Big Chinese companies do, but do strong

 Big Chinese companies to do more to be done for a strong
, China's enterprises bigger and stronger is our hope that
Chinese enterprises in the rise, the need to build its own aircraft carrier mm large enterprises. Now, Chines e enterprises classification is not very clear, there are small and medium-sized businesses, large enterprises of the points, while large enterprises (including large enterprises, large enterprises) can not only enhance their core competitiveness and overall strength, but also enhance China's international competitiveness. For example, in the financial business, we have the Industrial and Commercial Bank of China, Construction Bank of these large enterprises, but we have such as large enterprises in oil, these large enterprises makes our country in international competition occupy a favorable position. Therefore, we wish to see more large companies and powerful enterprise.
Second, enterprises bigger and stronger difficult
easily from the perspective of the international financial crisis, large companies may not be strong companies, strong companies are not must be large enterprises. We have many large international enterprises have collapsed, and you say it strong? Lehman 200 years of history, general history of 100 years, are a hundred years old but came crashing down, you say it strong you? AIG is the world's largest companies, Citigroup is, they are also very large, but the performance of the financial crisis, that they are not very strong. In short, the big and strong is not entirely consistent.
our struggle The goal is not the business bigger, but to make a strong enterprise business. how to treat a business is not a strong enterprise? how to evaluate the success of a business do? In fact I think that the key is to look at whether it has a core competence. For example, an integrated indicator to measure whether a company strong, this indicator of quality from the capital or assets, profitability, corporate governance, product quality and structure, market share and other factors, these factors combine to see business is not a core competence, is not a strong practical ability. and in these respects, the overall strength of China's large enterprises is still not strong, or not strong enough.
transformation in the financial business before China's big state commercial banks, big is not it? should be said that considerable, but some say they had already been to the brink of bankruptcy, re-use indicators to measure their overall strength is not feasible, it can not be regarded companies. Industrial and Commercial Bank of China through overseas listings, the current market value of the living first in the world. So, the Industrial and Commercial Bank of China is not the world is currently the strongest it? no. Asian Banker magazine has a position in the market, the Industrial and Commercial Bank Bank of China Construction Bank, there are several major banks are among the best, but on the comprehensive evaluation is concerned, we only ranked the best in more than 70, because we are in management, corporate governance structure, strategies, future development, both There are many problems. including several major commercial banks, including the future development strategy is what, in the end is the development of what kind of business, these issues are worthy of study. So I think we need to do big business However, we also do strong business, so as to enable our businesses to be invincible.
Third, we must pay attention to disease
While large enterprises have their own great advantage, but we see that, in recent years, large enterprises have emerged in the modern large enterprises disease. here for GM bankruptcy, for example, in the June 1 Children's Day, GM went bankrupt, century-old collapsed, a pity, pity the sound. It Why is drained? Some people say that because of the financial crisis, but I think the financial crisis is only an introduction, there is no financial crisis, GM is also likely to fall over, just a matter of time. In short, the modern large enterprises are large enterprises common problem actually. < br> The first common problem is to manage the bureaucracy, that is bloated, too many levels, slow decision-making, management, beyond the reach. This is a common problem of modern multinational corporations. For example, a multinational company based in the United States, in Asia, China, setting up a lot of branches, if a branch is facing a major decision, and the internal branch has no right to, to be reported to the U.S. headquarters, the U.S. headquarters is very far away from the market, resulting in the level of the company issued a very large upload , leading to slow decision-making may be delayed so a great time to capture the market. and direct the management of small businesses differ Corporation, the parent company, regional headquarters of multinational corporations is widely distributed, the management is hierarchical, and many problems are worth considering. beyond the reach of big business management Examples of the fall of Barings Bank. Barings Bank trader Leeson, Singapore Branch for the $ 1,000,000,000 of the illegal trading led to the bankruptcy of Barings Bank mm in fact it is because banks can not a result of effective management. bureaucratic management of large enterprises has also led to the AIG example of the crisis, bankruptcy, and so universal.
second common problem is the blind expansion of business. In fact, overseas listed companies can acquire Big mergers do it easier. For example, an unknown company to acquire a brand, through brand do great. enterprises to diversify operations, East West does not shine bright, this theory supports a number of companies across industries mergers and acquisitions. However, the big corporate mergers and acquisitions strategy, the obvious blindness. For example, Ford Motor Company, in addition to production cars, there are airplanes, restaurants, it has a Ford like the acquisition is certainly a problem. look at GM, it will expand a lot of money for the blind, and sometimes lose everything, the most typical for the acquisition of Saab in 1989 spent 30 billion U.S. dollars, last but not get anything. In short, the enterprises bigger also easy, mergers and acquisitions is the eternal theme, but 1 +1 does not equal to 2, well 1 +1 = 3, but do not 1 +1 may equal to zero or even negative. in the international market, the acquisition of iron and steel enterprises time, in order to beat competitors had to mergers and acquisitions, but after mergers and acquisitions, leveraged the one hand, the cost is very high, on the other hand, market share has not changed much, because the whole is so much market share.
third common problem is easy to form a monopoly of big business, complacency. heyday in the general development, common at most once owned Buick, Cadillac, Chevrolet, GMC, Holden, HUMMER, Opel and so on several brands, in the has subsidiaries worldwide, and continuously outward expansion of the strength in numbers does it taste the sweetness, quickly became the largest automobile empire. But this process also for its buried deep implications. the one hand, common and widely distributed brand of chaos, the geographical and cultural differences among brands can not be integrated with each other, chaotic management; In addition, the GM did not go to innovation, not the brand with a main industry to explore the market.
fourth common problem is companies do not Note that changes in market demand. For example, in recent years, fuel-efficient small-displacement cars on the market demand for cars is a trend, but GM did not pay attention to changes in market demand, that is, it does not attach importance to fuel economy technology and the development of small-displacement engine, but spend a lot of energy to electric, plug-in cars, but without success, has invested tens of billions have not recovered. On the contrary, Japan, South Korea to seize the opportunity to see the market changes in demand for cars, so, body size, fuel economy in cars on the occupation of Japan and South Korea the market. So, if companies do not pay attention to market changes and to adjust the structure, will lose the opportunity, that is the big companies can not overcome one.
fifth common problem is the rigidity of the welfare of large enterprises, the cost is too high. This is our situation is very similar to the state-owned enterprises. For GM, the labor costs are too high, an excessive burden on the welfare of retirees, the direct this giant into the bottomless pit. For a long time the U.S. is very strong power of trade unions in employee benefits, retirement and business decision makers without regard concessions, allowing GM to carry a heavy burden. by the automotive industry, management of high inflation and profit the temptation of money, general unions negotiate the year 1999 salary increase, bonus in the management level increased to a record after the company signed a general history of the most expensive contract. new wage contracts, including rising salaries, bonuses up , rising pension, health insurance and for workers to increase their children to school to provide subsidies. In fact, the general annual profit is not enough to pay staff salaries, pension and other benefits, GM has lost a more than 5 years. Therefore, we make business bigger, you have to pay attention to the common problem of these large enterprises.
four, small and medium enterprises and stronger focus on the
for SMEs should not be considered the first big problem, but to consider doing business strong. China's small and medium enterprises has been an unstable community. the United States whose average life cycle is 35 years, and the leading position of SMEs in China three to five years, went bankrupt after three to five years, if this down, our SMEs, there is no hope. Therefore, SMEs must first be strong do not always blind expansion.
SMEs themselves have their own advantages. First, the products, brands and structure are more single, main business is more prominent. Second, the management simple. China's small and medium enterprises, the management level is relatively simple, especially the family business. However, if SMEs to be listed, it must be transformed into joint-stock companies, but also a company governance structure, but overall management structure or a simple, unlike multinational corporations headquartered there. And the headquarters of the Chinese enterprise groups, the relationship between headquarters and the subordinate enterprises did not do a good job, there are also large enterprises disease. Third, the easy to adjust the structure. small boat U-turn, but the companies do not have this advantage.
in SME development, must pay attention to creating their own brands. many of our major problems is easy for SMEs, because not have their own brand, or that we are using someone else's brand. For example, some enterprises the Pearl River Delta, not own brand, resulting in products that customers do not believe you, finally lead to a rapid decline in orders. the formation of a brand is to establish a cause . McDonald's created a brand, the world has its own business. In addition, SMEs do not blind expansion, mergers and acquisitions, in particular, do not blindly into unfamiliar sectors and industries, it is very important. for the acquisition of Proton ; Hummer the United States did not do the Hummer, the Chinese do you? Moreover, these people are not doing the car. Small businesses key to put their own stronger, rather than the blind pursuit of the business bigger.
(according to In the