From a small workshop with capital of 5,000 to a household appliance magnate with annual sales of nearly 90 billion, till now it has passed 40 years. What is the key to this “Evergreen”? Analysis of the development may enlighten China enterprises with their growth.How to Keep away from the Mire of your
thomas saboHe Xiangjian, chairman of Midea Group Board, said that specialization was the only way for the healthy growth of enterprises, there were not many enterprises which engaged in a wide range of business in history. Guided by such concept, Midea keeps high alert on business expansion. This year, He Xiang Jian refused one organization that tried to unite with Midiea to purchase GE, the home applicance magnate in America. He thinks that at present Chinese enterprises have no capability to conform this kind of enterprise like GE. It is better and more actual to operate sticking brand.Winter’s Most Extraordinary thomas sabo Mania
He Xiangjian always thought 1997 was a hardest time for Midea. In 1996, the ranking of Midea air-conditioning degraded from the top three to the seventh, and the operating profit of Midea in 1997 only came from some investment income. He Xiangjian ruminated over the problem and maintained the trouble in centralized management system. At that time there were 10,000 employees and staff only reported to him while efficiency was low and the products could catch up with the market.How to Buy like Zoe Saldana with thomas sabo uk
He decided to reform the management system by adopting decentralization and "business unit system”, learning the lesson from some multinational home appliance giants. He divided the enterprise into relatively independent departments by the core products, and the department manager would be responsible for daily operations. The boss only needs to supervise these managers. The reform aiming at improving the efficiency of enterprise went in force immediately, but its process was painful. At that time, 90% corporate executives opposed the reform, facing unadoptable new enterprise environment, the senior man opening the business were persuade to retire one after another.
The smooth development of Midea is due to it completed the process of clearly established ownership earlier in large part. At first, the local government had been very supportive of the development of Midea, but because of institutional reasons, enterprise operating often had to obey the administrative rules rather than market rules. He determined to say "no" to this ambiguous state. In 1992, the state began promoting enterprises to transform into join-stock ones. At that time, the government encouraged big town enterprise pilot project, but only Midea barnstormed, and finally it became the first town enterprise that finished the joint-stock revolution.
Compared to other domestic entrepreneurs at the same level, He Xiangjian has few social positions. He do not want to be an official, and thinks that the method of being an official is different from that of making money, and they also have different pursuits. He just wants to clearly find his own position. He believes his character of being ready to say “no” to himself at any time helped Midea go though numerous difficulties and it is also the core spirit which made Midea the century-old business.