Chapter 23 5 Questions Puzzling Chinese Entrepreneurs

There are five problems that Chinese entrepreneurs are most confused about. If these five problems are solved, the development of Chinese enterprises will basically be straightened out. The first is the expansion of the enterprise and the positioning of the industry. After the "15th National Congress of the Communist Party of China", the most talked about issues are low-cost expansion, acquisitions and mergers.This idea is very correct, but we can say that acquisitions and mergers are both opportunities and traps.Doing well is an opportunity, and doing poorly is a trap.Over the past few years, so many enterprises in China have been developing, and many of them have grown rapidly.what is the reason?Expand too fast and too big.Back then, Bu Xinsheng entered the suit production line prematurely, and suffered a catastrophe because of blind expansion.Giant brain gold can be obtained, but the health care products at that time have reached a point of inflation, like a balloon that is about to burst, it is very dangerous if you blow it up again, and you don’t know when it will explode.The Giant Group found some sweetness in brain gold and invested in 13 health care products at once.How was I when there was a room?I said that if one of the 13 products of the Giant Group is successful, the company will be able to survive; if none of the 13 products can be launched, the entire balloon will be blown.Immediately afterwards, China's health care products suddenly shrank by 50%, leaving only 10% of the market, and the giant put all its funds in it, which was miserable.When our Chinese enterprises develop to a certain level, they are often prone to overheating.There are more and more companies under the enterprise, and the structure and management framework of the enterprise are becoming more and more complicated, but the power of the enterprise is not very good.We all know that when a tree is very luxuriant, if its nutrients are not supplied, such a tree will not grow big.

When I researched the development of large international groups, I found that 72% of the world's largest companies are engaged in a single industry, 14% are engaged in related multiple industries, and only 14% are successful in non-related diversified industries.Therefore, I have followed the development of major Chinese brands for three consecutive years, such as Chunlan, Changhong and Haier. Changhong is the TV king, Chunlan occupies the air-conditioning market, and Haier refrigerators are well-known throughout the country.These 3 companies have followed 3 development ideas. Haier is only engaged in home appliances, Chunlan is engaged in everything, and Changhong is specialized in color TVs. We say that an enterprise is the externalization of the entrepreneur’s personality. The key is how the entrepreneur thinks and what you bring to the enterprise. Location.In terms of the positioning of our entire industry in China, it is really a bit vague.Many of our corporate product brands have encountered troubles as soon as the product brand is extended. For example, "Wahaha" was the first to develop children's oral liquid. "Drinking Wahaha, eating is delicious." It means: "Little ancestor, take a bite."Parents saw that after eating this thing, it tastes delicious, so why don't they buy it?The second product was very successful, Wahaha milk products.A little girl says "Mom, I want a drink" and the parents buy it right away. The thinking behind "Wahaha" has become chaotic.When the third product came out, it was Children's Sensation Corning.Everyone knows that children hate taking medicine, so the appearance of cold medicine will damage the image of this brand.

Big foreign brands, like McDonald's, also produce aircraft, including the McDonnell Douglas Aircraft Company, which produces the MD82, which is one of the most important aircraft models in China.Will it print McDonald's on the plane when it produces the plane?If this golden letter is printed, others would not dare to ride on this plane, it would be like sitting on a "Big Mac".This is a relationship of financial ties, not a relationship of brand image.Therefore, I think a particularly important principle in life is the principle of appropriateness.Choose the right industry, choose the right speed of development, and the right way, and don't be greedy for big things.In the end if your property is too big, you will get out of control.Therefore, when it comes to industrial positioning and development, many factors must be considered, including the situation of the international market, the situation of Chinese competitors, the prospects of this industry and our own advantages. This is a big thing that confuses Chinese entrepreneurs.

The second is a management issue.How to manage people?We often say, "When a talent becomes a talent, it is the day when he changes jobs." This question puzzles many of our entrepreneurs.China has been looking for ideas that can truly manage people well.People think that the Chinese are very smart, but they find it difficult to cooperate with the Chinese, and the cooperation is difficult to last. People are looking for management methods.Napoleon once said: "There are no useless soldiers in the world, only useless generals." Management mainly depends on leadership.There are two methods of personnel management: the first is to straighten out the management relationship; the second is to establish concepts.The handling of internal relations is very troublesome. We have consumed a lot of resources and a lot of thought in this area, and people are exhausted.How to establish internal management relationship?I would like to say four sentences in principle: the wise are on top, the capable are in the middle, the workers are on the bottom, and the wise are on the side.What is sage living above?The highest decision-making level should be a good sage.The key to the so-called sage is not ability. It is best for the top leader to be able to do it, but it doesn't matter if he can't do it.Because it is useless for the top leader to be capable alone. Even if our leader has three heads and six arms, it is only equivalent to three people, which is useless.The key to being the top leader is being a sage. Chairman Mao said that being a leader requires two things: giving ideas and using capable people.We can slightly change what Chairman Mao said.Adopt ideas and make good use of capable people.Now the idea does not depend on one person, the key is to adopt the idea and make good use of capable people at the same time.The key to being the number one leader is whether you are virtuous or not capable.Everyone knows that Liu Bei can't do anything, and he has to listen to Zhuge Liang's ideas.Liu Bei was able to succeed because he is a sage, and his greatest ability is to cry. When his brothers and soldiers saw him crying, they patted their chests and said, "Don't cry, let's go with our lives." Refers to whether the middle-level cadres are capable or not.Workers living below means that professionals are on the front line, and the technical backbones of each department are professionals, and they are on the front line.China generally promotes professionals to leadership positions, so they are promoted to deputy factory directors. Our engineers are first-rate in drawing drawings, but our leaders are third-rate.We have to change the consciousness of the official standard.Being an official is a choice in life, or an important choice, but it is definitely not the only choice.

There are often three levels of people in an enterprise. The first level is called personnel, and it doesn’t matter if one is more or less; the second level is called talents, which are more important; the third level is called characters. Going on, this kind of person is an indispensable person in the enterprise.These people are the most important wealth of the enterprise.We know Zhang Binggui, he has never been the assistant to the general manager of Beijing Department Store, he has never been, and he does not need to be. the whole spiritual pillar. The wise man's side refers to a group of think tanks who become your "brain outside the body".There is a theory in the West that if a company's assets exceed 10 million US dollars, if it does not have a think tank, the life cycle of the company will not exceed 5 years. As long as there is a major decision-making error, the company will be over.Therefore, an "external brain system" must be established. In the late 1980s, I worked as the chief consultant for a company in Shenzhen for 3 years. The boss of this company is the most handsome boss I have ever met. He spends 1/3 of his time abroad and 1/3 of his time as a manager. , 1/3 of the time in the country.He invited 5 consultants, and I was his chief consultant, mainly responsible for brand and development issues, as well as legal consultants, financial consultants, and foreign affairs consultants.He doesn't have a single book in his office. He said there are so many books, what should I read?In the second half of my PhD, I can't read you.You read books, and after you read them, what do you think I should know as a president? Don’t you just tell me?Once he took 12 entrepreneurs to inspect the investment environment in Shenzhen. He said he didn’t know whether to invest or not. All five of our consultants went and started working after a three-hour break.At the end of the day, the boss said that you were very busy after returning to Shenzhen and couldn't find you. Should I do this project or not?I said there is no problem with this, we just need to work overtime at night.The political consultant and I started to figure out the whole feasibility question.He came back after playing billiards at two o'clock in the morning. We told him the evaluation results, and he made a decision immediately.This boss is very chic, and he only made 7 phone calls to the company in 9 months in Europe.Try it with the bosses of other companies. After you go abroad for a month, after you come back, the position of boss may not be yours anymore.The overall management relationship of his company is very smooth. After he retired at the age of 60, the company was in chaos and later split up.

Therefore, the establishment of internal management relationships in an enterprise is a very skillful thing. If this problem is not resolved, the work efficiency will not be high, and it will be difficult for the enterprise to develop a good momentum of development.After the enterprise develops to a certain level, the biggest obstacle is the internal management problem.Many companies are stuck in their own place and defeated by themselves.Therefore, the establishment of a management framework is very important. When engaging in management planning, sometimes it feels a bit like a bayonet.What else should be done besides managing relationships?Establish a corporate philosophy system.Many of our comrades say that philosophy is a very empty thing, but in fact, it is not empty!At that time, the Communist Party of China relied on two concepts to build its army, one was to serve the people, and the other was the three major disciplines and the eight points of attention.Two ideas that basically transform the soldier from an individual into a people's army, into the best army in the world.By what?Rely on ideas, rely on spiritual strength.Now many of our companies are looking for distant inspiration.Haier's "sincerity forever" or "wholehearted little swan", or today's group's "everything good starts today", they are all looking for ideas, and they put the ideas into action.A friend of TODAY Group once went to Beijing on a business trip. He read the news in the Evening News, saying that a child was sent to the hospital for medical treatment. His parents couldn’t pay the medical bills and ran away. He went to the hospital immediately and paid all the medical expenses. Tell his father to take the child away, and if there are any difficulties, their company can help them as much as possible.Because the concept of "Today" is "everything good starts from today", this is the success of the concept.A real estate company in Nanjing gave the famous star Liu Xiaoqing a villa worth hundreds of thousands of dollars. After spending so much money, there was a lot of criticism because the concept of this event was wrong.The boss of a jewelry store in Ningbo gave jewelry worth 160,000 yuan to the star, and the boss was arrested.You spend a lot of money, why the impact is not good?Because your idea is bad.Haier Group sent 100 films to the countryside. This activity is very meaningful and reflects the concept of "sincerity forever".Both internally and externally need ideas. The employees and bosses of the company realize a dream together. With such a concept, the company is invincible.

The third question is how to do marketing.According to foreign marketing experts, China's marketing development level is about 30% of the international marketing level.Our traditional marketing simply refers to a few "does": thousands of miles, hard work, and thousands of words.Now looking for a new marketing idea, where is this marketing idea?In this regard, our planners are especially required to find marketing ideas suitable for China according to China's conditions.We all know that the Chinese market is different from the foreign market. If you only study foreign marketing, it is not feasible at all, and you can't do it at all.For example, if you see an intersection, how do you manage the intersection well?Ask a foreigner to take care of it, and he will install a traffic light.But in China, a traffic light can never manage the intersection well. It must have a sentry box, and there must be someone with a red hoop, a fine ticket in his hand, and a whistle in his mouth. This is China's national conditions.How to do the Chinese market and how to build the market network, this issue must be completed by Chinese planners.In fact, if you can build a marketing network in the next few years, your network itself will make more money than your products.Please remember this sentence, whoever owns the Internet in the 21st century will have success.

The fourth question is how to conduct words, deeds and public relations activities.As you all know, Chundu ham sausage entered the market with an advertising fee of 600,000 yuan. How effective is it?Hard to say.Now how to start the market, how to do advertising?People are now following TV programs. For example, the ratings of TV shows are very high, but there are 9-minute commercials from 20:00 to 20:09 before the show. This time is the time when almost all big cities in China consume the most water.Why?People went to the toilet, and he knew that after using the toilet, he could watch it after making a cup of tea.So what if you saw the ad?I saw that he didn't remember it.Children are the most familiar with advertisements now. The colors of advertisements are more colorful. Adults don’t like them, so they can’t remember them well, so what if they remember them well sometimes?He has no head.I have a friend who is an advertiser. There is a company that produces products related to turtles. After the turtles are refined, they are made into things like bullets.The manager of the company said that the quality of this product is very good. If you want to make an advertisement, the more specific the requirements, the better.My friend created an advertisement for him: Winter is coming, I will give you a bastard.Do you remember?I will remember it after listening to it.Winter is coming, I'll give you a bastard.Do you want to buy it?I don't want this bastard, I will never buy it.Some advertisements are even more outrageous, "XCMG, Xugong, I wish you success", repeated hundreds of times, the memory is there, but people don't buy it.People are confused how this ad does this?The same is true for public relations activities, starting with ribbon-cutting ceremonies, and then various bizarre activities, called "hot inside the industry, not hot outside the industry".Some activities are very interesting, and some reward activities are held, and the common people say that they get a lot of benefits.Who gave the benefits?Which company's product is it?I have no idea.This also had no effect.

The fifth question is how to promote the brand and image of the enterprise?Many of our companies have a certain degree of blindness when planning their brands.It didn't study the brand seriously, and started a brand at random. During the development and packaging, it encountered many problems, including famous brands such as Chunlan.Chunlan is a feminine brand. When it encountered difficulties in producing motorcycles, it sounded very feminine.It made a Chunlan Tiger and Chunlan Leopard, which sounds a bit awkward.The same is true for the outer packaging of many companies about the brand.How to do it?There is a CI design problem here.Many of our companies follow the traditional path when designing, but take the first two pinyin letters as design elements.I know a boss who is the general manager of Wangjiang Hotel, and the business card he gave me has WJ printed on it. Fortunately, I knew it was Wangjiang Hotel, but I didn’t understand it and thought it was “Armed Police Force”.Our entire creative thinking is very single, and it is still the same now, and a beautiful logo is the end of it.Image design is a system engineering, not that simple.The foundation of China is to stay on CI, if it is further improved to VI, it will be a worldwide behavior.

Chinese entrepreneurs are most confused by these five issues: industry positioning, management, marketing, advertising and public relations, brand and brand image promotion.These problems are what Chinese companies need to plan most. It is a system engineering, and if it is not considered systematic and relevant, it will easily lead to the failure of the company.