In the past few years, there have been various analyses and arguments about the success or failure of the giant group, and it is not clear how many reasons and reasons there are. For example, some of them are attributed to decision-making mistakes, some to management mistakes, and some to personal problems. More importantly, many consulting and research institutions are oriented to the diversification of their business, and many business circles are trying to avoid similar situations from happening again. Unfortunately, many business people still follow suit, such as Aiduo and Longfei.
Moreover, no matter in business or people who study or study, most of them sigh with such a conclusion: Why can China enterprises shine for a while, but not for a while? Others say, why do enterprises in China not live for five years, even 10 years?
Nowadays, we also see that some enterprises have adopted similar decisions, tactics and personnel, some have developed and expanded, and some have quickly gone to the "grave" of giants. Why?
Now, Mr. Shi Yuzhu, the former founder of Giant Group, has not only paid off the debts owed by Giant Group, but also become the president of Shanghai Jiante Co., Ltd. with an annual profit of more than 200 million yuan and a well-known entrepreneur in the field of bioengineering. Why? It can be said that failure and success are like two sides of a coin, but one is on the front and the other is on the back.
It seems that if we analyze the success or failure of the giant group from today's perspective, we can see clearly that we can attribute it from different angles such as decision-making, tactics, diversification, process chain and even environmental problems, and we can't say who is right or wrong. However, it is not easy to analyze the success or failure of the giant group itself, but perhaps we can find experience for the business community to learn from and refer to.
Background analysis of giant group
Mr. Shi Yuzhu, founder of Giant Group, graduated from the Department of Mathematics of Zhejiang University with a bachelor's degree and from the Department of Soft Science Management of Shenzhen University with a master's degree. He has a fairly professional background. This is not an easy decision, even a personal decision, which clearly shows that he has extraordinary courage, ability and ambition. Two years of performance can fully prove this point, and three years of failed decisions have shown personal courage and ambition.
Obviously, Shi's personal character can be said to be one of the reasons why the Giant Group was once brilliant, and it can also be said to be one of the reasons why the Giant Group failed. Therefore, grasping such a certain degree of personality characteristics is one of the reasons for the continuous success of enterprises. After all, all the major behaviors of an enterprise, such as survival, development, direction, etc. , are inseparable from this feature into the support of action. It can be said that almost all successful entrepreneurs have such characteristics.
Similarly, only such personality characteristics can not guarantee the success of the enterprise, and the final failure of the giant group can also reflect this.
One of the reasons for the success of an enterprise is to have something that meets the needs of the market and customers (that is, products and services). If customers buy your products and services, customers' cash will become your cash, and there will be the cornerstones of survival and development-cash flow and profits to help you grow and develop, that is, there is a good opportunity by chance, or a good production and sales environment, and there is no need to meet the needs of the market and customers at that time.
1989, in the mixed environment of planning and economy, the demand of the market and customers was "quite hungry", that is, it was often said that the demand was in short supply, especially some so-called products and services with certain technical content in the seller's era and the buyer's information asymmetry era. At that time, enterprises that dared to invest in the market seized considerable opportunities and almost all succeeded. At that time, there were many "rich people", that is, people often said "exploding wealth", which was called making a fortune or making a fortune (and then disappeared in a few years). History is one of them, and his ambition and ability have brought great influence.
1989, Shi bold, contracted the computer department of Shenzhen Science and Technology Industry and Trade Company, and used the information asymmetry of buyers to advertise in the market, which soon succeeded, laying the foundation for the entrepreneurial giant group.
Then on 9 1, he founded Zhuhai Giant New Technology Company, continued to borrow the asymmetric information environment, made full use of widely publicized advertisements and sales promotion, and took advantage of the buyer's lack of selectivity, judgment and comparison to continuously introduce new products. By 1993, the giant had grown rapidly and became a "giant" enterprise with annual sales of nearly 500 million yuan, which attracted the attention and attention of national leaders, and then history became the so-called China.
Great success analysis
In fact, the success of a giant is inevitable by accident, inevitable by accident. To put it more seriously, it can be said that the market environment is 8 points and the enterprise ability is 2 points (the giant enterprise can be said to be the entrepreneur's personal ability). Now, if we put it in the present, it is conceivable that the 2-point enterprise can succeed in the environment of information balance and market competition, which is one of the reasons why the giant failed after 93 years.
If we use the current 8: 2 principle, the enterprise capacity of 20 determines the market environment of 80. Obviously, a once brilliant giant can succeed in a good market environment with a 2-point enterprise ability, and so it is. After all, the ship can still go along the river without paddling. If the boatman has adapted to the direction and exhausted his strength, why can't he reach the other side like this? However, after 1993, the docile market environment took a 180 degree turn. How can we reverse the waist-thick market environment with the "hand" of 2 points of enterprise ability? Lose it or lose it!
The reason why the giant only has 2 points of enterprise ability is because all important or key behaviors of the enterprise come from Shi's personal ability. After all, his ability can only be reflected in the corresponding professional fields, but he lacks the ability to run enterprises, face the market, expand non-professional fields, diversify and so on. This is not enough. When the market environment is good, there will be no problems, but when the market environment is bad, problems will pile up, followed by fire fighting behavior, leading to layer after layer.
The ability of an enterprise bears the brunt of the market ability, that is, the ability to meet the needs of customers and the market, the ability to predict changes in the market environment, and the ability to point out the direction for the survival and development of the enterprise, followed by the management ability. How to provide high-quality products and services to meet customers' needs quickly, how to manage enterprises efficiently/how to eat and digest the "grain" of relevant professional businesses with broad prospects with limited management ability to strengthen the "body" of enterprises, and so on. Then, how to avoid risks and core competition, how to expand the core field of specialty and realize reasonable diversification? How to establish core competitiveness to keep the synchronous and continuous growth of enterprises and markets? How to maintain the "strong body" of the enterprise to resist the bad "attack" of the external environment, and so on.
Moreover, the ability of an enterprise should not only be the individual ability of an entrepreneur, but also include the ability to absorb all internal resources, especially human resources, as well as the information ability provided by external resources such as consulting institutions and partners. This ability is a comprehensive reflection of the enterprise's ability.
It is said that when the market environment is good, the "legs" of the market environment will automatically, but when it falls into the "mud pond", it will become bigger. For enterprises, it is conceivable that many enterprises have been submerged in such a wave, and the rest are enterprises with quite strong enterprise capabilities and new enterprises.
Analysis of the decline of giants
A once brilliant for a period of time, but did a giant for five years, the most proud of, met the market environment "obstacles":
1993, China's computer industry was invaded by foreign enemies-com-PAQ, Hewlett-Packard, AST and IBM "encircled" the China market, which triggered market competition from the seller's perspective. At the same time, the buyer's selectivity, judgment and comparison are relatively strong, and the giants and their competitors in the market are relatively inadequate in products, services and management, which will inevitably lead to the business of the giants getting rich overnight.
In order to avoid growth risks and seek new pillars, a series of fire fighting actions have been taken. Due to the lack of enterprise capabilities, especially the lack of market capabilities, management capabilities, evasion capabilities and core competitiveness, it will inevitably lead to the deterioration of enterprise operating conditions.
This giant, who once grew up with courage, ambition and certain ability, took the first adventure because of the giant's character: his investment capacity was ten times that of his giant building, and he almost took a destructive way, which affected his main business development. This process is almost a process of raising funds-selling uncompleted residential flats, loans and free funds. The survival and development of an enterprise need cash and profits to support it. The result can be imagined. When enterprises often have cash flow,
Later, some people said that the giants should have taken bank loans long ago, saying that they might not be able to grow and develop. I want to say that the result will be as dangerous as in the past. After all, the company's limited ability determines whether it is fat or not! And fortunately, the bank is not fully involved, otherwise it will be quite dangerous and have serious consequences.
Then there is the second dangerous move towards the cliff: the wrong circular connection-the application of robbing Peter to pay Paul-will invest more than 65438+ billion in emerging industries with high hopes, which are full of risks and lack obvious marketization ability and understanding of the market environment and past success. After all, a business field needs a certain life cycle-investment period, growth period, maturity period, recession period or restructuring period. Any enterprise that wants to succeed will go through a long or short life cycle, but we will try our best to reduce investment and recession, prolong growth and maturity, and get more cash flow and profits. This dangerous chess game further aggravated the danger of giants.
Then there is the third risky move: sudden large-scale management reform. The goal of management is how to make the enterprise more vital, that is, how to get more profits. The progress and promotion of management need a foundation. After all, according to the principle of 8: 2, people account for 80%, and people are dynamic people. In view of people's management reform, management basic system is indispensable, and management reform without foundation can't bear the impact of unfavorable market environment. The giant's management reform is almost a big change of blood, and the risk is huge. Either it will succeed or it will fail.
Then continue to take a series of dangerous chess, pushing the giant to the cliff, rolling in the deep. For example, 1994 tourism projects, health care products, huge investment in the giant headquarters building, great changes in sales management and so on. There is no doubt that the company's financial situation is worse than the management's ability, and the time for obtaining cash and profits has been extended. How do giants survive?
What's more, the promotion of the "three major battles" that lack market ability, after all, the ability of market demand is released periodically and has certain dispersion. Such publicity activities need huge funds, and the internal motivation of this product concept and marketing concept can only achieve certain results in a good market environment. However, under the harsh market environment and fierce competition, the risk is huge and the possibility of failure is great. At that time, it was in a competitive market environment, and the sales effect was quite bad. Besides, it used to be harder and harder to run like this, and then the giant died.
The rise and fall of giants lies in the market environment and enterprise ability. When the market environment is good, coupled with the management ability of the enterprise, it will succeed, and so will the giants. Similarly, when the market environment is not good, it is normal for a weak enterprise to close down, as are giants and dragons.
For an enterprise, one or two non-fatal strategic or decision-making mistakes may not necessarily lead to the failure of the enterprise, but repeated strategic or decision-making mistakes will inevitably lead to the death of the enterprise, which depends on the ability of the enterprise, especially the market ability, management ability, risk avoidance ability and core competitiveness.
When the enterprise's ability is insufficient or lacking, this determines the saying that "the enterprise can shine for a while, not for a while" and "the scenery is only five to ten years".
Therefore, as an enterprise, it is very important to improve the enterprise's ability, starting from the entrepreneurs themselves, to improve their own leadership and management capabilities, and then to improve the management and technical capabilities at all levels of enterprise management, and then to improve marketization, risk avoidance and core competitiveness, to avoid the recurrence of a series of similar fire-fighting mistakes, and to maintain the sustained vitality of enterprises.