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199 1 In the spring of, when Zhuhai Giant New Technology Company was born, Shi Yuzhu announced that "the giant will become the IBM of China and the giant of the East". However, in just six years, that is, at the end of 1996, the output of Giant Group shrank in an all-round way, employees were not paid for two months, and a large number of backbones left their jobs one after another, and Giant Group was in trouble.
The cause analysis of the giant crisis mainly includes the following aspects:
1. Weak management It can be said that the giant group's rapid development from 1989 to 1992 was developed with the support of entrepreneurship. Unfortunately, in the process of rapid development of enterprises, a perfect enterprise system and a scientific management system have not been established accordingly. With the rapid expansion of assets, the hidden dangers in the management of Giant Group are increasingly exposed, and the management of the whole group is impetuous and chaotic. Shi Yuzhu once had a figurative metaphor: "An athlete's training beyond the limit is bound to be scarred". In fact, at the early stage of industrial diversification, Shi Yuzhu realized the hidden dangers of company management. In his New Year's Day speech at 1994, he said: "If we only maintain dozens of people, there will be no problem. But the current management system can't run a bigger company. When a giant company moves towards a big enterprise, the management must first step up. "It pointedly pointed out the problems existing in the group at that time, such as the disappearance of entrepreneurial passion, the emergence of a big pot mechanism, low management level, single products and industries, and stagnant market development ability. But if we only realize the problem, but can't find the crux of the problem, and fundamentally find a solution to the problem, the enterprise will continue to slide into a dangerous situation. Giant Group is expanding rapidly, but its internal management is weak. The management foundation is weak, and the leadership system, decision-making mechanism, enterprise organization, financial control, employee management and many other aspects can not meet the needs of the group's development. It is only a matter of time before the enterprise gets into trouble.
Second, lack of capital operation experience, can not effectively use financial leverage. The real estate industry must be backed by strong financial capital. What is striking, however, is that the Giant Building did not apply for a penny of bank loan from February 1994 to July 1996, and it was completely supported by its own funds and money from the sale of the building. By the second half of 1996, when funds were tight, due to the lack of credit contact with banks and the influence of national macro-control policies, the giant fell into a comprehensive financial crisis. The giant put aside the bank because it can rely on the continuous sales returns of bioengineering to support the construction funds of the building, and "the money in the account can't be spent." 1996 in the second half of the year, the giant building is in urgent need of funds. Shi Yuzhu made a decision to use the working capital of bioengineering to support the construction funds of Giant Building, and put all the funds for production and advertising promotion into the building. As a result, bioengineering was once stopped. From the perspective of capital operation, Shi Yuzhu made a big taboo.
Third, the lack of scientific decision-making system and power restraint mechanism Shi Yuzhu once successfully turned knowledge into goods and capital, but he did not turn giants into modern enterprises. When Shi Yuzhu's industry is getting bigger and bigger, it is difficult for him to control a huge group. At the beginning of 1994, the giant group had a management crisis. Shi Yuzhu once announced his retirement from the front line of management, and asked Lou Long Bin, president of Founder Group of Peking University, to be the president of Giant Group, and the company implemented the president responsibility system. But in fact, the enterprise decision-making system has not changed fundamentally. After the giant exposed the crisis, various contradictions piled up on Shi Yuzhu. Shi Yuzhu later reflected: "The giant didn't demutualize as early as possible, and the direct loss was the loss of the best talents. The more serious consequence is that no one can restrain me when making a decision. As a result, paternalistic absolute authority was formed, which led to a series of major decision-making mistakes. " Giant Group also has a board of directors, but it exists in name only. Shi Yuzhu's vice president doesn't own shares. When discussing major decisions, the group rarely sticks to its own opinions, and they have no right to interfere with Shi Yuzhu's wrong decisions. Therefore, the top management of the Giant Group has no power restriction, and the Giant Group implements the mechanism of "one person has the final say".
Regarding the crisis of the giant group, Shi Yuzhu admitted two points: first, the decision-making was wrong and the stall was too big; Second, poor management and out-of-control operation. Obviously, at present, private enterprises in China have entered the era of internal mechanism reform, and they must bid farewell to the era of one person dominating the world painfully.
Comments: 1, the growth of enterprises also has a life cycle, and successful enterprises can quickly enter the growth period and continuously extend the maturity period. In the golden age of its rapid growth, some enterprises are keen on "following the tide", setting up stalls and launching projects in the direction of enterprise development, failing to conduct detailed market analysis and investment analysis, failing to proceed from their own advantages and possibilities, lacking calm thinking and overall grasp of future development forms, blindly flocking to high-profit industries, unreasonable decision-making system, and insufficient collection and analysis of technical and economic information on markets and industries, which eventually led enterprises to fall into operational difficulties.
2. Management is an important foundation for the survival and development of enterprises. To some extent, the management level of an enterprise is the embodiment of its comprehensive quality. At this stage, many enterprises have reached a certain scale in capital, personnel and market. However, the management level does not adapt to the development of the enterprise, and the organizational structure, financial management level and human resource allocation of the enterprise cannot meet the needs of the further development of the enterprise, resulting in the phenomenon that the funds and personnel of the enterprise are out of control, and the "short legs" of management lead to the closure of the enterprise. Therefore, in today's increasingly relaxed institutional conditions, attaching importance to management should become the * * * knowledge of China enterprises.
3. A perfect company organizational structure must have a scientific decision-making system and a sound power restraint mechanism. Modern large enterprises generally adopt vertical authorization system and follow scientific decision-making procedures. It is absolutely impossible for one person to have the final say. The behavior of operators must have sound institutional constraints, not only owner constraints and social constraints, but also creditor supervision and democratic supervision from employees within the enterprise. Managers at all levels should have legal procedures, and their responsibilities and authority should be guaranteed by the system.