"Isn't the Beidacang Group very good? Why did it want to acquire the Hope Group again? They are also well run, and we have always focused on supporting them."
Zhang Ruiqiang also doesn’t quite understand why the two companies should be merged, especially since Beida Canghui has changed from a state-owned company to a state-owned company.
If it were ten years earlier, companies were not making any money at that time. Not to mention controlling and participating in shares, many were sold directly, because in their own hands they would lose money, which could also reduce the burden on the government.
But things are different now. Beidacang Group is the fifth largest agricultural and sideline products company in the world and the first in Asia. It is inevitable that many people will talk about the sudden loss of state-owned assets’ dominance.
"You still remember what I said, if small companies merge into large companies, they will be more competitive internationally, right? Facts have proved that state-owned assets have merged with many companies in recent years. Are they more competitive and making more money? Already?"
"But there is also a big problem here, that is, for your state-owned assets merger company, the leadership team should be selected from those people. I am not saying that they are necessarily bad, but everyone may be good at different directions. They are good at management. , but may not be good at business.”
"That is to say, they may be suitable to be chairman of the board, but not general manager. The chairman of the board is very important, but the general manager is a more direct participant in business operations."
"For example, in my Taihua Holdings, I am the chairman, but my working hours are not even one-tenth of Liu Chuanzhi's. This is the result of the cooperation between Liu Chuanzhi and Zong Qingxian. Their hard work is evident."
State-owned assets have also been engaged in corporate mergers, merging small businesses in some places into group companies to increase competitiveness and then go abroad.
For example, if a food trading company combines agricultural planting, food processing and packaging, it can form a one-stop industrial chain, greatly reduce costs, naturally increase profit margins, and enhance competitiveness.
For example, if an electrical appliance company forms an industrial chain from R&D and production of electronic components to electrical appliance assembly and production to sales, it can also make more money.
Unless it is your unique industry, costs will always be the most important concern for companies. But even if you are unique for the time being, many competitors will soon appear and imitate, not only Chinese companies, but even foreign companies.
Even when Microsoft was at its peak, it wasn't unique, and didn't it have competitors
For example, L-PAD was first launched by Lianxiang Group, but within half a year, other PC manufacturers also developed their own products? Some purchased patent licenses from Lianxiang Group, and some simply bypassed these patent blocks and used some alternative technologies.
Although L-PAD is still the best product in its category, its market share is no longer 100%, and someone is coming to share the profits.
L-PAD will not be anxious at this time. In fact, this has great benefits. It will no longer be said to be a monopoly, and it can also highlight the superiority of L-PAD's products.
Can a product that took several years to develop have the same quality as a product that took half a year to develop? The technology of foreign PC manufacturers is not much better than that of Lianxiang Group, and many of them are even inferior to Lianxiang Group. This naturally puts L-PAD in a different class from other tablet computers.
However, except for some strategic industries, such as banking, communications, energy, steel, etc., other mergers of state-owned enterprises are not very good.
The most fundamental reason is insufficient execution and too strong resistance.
Let’s talk about the mobile phone industry. In addition to Fengyu and Aihua, there are more than ten well-known mobile phone brands in China. This does not include those copycat manufacturers that no one understands the brand at all.
Half of them are state-owned enterprises, or controlled by state-owned assets.
There are many excellent engineers in these companies, but why can't they surpass Fengyu Mobile? Even compared with other foreign mobile phone manufacturers, the gap is obvious
First of all, it is naturally a matter of research and development direction. Fengyu mobile phones lead the world in this regard. Feng Yu knows what consumers prefer and what functions are more practical.
The second is that these companies have insufficient R&D funds. Technology R&D cannot be done without money.
The last point is that they are too fragmented. The profits of ten companies that are one-tenth the size of Fengyu Mobile are less than one-tenth of Fengyu Mobile. Their costs are too high and their competitiveness is too weak.
If these mobile phone manufacturers merge, then R&D costs can be saved a lot, and other costs such as advertising costs can be greatly reduced. But why don't they merge
There are many people who oppose it.
Some people say that there are Fengyu brand and Aihua brand in China, but those excellent foreign manufacturers are not good enough, let alone them, so they naturally put themselves in a lower position.
And the most important point is, who will be in charge after the merger? You have a brand and we also have a brand. Whose brand will be retained and whose brand will be abandoned
Who will be the boss of the merged company, and who will be forced out? There are so many interests involved that it is difficult to handle.
In fact, the most direct way at this time is for some people to take the initiative to give in, so that the enterprise merger can be successful and enhance competitiveness.
Feng Yu once said that if the state-owned assets agree, then Bingcheng Machinery Manufacturing Group can merge with Yiqi. Naturally, Yiqi will become a subsidiary, and the state-owned assets' shares will also be increased.
Either let Feng Yu invest and control 51% of the equity, or give Feng Yu a veto power, and he can make state-owned assets the major shareholder.
But the superiors were still studying it, and they got angry and made a fuss over there, not agreeing with it at all.
Yiqi felt that his own development was quite good, and his spare parts were world-class, so why should he merge with others and become a subsidiary? Especially the angry boss was forced to become a deputy, which made him even more dissatisfied.
That Li Dafu is so virtuous and capable that I want to be his deputy
Therefore, there are too many problems in the merger of state-owned enterprises. The most important one is that some managements are obsessed with power and are very obstructive. If we don't use China's strength to integrate resources, we will definitely create several companies that monopolize the domestic market. Internationally, they will also be large companies at the forefront of the industry, and even become the top.
Some of the previous forced mergers were successful, while others failed. The most critical point is to see whether the company's leadership is excellent, and then to see whether the merged industry is correct, and whether both parties can complement each other's advantages or expand their advantages in a certain aspect.
"Feng Yu, if there is a merger, can you give up your veto power?"
"If I stay, what harm will it do to the company? Don't you think that if I supervise the operation of this company, it will make the company develop better? Without me, would there be Beidacang Group?"
"Okay, I understand, I will solve the matter of Beidacang Group for you."
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