To be honest, Shangtong Trading Company is so large and has so many subsidiaries that it is very rare in the world. It can be said to be an economic monster created in a special period.
Under normal circumstances, the service industry is the least likely to be monopolized. Although giant companies may be born, they basically focus on a certain service industry segment.
For example, in the hotel service industry, many giant companies have been born, but the fields they are involved in are basically industries related to the hotel service industry, and they will never deviate too much.
And even so, in the field of hotel services, many industry giants will be born, and it is impossible for one company to be the only one. Moreover, there are countless small and medium-sized hotel service companies, and there are countless family workshops.
But currently in China, most of the hotel service industry is in the hands of Shangtong Trading Company. Although there are sporadic other hotels born, in terms of scale and market share, they are almost negligible.
Moreover, Shangtong Trading Company has established nearly 10 hotel service industry subsidiaries based on the hotel brand service positioning, covering the fields of high-end hotels to express hotels.
The purpose of doing this is to try to downplay the fact that the hotel industry is highly monopolized. Although this is the result of its own strength, no matter what industry it is, achieving absolute monopoly always makes people suspicious.
The second is to create competitors for its hotel service industry. Hotel brands of the same level usually have at least one company of the same type, allowing them to compete with each other and conduct assessments every year.
This model is now very common in commercial trading companies. In these subsidiaries of the same nature, except for the top management who knows that they and their competitors belong to the same group company, the middle and low-level employees below do not understand this at all. situation.
This is not because there is any ulterior motive. The reason for doing this is to create a competitive atmosphere and make the people working below have a stronger sense of competition.
Otherwise, everyone below will know that the competitors on the opposite door are actually the industry of their own parent company, their fighting spirit will be much weaker, and their competitive awareness will be much worse. In this case, there is no need to separate into multiple companies.
Although senior executives know that their competitors are from the same parent company as themselves, promotions, salary increases, status improvements, etc. are closely related to the mid-year evaluation they submit, and are also closely related to the vital interests of these managers.
Therefore, even if the top management knows these things about each other, they will have a strong sense of competition. Generally speaking, the higher you get to the top, the more competitive you become, and you can even get very competitive for the sake of so-called face.
As for the support situation, Shangtong Trading Company has grasped the essence of its boss, that is, it will provide a lot of resource support in the early stage, but if it feels that it is enough, it will basically ignore it and let them develop on their own.
Moreover, it will not interfere too much in the management of these enterprises. Anyway, it has introduced advanced intelligent management systems, making it very convenient for the parent company to supervise these subsidiaries.
Generally speaking, as long as there are no principled issues, the parent company will generally not interfere with the operation of its subsidiaries. This management model is also implemented in many companies under Zhao Yi.
For example, Tianji Agriculture and Animal Husbandry Company divides its subsidiaries according to the types of agricultural products, and establishes multiple subsidiaries to operate in the subdivisions of agricultural product types.
So the situation we see feels like there are only a few super giant companies in the country. In fact, from the perspective of ordinary people, it is difficult to feel the presence of these giant companies.
The most personal experience of ordinary people is that the dazzling array of brand stores on the streets and various hotel and accommodation service companies provide them with numerous choices and enrich their daily lives.
When you see eight or nine hotels standing in a business circle, and although each hotel has a different positioning, the competition is equally fierce, you will never think that these hotels actually belong to the same company.
This is still an industry established under the leadership of the headquarters of Shangtong Trading Company. The parent company has great rights in management and needs to submit operating reports every quarter.
Companies that are founded by employees on their own application have more independent autonomy. Some even have financial rights controlled by the parent company, including human resources, legal affairs, etc., are very independent and basically have little to do with the parent company. .
The purpose of this is to fully respect the rights of the founders. After all, the founders sometimes have a clearer understanding of how the company operates than the parent company. If the parent company interferes too much, it will restrict the development of these companies.
Like the vice president of Liren Jewelry Company, the company he established before was of this nature. In addition to financial rights, he basically has all other powers in his hands, which plays a great role in the operation of the company.
Moreover, these founders will also feel that they are respected enough and rarely have conflicts with the parent company. This model is very suitable for ambitious and capable people.
Although most or even all of their shares belong to the parent company, as founders of the company, both their status and salary will be greatly improved, which is much better than their previous positions.
However, not everything is indifferent to the parent company. If there is a problem with the business operation, the parent company has the right to ask the founder to explain the situation.
If there are indeed business difficulties caused by the founder's personal reasons or other reasons, the parent company also has the right to directly intervene to assist the founder of the company in reforming the business.
For example, if the founder of the company before the vice president of Liren Jewelry Company resigns, the parent company will adopt a general subsidiary management model, and its independence and autonomy will be reduced by one level.
Of course, this does not mean that all enterprises founded by the parent company will remain unchanged. If the persons in charge of these subsidiaries have made great contributions to the development of the enterprise over a long period of time and have proven their ability to operate independently.
The parent company will also give greater autonomy, even like the founder's company, except for financial management and the parent company, other rights have complete autonomy.
This is not stipulated in a clear legally binding contract, but a tacit understanding between the parent company and the subsidiary. Although it is not written in black and white, it is effectively binding internally.
If you are a small business, you may go back on your word, but in a giant company, promises are also very binding. If you go back on your promise, the entire management system is likely to fall apart.
As for the management system based on tacit understanding, the intelligent management system also has special subsystems to constrain it. If there is a violation of the promise, it has an efficient appeal channel.
Generally speaking, the management of the parent company will not make such low-level mistakes. The purpose of this complaint channel is to target third- and fourth-level subsidiaries, because the more layers there are, the harder it is to control the management, and any situation is possible.
Of course, this tacit understanding and commitment is not unbreakable, but only when there is an adjustment to the overall management structure of the parent company, and when necessary, will the relevant commitments be modified to adapt to the corporate development situation in the new era.
This is why it will not be implemented in black and white with legal effect, because when it comes to the adjustment of the overall management structure, it must have encountered difficulties that cannot be overcome by the current management system. Failure to adjust will mean complete decline.
In this case, if the management structure fails to be adjusted due to previously signed legal documents, it will cause great harm.
If it is a small business, even if such a document is signed, there will not be a big problem. After all, the size of the subsidiary will definitely be very large. It is easy to turn around if the ship is small. You can even ignore the subsidiary and the parent company can complete it by itself. Reform and adjustment.
But for giant companies such as Shangtong Trading Company, Tianji Agriculture and Animal Husbandry Company, Baiwei Food Company, etc., it is not so easy. If their subsidiaries all file legal documents to oppose the reform, the effect will basically be great. discount.
In the final analysis, this model is similar to the ancient feudal system. The land of the major vassal states belongs to the emperor in name, but in fact it is controlled by the princes with real power.
The advantage of this system is that it can reduce the management energy of the parent company and reduce administrative costs. At the same time, it will not affect the free play of the subsidiaries, and the operating vitality will be strengthened.
The disadvantage is that there may be a situation where the subsidiary company does not follow the fundamental interests of the parent company and does its own thing, resulting in a fragmented system that is defeated by the enemy one by one, which may eventually lead to the collapse of the entire system.
Of course, this management model is very suitable for giant companies with very complex businesses, such as Shangtong Trading Company, Tianji Agriculture and Animal Husbandry Company, and Baiwei Food Company.
For giant companies with relatively single businesses, this management model is not necessary. For example, Hualong Clothing Company, their management model is a single management model.
Although the number of effective brands under it has exceeded 5,000, all brands belong to the same company, and the entire system is managed together, and there is not even a subsidiary.
Their competition style is reflected in the competition between various brand project teams, rather than the competition between homogeneous subsidiaries. This does not mean that the adoption of a single company management model will definitely lead to bloated management and loss of competitiveness.
At least the current single management model of Hualong Apparel Company is operating very well. The efficiency is much higher than the management model of many subsidiaries. Moreover, because many resources are shared, it will save management costs and reduce indirect costs.
In terms of competitiveness, Hualong Apparel Company has made great efforts in the international apparel field and has carved out a huge market. Its competitiveness is absolutely unquestionable, and this management model continues to help Hualong Apparel Company compete for a broader market.
This can also be seen from the fact that there were only two or three thousand effective brands in the past two years to more than 5,000 now. Their brand vitality also reflects their brand competitiveness.
You must know that more than 5,000 of these are valid brands, which means they are brands used in the market. There are also a considerable number of brands that have been eliminated after market testing and are considered invalid brands.
As for the birth of ineffective brands, a considerable number of them were killed by other brands of their own companies, and some brands were killed by other clothing brands.
Regardless of the reason for the failure of ineffective brands, it shows that these brands have no market competitiveness and are eliminated by the market. The remaining effective brands have very strong market competitiveness and have won a large number of consumers. recognition.
In terms of cost management, in addition to the highly competitive brand project team of Hualong Apparel Company, many other resources are shared, and there will never be idling. The resource utilization rate is higher, and the unit personnel efficiency is also the highest.
If cost management is not good, Hualong Clothing Company will not be able to maintain its net profit margin above 40% all year round. In some years, the net profit margin may even exceed 50%.
The Shangtong Trading Company and Hualong Clothing Company exemplified above are typical representatives of the two models and are extreme enterprises of the two management models.
Most companies are actually somewhere between the two in terms of management. Although Haiyan Shipping Company's business is relatively simple, it builds various ships, on the surface it is no different from Hualong Clothing Company.
But the difference between them is that the competition between the brands of Hualong Clothing Company is very strong, while the competition between the various ship types of Haiyan Shipping Company is not very strong, and each has its own strengths.
But it is definitely not possible to eat from the same big pot. If things go on like this, their competitiveness will definitely weaken, especially when their technical advantages are no longer there, it will gradually become apparent.
Therefore, in order to increase the company's external competitiveness, they established various sales departments according to the types of ships, and then calculated performance based on the total market size of the ships and their performance.
In order to achieve higher performance, get higher remuneration, and get better promotion opportunities, it is natural to work hard to expand the market and get more orders.
This model was relatively common in previous generations, and many companies with strong market demands would adopt this model to develop and grow their companies. It is considered a relatively mature corporate organization and management model.
Of course, internal competition is not only reflected in the marketing department, but also the R&D department, production department, etc., will all have competitive assessments, but they are not as eye-catching as the marketing department.
Therefore, the companies under Zhao Yi do not provide a unified management model. The company management can design its own management structure based on the business characteristics of the company, and then report it to Zhao Yi for approval before implementation.
Facts have also proven that this kind of enterprise management model that adapts to local conditions is much better and more effective than rigid dogmatic management, allowing these enterprises to maintain good management while rapidly expanding without "derailment" Case.
Although his companies have been so successful, each one has become a super giant company, especially Shangtong Trading Company, which can be said to be the largest in the world in terms of asset size and business scope.
However, this system is not without its problems. It is just that Zhao Yi will not appear now. When he is gone, the problems it will cause may be very prominent and even seriously hinder the development of the national economy and people's livelihood.
It’s just that Zhao currently has limited energy. Even the current number of first-level companies is a bit too much for him. According to him, it would be better if it could be streamlined. There were some corporate mergers at last year’s annual meeting. action.
Because in his opinion, the fewer the number of first-level companies, the less workload he has to deal with, and he can devote more energy to the things he is interested in.
It's just that this model will not be applicable in the future. If there is no powerful figure above to control the overall situation and has enough prestige and skill, it will be difficult to get first-tier enterprises to obey his orders.
And as time goes by, the original mission of establishing these enterprises will be gradually lost, and eventually they will become purely capital interest groups, and they may even neglect public interests for their own private interests.
Therefore, in the future, these super giant enterprises will undergo a disruptive reform, completely decompose and reconstruct the enterprise, and form a large number of first-level enterprises of moderate scale.
These assets are then incorporated into a specialized management committee, which has a management committee to coordinate and manage the general development direction of these enterprises, but does not have the right to directly interfere with the operation of the enterprise.
The purpose is to create a situation of mutual checks and balances between the top and bottom, and to avoid the situation where one family is dominant or one person is dominant. In this process, even if there is a loss of efficiency, it is worthwhile.
Moreover, such a reform must be implemented by Zhao Yi himself. If it were done by someone else, various problems would probably arise. Not only would the reform not be good, but it would become worse.
To be honest, even if Zhao Yi personally presides over this subversive reform, he is not completely sure. I can only say that with him here, at least there will be no out-of-control situation.
For this purpose, he has also prepared many back-ups. The first one is his huge overseas assets. Although they are not of much use to him at the moment, at critical moments, they have a very powerful helping hand.
The second is to personally get involved in some business fields. Beauty Jewelry established this year is his first attempt. In the future, he may get involved in more fields, and even compete with his original industry.
The purpose of doing this is naturally to prepare for the subversive reforms that will follow. If you don't have a single card in your hand and just rely on your own prestige to act, everyone will be happy if there is no problem. Once there is a problem, it will be a big problem. .
Even he may not be able to handle it when the time comes. If it affects the national economy and people's livelihood, no matter how great his previous contributions are, he may not be able to do good.
Of course, although the assets of Liren Jewelry Company are publicly listed in his name, it is different from before. In the past, these assets were hidden in his name and kept secret from the outside world.
But in fact, the management is still handed over to professional managers, and he himself does not participate much. From this perspective, it still follows the original path.
In order to avoid this situation from happening, he needs subordinates who are particularly obedient and have the ability to obey absolutely to help manage. However, in the real society, how can there be such loyal people? Even if there are, they are rare.
That's why he needs to carry out research and development of high-end robots and develop robots that are no different from ordinary people. In his opinion, only robots can be absolutely loyal and will not do anything against him.
This is not because he has a strong desire for control. Otherwise, his previous industry would not let professional managers take care of it, but would prepare for the future, just in case.
In fact, he didn't tell anyone about the robot research he was doing. Even Lin Hexia and Zhou Jinyu didn't know about it. They just knew that they would stay in the laboratory if they had nothing to do this year. They didn't know what he was tinkering with.
The equipment support he needed was also deconstructed and distributed to many of his companies for independent implementation. Corresponding confidentiality levels were also set, and even the key parts were completed bit by bit by himself.
After these high-end robots are completed, he will produce a batch and divide them into three main uses. The first is to add experimental assistants to his laboratory to free him from specific experiments.
The second is to send a group of high-end robots to various parts of the world, give them new identities, and let them lurk and do things that are inconvenient for them to come forward to do.
The third is to let these high-end robots help him manage the companies he will establish in the future, and even these companies may not necessarily let the people in charge know that he founded them.
These backup plans are just preparations for the worst-case scenario. If everything goes well, there is no need. Everything will return to calm and no changes will appear on the surface. (End of chapter)