouble. According to a survey of a magazine in Beijing, only about 15% of the first batch of enterprises represented by 100 outstanding entrepreneurs in China survived ten years later. Therefore, few enterprises in China, which rose in the decade of reform and opening up, can maintain their competitiveness and achieve sustainable development. One of the important reasons is that these enterprises have failed to adapt to the changes and development requirements of the market and lack innovation in management, thus gradually losing their advantages in the competition. President D of the internationally renowned Microsoft Company has a famous saying: "My enterprise is only 12 months away from bankruptcy". What he means is that if the enterprise can't keep innovation and progress, it may cease to exist after one year. A leading enterprise in the international information industry still has this sense of crisis, let alone a growing enterprise? TCL should constantly sound the alarm for itself and establish a sense of crisis and hardship within the enterprise.
Therefore, carrying out business reform to improve competitiveness is a big problem related to the survival and development of enterprises. Based on the above considerations, driven by the sense of crisis and hardship, TCL has carried out enterprise management reform and management innovation activities in an all-round way to strive for greater survival and development space for itself.
We believe that corporate culture is the common values of business leaders and employees. Corporate culture should be the promotion and generalization of all employees' ideas, not the top-down indoctrination. The process of business transformation and management innovation is the practice and dissemination of business philosophy. On the one hand, management reform and management innovation should review and summarize the successful management ideas, concepts, methods and systems of enterprises in the past, so that they can be more widely understood and accepted by employees; On the other hand, according to the development goals and strategies of enterprises, we should actively improve the deficiencies, improve the management level, update the management concept and establish a more efficient organizational structure in order to achieve greater success. At the same time, in the process of joint efforts to achieve the development goals of the enterprise, all employees gradually reach a * * * understanding of * * values and * * * code of conduct, thus forming a corporate culture system that can ensure the enterprise to achieve the goal of "creating a famous brand in China and building a first-class enterprise".
Over the years, TCL has been advocating the use of entrepreneurship to motivate employees to work together to achieve development goals.
At the beginning of TCL's business, it put forward the corporate slogan of "honesty, unity of thinking, determination and effectiveness"; At the beginning of 1993, TCL put forward the enterprise spirit of "unity, pioneering and hard work" and made a clear definition of enterprise spirit. An important reason for TCL's rapid growth is that all TCL people, especially management cadres, can implement the spirit of enterprise in their work practice. These enterprise spirits are valuable spiritual wealth of TCL, and also the ideological basis to ensure the continuous development of TCL. The enterprise's tomorrow is the continuation of yesterday and today. TCL attaches great importance to the construction of corporate culture, that is, summarizing and upgrading the ideas, concepts, spirits and styles that can best promote the development of TCL, making them standardized and systematic, and being widely understood and accepted by all TCL people, which has become their conscious behavior.
In order to achieve greater development in the next step, TCL redefines the core values of the enterprise, which is systematically stated as: the business goal of the enterprise is to create a famous brand in China and build a first-class enterprise.
Business purpose: create value for customers, create opportunities for employees and create benefits for society.
Enterprise spirit: dedication, teamwork and innovation.
TCL's so-called goal is to "build a famous brand in China". It is to build a famous brand in China, which is well-known in the global market, because only by becoming a famous brand in China can we strive to build a world famous brand; "Building a first-class enterprise" means building a comprehensive enterprise with international competitiveness. The standard of first-class enterprise has two meanings: one is comprehensive enterprise, and the other is international competitiveness. At present, TCL has entered the international competition and directly participated in the competition of multinational companies in China. Therefore, the standard to measure the survival, development and competition of enterprises is not only whether they can survive and develop in domestic competition, but more importantly, whether they can compete with those multinational companies. Whether you can have this competitive ability depends directly on the level of enterprise management. Therefore, establishing international competitiveness is the standard to measure first-class enterprises. On the other hand, the first-class enterprise should be a comprehensive enterprise, which can grasp the opportunity of all-round development and thus enhance the overall strength of the enterprise. At present, the functions of our marketing network are constantly expanding and developing towards diversified and integrated management. Financially, we set up a settlement center last year, which eventually developed into a financial company to strengthen the capital operation ability of enterprises.
TCL's corporate purpose is "to create value for customers, opportunities for employees and benefits for society". Among them, "creating value for customers" is a significant progress in TCL's business philosophy, which has changed the profit-centered business philosophy of enterprises, and made it clear that the most important work goal of enterprises is to meet the needs of social customers with high-quality products and all-round services, so that more customers can recognize the value of TCL products and services through fruitful work. This requires TCL people to put the needs of customers and the needs of the market first in every link of production and operation, and do a good job in every work. As long as this is truly achieved, TCL's brands and products will be more competitive, and enterprises will get faster development and better benefits. Exhibition, relying on employees to achieve corporate goals * * * with Mr.
"Creating opportunities for employees"-the competition of enterprises is the competition of talents and the survival and strength of enterprises. At the same time, enterprises are also carriers of employees' survival and self-worth. Enterprises have the responsibility to meet the spiritual and material needs of employees and create conditions for their development and self-worth. To this end, TCL should establish a scientific and fair employee assessment and value evaluation system, establish an employee education and training system, and establish a reasonable salary and welfare system, so that employees can get better growth and development opportunities in the enterprise, realize their career pursuit, and at the same time get reasonable returns and life welfare protection.
"Creating benefits for society"-the process of enterprise's survival and development is also the process of creating benefits for society objectively. TCL is a state-owned holding enterprise, and the benefits created by the enterprise, to a greater extent, are to create benefits for the society, to revitalize the national economy, and to do their part for the development of national industries. This is the mission of all TCL people.
The enterprise spirit advocated by TCL is "dedication, teamwork and innovation", which is the continuation and sublimation of the enterprise spirit of "unity, development and hard work".
"Dedication" is the spirit of encouraging dedication to the cause, which is essentially the continuation of TCL's past "hard work" spirit; Pursue higher work goals, be brave in assuming work responsibilities, master better work skills, and cultivate a down-to-earth and refined work style. This spirit is a very important factor for TCL's past success, and it is also the basis for ensuring its continued success in the future.
"Team" requires the spirit of cooperation and collaboration within the enterprise to create a harmonious and healthy working environment. Employees should be responsible not only for their own work, but also for the collective work and the whole enterprise, and advocate mutual encouragement, care and help among employees. The spirit of "team" contains the connotation of unity, but it is more systematic and positive than the performance of unity.
The spirit of "innovation" has always been an important driving force for the rapid development of TCL. Innovation contains the connotation of "development". TCL grows faster and more effectively than others, relying on the spirit of innovation, enterprising and pioneering. This is an important business philosophy that supports the rapid growth of TCL. TCL can surpass its rivals only by constantly innovating on the basis of other people's successful experience.
The business objectives, purposes and spirit put forward by TCL constitute a mutually supportive corporate culture system, which is also the embodiment of the mission statement and core values of our enterprises and employees. TCL is to promote the construction of corporate culture through business transformation and management innovation, turn business philosophy into conscious actions of TCL people, and carry forward the enterprise spirit of "dedication, teamwork and innovation".
Practice shows that international competitiveness is essentially cultivated at home, and the competitiveness of enterprises is also cultivated within enterprises. TCL is committed to business reform and management innovation, and the ultimate goal is to make our internal management, assessment, performance improvement and survival of the fittest meet the requirements of international market competition, so as to ensure sustainable development in the fierce market competition and realize the goal of "creating famous brands in China and building first-class enterprises". .