Chapter 77 Become stronger first, then become bigger
After returning to Jiuquan from Bameng Farm Reclamation, Guo Yang asked people to collect some journals and newspapers about the recent domestic dairy and seed industries.
We looked at each other side by side.
In the field of seed industry, due to the promulgation of the "Seed Law", various seed companies are extremely busy.
But Guo Yang always feels that the seed industry is a bit loud and slow in action.
‘Government-run’ seed group companies are busy going public, but such companies lack incentive mechanisms and are difficult to avoid corruption. Shazhou Seed Industry is one of the representatives.
State-owned companies are busy restructuring, but redundant employees who are difficult to lay off are still a heavy burden. For example, there are as many as 200-300 people in a county-level seed company, and only seven or eight people actually work to create profits.
In addition, scientific research units are busy opening companies, private enterprises are busy competing, regional seed companies are busy teaming up to keep warm, and outside capital is busy making mergers and acquisitions.
Seed companies across the country are fragmented and fragmented, and the vast majority of seed companies or breeding units have problems with unclear property rights and chaotic management.
For Tianhe Seed Industry, it only needs to adhere to the established strategic planning route for the seed industry.
At this time, large-scale mergers and acquisitions in the country do not seem to be a wise move.
In the field of dairy industry, it was in the Warring States Period when all the heroes came together.
Bright Dairy and Yili Group have expanded rapidly in the industry, and many capitals from outside the industry have also poured in.
But the most eye-catching thing about the dairy industry in 2002 was the entry of New Hope.
When he saw New Hope’s capital operations, Guo Yang couldn’t help but be stunned for a long time.
In the second half of 2001, New Hope completed the acquisition and reorganization of Yangping Dairy Company in Sichuan Province by mistake.
But in the following year, the acquired Yangping Dairy showed good performance.
Perhaps it was the huge profits of Yangping Dairy that made the group leaders’ eyes light up.
Since 2002, New Hope has spent more than 400 million yuan to control or participate in 12 local dairy companies that are ranked first or local through acquisitions, mergers, reorganizations, cooperation, etc.
For example, Baidi Dairy in Hui Province, Huaxi Dairy in Chengcheng, Tianyou Dairy in Chongqing, Diequan Dairy in Dengchuan, Yunnan Province, in addition, Ji Province, Hangzhou City, Hebei Province, Shandong Province...
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In less than a year, New Hope Group has initially completed its layout in the national dairy market.
New Hope Group's strong mergers and acquisitions in the feed industry achieved great success, and also established the group's leading position in the feed industry.
Now, he wants to use the same capital operation method to gain a leading position in the dairy market...
Guo Yang got up and walked to the window.
I don’t know when, the earth has been rendered into a white snow, the buildings and trees have also put on snow caps, and the wood carvings have become particularly cute.
Picturesque snowflakes are still falling from the sky, making this small town located on the northwest frontier more solemn, peaceful and beautiful.
Guo Yang realized the limitations of the existing management of Alfalfa and Tianhe.
The stall is getting bigger and bigger, and the number of investment projects and employees is also increasing.
But it may be the fault caused by planting in the previous life. The mentality of small farmers is deeply ingrained, and the selfish psychological factors can never be erased.
As a result, Guo Yang likes to do many things by himself.
I was a farmer in my previous life, and farming large areas is very risky. If you do it well, you will get a good harvest, but if you don't do it, you will get no harvest, so it is more reliable to do it yourself.
Especially fertilizing and spraying pesticides, Guo Yang in his previous life basically did not borrow them from others.
Even if it is drone flight defense, in the end he will do it himself.
In agriculture, don’t regard yourself too much as the boss and rely too much on hiring people. Hiring people is equivalent to sharing your own profits.
Agriculture has inherently small profits and high risks, and if there are any slight setbacks, it will get deeper and deeper.
There is a saying that goes like this: If you have a grudge against someone, ask him to engage in agriculture.
He realized that he had brought the thinking and habits of his previous life into the current management.
Obviously as the scale expands, this method is no longer applicable.
But is New Hope Capital’s operation model applicable?
There is a very similar point in the strategic plans of Alfalfa Agriculture and Animal Husbandry and New Hope Group. They both hope to use forage or feed as the basis to open up the upstream and downstream industrial chains. A relatively complete industrial system has been formed such as planting industry (feed raw materials) - feed - breeding industry - food and dairy industry.
The difference may be that the purpose of New Hope's entire industry chain operation is to control costs...
Thinking of this, the memory of Guo Yang's death began to resurface.
He recalled his job-hunting experience in his senior year, when he came into contact with New Hope.
It can only be said that New Hope Group is indeed very advanced in cost management, especially labor cost control.
Employee wages are generally low and expenses are controlled extremely strictly.
This is also the reason why New Hope has achieved great success in the feed industry where profit margins are slim.
Guo Yang picked up a newspaper from the table.
It also prints something that New Hope Group is proud of: the total salary expenditure of all employees of a subsidiary is less than one month's salary of the CEO of a subsidiary of its competitor CP Group during the same period. New Hope Group finally defeated CP Group by relying on low cost.
In recent years, perhaps we have seen the emergence and rapid growth of Dikang Group, Brilliance Group, etc.
The former richest man in China felt lost and under tremendous pressure, so he became extremely interested in capital operations.
Regarding capital operations, Chairman Liu once said: "It takes seven to eight thousand people to do feed, and the profit is 200 million a year; it takes seventy or eighty people to do real estate, and two people make a profit a year; Capital operation, seven or eight people, a year’s profit of 200 million”
New Hope Group’s love for capital operation is evident.
In terms of financial strength, Guo Yang asked himself that the funds that can be mobilized now are not much worse than New Hope.
The gap is mainly in asset scale, market share, marketing channels, production equipment, talent system, etc.
So does Alfalfa Farming and Animal Husbandry want to learn from New Hope and join this mess?
Perhaps if we proceed in such a slow and orderly manner, the downstream market will have been divided up long ago.
Guo Yang was pacing back and forth in the office, thinking, sitting down for a while, and staring at the snow in front of the window.
At this moment he suddenly wanted to have a cigarette.
After touching his pocket, he remembered that this body did not have the habit of smoking.
I couldn't help but sigh: "Sure enough, Alfalfa Farming and Animal Husbandry are very similar to New Hope. They have a strong paternalistic style."
"Everything is done by the boss to the bottom and the employees to the sky."
br>“Many important personnel deployment and business decisions of Alfalfa are basically made by me alone.”
Even if Guo Yang has not studied management systematically, he also knows that this kind of management method has big problems. of.
The company's organizational structure and corresponding functions are in name only, which not only dampens the enthusiasm of lower-level employees, but also brings considerable decision-making risks.
Thinking of this, Guo Yang gradually came up with an idea.
If we look at it from the perspective of 20 years later, New Hope Group still has strong capital, and has even entered the real estate, chemical industry, finance, dairy, steel, gas and other industries.
Although it is dazzling, few are famous.
The chemical industry is only slightly profitable, the real estate industry has received a mediocre response, and the future of steel is uncertain. The financial situation is slightly better without the group's participation.
In the dairy industry, it is still a second- and third-tier brand.
After thinking for a long time, Guo Yang gradually made a decision.
Strength and bigness are dialectical. If you are strong but not big, sooner or later you will be in a relatively weak position and will eventually be eaten by the big ones; if you are big but not strong, sooner or later you will be overtaken by the developing strong ones and the scale will not be enough. equals competitiveness.
More capital operation means resource dispersion, which also contains huge risks, and the biggest difficulty is enterprise integration after mergers and acquisitions.
Alfalfa Agriculture and Animal Husbandry does not have the management capabilities, and there is no guarantee that it can become bigger and then stronger.
The competition in the dairy industry in the future will be cruel.
Instead, it is better to cultivate your own talent system, management team, marketing channels, and corporate culture bit by bit.
Be strong first, then become bigger.
But this does not mean that we will completely stick to the rules. Necessary mergers and acquisitions are also indispensable.
Guo Yang called his assistant, a top business administration student recently recruited by the company.
Xie Shijie, male, has a master's degree, is tall and handsome, wears a pair of black-rimmed glasses, and looks elegant.
When he entered Guo Yang's office, his face was filled with smiles and his whole person was full of vitality.
Seeing his energetic appearance, Guo Yang was also inspired a lot.
Workers are so motivated, and bosses should take the lead!
Roll up!
Guo Yang also raised his spirits and gave instructions in a loud voice: "Shi Jie, notify the middle-level and above managers of the two companies to hold a meeting, Tianhe in the morning and Haohe in the afternoon."
"Yes, boss!"
Guo Yang trembled inexplicably, "Don't shout so loud next time, go get busy."
......
At the meeting, Guo Yang once again displayed his fine paternalistic style and unilaterally announced a new decision.
The two companies will allocate one relevant staff member from each company in technology research and development, operations, finance, marketing, sales, human resources, and law to form an internal early-stage M&A team.
At the same time, professional teams and personnel such as lawyers, accounting and tax experts, human resources consultants, and technical experts are hired from outside.
Subsequently, industry research and the selection of target companies for mergers and acquisitions were started in the surrounding areas.
Problems arose just when the M&A team was being formed.
(End of this chapter)